Administration and Management

Meaning definition of management and administration, Management thoughts of Henery Fayol, F.W. Taylor, C.K.Prahalad and Vijay Govindarajan.

1. Administration and Management Asst. Prof. Parasmani Jangid SDJ International College

2. DEFINITIONS OF MANAGEMENT According to Mary Parker Follet , “Management is the art of getting things done through people.” According to Harold Koontz , “ Management is the art of getting things done through and with people in formally organised groups.”

3. Koontz & O’donnell defined Management as the accomplishment of desired objectives by establishing an environment favourable to people working in organised groups for achieving desired performance.

4. According to G.R. Terry , “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources.”

5. CHARACTERISTICS OF MANAGEMENT Management not a group of people, it’s a function. Management is universal. Co-ordination is the soul of management. Management is dynamic. Management is essentially a leadership activity. Management is decision making. Management is a profession. Management is a critical element to attain organisational objectives.

6. IMPORTANCE OF MANAGEMENT For Economic Progress and Prosperity Backwardness of Under Developed Countries Meaningful and Effective Functions Useful in all fields Useful in all types of Economic Thinking Contribution to Development of Culture Useful in all Form of Business Organisation For Business Success Importance from National View-point

7. LIMITATIONS OF MANAGEMENT Uncertainty by humans Dynamism in work Lack of uniformity Lack of human element

8. MANAGERIAL FUNCTIONS/PROCESS OF MANAGEMENT

9. Planning Peeping into the future. Planning involves the determination of what is to be done; how, when and where is to be done; who is to do it and how results are to be evaluated. Planning reduces the degree of uncertainty and risk and brings and element of stability.

10. Organizing The process of organising involves three steps: When a task is assigned to an executive, it is his responsibility to perform it and achieve the desired result. When responsibility is delegated to a person, the commensurate authority is also given to him. The executive to whom a responsibility is delegated is responsible to make a report about the performance to his superior.

11. Staffing The enterprise goals are achieved with the help of personnel only. Hence, proper selection of the personnel for proper job is essential in modern management. Staffing includes planning of manpower requirements, determining criteria for each job, remaining in constant touch with the sources of recruitment, arranging for their training, promotion, remunerations schemes, etc.

12. Directing A business does not begin to operate until the manager gives direction, which includes the work of guiding and supervising subordinates. The function is spread over different heads of departments. Whether the heads should adopt the authoritarian approach or a democratic approach or a free rein approach, that is to be decided by them in the light of existing circumstances.

13. Co-ordinating The main tools for securing better coordination are simplified organisation , harmonized policies, well designed methods of communication and personnel guidance. Without coordination there will be a chaos in the organisation .

14. Reporting The subordinates have to prepare reports of the performance. This enables are superiors to judge whether performance conforms to the plans adopted. Through reporting, a manager keeps himself informed about the day-to-day functioning of the organisation .

15. Budgeting A budget is a very popular and effective tool of controlling. A budget is an estimate of future needs covering all the activities of an enterprise for a definite period of time. An important requirement of an effective budgetary control system is reporting budgeted figures with figures of actual performance.

16. ADMINISTRATION Administer derived from the Latin word - “ad + ministraire ” means care for or look after people to manage affairs.

17. DEFINITION OF ADMINISTRATION According to Cambridge Dictionary, “Administration is the arrangements and tasks needed to control the operation of a plan of organization.”

18. FEATURES OF ADMINISTRATION Nature-execution Scope-narrow Implementing Process-get work out of the plans Key Function-administration is key function of management. Ability required-human skill, technical skills Level-middle level & lower level Level of Authority-middle level and lower level Constant Activity-business is continuous thereby management and thus administration

19. IMPORTANCE OF ADMINISTRATION Efficient Execution Assists Co-ordination Simplifies Supervision Responsive Organisational Structure Conflict Management New Changes

20. DIFFERENCE BETWEEN MANAGEMENT & ADMINISTRATION Sr. No. Point of Difference Management Administration 1 Meaning Function ( POSDCoRB ) Implementation of it 2 Function Thinking function Doing function 3 Policy Frames the policy Implements the policy 4 Decisions Long term decisions Necessary steps to solve the problems 5 provides Leadership, direction and guidance Minute details of the plan 6 Substitute Both are complementary, even management success depends upon administration efficiency. management success depends upon administration efficiency. 7 Scope wider narrower 8 Proportion at diff. level More at top, less at bottom. More at bottom, less at top.

21. ROLES OF A MANAGER

22. Figurehead Role-Social, ceremonial duties such as greeting visitors, lunch with customer, etc. Leadership Role-hire, train, motivate employees. Liaison Role-attend meetings, conference to keep in contact with outside people. Monitor Role-Collect info. from subordinates or through magazines, newspaper, etc. Disseminator Role-provide info. to his subordinates through memos, circulars, telephone, etc. Spokesman Role-communicate info. to superior. Entrepreneurial Role-grab opportunity to initiate new project. Disturbance Handler Role-deal with problems & resolve the disputes of organizations. Resource Allocator Role-Decide the best allocation of resource Negotiator Role-defends business Interest & negotiate with stakeholders . Interpersonal Roles Informational Roles Decisional Roles

23. F. W. Taylor

24. Introduction Life time: 1856 to 1915 Profession: American mechanical engineer who sought to improve industrial efficiency. Education: degree in mechanical engineering in 1883. Positions Held: From 1890 until 1893 Taylor worked as a general manager and a consulting engineer to management for the Manufacturing Investment Company of Philadelphia. He was a plant manager in Maine. In 1893, Taylor opened an independent consulting practice in Philadelphia. His business card read "Consulting Engineer - Systematizing Shop Management and Manufacturing Costs a Specialty". Writings: His first paper, A Piece Rate System, was presented to the American Society of Mechanical Engineers (ASME) in June 1895. Contributions: scientific management principles to planning the work and the workers actually perform the tasks.

25. Contribution of Taylor to Management Thought Main feature of scientific management given by F. W. Taylor Time & motion study Scientific Selection-Right place, right time, right qualification Separation of planning & execution Functional foremanship- 4 jobs: gang boss, speed boss, maintenance boss & inspector. Training of worker- Standardization of tools-instruments tools, period of work, amount of work, working conditions, cost of production, etc. Financial Incentives- motivate employees to give their maximum efforts (piece rate wage system) Co-operation of management Differential piece wage systems- standard job. Change of mental attitude- treat them as partner ( human being) not just a factor of production

26. Taylor summed up his combination of principles in the following terms: Science, not rule of thumb, harmony, not discord, Co-operation, not individualism, Maximum output, in place of restricted output. The development of each man to his greatest efficiency and prosperity.

27. Henry Fayol

28. Introduction Life time: 1841 to 1925 Profession: Mining Engineer and Management Theorist (French National) Education: Graduated from Mining Academy at St. Entinne . In 1880. Positions Held: Founded the mining company “ Cmpagnie de commentry - Fourchamneau-Decazeville ’ and became its Managing Director in 1888 and remained till 1918. Writings: Administration industrielle et generale . It was published in English as General and Industrial Management in 1949 and is widely considered a foundational work in classical management theory. Contributions: Mainly 14 management Principels , which are referred to as administrative in nature in that they have Top-Down approach concerning top Mnagement and other manager’s conduct.

29. Contribution of Fayol to Management Thought Principles of Management Division of Work- specialisation Authority and Responsibility- Balance, Power> Duties=misuse of power, Power<Duties =Underperformance Discipline-invite your subordinate while framing disciplines. Unity of Command-order from one boss Unity of Direction-one objective( all the activities) should go in one direction Subordination of Individual Interest to Organisational Interest Remuneration-fair, adequate, it will give satisfaction to employees Degree of Centralization-depends on size of organisation(work) Scalar Chain- clear line of authority Order-manner, chronological order 1. material order 2. labour order Equity-equality-no partiality- create loyalty Stability of Tenure of Personnel-try to reduce your labour –turnover rate Initiative-to encourage them to think new , bring idea. Esprit de Corps/Team Spirit-union is strength

30. Difference

31. C.K. Prahalad

32. C.K . Prahalad (1914-2010) Born in southern India state of Tamil-Nadu His father was judge & business leader in his community. Degree in physics from university of Madras. Studied at IIM & completed his Ph.D. from Harvard Business School. Worked as educator, business consultant in USA & India Introduction

33. Core competency Core Competency is a concept introduced by C.K. Prahalad and Gary Hamel. Core competence = skills + capability Contribution of C.K. Prahalad to Management Thought

34. Ideas behind core competence It outperform the competitors Focus on strategic importance Competitive advantages-market share Provides uniqueness to company Applicable to variety of market & products.

35. Vijay Govindarajan

36. Vijay Govindarajan (born 18 November 1949) is the Coxe distinguished professor at the Tuck school of Business at Dartmouth in the USA. He is also Marvin Bower Fellow, 2015-2016 at Harvard Business School. He is among the top five management thinkers in the world according to Thinkers50- a biennial raking of management gurus. VG received Thinks50 Distinguished Achievement Awards in 2 category: 1. Breakthrough Idea Award 2011 2. Innovation Award 2019 Introduction

37. Three- Box Solution for leading innovation Future Present Past Contribution of Vijay Govindarajan to Management Thought

38. Box -1 Present Box -2 Past Box -3 Future Manage the Present Forget the Past Create the future

39. Benefits of ‘Three-Box Solution’ It makes balance to organizational activity It helps management in anticipating the competition To face the kind of challenge Managing innovation process

40. The Future is Now. Thank You