Organisation Structure and Behaviour - F.Y.

BCA (Sem 2), VNSGU, Surat

CHAPTER 2

INTRODUCTION TO MANAGEMENT

DEFINITION & MEANING OF MANAGEMENT

According to Terry, “Management is a distinct process consisting of planning, organising, actuating and
controlling performance in order to determine and accomplish objectives by the use of people and
resources.

Hence, from the above definition, we can say that;

- Management is a process of planning, organising, actuating and controlling performance
- Management determines and accomplish objectives
- Resources are required to manage.

IMPORTANCE OF MANAGEMENT
Management is important in any organisation. In order to achieve the objectives, management is required.
Following points show the importance of management;

1. Management takes care of interests of different groups:

- In any organisation, there are many groups. For example, shareholders, customers, creditors,
society, government etc.
- Every group has a special and distinct interest in the working of an organisation. For example,
shareholders are interested in returns (dividend); customers are interested in quality products and
fair price, government is interested in taxes etc.
- Management is needed to take care of the interest of all these groups.

2. Optimum use of resources:

- There are different types of resources in an organisation – Men, Material, Money, Machines etc.
- It is the job of the management to make proper use of these resources.
- Management tries to use these resources in the most efficient manner. This will help the
organisation in achieving its goals easily.

3. Handling Business Environment:

- Every organisation faces a challenge. The challenge is to tackle the problem of changing
environment.
- Environment keeps changing. For example, political environment, economic environment,
technological environment keeps changing.
- When the environment changes, organisations will have to adjust it accordingly.
- Hence, management is important in handling the change in business environment and helps the
organisation in adjusting as per the change.

4. Growing size of business:

- Good management can help the organisation to grow well.

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- An organisation can only go ahead if it has better management. An organisation require good
marketing management, financial management, production management, human resource
management etc.
- When all the functions of the organisation are managed well, then it helps in the growth of the
organisation.

5. Provides innovation:
- Better management will always provide new ideas, imaginations and visions to an organisation.
- Innovation helps the organisation to grow.

6. Tackles business problems:

- Good management helps in solving the problems of an organisation.
- Organisation may face problems internally or from the external environment. It is the job of a
management to solve these problems and move ahead in achieving the goal.

7. Management directs the organisation:

- An organisation can only grow if is directed in proper way.
- Good management will always helps the organisation by providing proper direction according to
the need.

8. Management provides co-ordination:

- Management co-ordinates the activities of the different departments in an organisation.
- Good co-ordination brings better team spirit.
- Good co-ordination will help the organisation in achieving its goal well in time.

9. Reduces turnover and absenteeism:

- Efficient management reduces labour turnover and absenteeism and ensures continuity in the
business activities and operations.

10. Creates sound organisation:

- A dynamic and progressive management guarantees development of sound Organisation, which
can face any situation - favorable or unfavorable with ease and confidence

FEATURES OF MANAGEMENT

The nature or characteristics or features of management are:-

1. Continuous and never ending process: Management is a Process. It includes four main functions,
viz., Planning, Organizing, Directing and Controlling. The manager has to Plan and organize all the
activities. He has to give proper directions to his subordinates. He also has to control all the activities.
The manager has to perform these functions continuously. Therefore, management is a continuous and
never ending process.

2. Getting things done through people: The managers do not do the work themselves. They get the
work done through the workers. The workers should not be treated like slaves. They should not be
tricked, threatened or forced to do the work. A favourable work environment should be created and
maintained.

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3. Result oriented science and art: Management is result oriented because it gives a lot of importance
to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management
always wants to get the best results at all times.

4. Multidisciplinary in nature: Management has to get the work done through people. It has to
manage people. This is a very difficult job because different people have different emotions, feelings,
aspirations, etc. Similarly, the same person may have different emotions at different times. So,
management is a very complex job. Therefore, management uses knowledge from many different
subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is
multidisciplinary in nature.

5. A group and not an individual activity: Management is not an individual activity. It is a group
activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the
needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to
individuals.

6. Follows established principles or rules: Management follows established principles, such as

division of work, discipline, unity of command, etc. These principles help to prevent and solve the
problems in the organization.

7. Computerised management: Now a days, all managers use computers. Computers help the
managers to take accurate decisions. However, computers can only help management. Computers
cannot replace management. This is because management takes the final responsibility. Thus
Management is aided (helped) but not replaced by computers.

8. Situational in nature: Management makes plans, policies and decisions according to the situation. It
changes its style according to the situation. It uses different plans, policies, decisions and styles for
different situations. The manager first studies the full present situation. Then he draws conclusions
about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is
called Situational Management.

9. Need not be an ownership: In small organizations, management and ownership are one and the
same. However, in large organizations, management is separate from ownership. The managers are
highly qualified professionals who are hired from outside. The owners are the shareholders of the
company.

10. Both an art and science: Management is result-oriented. Therefore, it is an Art. Management
conducts continuous research. Thus, it is also a Science.

11. Management is all pervasive: Management is necessary for running a business. It is also essential
for running business, educational, charitable and religious institutions. Management is a must for all
activities, and therefore, it is all pervasive.

13. Use a professional approach in work: Managers use a professional approach for getting the work
done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their
subordinates to give suggestions for improving their work. They also encourage subordinates to take the
initiative. Initiative means to do the right thing at the right time without being guided or helped by the
superior.

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14. Management is dynamic in nature: Management is dynamic in nature. That is, management is
creative and innovative. An organization will survive and succeed only if it is dynamic. It must
continuously bring in new and creative ideas, new products, new product features, new ads, new
marketing techniques, etc.

SCOPE OF MANAGEMENT

According to many authors, it is very difficult to clearly describe the scope of management. However,
we can understand the scope of management through following ways;

1 Subject-matter of Management
 Management is considered as a continuing activity made up of basic management functions like
planning, organizing, staffing, directing and controlling.
 These components are considered as the subject-matter of management.

2 Functional Areas of Management

Management covers the following functional areas:-
 Financial Management : Financial management includes forecasting, cost control, management
accounting, budgetary control, statistical control, financial planning etc.
 Human Resource Management : Personnel / Human Resource Management covers the various
aspects relating to the employees of the organization such as recruitment, training, transfers,
promotions, retirement, terminations, remuneration, labour welfare and social security, industrial
relations etc.

 Marketing Management : Marketing management deals with marketing of goods, sales

promotion, advertisement and publicity, channels of distribution, market research etc.

 Production Management : Production Management includes production planning, Quality control

and inspection, production techniques etc. Material management includes purchase of materials,
issue of materials, storage of materials, maintenance of records, materials control etc. Purchasing
management includes inviting tenders for raw materials, placing orders, entering into contracts
etc. Maintenance Management relates to the proper care and maintenance of the buildings, plant
and machinery etc.

 Office Management : Office management is concerned with office layout, office staffing and
equipment of the office.

3 Management is an Inter-Disciplinary Approach:

 The science of management develops ideas and concepts from a number of disciplines. Hence,
management is a multi-disciplinary subject.
 Many theories and principles of management are derived from study of commerce, economics,
statistics, sociology, psychology, and mathematics.

4 Principles of Management:
 The principles of management are of universal application. This means that the theories of
management can be applied anywhere.
 These principles are applicable to any group activity (like organisation) undertaken for the
achievement of some common goals.
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5. Management is an art and the science profession.

 Management includes scientific method and quantitative techniques of managing people and the
effective utilization of other physical resources. It is based of principle and processes that is why
it is considered as science.
 It is an art of managing humans within an organization, understanding their behaviour and
getting things done skillfully with the efforts of available human resources.
 Nowadays management is considered as profession because of the need of a special knowledge
and expertise in order to manage the business.

MANAGERIAL SKILLS - CONCEPTUAL, HUMAN RELATIONS AND

TECHNICAL

 Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus,
essential skills which every manager needs for doing a better management are called
as Managerial Skills.
 According to Professor Robert Katz, there are three managerial skills, viz.,
Conceptual Skills,
Human Relations Skills, and
Technical Skills.
 According to Prof. Robert Katz, all managers require above three managerial skills. However, the
degree (amount) of these skills required varies (changes) from levels of management and from an
organisation to organisation.

The above picture or diagram shows the managerial skills which are required by managers working at
different levels of management. The top-level managers require more conceptual skills and less technical
skills. The lower-level managers require more technical skills and fewer conceptual skills. Human
relations skills are required equally by all three levels of management.

1. Conceptual Skills
Conceptual skill is the ability to visualise (see) the organisation as a whole. It includes Analytical,
Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the
symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the
manager to fix goals for the whole organisation and to plan for every situation. Conceptual skills are

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mostly required by the top-level management because they spend more time in planning, organising and
problem solving.

2. Human Relations Skills

Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps the
managers to understand, communicate and work with others. It also helps the managers to lead, motivate
and develop team spirit. Human relations skills are required by all managers at all levels of management.
This is so, since all managers have to interact and work with people.

3. Technical Skills
A technical skill is the ability to perform the given job. Technical skills help the managers to use different
machines and tools. It also helps them to use various procedures and techniques. The low-level managers
require more technical skills. This is because they are incharge of the actual operations.

Apart from Prof. Robert Katz's three managerial skills, a manager also needs (requires) following
additional managerial skills.

4. Communication Skills
Communication skills are required equally at all three levels of management. A manager must be able to
communicate the plans and policies to the workers. Similarly, he must listen and solve the problems of the
workers. He must encourage a free-flow of communication in the organisation.

5. Administrative Skills
Administrative skills are required at the top-level management. The top-level managers should know how
to make plans and policies. They should also know how to get the work done. They should be able to co-
ordinate different activities of the organisation. They should also be able to control the full organisation.

6. Leadership Skills
Leadership skill is the ability to influence human behaviour. A manager requires leadership skills to
motivate the workers. These skills help the Manager to get the work done through the workers.

7. Problem Solving Skills

Problem solving skills are also called as Design skills. A manager should know how to identify a problem.
He should also possess an ability to find a best solution for solving any specific problem. This requires
intelligence, experience and up-to-date knowledge of the latest developments.

8. Decision Making Skills

Decision-making skills are required at all levels of management. However, it is required more at the top-
level of management. A manager must be able to take quick and correct decisions. He must also be able to
implement his decision wisely. The success or failure of a manager depends upon the correctness of his
decisions

FUNCTIONS OF MANAGEMENT / MANAGER

 Different experts have classified functions of management. According to George & Jerry, “There
are four fundamental functions of management i.e. planning, organizing, actuating and
controlling”.

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 According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to
control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting
& B for Budgeting.
 But the most widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

1. Planning
 It is the basic function of management. It deals with deciding the future actions & deciding in
advance the most appropriate actions for achievement of pre-determined goals.
 According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to
do. It fills the gap from where we are & where we want to be”.
 A plan is a future course of actions. It is an exercise in problem solving & decision making.
Planning is determination of courses of action to achieve desired goals.
 Thus, planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals.
 Planning is necessary to ensure proper use of human & non-human resources. It is present
everywhere, it is an intellectual activity and it also helps in avoiding confusion, uncertainties,
risks, wastages etc.

2. Organizing
 It is the process of bringing together physical, financial and human resources and developing
productive relationship among them for achievement of organizational goals.
 According to Henry Fayol, “To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel’s”.
 To organize a business involves determining & providing human and non-human resources to
the organizational structure.
 Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
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 Coordinating authority and responsibility relationships.

3. Staffing
 It is the function of manning (deciding the staff) the organization structure and keeping it manned.
 Staffing has assumed greater importance in the recent years due to advancement of technology,
increase in size of business, complexity of human behavior etc.
 The main purpose of staffing is to put right man on right job.
 According to Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective recruitment, selection, training & development
of employees to fill the roles designed in the structure”.
 Staffing involves:
 Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4. Directing
 It is that part of managerial function which implements the organizational methods to work
efficiently for achievement of organizational purposes.
 It sets it in motion the action of people because planning, organizing and staffing are the mere
preparations for doing the work.
 Direction involves influencing, guiding, supervising, motivating sub-ordinate for the achievement
of organizational goals. Direction has following elements:
 Supervision
 Motivation
 Leadership
 Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person
to another. It is a bridge of understanding.

5. Controlling
 It involves comparing the actual performance with the planned performance. If there is any
variation, then necessary actions are to be taken. These actions are called controlling.
 The purpose of controlling is to make sure that everything occurs according to plan.
 According to Koontz & O’Donell “Controlling is the measurement & correction of performance
activities of subordinates in order to make sure that the enterprise objectives and plans desired to
obtain them as being accomplished”.
 Therefore controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
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d. Corrective action.

LEVELS OF MANAGEMENT IN ORGANISATION STRUCTURE

Levels of management in an organisation structure can be divided into three parts – top level, middle
level and lower level management;

Function of Top Management:

 One of the important functions of top level management is to set objective for organization and
formulating policies for accomplishing such objectives.
 They are the founder of organization having vision to see the growth for their business.
 Top management can see the threat in advance so that they can overcome such threats and
concentrate to convert such treat to an opportunity.
 They are the policy makers who identify right kind of people at right place on right time in right
numbers for successful implementation of policies, and to facilitate efforts for the
accomplishment of organizational objective.
 Here are some of the functions of top level management.
Establishing Objective.
Formulating policies for achieving stated goal.
Planning to carry out objectives and policies.
Generation and Mobilization of resources.
Delegation of Leadership and Motivation.
Increase Co-ordination and Communication.
Effective Controlling to ensure realization of stated objective.
 Top Management provides inspiration and directs their subordinates.
 It is the main responsibility of top management to know the strength and weakness of employees
and organization. They also need to identify environmental threats and opportunities for
successful achievement of organizational objectives.

Functions of Middle Level Management:

 Middle level of management is concerned with the task of implementing the policies and plans
framed by top level management.
 This level is also known as implementation level. It includes departmental heads, other
executive officers.
 Main responsibility of managers at this level is to realize objectives that is visualized by top
management.
 Following are some of the functions of middle level management.
They keep top executives as free as possible for the fulfillment of their other organizational
responsibility.
To Co-ordinate and Cooperate in smooth functioning of business
To understand interdependence of different departments with in organization
To provide training to the employees for increasing performance
To build up team spirit among the different work groups
Generating belongingness and increase job satisfaction among the member of organization
Motivating employees for better performance
Establishing punishment and reward system

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Top Management
Board of Directors,
Managing Directors, or
General Manager.

Middle Level Management

Departmental Heads, or
Functional Managers

Lower Level Management

Accountants, Clerks, Foremen,
Supervisors etc.

Workers, Peons.

Functions of Lower Level Management:

 Lower level of management is also known as supervisory level of management which includes
supervisor, foreman, accountants and clerks and other workers to facilitate operation of the
organization.
 These are the people who put the plans of top management into effective action, delegating work
as per schedule to the individuals and get the work done with in a stipulated time frame.
 Following are the functions of lower level management.
To plan routine work and assigning the job to the workers.
To issue instructions and orders to workers and to supervise functions assigned to them.
Managing other resources like material, tools, and equipment available wherever required
by workers at work place.
To provide on the job training to newcomers in the organization.
To redress grievances of workers.
Proper maintenance of tools, machinery, equipment, and other work related materials.
To increase communication.
To promote healthy relationship between labour and management.

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Sending Reports and statements to advice and provide regular feedback on work related
issues to middle level management.
To maintain good human relation with workers and acting as liaison man between middle
management and the workers.

ROLE OF MANAGERS / MANAGEMENT:

It is important for the managers to make use of the resources (men, machines, money, materials etc) well.
This will help in achieving the objectives of the organisation. Henry Mintzberg has divided the role of
managers into three categories;

1. INTERPERSONAL ROLE:
- Interpersonal role means how managers deal with his contacts and other people. This includes the
following;
o A manager is considered as an ‘ambassador’ to all outsiders
o A manager is considered as ‘figure head’. He has formal authority. He also has a special
status in the organisation.
o A manager performs the role of a leader. He has to communicate with his subordinates,
motivate them and activate them to work in order to achieve the objectives.

2. INFORMATIONAL ROLE:
- A manager’s contact with the outside world and his leadership position make him a focal point of
information. He has to receive and collect information so that he can develop a thorough
understanding of his organisation. This role includes the following;
o He gathers information from the environment and transmits it into his organisation.
o He functions as a monitor. He keeps a watch on the information that is spreading
throughout the organisation.
o He functions as a spokesman by passing the organisation’s information into the
environment. For example, when a company launches a new product, the manager provides
this information to the public through press conferences etc.

3. DECISIONAL ROLE:
- A manager occupies an important role in an organisation because of his special and unique
position and authority. This means that he must be performing important organizational duty of
decision making. There are four decisional role that he has to perform:
o He has to perform the entrepreneur’s role by initiating change and taking the risk in
introducing the change in the organisation.
o He has to solve the problem whenever his organisation is under a problem or threat.
o He performs the role of an allocator of resources when he decides how and where his
organisation will expand its efforts and resources.
o He performs the role of a negotiator. As negotiator, he deals with those situations where he
has to enter into negotiations on behalf of the organisation.

MANAGEMENT – SCIENCE OR ART?

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To conclude whether management is science or art, we must understand the features and meanings of
science, art and compare them with management meaning and features.

Management as a Science:
Science can be defined as a systematic and organised body of knowledge based on logically observed
findings, facts and events. Science is made up of exact principles which can be verified and it can
establish cause and effect relations.

Main characteristics/features of science are:

1. Systematic body of knowledge:

In science organised and systematic study material is available which is used to acquire the knowledge of
science. Like science in management also there is availability of systematic and organised study material.
So first feature of science is present in management.

2. Scientific principles are derived on the basis of logical and scientific observations:
The scientists perform logical observation before deriving any principle or theory. They are very objective
while doing the observations. But when managers are observing they have to observe human beings and
observation of human being cannot be purely logical and objective.
Some kind of subjectivity enters in the observations so this feature of science is not present in
management. All the scientific principles have same effect, wherever we try them whereas effect of
management principles varies from one situation to other.

3. Principles are based on repeated experiments:

Before developing scientific principles scientists test these principles under different conditions and
places. Similarly, managers also test and experiment managerial principles under different conditions in
different organisations. So this feature of science is present in management.

4. Universal Validity:
Scientific principles have universal application and validity. Management principles are not exact like
scientific principles so their application and use is not universal. They have to be modified according to
the given situation. So this feature of science is not present in management.

5. Replication is possible:
In science replication is possible as when two scientists are undertaking the same investigation working
independently and treating the same data under the same conditions may desire or obtain the identical or
exactly same result. But in management managers have to conduct research or experiments on human
beings. So if’ two managers are investigating same data, on different sets of human beings they will not
get identical or same result because human beings never respond in exactly identical manner. So this
feature of science is also not present in management.

Management as an Art:
Art can be defined as systematic body of knowledge which requires skill, creativity and practice to get
perfection. The main features of art are:

1. Systematic body of knowledge/Existence of theoretical knowledge:

In every art there is systematic and organized study material available to acquire theoretical knowledge of
the art. For example, various books on different ragas are available in music. In management also there is
systematic and organised body of knowledge available which can help in acquiring managerial studies. So
this feature of art is present in management also.
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2. Personalised application:
In the field of art only theoretical knowledge is not enough. Every artist must have personal skill and
creativity to apply that knowledge. For example, all musicians learn same ragas but they apply these ragas
according to their personal skill and creativity which makes them different.
In management also all managers learn same management theories and principles. But their efficiency
depends on how well they use these principles under different situations by applying personal skills and
creativity so this feature of art is also present in management.

3. Based on Practice and creativity:

The artist requires regular practice of art to become more fine and perfect. Without practice artists lose
their perfection. Art requires creative practice, i.e., artist must add his creativity to the theoretical
knowledge he has learned. Same way with experience managers also improves their managerial skills and
efficiency. So this feature of art is also present in management.

Management: Both Science and Art:

Management is both science as well as art. Like science it has systematic and well- organised body of
knowledge and like art it requires personal skill, creativity and practice to apply such knowledge in the
best possible way. Science and art are not in contrast to each other; both exist together in every function
of management.

PROFESSIONALISATION OF MANAGEMENT

Profession can be defined as an occupation backed by specialised knowledge and training, in which entry
is restricted. The main features of profession are:

1. Well defined Body of knowledge:

In every profession there is practice of systematic body of knowledge which helps the professionals to
gain specialised knowledge of that profession. In case of management also there is availability of
systematic body of knowledge.
There are large numbers of books available on management studies. Scholars are studying various
business situations and are trying to develop new principles to tackle these situations. So presently this
feature of profession is present in management also.

2. Restricted Entry:
The entry to a profession is restricted through an examination or degree. For example a person can
practice as Doctor only when he is having MBBS degree.
Whereas there is no legal restriction on appointment of a manager, anyone can become a manager
irrespective of the educational qualification. But now many companies prefer to appoint managers only
with MBA degree. So presently this feature of profession is not present in management but very soon it
will be included with statutory backing.

3. Presence of professional associations:

For all the professions, special associations are established and every professional has to get himself
registered with his association before practising that profession. For example, doctors have to get
themselves registered with Medical Council of India, lawyers with Bar Council of India etc.
In case of management various management associations are set up at national and international levels
which have some membership rules and set of ethical codes, for example, AIMA in New Delhi, National
Institute of Personal Management at Calcutta etc., but legally it is not compulsory for managers to become
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a part of these organisations by registration. So presently this feature of profession is not present in
management but very soon it will be included and get statutory backing also.

4. Existence of ethical codes:

For every profession there are set of ethical codes fixed by professional organisations and are binding on
all the professionals of that profession. In case of management there is growing emphasis on ethical
behaviour of managers. All India Management Association (AIMA) has devised a code of conduct for
Indian managers. But legally it is not compulsory for all the managers to get registered with AIMA and
abide by the ethical codes.
So presently this feature of profession is not present in management but very soon it will be included with
statutory backing.

5. Service Motive:
The basic motive of every profession is to serve the clients with dedication. Whereas basic purpose of
management is achievement of management goal, for example for a business organisation the goal can be
profit maximisation.
But nowadays only profit maximisation cannot be the sole goal of an enterprise. To survive in market for
a long period of time, a businessman must give due importance to social objectives along with economic
objectives. So presently this feature of profession is not present but very soon it will be included.

MANAGEMENT AND ADMINISTRATION

Definition of Management: Management is defined as an act of managing people and their work, for
achieving a common goal by using the organization’s resources. It creates an environment under which
the manager and his subordinates can work together for the attainment of group objective. It is a group of
people who use their skills and talent in running the complete system of the organization. It is an activity,
a function, a process, a discipline and many more. Planning, organizing, leading, motivating, controlling,
coordination and decision making are the major activities performed by the management. Management
brings together 5M’s of the organization, i.e. Men, Material, Machines, Methods and Money. It is a result
oriented activity, which focuses on achieving the desired output.

Definition of Administration: Administration is a systematic process of administering the management

of a business organization, an educational institution like school or college, government office or any
nonprofit organization. The main function of administration is formation of plans, policies and
procedures, setting up of goals and objectives, enforcing rules and regulations, etc.

The major differences between management and administration are given below:

 Management is a systematic way of managing people and things within the organization. The
administration is defined as an act of administering the whole organization by a group of people.
 Management is an activity of business and functional level, whereas Administration is a high level
activity.
 Management plays an executive role in the organization. The role of administration is decisive in
nature.
 Administration takes all the important decisions of the organization while management makes
decisions under the boundaries set by the administration.
 A group of persons, who are employees of the organization are collectively known as
management. On the other hand, administration represents the owners of the organization.
Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 14
 Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
 Management can be seen in the profit making organization like business enterprises. Conversely,
the Administration is found in government and military offices, clubs, hospitals, religious
organizations and all the non profit making enterprises.
 Management is all about plans and actions, but the administration is concerned with framing
policies and setting objectives.
 The manager looks after the management of the organization, whereas administrator is responsible
for the administration of the organization.
 Management focuses on managing people and their work. On the other hand, administration
focuses on making the best possible utilization of the organization’s resources.

Conclusion
Theoretically, it can be said that both are different terms, but practically, you will find that the terms are
more or less same. You would have noticed that a manager performs both administrative and functional
activities. The managers who are working on the top-most level are said to be the part of administration
whereas the managers working on the middle or lower level represents management. So, we can say that
administration is above management.

===================================THE END===============================

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 15