PRINCIPLES AND PRACTICE OF MANAGEMENT

MODULE 1 (2)

Dr. GOPINADHAN S. M.Com., MBA, MIB, Ph.D.

ADMINISTRATION V/S MANAGEMENT

According to Fayol, Administration and Management are same only thing is Administration is used with reference to government functions and Management is used with reference to business organisations. But the process and principles are the same. Oliver Sheldon says Administration is concerned with the determination of corporate policy, coordination of finance, production and distribution and setting up an organisation structure under executive control.

ADMINISTRATION V/S MANAGEMENT

Management is concerned with execution of policy within limits setup by administration and the employment of organisation for achieving objectives before it. Organisation is the process of so combining work which individuals or groups have to perform with faculties necessary for its execution, that the duties so formed provide the best channels for efficient, systematic, positive and co-ordinated application of available effort.

ADMINISTRATION V/S MANAGEMENT

Management Administration

1) It is concerned with activities intended to achieve the objectives laid down by administration. 2) It is connected with lower level management. 3) It puts the policy into action. 4) It refers to a group of employees with specialised knowledge. 5) It is the process of guiding and directing the operations to achieve the goals

1) It is concerned with the determination of major objectives

2) It is connected with higher level management. 3) It lays down the policy. 4) It refers to the group of owners.

5) It is the process of taking important decision about the enterprise

LEVELS OF MANAGEMENT

Managers perform the functions of management - planning, organizing, Staffing, directing, and controlling - varies by levels in the management hierarchy. The term supervisor could be applied at all management levels of the organization to those who direct the work of others. In common usage, however, the title tends to be used only in the first level of the management hierarchy. If an organization were divided into top, middle, and lower managerial levels, the term generally applies to the lower level. The entire business enterprise, from the point of view of management, can be divided into three levels, as shown in the following diagram:

ADMINISTRATION V/S MANAGEMENT

Management

Administration

6)

It resembles the entire body of a human being 7) Its decision are influenced by values, beliefs and opinions. 8) It is the executive function of getting things done by others. 9) This term is widely used in modern times.

6) 7)

It resembles draftsmen.

Its decisions are influenced by public opinion, social, economic, religious and governmental factors. 8) It deals with overall determination of major objectives. 9) This term was often used in ancient times.

LEVELS OF MANAGEMENT

I)

Top Level Management: In a corporate body the Board of Directors, Managing Director, General Manager form the top level management. They are responsible to the shareholders, government and public. It is they who set and define the objectives, formulate strategy and policies, evaluate and judge the results of the managers. They issue instruction for implementation of policies and take steps for accomplishment of the objectives by collecting the resources of the organisation. Top level management involves creative imagination, initiative, and sense of judgments.

LEVELS OF MANAGEMENT

LEVELS OF MANAGEMENT

II)

Middle level Management: Middle level management deals with task of implementing the policies and plans formulated by the top level. Heads of department like production manager, marketing manager, personnel manager form the middle level management. They have the right to give suggestions to top level management regarding plans and policies. The Middle level management is responsible for the execution and interpretation of policies throughout the organization and for the successful operations assigned to the division or departments. In this level the managers have to plan the operations, issue instructions laid by the top management, collect the resources required and control the work of the men.

LEVELS OF MANAGEMENT
Functions of the Top Level Management.

Setting key objectives, policies and identifying factors essential for the development of the enterprise.
Efficient accomplishment of goals in the enterprise and maintaining strategic balance in all actions taken by the authorities in higher level. Making appointments to the top position in the enterprise such as managers, department heads etc. Reviewing the work of different personnels in all levels. Controlling is the main function of the top management.

LEVELS OF MANAGEMENT
Functions of the Middle Level Management.

Important functions performed in the middle level management are as follows. Following the rules and policies formulated by the top management. Motivating personnel for higher productivity. Collecting detailed analysis report of the department and the personnels. Mutual understanding with other departments in the enterprise. Recommendations to top management.

LEVELS OF MANAGEMENT

III)

Lower level Management: Foreman, supervisors and sub-departmental executives form the lower level management or first line management. They follow the decisions of higher levels and are important for the organisation, because it is they who implement the policies and help to attain the organisations goals and objectives.

TRADITIONAL AND PROFESSIONAL MANAGEMENT

Traditional Management It rarely imparts training and development programme. Static, unrealistic, rule of thumb, trial and error, conservative and classical approach is followed It focuses on individuals. Specialisation is limited. It tends to be less effective in changing competitive environment. Professional / Modern Management It emphasises on training and development programmes for its employees. Scientific, dynamic, modern, Neoclassical and growth approach is followed. It focuses on teamwork. There is large degree of specialisation. It is more effective to meet challenges of changing competitive environment.

TRADITIONAL AND PROFESSIONAL MANAGEMENT

Traditional Management The business is owned, financed, managed and controlled by family members. The style of management is generally autocratic or paternalistic. Family relationship, castes, community is the main factor in selection of employees. Decision making is centralised. There is more emphasis on downward communication. Professional / Modern Management The business may be financed and owned by shareholders, but is managed by professional managers. The style of management depends upon the situation, but mostly it is consultative or participative. Education, experience and ability is the factor in selection of employees. Decision making is decentralised. It makes use of both upward and downward communication.

THANK YOU