ADMINISTRATION AND MANAGEMENT

 

ADMINISTRATION AND MANAGEMENT

There are three contrasting views:

A)    Administration as different from management

B)    Administration as part of management

C)    Administration and management are same

 

A)    Administration as different from management

·         The nature of function of administration is quite different from the nature of function of management

·         Administration involves formulation of policy, plan and is concerned with top level management

·         Management involves policy or plan execution and is concerned with lower level management

 

S.No.	Management	Administration
1.	It involves doing	It involves thinking
2.	It is lower level function which is concerned with execution and direction of policies and operation.	Administration is top level Function which includes determination of plan, policies and objectives of business enterprise.
3.	It is comprehensive generic function which includes planning , organizing, staffing, Directing ,controlling.	It encompasses two functions planning and controlling.
4.	It is operated at lower level	It is operated at top level
5.	It is operative management	It is an administrative mgmt.
6.	The process of designing and maintaining an environment in which people working together in a group, efficiently accomplish selected goals.	It implies the guidance, Leadership and control of efforts of a group of individuals toward some common goal.
7.	Its function is narrow and operational	Its function is quite broad and conceptual.
8.	It requires technical and operational skills.	It requires conceptual skills.
9.	Used in business management	Used in government sectors.

 

B)     Administration as a part of management

·         Management is a broader concept and administration is just its part

·         Administration is that part of management which is concerned with the installation and carrying out procedures by which it is laid down and communicated and the process of activities regulated and checked against plans .

 

 

C)    Administration and management are same

·         Both have same objectives and principles.

·         Mostly administration is used in government sectors and management is used in non- government sectors or private sectors.

·         Management include both involves policy formulation and execution.                         

SIGNIFICANCE OR IMPORTANCE OF MANAGEMENT

 

        SIGNIFICANCE OR IMPORTANCE OF MANAGEMENT

1.      Developing society

2.      Protection against throat-cut competition

3.      Necessary for operating large scale units

4.      Increasing Efficiency and Effectiveness

5.      Inculcating creativity

6.      Building Dynamic organization

7.      Integrating various interest group

8.      Management is required to solve labour problems

9.      For survival and growth

10.  For generation of employment and development of nation

11.  To upgrade social living standards

12.  To establish industrial peace and increase national income

13.  To ease poverty

14.  To provide effective leaders in an organization

15.  To develop the feeling of work is worship

16.  Competitive abilities

17.  For achieving goals and objectives of an organization

18.  Necessary for operating large scale unit

19.  Coordination among the different factors of production

20.  Attaining maximum result in minimum efforts

Scope of Management

 

Scope of Management

Scope of management is very wide being a universal and social process. It is needed at every level.

Scope of management may be categorized into 3 forms-

1.      Business management

§  Production management

§  Materials management

§  Laour management

§  Marketing management

§  Financial management

§  Personnel management

§  Office management

§  Transport management

§  Maintenance management

§  Export & Import management

§  Research & Development

 

2.      Non-Business management

§  Environment management

§  Event management

§  Technology management

§  Time management

§  Home management

§  Public Utility management

§  Health management

§  Education management

§  Defense management

§  Income & Expenditure management

§  Public Administration management

 

3.      Other area of management

§  Public Relation management

§  Customer Relation management

§  Conflict management

§  Innovation management

§  Computer management

§  Risk management

§  Investment management

§  Survey

The Scope of management in operational area of business management may e classified as:

1.      Production Management

2.      Marketing management

3.      Financial management

4.      Personnel management

 

1.      Production Management—it implies planning, organizing, directing, and controlling the production function so as to produce the right goods in right qualities, at right time and at right cost. It includes the following activities—

 

·         Designing the product

·         Location and layout of plant and building

·         Planning and controlling the factory operations

·         Operation of purchase and storage material

·         Repair and maintenance

·         Inventory cost and quality control

·         Research and development

 

2.      Marketing management—it refers to the identification of the consumer’s needs, and supplying them the goods and services which can satisfy their wants. It involves the following activities-

·         Marketing research to determine the needs and expectations of the customers.

·         Planning and developing suitable products.

·         Setting appropriate price

·         Selecting the right channel of distribution.

·         Promotional activities like advertisements, sales person group etc.

·         Taking feedbacks from the customers.

 

3.      Finance management- it seeks to ensure the right amount and right type of funds to business at the right time and at the reasonable costs. It involves following activities-

·         Estimating the short term and long term funds

·         Selecting the appropriate source of fund

·         Raising the required fund at the right time

·         Ensuring proper utilization and allocation of raised funds

·         Administration of earnings

 

4.      Human resource\personnel management- It includes planning, organizing and controlling the procurement(recruitment) , development, compensation, maintenance and integration of HR of an organization. It consists of the following activities-

·         Recruitment

·         Manpower planning

·         Selection

·         Training and development

·         Appraisals

·         Promotion and transfer

·         Retirement

·         Compensation

·         Employee welfare and services

·         Personnel record and research