Function of administration

MANAGEMENT
Dr. Jayesh Patidar
www.drjayeshpatidar.blogspot.com

04/10/2015 2
What is Management?
A set of activities
planning and decision making, organizing, leading, and
controlling
directed at an organization‟s resources
human, financial, physical, and information
with the aim of achieving organizational goals
in an efficient and effective
manner.

04/10/2015 3
What is a Manager?
 Someone whose primary responsibility is to
carry out the management process.
 Someone who plans and makes decisions,
organizes, leads, and controls
human, financial, physical,
and information resources.

04/10/2015 4
Kinds of Managers by Level
 Top Managers
The relatively small group of executives who
manage the organization‟s overall goals, strategy,
and operating policies.
 Middle Managers
Largest group of managers in organizations
 Implement top management‟s policies and plans.
 Supervise and coordinate lower-level managers‟ activities.
 First-Line Managers
Managers who supervise and coordinate the
activities of operating employees.www.drjayeshpatidar.blogspot.com

04/10/2015 5
Management in Organizations
Inputs from the environment
• Human resources
• Financial resources
• Physical resources
• Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
• Efficiently
• Effectively

04/10/2015 6
Figure 1.2
The Management Process

04/10/2015 7
The Management Process
(cont’d)
 Planning and Decision Making
Setting an organization‟s goals and selecting a course
of action from a set of alternatives to achieve them.
 Organizing
Determining how activities and resources are
grouped.
 Leading
Getting organizational members to work together to
advance the interests of the organization.
 Controlling
Monitoring organizational progress towards goals.www.drjayeshpatidar.blogspot.com

04/10/2015 8
Skills and
the
Manager
Fundamental
Management
Skills
Technical Skills
Interpersonal Skills
Conceptual Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills

04/10/2015 9
Fundamental Management
Skills
 Technical
Skills necessary to accomplish or understand the
specific kind of work being done in an
organization.
 Interpersonal
The ability to communicate with, understand, and
motivate both individuals and groups.
 Conceptual
The manager‟s ability to think in the abstract.
 Diagnostic
The manager‟s ability to visualize the most
appropriate response to a situation.www.drjayeshpatidar.blogspot.com

04/10/2015 10
Fundamental Management Skills
(cont’d)
 Communication
The manager‟s abilities both to convey ideas and
information effectively to others and to receive
ideas and information effectively from others.
 Decision-Making
The manager‟s ability to recognize and define
problems and opportunities correctly and then to
select an appropriate course of action to solve the
problems and capitalize on opportunities.
 Time-Management
The manager‟s ability to prioritize work, to work
efficiently, and to delegate appropriately.www.drjayeshpatidar.blogspot.com

04/10/2015 11
Management: Science or Art?
 The Science of Management
Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.
 The Art of Management
Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal
insights.
Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.www.drjayeshpatidar.blogspot.com

04/10/2015 12
CONCEPTS OF MANAGEMENT
DEFINITION:
It is difficult to define „Management‟
because it is looked in to by different scholars
from different way

04/10/2015 13
The Economist consider Management as a
resource like Land, Labour, Capital and
Organisation.
The Bureaucrats consider it as an authority
The Sociologists consider managers as a part
of the class elite class

04/10/2015 14
Henry L.Sisk
Defines Management is the coordination of all
resources through the process of Planning,
Organizing, Directing and Controlling in order
to attain stated objectives

04/10/2015 15
Ralph C.Davis
Defines Management as a function of
Executive Leadership
Peter Drucker
Defines Management as a Multi purpose organ
that manager a business, Manager Mangers
and Managers workers and work.

04/10/2015 16
Concepts of Management
The terms management has been interrupted
in several ways as below.
i. Management as an Activity:
It is an activity like playing, studying,
teaching etc. It is an art of getting things
done through the effort of others

04/10/2015 17
ii. Management as a Process:
It is include the process of Planning,
Organizing, Staffing, Directing and
Controlling functions. As a process the
management includes social process,
integrated process, continuous process and
interactive process

04/10/2015 18
iii. Management as an Economic Sources:
Management occupies the central place
among other 4 m‟s Men, Machine, Material
and Money
Man Power
Money
Machine
Management Material

04/10/2015 19
Management as a Team
Managers operate at different levels of
authority like top, Middle, Operating etc.
Management is managing all these activities in
a team sprit. Managers have become elite class
in society occupying position with enormous
power and prestige.

04/10/2015 20
Management as an Academic
Discipline
Management has became a very popular field
of study since offers a very rewarding and
challenging career.

04/10/2015 21
Management as a group
Management means the group of persons
occupying managerial position like executives,
departmental head, supervisor etc.

04/10/2015 22
NATURE AND
CHARACTERISTICS OF
MANAGEMENT

04/10/2015 23
(i) Management as a goal oriented
The main goal of Management is to ensure
efficiency and economy is the utilisation of
human, physical and financial resources

04/10/2015 24
(ii) Management is Universal
All type of organization like family, club,
university, government, army, cricket team (a)
business, require management

04/10/2015 25
(iii) Management is an interactive
force
Management reconciles the individual goals
with organizational goals. It integrates human
and other resources

04/10/2015 26
(iv) Management is a social process
Management is done by the people, through
the people and for the people concerned with
interpersonal relationship. A good manager is
a leader and not a boss

04/10/2015 27
(v) Management is Multidisciplinary
Management depends up on wide knowledge
derived from several discipline like
engineering, sociology, psychology,
economics etc.

04/10/2015 28
(vi) Management is a Continuous
process
Management is a continuous process which
continues until the goal is achieved

04/10/2015 29
(vii) Management is intangible
It is invisible force. It cannot be seen but its
presence can be felt

04/10/2015 30
(viii) Management Art as well as
Sciences
Management consists of theoretical knowledge
as well as practical application of such
knowledge

04/10/2015 31
Objectives of Management
(i) Organisational objectives :- It includes
(a) Reasonable Profit
(b) Survival and solvency of business
(c) Growth and expansion of the enterprise
(d) Improve the Good will and reputation

04/10/2015 32
(ii) Personal Objectives
(a) Fair remuneration
(b) Reasonable working conditions
(c) Training and Development
(d) Participation is Management
(e) Security of Service

04/10/2015 33
(iii) Social Objectives
(i) Prompt payment of Taxes
(ii) Conservation of energy
(iii) Preservation of ethical value

04/10/2015 34
LEVELS OF MANAGEMENT
Board of Director
Managing Director Top Level
General Manager
Departmental Manager
Middle Level Deputy Manager
Asst. Manager
Supervisors
Lower Level
Workers

04/10/2015 35
Figure 1.1
Kinds of Managers by Level and
Area

04/10/2015 36
Distinction Between Management
and Administration
Oliver Sheldon defines administration as a
function concerned with the determination of
corporate policies, the coordination of finance,
production, distribution, structure under the
ultimate control of the executive

04/10/2015 37
Distinction Between Management
and Administration (Contd.)
On the other hand Management is concerned
with the executives of policy within the limit
set by the administration. Thus administration
is a thinking process and management as doing
process

04/10/2015 38
Three points of view
(i) Administration is different from Management
This view is largely held by American experts.
They held that administration is a higher level
activity while management is a lower level
function. The administration involves decision
making while the management is concerned with
the execution of policies and supervision of work.
According to American school of thought
Administration is superior to management.

04/10/2015 39
(ii) Administration is a part of
Management
According to European school of thought of
management is inclusive of Administration and
Organisation.
Management is the policy making including planning
and guidance, where as Administration is executive
of above planning. Thus management is planning
agency while administration is an implementation
agency. Thus European just appropriate view of
Americans

04/10/2015 40
(iii) Administration and Management
are one
Many writers like Henri Fayol, New man
viewed that the management and
administration are one and same used
interchangedly. The term Administration is
more popular in Government and other Public
sector organisation and the term Management
is more commonly used in other business
world.

04/10/2015 41
iii) Administration and Management
are one (Cont.d)
To solve this conflict of Opinions between
administration and management. Management
classified into –
(i) Administrative Management
(ii) Operative Management

04/10/2015 42
Distinguish Between
Administration and Management
Points of distinction Administration Management
1. Nature It is a
determinative or
thinking function
It is an executive
or doing function
2. Type of Work It is concerned
with the
determination of
major
It is concerned
with the
implementation of
policies
3. Levels of
authority
It is mainly a top
level function
It is largely a
middle and lower
level functionwww.drjayeshpatidar.blogspot.com

04/10/2015 43
Distinguish Between
Administration and Management
4. Influence Decision are
influenced by
Public opinion
and outside forces
Decision influenced
by Objectives and
Policies of the
Company
5. Direction of
Human Efforts
Not directly
concerned
Actively concerned
6. Main
Functions
Planning and
Control are main
functions
Directing and
Organizing are main
functions

04/10/2015 44
Distinguish Between Administration
and Management
7. Skills required Conceptual and
Human Skills
Technical and
Human Skills
8. Usage Government and
Public sector
Business
Organizations
9. Illustrations Commissioner,
Registrar, Vice-
Chancellor,
Governor etc
Managing
Director , General
Manager, Sales
Manager, Branch
Manager etc.

04/10/2015 45www.drjayeshpatidar.blogspot.com

04/10/2015 46
Meaning of Planning
Planning is the process of deciding in
advance what is to be done, how it is to be
done, where, when and whom.

04/10/2015 47
According to L.F.Ur Wick
Planning is fundamentally a mental
predisposition to do things is an orderly way,
to think before and to act in the light of the fact
rather than of guesses.

04/10/2015 48
Features of Planning
a) Planning is good – oriented
b) Planning is future oriented
c) Planning is an mental exercise involves creative
thinking
d) Planning is a primary function
e) Different planning is required for different levels of
organisation (Pervasiveness)
f) Planning is Continuous
g) Planning aims at efficiency

04/10/2015 49
Importance of Planning
i) Make objectives clear
ii) Helps the organisastion a right path
iii) It reduces risks and uncertainty
iv) It improves efficiency of operation
v) It provides the basis of control
vi) It facilitate decision making
vii) Effective co-ordination

04/10/2015 50
Limitation of Planning
i. Assumptions not fully reliable
ii. The condition under which plans are
implemented may differ from assumed
conditions.
iii. Availability of time is a limiting factor for
planning
iv. Cost involved in planning
v. Mental attitude

04/10/2015 51
Steps in Planning

04/10/2015 52
Principles of Planning
a. Principles of contribution to objectives
b. Principles of Pervasiveness
c. Principles of Limiting factor
d. Principles of Flexibility
e. Principles of Navigational change

04/10/2015 53
Kinds of Planning
a. Long range Plan
b. Short range Plan
c. Strategic Planning
d. Operational Planning
e. Functional Planning

04/10/2015 54
Decision Making
Definition:
According to Lereitner :
Decision Making is a process of identifying
and choosing alternative courses of action in a
manner appropriate to the demand of the
situation

04/10/2015 55
According to Peter Drucker:
Whatever Manager does, he does through
Decision Making

04/10/2015 56
Six Steps in Decision Making
Figure 7.4 www.drjayeshpatidar.blogspot.com

04/10/2015 57
Theories of Decision Making
1. Marginal Theory : This theory stresses an
profit maximization
2. Psychological Theory : This theory stresses
on customer satisfaction
3. Mathematical Theory: This theory arrives
decision making using models like Linear
Programming, Probability etc.

04/10/2015 58
Problems in Decision Making
1. Correctness of Decision
2. Timing of Decision
3. Effective Communication of Decisions
4. Participation in Decision Making
5. Decision Environment
6. Implementation Decision

04/10/2015 59
Modern Quantitative Techniques of
Decision Making
1. Linear programming : It is based on the
assumption that there exist a linear
relationship between the variables.
For Example:
With the help of linear equation, optimum
combination of cost, time and utilization of
time can be compared. The main object of
this techniques is to either maximize benefit
or to minimizes cost

04/10/2015 60
2. Probability Theory
This statistical device is based on the assumption
that certain things are likely to happen in
future depending on assumed probabilities. Ex.
Pay-off matrices, Decision trees.

04/10/2015 61
3.Queueing Theory
It is based on the assumption that although
delays are costly, eliminating them may be
even more costly. This techniques may be used
in service organisations hospitals and banks

04/10/2015 62
4.Simulation
For example : Instead of studying and
analyzing transportation system of Chennai in
a real life, its models can be prepared and real
solution can be simulated to it

04/10/2015 63
5. Net Work Techniques
The project evaluation and review techniques
(PERT) and critical path method (CPM) are
used for planning, monitoring and
implementing a project

04/10/2015 64
6. Decision Trees
It is a graphic method used for identifying the
alternatives and risk and outcome associated
with each alternatives

04/10/2015 65
Delegation
Definition :
According to Haimann “Delegation” of
authority merely means granting authority to
subordinate to operate within prescribed limits

04/10/2015 66
The Process of Delegation
1. Assignment of Duties
2. Granting of Authority
3. Creating of Responsibility

04/10/2015 67
Difference between Authority and
Responsibility
Sales Manager
Sales Manager
Sales Officer
Branch Manager

04/10/2015 68
Accountability
It is the obligation of a subordinate to report
back to his superior that the job entrusted to
him has been successfully completed

04/10/2015 69
Centralisation and Decentralisation
According to Henri Fayol “Every thing which
goes to increase the subordinates” roles is
decentralisation, every thing which goes to
decrease it is centralisation”
In centralised administration, the staff depend
on the top management for guidance on all
matters. An organisation is said to be decentralised
where managers at middle and lower levels are
given the authority to take decision on matters
relating to their functions.

04/10/2015 70
Centralisation and Decentralisation
(Contd.)
For Example :
An organisation having
branches in different cities may be centralised.
Similarly, a company may be decentralised
even things all its officer are located in one
building.

04/10/2015 71
Merits of Decentralisation
1. Reduces Burden of Top Executives
2. Quick Decision
3. Motivation to Subordinates
4. Growth and Diversification
5. Management Development
6. Diversion of Risk
7. Effective Supervision and Control

04/10/2015 72
Demerits of Decentralisation
1. Cadre of Coordination
2. Difficult to Control
3. High cost of operation
4. Non Availability Talented Managers
5. External Constraints.

04/10/2015 73
CONTROLLING

04/10/2015 74
The Control Process
 Establish objectives and standards.
 Measure actual performance.
 Compare results with objectives and standards.
 Take necessary action.

04/10/2015 75
Establish Objectives and
Standards
 There are two types of standards:
 Output Standards - measures performance results
in terms of quantity, quality, cost, or time.
 Input Standards - measures work efforts that go
into a performance task.

04/10/2015 76
Measuring Actual Performance
 Measurements must be accurate enough to
spot deviations or variances between what
really occurs and what is most desired.
 Without measurement, effective control is not
possible.

04/10/2015 77
Comparing Results with
Objectives and Standards
 The comparison of actual performance with desired
performance establishes the need for action.
 Ways of making such comparisons include:
 Historical / Relative / Engineering
 Benchmarking

04/10/2015 78
Taking Corrective Action
 Taking any action necessary to correct or improve
things.
 Management-by-Exception focuses managerial
attention on substantial differences between actual
and desired performance.

04/10/2015 79
Taking Corrective Action
 Management-by Exception can save the
managers time, energy, and other resources, and
concentrates efforts on areas showing the
greatest need.
 There are two types of exceptions:
 Problems - below standard
 Opportunities - above standard

04/10/2015 80
Effective Controls
The Best Controls in Organizations
are
 Strategic and results oriented
 Understandable
 Encourage self-control

04/10/2015 81
Effective Controls
The Best Controls in Organizations are
 Timely and exception oriented
 Positive in nature
 Fair and objective
 Flexible

04/10/2015 82
Types of Control
 Preliminary
Sometimes called the feedforward controls,
they are accomplished before a work
activity begins.
They make sure that proper directions are
set and that the right resources are available
to accomplish them.

04/10/2015 83
Types of Control
 Concurrent
Focus on what happens during the work
process. Sometimes called steering controls,
they monitor ongoing operations and activities
to make sure that things are being done
correctly.

04/10/2015 84
Types of Control
 Postaction
Sometimes called feedback controls, they
take place after an action is completed. They
focus on end results, as opposed to inputs
and activities.

04/10/2015 85
Types of Controls
Managers have two broad options with respect
to control.
 They can rely on people to exercise self-
control (internal) over their own behavior.
 Alternatively, managers can take direct action
(external) to control the behavior of others.

04/10/2015 86
Types of Controls
Managers have two broad options with respect
to control.
 They can rely on people to exercise self-
control (internal) over their own behavior.
 Alternatively, managers can take direct action
(external) to control the behavior of others.

04/10/2015 87
Types of Control
 Internal Controls
Allows motivated individuals to
exercise self-control in fulfilling job
expectations.
The potential for self-control is enhanced
when capable people have clear performance
objectives and proper resource support.

04/10/2015 88
Types of Control
 External Controls
It occurs through personal supervision and the use of
formal administrative systems.
 Performance appraisal systems, compensation and
benefit systems, employee discipline systems, and
management-by-objectives.

Function of administration

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (7)

Similaire à Function of administration

Similaire à Function of administration (20)

Plus de Nursing Path

Plus de Nursing Path (20)

Dernier

Dernier (20)

Function of administration