Difference between Management and Administration

Basis Management Administration

Meaning Management is the art of directing and Administration focuses on setting

coordinating efforts to achieve broad objectives, policies, and
organizational goals through teamwork. strategies.
Nature Execution-oriented function. Decision-making function.
Process Determines who will do a task and how it Decides what should be done and
will be done. when it should be done.
Function A doing function—ensuring work is A thinking function—formulating
completed under supervision. plans and policies.
Skills Requires technical and human skills. Requires conceptual and human
Required skills.
Level Operates at middle and lower levels. Operates at the top level.
Applicability Relevant to business organizations Relevant to non-business
(profit-oriented). organizations (e.g., schools,
hospitals, clubs).
Influence Decisions are influenced by managers' Decisions are influenced by public
values, opinions, and experiences. opinion, government policies,
and societal norms.
Status Consists of employees (managers) who Represents owners who earn
receive salaries or wages. profits or dividends.

Decision-Making Steps
1. Awareness of the Problem – The first step is recognizing the problem that needs managerial
attention. It arises when there is a gap between the current state and the desired outcome.
2. Diagnose and Define the Problem – The manager must clearly identify the root cause of the
issue rather than just its symptoms. A proper analysis ensures that time is not wasted on solving
the wrong problem.
3. Develop Alternatives – Various possible solutions are explored. Creativity, research, and
innovative thinking are crucial in this stage to ensure the best alternatives are considered.
4. Evaluate Alternatives – Each alternative is analyzed based on its advantages, disadvantages,
feasibility, and potential impact. The goal is to find a workable and practical solution.
5. Select the Best Alternative – The decision-maker chooses the most effective solution by
considering factors like risks, cost-effectiveness, timing, and resource availability.
 6. Implement and Verify the Decision – Once a decision is made, it is put into action. Feedback is
gathered to assess its effectiveness, and necessary adjustments are made if needed.

Management as an Art, Science, and Profession

Management is a combination of science, art, and profession as it involves both theoretical
principles and practical application.

1. Management as a Science
It has a systematic body of knowledge.
Based on principles developed through observation and experimentation.
Uses scientific methods to solve problems and make decisions.
2. Management as an Art
Requires creativity, intuition, and personal skills.
Involves the practical application of theories to real-world situations.
Just like an artist refines their craft, managers develop their expertise through experience.
3. Management as a Profession
It has a specialized body of knowledge and requires formal education.
Involves ethical standards and responsibilities.
Professional organizations like the Institute of Management Accountants (IMA) and
Project Management Institute (PMI) set guidelines.

Thus, management is both a science and an art, as science provides knowledge, and art involves its
application. It is also evolving as a profession due to the increasing need for managerial expertise.

Types of Plans
Plans help managers in decision-making, resource utilization, and guiding employee behavior. These
plans are categorized into Single-Use Plans and Standing Plans.
Single-Use Plans
These plans are made for one-time use and are applied to specific projects or objectives.

1. Objective – Defines the future goal or desired outcome.

2. Strategy – A course of action based on organizational strengths and weaknesses.
3. Programme – A structured plan involving policies, procedures, and budgets to implement a
strategy.
4. Budget – A financial plan outlining expected revenue and expenditure over a period.

Standing Plans
These are ongoing plans that provide consistency in decision-making and actions.

5. Policies – General guidelines for decision-making in an organization.

6. Procedures – Step-by-step guidelines for performing specific tasks.
7. Methods – Detailed techniques for carrying out an activity efficiently.
8. Rules – Clear directives for controlling and regulating employee behavior.

These plans ensure smooth operations and effective management within an organization.

Departmentalization and Its Types

Departmentalization refers to the process of dividing tasks and activities into discrete segments,
grouping jobs into effective workgroups, and combining these groups into divisions often referred to
as 'departments.' This process helps in organizing an organization based on different functions,
geographical locations, products, or customers. It ensures clarity in the responsibilities and authority
of each department.

Types of Departmentalization:
1. Functional Departmentalization:
Groups activities by functions like production, marketing, finance, etc.
Merits: Efficient for repetitive tasks, clear authority, easier budgeting.
Demerits: No overall project responsibility, slow decision-making, conflicts between functions.

2. Geographical Departmentalization:
Divides the organization by regions (e.g., North, South).
Merits: Personalized services, quick local response, more business opportunities.
Demerits: Communication delays, resource duplication, higher overhead costs.

3. Product Departmentalization:
Divides based on products (e.g., electronics, food).
Merits: Independent responsibility, strong market focus, quick response to market changes.
Demerits: High overheads, low collaboration between divisions, resource duplication.
 4. Customer-Oriented Departmentalization:
Divides based on customer types (e.g., defense division).
Merits: Better customer interaction, meets specific needs.
Demerits: Potential resource duplication, fragmentation.

Motivation and Its Types

Motivation is the process of stimulating individuals to take action to achieve specific goals. It
represents the internal drive that influences a person's behavior in a particular way.

Key Elements of Motivation:

1. Energy: The effort exerted to achieve the goal.

2. Direction: The focus on the desired outcome.
3. Persistence: The continuous effort to reach the goal despite challenges.

Relation Between Motivation and Needs:

Motivation is often driven by unsatisfied needs, which create tension.

Once the need is met, tension is reduced, leading to satisfaction or dissatisfaction.
 Reward: Motivation can be influenced by rewards, which can either reduce or increase tension
and guide behavior and performance.

Process of Selection in Staffing

Staffing is the process of planning, employing, and developing human resources at different
organizational levels to perform functions effectively. It includes activities like recruitment, selection,
training, compensation, and performance appraisal.

Importance of Proper Staffing:

Identifies and develops talent for career progression.
Ensures greater productivity by placing the right people in the right jobs.
Prevents disruptions by identifying personnel shortages in advance.
Reduces under-utilization of personnel and avoids high labor costs.

Steps of Staffing
1. Manpower Planning: Ensures the organization has the right number of people with the right
skills. It can be short-term (matching current employees to current jobs) or long-term (matching
future jobs to future candidates).
2. Recruitment: The process of attracting candidates through:
- Internal sources: Promotions and transfers.
- External sources: Advertising, job portals, referrals, college recruitment, and employment
exchanges.

3. Selection: Comparing candidates' qualifications with job requirements and eliminating unsuitable
ones. Steps include job analysis, application screening, interviews, tests, reference checks, and
medical exams.
 4. Placement: Assigning the right person to the right job to maximize their potential.
5. Induction (Orientation): Introducing new employees to the company’s environment, culture, and
rules to ensure a smooth transition.

Controlling and Its Steps

Controlling is the management function that ensures organizational goals are met by monitoring and
adjusting performance. It involves setting standards, measuring performance, and taking corrective
actions as needed.

Steps in the Control Process:

1. Establishing Standards:
Standards act as targets for performance measurement.
They should be clearly defined, preferably in quantitative terms (e.g., reducing overheads by
12%).
Standards should be flexible to adapt to changes and align with organizational goals.
2. Measuring Performance:
Performance measurement is continuous and involves regular tracking.
Performance metrics must be valid, such as sales numbers, production units, or employee
output.
Regular data collection helps gauge if objectives are being achieved.
3. Comparing Performance Against Standards:
Actual performance is compared to the established standards.
Performance could be higher, lower, or equal to the target.
If there is a deviation, managers assess how significant the deviation is and decide on
corrective action.
4. Corrective Action:
- Doing Nothing: If deviations are insignificant, maintaining the status quo is an option.
- Immediate Action: Correcting performance right away if it's urgent.
- Basic Corrective Action: Identifying the root cause of the deviation and addressing it.
- Revising Standards: Adjusting standards if they were unrealistic or too easy, ensuring they
remain valid.