Principles and Practice of Administration and Supervision

7/27/2019 Principles and Practice of Administration and Supervision

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Administration

Meaning of Administration

The word administer is derived from the Latin

word ad+ ministraire means to care for or tolook after people- to manage affairs.

Definitions of Administration

According to Pfiffner and

PresthusAdministration is the organization anddirection of human and material resources to

achieve desired ends.

According to Marx Administration is determined

action taken in the pursuit of a conscious

purpose. It is the systematic ordering of affairsand the calculated use of resources aimed at

making those things happen which one wants to

happen- and forestalling everything to the

contrary.

According to Luther Gullick Administration hasto do with getting things done; with the

accomplishment of defined objectives.

According to Herbert A Simon Administration is

the activities of groups co-operating to

accomplish common goals.

According to Goel Administration may be

defined as the management of affairs with the

use of well thought out principles and practices

and rationalized techniques to achieve certain

objectives.


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Philosophy of Administration: Administration

is a moral act and also a moral agent.

The philosophy underlying the whole field ofadministration , particularly as it applies to

health work, is based on the following key

points:

1.Administration Believe in Cost-

Effectiveness2.Administration Believes in Execution

and Control of work Plans

3.Administration Beliefs in Delegation of

Responsibility and authority.

4.Administration beliefs in human

relations and Good Morale5.Administration beliefs in effective

communication

6.Administration beliefs in flexibility in

certain situation

Elements / Functions of Administration

Administration may be defined as all the actions

rationally performed by one person or a number

of persons in concert to fulfill a common

purpose set by someone else of their

accomplishment.


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Professor Luther Gullick (1937) summed up

certain principles or elements in the word POSDCORB.

1.Planning

2.Organising

3.Staffing

4.Directing

5.Co-ordinating6.Reporting

7.Budgeting

Management:

Definitions : According to Joseph Massie:

Management is defined as the process by which

a co-operative group directs action towards

common goals.

According to George : Management is distinctprocess consisting of planning , organizing,

actuating, activating, and controlling, performed

to determine and accomplish the objectives by

the use of people and resources.

According to O Tead : Management is theprocess and agency which directs and guides the

operations of an oragnisation in realizing

established aims.

According to James Lunde : Management is

principally the task of planning , co-ordinating,


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motivating and controlling, the efforts of others

towards a specific objective.

Concept of Administration and Management

Both Administration and Management areprocesses. Both are concerned with attainment

of certain pre-determined objectives . As the

science of administration and management

started developing , particularly after the second

world war, different viewpoints concerning

these two terms emerged. Some managementexperts hold that these two are synonymous.

Some others hold that these are two distinct

terms. Besides, the term Management is used

in many different ways.

Let us examine these concepts under

i) Administration and Management

considered as synonymous

ii) Different interpretations of the term

management

iii) Administration and Managementconsidered as two distinct terms.

i) Administration and Management

considered as synonymous

This viewpoint holds that all administrators ormanagers perform the same managerial

functions depending on the levels of

management they belong to. In an

organization two sets of people one

designated as administrators and the other as

managers are never required. What we find is


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that the top level administrators or managers

are engaged in performing the administrative

functions whereas the first level managers are

involved in caring out the executive functions.

ii) Management and Administration are

Synonymous : There is no distinction

between the terms management and

administration . The term managementis used for higher executive functions like

determination of policies , planning,

organizing , directing, and controlling, in

the business circles, while the term

administration is used for the same set of

functions in the Government circles. Sothere is no difference between these two

terms and they are often used

interchangeably.

Manager spends a part of his time in

performing administrative managementfunctions and the remaining time on

operative management functions . However,

the managers who are higher up in the

hierarchy devote more time on

administrative functions. They are known as

top management, . Top managementdevotes a major portion of its time in

determination of objectives and laying down

of policies. Managers at the lower levels in

the hierarchy devote comparatively less time

on administrative functions and they are

concerned more with directing, coordinating


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Management

Administr

ation

and control functions of management for the

achievement of organizational objectives.

iii) Different interpretations of the term

Management

The term management has been interpreted

a)as a process b)as adiscipline and c) as a noun

a)A a noun , management is referred to as:

i) A system of authority lying in a team of

managers who are responsible for making

decisions and accountable for theconsequence of their decision making and

supervising the work of the subordinates.

b) As a process , management is

considered to be that process which is

involved with executing differentinterrelated activities within an organization

for realizing the organizational objectives in

accordance with the organizational plans

and policies.

c)As a discipline : Management has been

considered as a distinct discipline since it


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has a systematized body of knowledge and

requires specific skills and use of available

decision making tools.

ii) administration and management as two

distinct terms . This distinction is madea) on the basis of the nature of

organization and b) on the basis of the

levels of administration / management.

a) Differentiation based on he nature of

organizationIn accordance to this view, Administration

should relate to government and other

organizations concerned with social and

political goals and Management should

relate to business enterprises concerned with

the objective of surplus generation.

b) Differentiation based on the level of

administration / management

Two schools of thought exist in this regard

viz. the American School of Thought and theBritish School of Thought. Both relate to the

levels of administration or management.

The American School of Thought hold

administration as a broader concept concerned

with the thinking function within anorganization resting with the top level

administrators for determining objectives of

the enterprises, making plans for the

organization and formulating organizational

policies.


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Management on the other hand is considered

as the force that gives leadership and direction

in realizing the predetermined objectives

according to the guidelines given in the

organizational policies and executes the plans

of action and thereby concerned with thedoing function.

The British School of Thought on the contrary

considers management as a wider concept

concerned with the functions of the top level

managers and administration concerned withthe executive functions of the lower level

managers.

A reconciliation between the two schools of

thought has been brought about by classifying

management as follows:

i) Administrative Management : Involve

with planning functions resting with top

management level.

ii) Operative management : Involves with

planning functions resting with the middleand first management levels.

Discussions on the different viewpoints

From the above discussion it is clear to you

that barring the interpretations of managementbeing a discipline, a class and an authority, all

viewpoints state that:

a)Both administration and management are

processes.


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b) Administrative functions vary according

to the levels of administration

c)There are two broad categories of functions

in the process of administration, viz.:

The thinking functions

The doing functionsThe thinking functions primarily relate to

planning and organizing including planning

and organizing for staffing.

The doing functions relate to staffing ,

directing, coordinating and controlling.

Inference

Administration and management , both can

basically be considered as a process which is

undertaken to attain laid down objectives of an

organization.

Propose and scope of Administration

Purpose: The main purpose of administration

is to facilitate or help the functioning within

an organization maintaining a high standard of

performance.

Administration Administrative Management

A thinking function involving

Formulation of objectives, plan and policies

(Rests with top level mangers)

Management Operative Management

A doing function involving executive function

(Rests with middle and first level management)


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Scope any organization be it

A business enterprise under the public or

private sector

A Govt. undertakingAn educational institution

A hospital

As association

A charitable organization

A social or service club

A trustA Govt. or Non-Governmental organization

A public library

A newspaper establishment

Different departments within an organization

in a community organization under a local

body or municipality

Levels of Administration

Top Management Level

Middle Management Level

First Management or Operating Management

Level


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Skills required for administrators and mangers

fall into three main categories which are

termed as

i) Intellectual skills

ii) Human skills

iii) Technical skills

Intellectual skills will include:

The thinkig skills- both critical and

analytical

Conceptual skills (ability to formulateconcepts) and

Decision making skills


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Human skills are the skills concerned with

effective communication empathy .

Technical skills are concerned with dexterity

professional skills and expertise. (Injection)

Skills Management levels

Categories Top MiddleFirst

______________________________________

_______________________

Intellectual skills ++++++ ++++

+++

Human skills +++ ++++++

+++++

Technical skills +++ +++

++++++Diagram of skill mix at

Management Levels

Process and nature of administration

Process of Administration

Nature of Administration

The nature of administration is:


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i) Universal and Holistic : Administration

is universal irrespective of the nature of

the organization and objectives of the

organization.

Holistic : The process of administrationembraces the organization

and its function in entirely

ii) Intangible : Administration is abstract, it

cannot be seen but its effect can be felt.

iii) Continuous and ongoing :

Administration continues in anorganization , if it stops its functions,

chaos will result in the organization.

iv) Goal Oriented : Administration always is

striving to obtain the laid down goals or

objectives of an organization.

v) Social and Human : The administrativeprocess basically handles different groups

of people who belong to the organization

vi) Dynamic : Administration has the

elements of flexibility and adaptability

and adjustability rising to the needs and

demands of different situations. Henceadministration cannot remain as static.

vii) Creative or Innovative : To be effective

the administrative process gets away from

stereotypes.


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Important Features of the Administrative

Process

i) Goal orientation : The entire process is

for realizing the goals or objectives of anenterprise

ii) Depicts the nature of job : The process

determines the nature of job be carried out

by the managers in order to fulfill the pre-

determined goals of the organization.

iii) Continuity : The process is ongoing andcontinuous

iv) Existence of sequence in management

functions

v) Interrelationship: All administrative

functions are interrelated . None of these

functions take place in isolation or inparts.

vi) Applicability of one function to another

vii) Common to all organizations : The

administrative process is common to all

organizations irrespective of the purpose

for which the organization is establishedviii) Providing framework for guidance .

Effective administration and Management :

Effective administration not only helps in

doing so but also provides the required

satisfaction to the employees as well as to the

management as the targets are fulfilled,

schedules are honoured , positive image is


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Principles of Administration

Principles which serve as certain criteria in the

administrative and management process, Henri

Fayol has identified fourteen such principles andthese are:

i) Division of work

ii) Authority, responsibility and

accountability

iii) Disciplineiv) Unity of command

v) Unity of Direction

vi) Subordination of individual interest to

organizational interest

vii) Remuneration of personnel

viii) Centralizationix) Hierarchy or scalar chain of command

x) Order

xi) Equity

xii) Stability of tenure of personnel

xiii) Initiative

xiv)Esprit de corps

Theories of Administration :

Abraham Maslow 1940( hierarchy ofneeds )


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Higher Self Actualization needs

Self esteem needs

Social needs

Medium

Security / safety

needs

lower Physiological needs

( Survival needs)

1.Physiological needs : includes the basic

things necessary for human survival,once these satisfied individual no longer

strives hard to obtain these and he

himself is motivated to work hard for

organization

2.Security needs include job security or

safety and the work place, thus giving


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psychological security to human beings.

Once safety and security is ensured ,

they no longer motivate the human

being.

3.Social needs : represent the relationship

between and among groups of peopleworking in the organization. This need

provides emotional security to people

and also gives a sense of belongingness

and association.

4.Esteem needs represent higher level

needs of human beings. At this level ,

they strive for power, achievement and

status.

5. Self actualization is a higher levelneed represents culmination of all other

needs. The fulfillment of this need gives

a higher degree of satisfaction to

individual in work and life.

Physiological needs of the employees aremet in the form of salary and other

amenities

He expects satisfactory safety and security

needs. Here the management of the

organization can provide proper safetyaccording to their placement or positions

and nature of work and also job security

is must for all employees in the far fixing

tenure of employment. Human beings are

social beings which includes employees ,

acceptance in the organization.


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The fulfillment of esteem needs gives self-

confidence to people and prepares them to

take up leadership positions, guidance to

others and appraising the performance of

others.

It improves the persons performance in

the organization. A self- actualized person

has fulfilled all his potential. It is the

responsibility of the administration, to

fulfill the needs of its employees.

Henri Fayol (1841- 1925) Henri Fayol was

born in France, educated as an Engineer at the

National School of Mines, and employed as

Mining Engineer and then as General Manager

of a coal and steel company. He divided allactivities in an organization into following sic

groups i.e. technical, commercial, financial ,

security, accounting and administrative. Fayol

broke down the key function of administration

into five main aspects; to plan, to organize, to

command , to co-ordinate and to control.

Fayols experience as famous French

industrialist led him to develop the following

propounded fourteen principles of

administration:

1.Division of work: There should be division

of work and task specialization than


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different workers consistently carrying out

different job responsibilities.

2.Authority : Each worker should be given

authority to commensurate with the amount

of his responsibility.

3.Discipline : Each worker and managementshould maintain proper discipline,

voluntarily according to their placement.

4.Unity of command : Each employee should

receive orders from one supervisor only.

5.Unity of Direction : One person should

direct all activities that support a singleobjective.

6.Subordination of individual interest to

general interest: i.e. the interest of the

individual work, should be subordinate to

the interest of the total work group.

7.Remuneration : Proper remuneration whichincludes salaries, allowance and other

incentives to be given to all employees

according to their level of performance and

responsibility by the management or

employee.

8.Centralization and decentralization:certain powers and functions reserved with

top level authorities and other powers and

functions are distributed to executives and

co- executives and workers also to some

extent.

9.Scalar chain : There should be an unbrokenscalar chain / hierarchy of authority

extending from the top executives and

workers also to some extent.

10. Order :

There should be proper policies, rules and


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regulations to maintain an orderly situation

in the organization .

11. Equity: All

employees should be treated with equity and

justice.

12. Stability andtenure there should be prescribed tenure

which is needed for all employees.

13. Initiative all

employees and management should take

proper initiation to achieve the objectives of

the organization.14. Esprit de

corps : The group spirit and group morale

can be cultivated among employees and

employer to accomplish objectives.

Luther Gulick

Luther Gulick a classicist was influenced by

Taylor and Fayol. He used Fayols five elements

of administration viz. Planning , organizing,

command, co-ordination and control as a frames

work for his neutral principles. Gulickcondensed the duties of administration into a

famous work for his acronymPODSCORB.

1.Planning

2.Organizing

3.Staffing4.Directing

5.Coordinating

6.Reporting

7.Budgeting


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Gulick was very much influenced by Fayols 14basic elements of administration in expressing

his principles of administration as follows:

1.Division of work or specialization

2.Bases of departmental organization

3.Co-ordination through hierarchy4.Deliberate co-ordination

5.Coordination through committees

6.Decentralization

7.Unity of command

8.Staff and line

9.Delegation and10. Span of control

In assigning functions to groups of people, the

division of work principle is homogenicity based

on four factor (4 Ps of Gulick) well suit to

nursing, i.e. the Purposes they serve (function),the process they use, the persons or things which

they deal with (clientele ) and the place where

they work.

Lyndal Urwick

Lyndal Urwick also one among classical

theorist, attached more importance to the

structure of organization than the role of the

people in the organization. He stressed the

importance of design in organization unless this

factor isolated. He further considered lack of


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design as illogical, cruel, wasteful and

efficient.

Urwick also concentrated his efforts on the

discovery of principles and identified eight

Principles of Administration applicable to allorganizations as given below:

1.The Principle of Objective- that all

organizations should be expression of a

purpose.

2.The Principle of Correspondence- that

authority and responsibility must be co-equal.

3.The Principle of Responsibility That the

responsibility of higher authorities for the

work of subordinate is absolute.

4.The Scalar Principle That a pyramidical

type of structure is built up in anorganization.

5.The Principle of Span of control

6.The Principle of Specification- Limiting

ones work to single function.

7.The Principle of Co-ordination

8.The Principle of Definition- Clearprescription of every duty.


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Objectives of Management

The main purpose of business is to earn

reasonable profits for survival and growth in

the competitive environment by providingwant satisfying products to the customers.

i) Efficient Use of Resources: Management

seeks to obtain maximum output with

minimum resources and efforts.

ii) Satisfaction of Customers: Thecustomers must be satisfied by offering

them quality products and better service.

iii) Adequate Return on Capital:

Management must achieve a reasonable

rate of return for the owners of the

business.iv) Satisfied Workforce: Satisfied workers

are cooperative and contribute to the goals

of the organization.

v) Good Working Condition: Management

seeks to achieve a system to ensure fair

wages for the work, security ofemployment and better working

conditions for the workforce.

vi) Good Relationship with Suppliers:

Management seeks to achieve good

relations with the supplies of raw

materials and capital so as to continue inproduction.

vii) Contribution to National Goals: The

management must contribute to the

national goals . It should use the judicious

use of scarce resources of the country.


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Distinction between Administration and

Management

Basis Administration Management1. Meaning Administration is

concerned with

the formulation

of objectives,

plans and

policies of theorganization.

Management

means getting

the work done

through and

with others

2. Nature Administration

relates to the

decision

making . It is a

thinking function.

Management

relates to

execution of

decisions. It is

a doingfunction .

3. Scope It is concerned

with

determination of

major objectives

and policies .Administrators

are basically

concerned with

planning and

control.

It is concerned

with

implementation

of policies.

Managers areconcerned

mainly with

organization

and direction

of human

resources.4. Decision

Making

Administration

determines what

is to be done and

when it is to be

done.

Management

decides who

shall

implement the

administrative

decisions .


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5. Direction

of Human

Resources

It is concerned

with leading and

motivation of

middle level

executives.

It is concerned

with leading

and motivation

of operative

workforce for

the executionof plans.

6.

Environment

Administration

has direct

interaction with

external

environment ofbusiness and

make strategic

plans to deal

effectively with

the

environmentalforces.

Management is

mainly

concerned with

internal forces,

i.e., objectives,plans and

policies of the

organization.

7. Status Administration

refers to higher

levels of

management

Management is

relevant at

lower levels of

management .

8. Usage ofTerm

The term administration is

often associated

with government

offices, public

sector and non-

businessorganizations

The termManagement

is widely used

in business

organizations

in the private

sector.


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Significance of Management :

1.Determination of Objectives : The

objectives of any organization are

determined by the management . They

are put into writing and communicatedto all employees in the organization.

2.Achievement of objectives :

Management is an important force for

the accomplishment of the objectives of

any group. Efficient management

provides leadership to the business andhelps in achieving its objectives.

3.Efficient Use of Resources : The role of

professional managers has increased

these days. They can ensure the efficient

use of various resources and increase the

productivity of the enterprise.4.Coordinated Human Efforts :

Management provides leadership and

guidance to the workers . It also

motivates them with the help of various

incentive schemes.


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5.Meeting Challenges: Management is

the brain of any enterprise. It helps in

predicting what is going to happen I

future which will influence the working

of the enterprise. It also steps to ensure

that the enterprise is able to meet thedemands of changing environment.

6.Economic Development : According to

Peter Drucker Management is the

crucial factor in economic and social

development.

Herzbergs Two Factor Theory

This theory was developed in 1959. This theory

was formulated based on the realization that

work motivation and job- satisfaction are two

dimensions that influence the productivity of anemployee. Herzberg stressed with adequate

research that good working conditions, adequate

salary , good physical facilities, good human

relations, quality of supervision might contribute

to job satisfaction of employees, which are

hygiene factors. Whereas factors likerecognition of work done, status, opportunities

for growth, challenging task, play an important

role in creating work motivation factors.

House and Wigdor ranked these motivators as

follows :i) Achievement

ii) Recognition

iii) Work itself

iv) Responsibility

v) Advancement

vi) Policy and Administration


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vii) Technical Supervision

viii) Working Conditions

ix) Interpersonal relations

x) Salary

He argued that interpersonal relation between

the Nurse and her supervisor plays an

important role in work motivation influencing

her job satisfaction.

Some believe in using negative force by

criticizing one before others, finding faults in

his/ her work, humiliating in others presence,

which will motivate the person to improve his/

her work for avoiding such unpleasantsituations. Some managers believe in using

positive force by appreciating an employees

contribution , praising before others,

encouraging which make the person to do

even better to get more and more appreciation

and recognition.

In some situations , the managers are

autocratic , meaning, demanding D as I say .

Some may follow laissez faire style. Some

may use participatory style by involving

employees or subordinates in all the decisionmaking.

Nature and Process of Planning


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Planning is the most basic of all management

functions since it involves deciding of future

course of action .

Overview

The most challenging and vital of theadministrative functions , perhaps is planning,

which encompasses all the remaining five

functions. This is an intellectual process where

you have to visualize and foresee a situation

with its related activities prior to its taking

place , anticipate its outcome, possibleadvantages and disadvantages based on the data

available on prevailing resources, human,

material and financial as well as other

constraints.

Definition of Planning

Planning is the first function of administration

and management , undertaken to fulfill the

purpose for which an organization is

established . It is a pivotal process inadministration and management involving

conceptual skills, skills of analytical and critical

thinking , decision making and problem solving..

According to Killen , Planning is the process ofdeciding in advance what is to be done, who is

to do it , how is to be done and when is to be

done.

In words of Koontz, ODonnel and Weihrich ,

Planning is an intellectually demanding process ,


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it requires the conscious determination of

courses of action and the basing of decisions and

purpose, knowledge and considered estimates.

Characteristics of Planning

Characteristics of Planning which reflect the

nature of the planning process, are:

Primacy

The prime function of administration is

planning which provides the very basis for theorganizational function as a whole as also for the

other five functions of administration.

Futuristic orientation

Planning projects into the future , address itself

to the futuristic needs and demands, lookingahead to make provisions for future

development, for handling future events and

situations.

Pervasiveness

Managers at all levels are involved with theplanning function i.e. pervades all the levels-

from the top first levels of management .

Flexibility and Dynamism

Planning is involved with ongoing assessmentof the organizational goals and objectives, the

direction the organization is giving and thereby

changing its tenets as required.


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Unity of Purpose and Direction

Planning always takes into consideration the

organizational goals in their totality providing a

common focus in planning of administrative and

managerial actions, and thereby rendering unity

of purpose and direction in the process.

Nature of Planning

The nature of planning can be highlighted by

studying the following characteristics:

1.Planning is an intellectual activity:

Planning involves vision and

foresightedness to decide the things to be

done in future. It bridges the gap between

where we are and where we want to go.

2.Planning involves selection among

alternatives. Planning is a choice activity .

The planning process involves finding of

alternatives and selection of the best

alternative to achieve specified objectives .

Thus, decision making is an integral part ofplanning.

3.Planning is forward looking : Planning

means looking ahead . it is carried out to

achieve some objectives in future.

4.Planning is related to objectives . Every

plan specifies the objectives to be attained in

the future and the steps necessary to reach

them.


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5.Planning is the most basic of all

management functions . Since managerial

operations in organizing staffing, leading

and controlling are designed to support the

accomplishment of enterprise objectives,

planning logically precedes the execution ofall other managerial functions.

6.Planning is a pervasive function of

management . Planning is a function of all

managers, although the character and

breadth of planning will vary with theirauthority and with the nature of policies and

plans outlined by their superiors.

Benefits of Planning

Effective planning can result in the followingadvantages :

i) Focuses Attention on Objectives .

ii) Ensures Economical operation .

Planning involves a lot of mental exercisewhich is directed towards achieving

efficient operation in the enterprise.

iii) Reduces Uncertainty: Planning helps in

reducing uncertainties of future because it

involves anticipation of future events.

iv) Facilitates Control :


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v) Encourages Innovation and creativity :

It helps innovative and creative thinking

among the managers because many new

ideas come to the mind of a manager when

he is planning . It creates a forwardlooking attitude among the mangers.

vi) Improves Motivation: Planning serves as

a good training device for future

managers.

vii) Improves competitive strength :

Effective planning gives a competitive

edge to the enterprise over other

enterprises that do not have planning or

have ineffective planning.

viii) Achieves Better Coordination :

Planning

Is the conductor and band master of theorchestra of administrative functions,

providing thereby the framework for

giving direction to the different

functions within the organization.

Serves as an integral part of otheradministrative functions.

Ensures order and control

Avoids arbitrary decisions


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Provides flexibility and makes provision

for future growth and development.

Limitations of Planning

i) Lack of reliable data . Planning loses its

value if reliable information is not

available or if the planner fails to utilize

the reliable information.

ii) Lack of initiative . Planning is a forwardlooking process.

iii) Costly process . Planning is time

consuming and expensive process.

iv) Rigidity in organizational working .Internal inflexibility in the organization

may compel the planners to make rigid

plans.

v) Non acceptability of change.

vi) External limitations : Sudden breakout

of war, government control, natural

havocs and many other factors are beyond

the control of management. This makes

the execution of plans very difficult.

vii) Psychological barriers.

Principles of Planning


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The important principles of planning are

discussed below:

1.Principle of contribution to objectives:

The purpose of plans and their components

is to develop and facilitate the realization oforganizational aims.

2.Principle of pervasiveness of planning .

3.Principle of limiting factors: Planning

must take the limiting factors (manpower,money, machines, materials and

management) into account by concentrating

on them when developing alternative plans,

strategies, policies, procedures and

standards.

4.Principle of flexibility: Flexibility should

be built into organization plans. The

principle of flexibility states that

management should be able to change and

existing plan because of change in

environment without undue cost or delay sothat activities keep moving towards

established goals.

5. Principle of Navigational change. It is the

duty of the navigator to check constantly

whether his ship is following the rightdirection in the vast ocean to reach the

destination as scheduled. The navigator

changes the path of the ship in case it is it is

not going on the right path. In the same way,

a manager should check his plans to ensure

that these are progressing as required. He


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should change the direction of his plans if

he faces unexpected events.

6.Principle of Commitment . It suggests that

the time period covered by planning should

be related to the commitments of theorganization.

Kinds of Planning

We can classify planning on the basis of the

following dimensions:

1.Organizational Level : Corporate, divisional

and functional planning.

2.Focus : Strategic , operational and tactical

planning.

3.Time Period : Long- range , medium range

and short range planning.

Levels of Planning

i) Corporate Planning (Top Level) : It

usually covers a long period of five yearsor even more than this.

ii) Divisional Planning (Middle Level) :

Divisional planning relates to a

particular division or department . For

instance , financial planning is theresponsibility of finance manger and sales

budget that of marketing manger.

iii) Sectional Planning (Lower Level ) :

Sectional or unit planning is highly


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specific as it is done to achieve the

divisional objectives.

Focus of Planning

i) Strategic Planning . Strategic planning is

the process of deciding the objectives of the

organization and determining the manner in

which the resources of the enterprise are to be

deployed to realize the objectives in theuncertain environment .

ii) Operational Planning . Operational

planning is concerned with the efficient use of

the resources already allotted and with the

development of a control mechanism to ensureefficient operation so that organizational

objectives are achieved. An operational plan

(also called tactical planning ) involves laying

down how resources of the organization will be

used to help the firm achieve its objectives.

iii) Tactical Planning : Tactical plans are made

for short term moves and maneuvers necessary

for supporting the strategic plans and achieving

firms objectives. For instance, tactical plans

may be made to handle a sudden fall in the

demand of firms products of unexpected moveby a competitor.

Range or Time Span of Planning

i) Long-range Planning . Long range

planning is the process of establishing long-term


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goals, working out strategies , policies and

programmes to achieve these goals. It generally

covers a period ranging from 5 years to 20 years

or even more.

ii) Intermediate or Medium rangeplanning . Intermediate plans are made to

support the long term plans. They may relate

to development of new products and markets,

product publicity, increasing return on

investment from the existing products and

markets.

iii) Short range Planning . Short range

planning relates to a period of upto one year,

generally . Such plans are made to achieve short-

term goals.

Steps in Planning Process

1) Establishing Objectives . Objectives provide

direction to various activities in the enterprise.

2) Collection and Forecasting of Information :The collection and forecasting of information

should be done in terms of external and internal

environment . The assessment of external

environment should include consideration of

competition now and in the future. The

assessment of internal environment mayconsider the strong and weak points of the

organization . Collection of information and

making forecasts serve as an important basis of

planning.


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3) Development of Planning Premises : This

step involves making assumptions concerning

the behaviour of internal and external factors

mentioned in the second step .

4) Search of Alternatives: Usually, there areseveral alternatives for any plan.

5) Evaluation of Alternatives :

6) Selection of Plan and Development of

Derivative Plans.

Establishment

of Objectives

(Forecasting

demand

competition,

governmentpolicy , etc.

Planning

Premises

Appraisal

of Plans

Formulation pf

Derivative

Plans

(Objectives,Policies

Procedures,

Methods,

Rules, etc.

Selection

of Best

Alternative

Developing

Alternatives

Evaluation

of

Alternatives


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Fig. Steps in Planning

Essential Requirements of an Effective Plan

1. Should be Specific

2. Should be Logical

3. Complete and Integrated

4. Flexible

5. Capable of being controlled


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Nature and Process of Organization

Organization is the backbone of management . A

Carnagie, an American industrialist , Take

away our factories, take away our trade , ouravenues of transportation , our money . Leave

nothing but our organization , and in four years

we shall have re-established ourselves.

Sound organization brings about the

following advantages:

1. Facilitates attainment of the objectives of the

enterprise

2. Optimum use of resources and new

technological developments.

3. Growth and diversification4. Stimulates creativity and innovation

5. Effectives communication

6. Encourages better relations between the

labour and the management

7. Increase employees satisfaction and decreases

employee turnover.


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Definition

1. Sociologists organization means a study of the

interactions of the people , classes , or the

hierarchy of an enterprise ;2. Psychologist, organization means an attempt

to explain , predict and influence behaviour of

individuals in an enterprise;

3. Top executive , it may mean the weaving

together of functional components in the best

possible combination so that an enterprise canachieve its goals.

i) Organization as a group of persons

ii) Organization as a structure of

relationship

iii) Organization as a function ofmanagement ; and

iv) Organization as process

1. Organization as a group of Persons

Barnard defined organization as an identifiablegroup of people contributing their efforts

towards the attainment of goals.

2. Organization as a Structure of

Relationships

Organization is no more than the framework

within which the responsibilities of management

of an enterprise are discharged.

3. Organization as Function of Management


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Thus, organization is a process of integrating

and coordinating the efforts of human , financial

technological and other resources for the

accomplishment of certain objectives.

4. Organization as a process

Organization involves identification and

grouping the activities to be performed and

dividing them among the individuals and

creating authority and responsibility

relationships among them for theaccomplishment of organizational objectives.

Steps in Organizing

Organizing involves the following interrelated

steps :

i) Determination of objectives

ii) Identification and grouping of activities

iii) Assignment of Dutiesiv) Developing Authority- Responsibility

Relationships

Nature of Organization

1) An organization connotes group of

persons

2) Communication is the nervous system of

organization

3) Organizing is a basic function of

management


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4) Organizing is a continuous process

5) Organizing is always related to certain

objectives

6) Organization connotes a structure of

relationships.

7) Organization involves a network ofauthority and responsibility relationships.

Significance of Organisation structure

contributes in the following ways.

1.Clear-cut Authority Relationships

2.Pattern of communication

3.Location of Decision centers.

4.Proper Balancing

5.Stimulating creativity

6.Encouraging growth7.Making Use of Technological

Improvements.

Principles of Organisation

1.Consideration of Objectives

2.Division of Work and Specialization

3.Definition of Jobs

4.Separation of Line and staff Functions

5.Chain of command

6.Parity of Authority and Responsibility7.Unity of command

8.Exceptional Matters

9.Span of supervision

10. Balancing of Various factors

11. Communication

12. Flexibility


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13. Continuity

Direction

According to Dale, Direction is telling people

what to do and seeing that they do it to the

best of their ability. It includes making

assignments, explaining procedures, seeing

that mistakes are corrected , providing on the

job instructions, and, of course, issuingorders.

Directing is the interpersonal aspect of

management process by which organizational

members are led to understand and contribute

effectively and efficiently to theaccomplishment of organizational objectives.

4. Elements of Direction

i) Issuing of orders that are clear,

complete and within the capabilities ofsubordinates to accomplish;

ii) Continuous training activity in

which subordinates are instructed to

carry out the particular assignment in

the existing situation;


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iii) Motivation of subordinates to try to

meet the expectations of the manager;

and

iv) Maintaining discipline and

rewarding those who perform

properly.

Features of Direction

1.Managerial Function : Direction is an

important function of management . A good

plan may have been chalked out, to directthe people in the use of planning and

organization.

2.Continuous Activity : Direction is a

continuous activity . It does not stop so long

as the execution of plans is in process.

3.Pervasive Function : Like other functionsof management , direction is also performed

by the managers at all levels.

4.Communication : Giving of instructions

and orders is an indispensable part of

direction . Managers may elicit two types of

behavior from the subordinates when theyissue orders, viz., linear and circular. Linear

behaviour is obtained when there is one-way

transmission of orders from superior to

subordinates, incase of circular behaviour ,

there is full scope for the subordinates to

convey their feelings upward.

Principles of Direction

1.Principle of Harmony of Objectives


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Every individual is assigned a particular task

which he is responsible to accomplish.

2.Principle of Maximum Individual

Contribution : Direction should be such

which inspires the people to contribute fully

for the well being of the organization.3.Principle of Unity of Command : This

principle is not only important in

organization but also in direction . It states

that a subordinate should get orders and

instructions from one boss only.

4.Principle of Direct Supervision : Directsupervision by the boss and his direct advice

to the subordinates boosts their morale

resulting into renewed and vigorous effort .

This also increases loyalty among the

subordinates which is better for direction.

5.Principle of Effective Communication : Agood system of communication between the

boss and his subordinates is better for

coordination. Effective communication is an

instrument of effective direction.

6.Principles of effective Leadership :

Subordinates are happy if they get effectiveleadership from their boss. The boss must

possess the qualities of a good leader if he is

to get the work done from the workers. As a

leader, the boss should guide and counsel

the workers not only on the work problems

but also the personal problems of thesubordinates.

Coordination


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The basic function of coordination in an

enterprise is the same as that of an orchestra

conductor who directs the activities of the

orchestra party in such a manner that it

produces harmony in music.

Coordination has been viewed by different

management experts in different ways.

HenriFayol considers coordination as a

Function of a Manager.

James D. Mooney considers coordination asthe first principle of organization .

Ralph C. Davis looks upon coordination

primarily as a vital phase of controlling.

In short , it is the essence of management.

Definition of CoordinationCoordination is the orderly synchronization of

efforts of the subordinates to provide the

proper amount, timing and quality of

execution so that their united efforts lead to

the stated objective.

In the words of Mooney and Railey,

Coordination is the orderly arrangement of

group efforts to provide unity of action in the

pursuit of a common purpose.

Objectives of Coordination

i) Reconciliation of Goals. This can be

done by coordination only. The

conflict of goals arises because

everybody perceives the


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organizational goals differently and

tries to achieve them in his own way.

ii) Total Accomplishment . It has been

observed that the total

accomplishment of ten employees of a

department whose efforts are properlycoordinated will be far greater than

the mathematical sum of their

individual accomplishment. This

happens because through

coordination, duplication of efforts is

prevented and the time and energythus saved are better utilized in more

creative tasks.

iii) Economy and Efficiency .

Coordination will avoid duplication of

efforts due to which there will beeconomy in labour, time and

equipment . When the activities are

properly integrated, there will be least

delays which bring efficiency in the

business organization.

iv) Good Personnel Relations : Good

coordination gives job satisfaction to

the employees which keeps their

morale high . moreover, there are

good human relations because the

authority- responsibility relationshipare clear.

v) Retention of Managerial and other

Personnel : It has been pointed out

that sound coordination has a

significant effect on the development


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and retention of good personnel in

business.

Types of Coordination

Coordination can be classified into two broadcategories , one on the basis of its shape in the

organization and the other on the basis of its

scope and coverage . On the former basis, it can

be classified into vertical and horizontal

coordination; and on the latter basis, into

internal and external coordination.

1.Vertical and Horizontal Coordination :

The term vertical coordination is used

when coordination is to be achieved between

various links or different levels of the

organization . The term horizontalcoordination is used when coordination has

to be achieved between departments on the

same level in the managerial hierarchy .

2.Internal and External Coordination .

Coordination may be internal and external to

the organization . Coordination is internalwhen it is achieved between different

departments, sections and units of an

enterprise. External coordination also

involves interaction with other business,

economic and research institutions to have

the benefits of latest information andtechnological advances.

Techniques of Effective Coordination or

Steps to achieve effective coordination

i) Clearly defined goals


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ii) Clear lines of authority and

responsibility

iii) Precise and comprehensive

programmes and policies.

iv) Cooperation

v) Effective communication.vi) Effective leadership and supervision

Principles of Coordination : According to

Mary Parker

i) Principle of Direct Contact . Theactivities of different individuals can be

coordinated effectively through direct

personal contacts. This helps in

exchanging the opinions and ideas in a

better way and clarifying the

misunderstandings more easily.ii) Principle of Early Start . Coordination

can be achieved easily during the early

stages of planning and policy making . It

becomes difficult to secure coordination at

the execution stage.

iii) Principle of Reciprocal Relationship .For instance, when A works with B, each

finds himself influenced by the other and

both are influenced by the other persons

and factors in the total situation.

iv) Principle of Continuity . Coordination

should be viewed as a never- endingprocess and every manager should strive

for it constantly .


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Some Important Measures: Which could

help in brining this effective cooperation and

in turn coordination, are:

To have direct contact with people

To begin this actively at a very early

stage To maintain continuity in this activity

To be clear and make the objectives

clear to the subordinates

To work out clear delineation of

authority

To simplify the procedures in the

organization

To maintain effective communication

style and motivate others to develop a

sense of involvement.

To provide effective leadership andsupervision.

Control

Control is an important function of

management . It is the process that measurescurrent performance and guides it towards some

predetermined objectives.

Definition of Control

Control is a basic managerial function which

implies measurement and correction ofperformance of subordinates to ensure that the

predetermined objectives are accomplished.

According to Koontz and Weihrich , The

managerial function of controlling is the

measurement and correction of the performance


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in order to make sure that enterprise objectives

and the plans devised to attain them are

accomplished .

Characteristics of Control

1.Pervasive Function: Managers at all levels

have to perform this function to contribute

to the achievement of organizational

objectives.

2. Review of Past Events : This is also

known as feedback information3.Forward Looking :

4. Action Oriented :

5.Continues Process :

6.Dynamic Process : Control is a dynamic

process. It is flexible and not rigid.

7.Control does not curtail the rights ofindividuals : to some people control is

opposite of freedom . It is not so. It is

preventive action so that losses may be

avoided in future.

Significance of Controlling

1.Coordination

2.Corrective Action


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3.Decision making

4.Better Planning

5.Decentralization of Authority

6.Effective Supervision

Principles or Requirements of A Good

Control System.

1.Emphasis on Objectives : The control

system must be directed towards the

potential or actual deviation from plans earlyenough to permit effective corrective action.

2. Efficiency of control Techniques : Control

techniques and approaches are efficient

when they detect deviations from plans and

make possible corrective action with the

minimum of unsought consequences.3.Responsibility for Control : Should rest in

the manager

4.Direct Control : Any controlsystem should

be designed to maintain direct contact

between the controller and controlled.

5.Suitability : Controls should be tailored tofit the needs of the organization

6.Flexibility : A good control system must

keep pace with the continuously changing

pattern of a dynamic business world. It must

be responsive to changing conditions.

7.Self- Control : Units may be planned tocontrol themselves . If a department can

have its own goals and control system, much

of the detailed controls can be handled

within the department.

8.Control by Exception : This is also known

as management by exception . According


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to this principle , only significant deviations

from standards, whether positive or

negative, require managements attention as

they constitute exceptions.

9.Strategic Point Control

10. Corrective Action : Merely pointing ofdeviations is not sufficient in a good control

system.

11. Forward looking Control : The

control system should be directed towards

future. It should report all the deviations

from the standards quickly in order tosafeguard the future.

12. Human Factor : A good system of

control should find the persons accountable

for results, whenever large deviations take

place. They must be guided and directed, if

necessary.13. Economical: The systems of control

must be worth their costs. They must justify

the expenses involved.

14. Objective Standards : As far as

possible , standards should be objective. If

they are subjective, a managers or asubordinates personality may influence

judgments of performance.

Relationship between Control and

Coordination :

Control and coordination are twins of

Management. Control and coordination are

closely related in many ways. Firstly ,

authority is the basis of both the process.

Secondly , both are performed by the

managers at all levels. Thirdly , both are


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aimed at achieving organizational goals.

Fourthly , both are necessary for achieving

stability , continuity and growth of the

organization and consistency , precision and

discipline concepts in the sense that seek to

relate organizational means withorganizational ends or goals. They strive to

maintain organizations as rational systems,

relatively free from conflict, confusion and

chaos.

Significance of Controlling

1.Coordination

2.Corrective Action : taking corrective action

may lead to modification of planning,

organizing , and directing . Control will also

check the mistakes being repeated in future.3.Decision Making : The process of control is

complete when corrective actions are taken.

This involves making a right decision as to

what type of follow up action is to be taken.

4.Better Planning : control is the only means

to ensure that the plans are beingimplemented in the real sense . It points out

the shortcomings of planning by comparing

the actual performance with the planned

standards AND suggests steps to improve

planning.

5.Decentralization of Authority6.Effective Supervision : Control facilitates

effective supervision by pointing out

significant deviations . It keeps the

subordinates under check and brings

discipline among them.


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Principles and Practice of Administration and Supervision

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