What is the difference between management and administration?

Answer: Difference between Administration and Management There are many factors according to which administration can be distinguished from management. These are as follows: Administration Nature of work It is concerned about the determination of objectives and major policies of an organization. It is a determinative function. It takes major decisions of an enterprise as a whole. It is a top-level activity. It consists of owners who invest capital in and receive profits from an enterprise. Management It puts into action the policies and plans laid down by the administration. It is an executive function. It takes decisions within the framework set by the administration. It is a middle level activity. It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise. It is used in business enterprises.

Type of function Scope

Level of authority Nature of status

Nature of usage

It is popular with government, military, educational, and religious organizations. Its decisions are influenced by public opinion, government policies, social, and religious factors. Planning and organizing functions are involved in it. It needs administrative rather than technical abilities.

Decision making

Its decisions are influenced by the values, opinions, and beliefs of the managers. Motivating and controlling functions are involved in it. It requires technical activities

Main functions

Abilities

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Define management process? Four major functions are associated with the process of management: (1) planning, (2) organizing. (3) Leading, and (4) controlling. Planning and Decision Making Organizing Leading Controlling Monitoring and correcting activities monitoring activities to ensure that they are going as planned Motivating members of the organization directing and motivating all involved parties and dealing with employee behavior issues Determining how best to group activities and resources. - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made Setting the organizations goals and deciding how best to achieve them. defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities

b)Mention management skill mixes at different Organization level.

In addition to fulfilling roles, managers also need a number of specific skills The most fundamental management skills are:
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Technical

Interpersonal Conceptual Diagnostic Communication Decision-making Time-management

Technical Skills Necessary to accomplish or understand the specific kind of work being done. These skills are especially important for first line managers. The ability to communicate with, understand, and motivate both individuals and groups. Be able to get along with: Subordinates Peers Those at higher levels

Interpersonal Skills

Conceptual Skills A managers ability to think in the abstract. The mental capacity to: Understand organizational goals and its environment. How the organization is structured. Viewing the organization as system

Diagnostic Skills Skills that enable a manager to visualize the most appropriate response to a situation. c) Enumerate Managerial success factor. Managerial Success Factors Personal Factors
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Abilities and skills Motivation Personality Nature of the work and environment

Situational Factors

Relationships with subordinates and supervisors Abilities of subordinates Appropriate for the situation? Being in the right place at the right time?

Actions Taken Luck

d) Explain the concept of scientific Management Scientific Management The application of scientific methods to increase individual workers productivity. Concerned with improving the performance of individual workers (i.e., efficiency). Grew out of the industrial revolutions labor shortage at the beginning of the twentieth century.

Question 1: Explain key managerial roles. Answer: Category Interpersonal Role Figurehead Leader Liaison Informational Monitor Disseminator Spokes person Decisional Entrepreneur Disturbance handler Resource allocator Negotiator Efficiency Getting work done with a minimum of effort, expense, or waste Doings things rightmost output for least input Sample Activities Attending ribbon-cutting ceremony for new plant Encouraging employees to improve productivity Coordinating activities of two projects Scanning industry reports to stay abreast of developments Sending memos outlining new organizational initiatives Making a speech to discuss growth plans Developing new ideas for innovation Resolving conflict between two subordinates Reviewing and revising budget results Reaching agreement with a key supplier or labor union.

Question 1: Explain efficiency and effectiveness in management with an example.

Effectiveness
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Accomplishing tasks that help fulfill organizational objectives Doing the right things

Planning and Decision Making IMPORTANCE OF PLANNING Planning is the most importance of all the management functions. Some of the importance are as follows: (a) Planning reduces uncertainty, risk and confusion in operation. Through planning, the future course of action is known to all and so, everybody knows exactly what needs to be done. This gives a sense of direction resulting in efficiency in operations. (b) Planning guides the decision making by the managers. Planning of goals to be achieved and the course of action to be followed to achieve the goal act as a guide in their own decision making and action plans. (c) Planning helps in achieving coordination and facilitates control. Proper planning Integrates the tasks at the operational level, thereby making coordination more effective.It also helps in identifying deviations and taking the corrective action. (d) Planning with an element of flexibility makes the organization adaptable. In other words planning makes the organization capable of coping with the changing environment and facing challenges. (e) Planning leads to economy and efficiency in operations. Best methods are selected out of available choices, thus, reducing overlapping and wasteful activities. (f) Planning begins with the determination of objectives and directed towards their achievement. It keeps the executive alive and alert. Managers have to review the progress periodically and recast their strategies to meet the objectives Define planning. Explain the importance of planning and planning process. Generally planning is deciding in advance what is to be done; it is a projected course of action. Planning process starts with the assumption that the future will be different

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from the present and it attempts to determine how the enterprise will take advantage of that difference. Planning thus becomes a device for change to meet the future. Importance of planning Specific objective. Primacy of planning. Coordination with decision. Contribution to Purpose and objective. Efficiency, economic and accuracy Pervasive in all division Flexibility. The planning process takes place within an environmental context. Managers must develop a complete and thought understanding of this context to determine the organizations mission and develop its strategic, tactical and operational goals and plans.

The Planning Process

Explain Contingency Planning and Crisis management Contingency Planning Planning for change Seeks to identify in advance important aspects of a business or its market that might change and the ways in which a company will respond to changes The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help managers to cope with uncertainty and change. Crisis Management

Involves an organizations methods for dealing with a crisisan unexpected emergency requiring immediate response The set of procedures the organization uses in the event of a disaster or other unexpected calamity. Explain the barrier to goal setting and planning. How to overcoming the barrier? Barriers to goal setting and Planning Inappropriate goals Improper reward system Dynamic and complex environment Reluctant to establish goals Resistance to change

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Constrains Understand the purpose of goals and planning Communication and participation Consistency, Revision and Participation Effective reward system

Overcoming the Barriers

Enumerate the steps in planning Steps in planning 1. Be ware of opportunities. In light of: The market. Competition. What customers want? Our strength. Our weakness 2. Establishing objectives. Where we want to be and what we want to accomplish and when. 3. Considering planning premises In what environment internal or external will our plans operate? 4. Determining alternative courses of action. What are the most promising alternatives to accomplishing our objectives. 5. Evaluating alternative courses: Which alternative will give us the best chance of meeting our goals at the lowest cost and highest profit? 6. Selecting course Selecting the course of action we will pursue. 7. Formulating derivative plans Such as plans to : Buy equipment; Buy materials; Hire and train workers; Develop a new product. 8. Numberizing plans by Budgeting Develop such budgets as: Volume, price and cost of sales.

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Operating expenses necessary for plans Expenditures for capital equipment. Different between strategic goal and tactical goal Strategic plans are the plans develop to achieve strategic goals. More precisely, a strategic plan is a general plan outlining of resource allocation, priorities and action steps necessary to reach strategic goals. Tactical plans aimed at achieving tactical goals and developed to implement parts of strategic plan.

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A) Explain the nature and purpose of Organization control? The Nature of Control in Organizations Control is a process to regulate organizational activities so that some targeted element of performance remains within acceptable limits. Provides organizations with indications of how well they are performing in relation to their goals. Example: ships rudder, keeps the organization moving in the proper direction. Like a rudder, control provides an organization with a mechanism for adjusting its course if performance fails outside of acceptable

The Purpose of Control Control is one of the four basic management functions. The control function, in turn, has four basic purposes.

Adapt to environmental change. All organizations need to contend with change. A properly designed control system can help managers anticipate, monitor, and respond to changing circumstances. In contrast, an improperly designed system can result organization performance that falls far below acceptable levels. Limit accumulation of error. Small mistakes and errors do not often seriously damage an organization's financial health. However, small errors may accumulate and eventually become vary serious. Controlling helps managers to rectify small mistakes and errors so that they do not become a major problem for the long run. Help coping with organizational complexity. Small companies which produce only one product, has simple organizational design, and enjoys constant demand, can maintain control with a very basic and simple system. But business that produce many products and has a large market area, a complicated organization design , many competitors needs sophisticated system to maintain adequate control. Example : Emery Air Freight was quite profitable until it bought Purolator Courier Corporation. After the acquisition

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the company became big, and more complex, but it added no new controls to organization. Consequently, Emery lost market share and was on the verge of bankruptcy. Helps minimize costs. When practiced effectively, control can help reduce costs and boost output. Example : Georgiapacific Corporation, a furniture company, learned a new technology that it could use thinner blades for its saws. The company used its control system to calculate that massive amount of wood could be saved by using the thinner blades, and thus it could save them a huge cost. As the company discovered, effective control systems can eliminate waste, lower labor costs, and improve per unit output. B) Explain different type of budget? Difference between Bureaucratic and Decentralization Control? Types of Budget What Budget Shows Financial Budget Cash-flow or cash budget Capital expenditures budget Balance sheet budget Operating Budget Sales or revenue budget Expense budget Profit budget Nonmonetary Budget Labor budget Space budget Production budget Sources and Uses of Cash All sources of cash income and cash expenditures in monthly, weekly, or daily periods Costs of major assets such as a new plant, machinery, or land Forecast of the organizations assets and liabilities in the event all other budgets are met Planned Operations in Financial Terms Income the organization expects to receive from normal operations Anticipated expenses for the organization during the coming time period Anticipated differences between sales or revenues and expenses Planned Operations in Nonfinancial Terms Hours of direct labor available for use Square feet or meters of space available for various functions Number of units to be produced during the coming time period

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Bureaucratic Control A form of organizational control characterized by formal and mechanistic structural arrangements.

Decentralized Control An approach to organizational control characterized by informal and organic structural arrangements. Dimension Goal of control approach Degree of formality Performance expectations Bureaucratic Control Employee compliance Decentralized Control Employee commitment

Strict rules, formal controls, rigid Group norms, culture, selfhierarchy control Directed toward minimum levels of acceptable performance Tall structure, top-down influence Directed at individual performance Limited and formal Directed toward enhanced performance above and beyond the minimum Flat structure, shared influence

Organization design

Reward system

Directed at group performance

Participation

Extended and informal

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C) Why manager resist to control? How to overcome resistance to control? Resistance to Control Overcontrol Trying to control too many details becomes problematic when control affects employee behavior and employees perceive control attempts as unreasonable. Inappropriate Focus The control system may be too narrow or it may focus too much on quantifiable variables and leave no room for analysis or interpretation. Rewarding operational inefficiency can lead employees to behave in ways that are not in the best interests of the organization.

Rewards for Inefficiency

Too much accountability Efficient controls are resisted by poorly performing employees.

Resistance to control can be overcome by: Designing effective controls that are properly integrated with organizational planning and aligned with organizational goals and standards. Creating controls that are flexible, accurate, timely, and objective.

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Avoiding overcontrol in the implementation of controls. Guarding against creating controls that reward inefficiencies. Encouraging employee participation in the planning and implementing of control systems. Developing a system of checks and balances in the control systems through the use of multiple standards and information systems that allow the organization to verify the accuracy of performance indicators.

Describe the steps in the control process Steps in the Control Process

Establish Standards The first step in the control process is establishing standards. A control standard is a target against which subsequent performance will be compared. Example: at Taco Bell Fast food restaurant service standards are 95% of all the customers are greeted within 3 minutes Preheated chips will not sit in the warmer for more than 30 minutes All Empty tables will be cleaned within 5 minutes after being vacated

Standard established for control should be expressed in measurable terms. In the above example standard one is 95%, three is All Tables. Measure Performance This is the second step in the control process. Performance measurement is a constant, ongoing activity for most organization. For control to be effective, performance measures must t be valid.
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Daily, weekly, and monthly sales figures measure sales performance.

Production performance may be expressed in terms of unit cost, product quality, or volume produced. Employee performance is often measure in terms of quality or quantity of output.

Compare Performance Against Standards. Performance may be higher than, lower than, or identical to the standard. In some cases comparison is easy. The timetable for comparing performance to standards depends on a variety of factors including the importance and complexity of what is being controlled. For longer-run and higher-level standards, annual comparisons are necessary. In another circumstances, more frequent comparisons are necessary. Example: a business with a cash shortage may need to monitor its on-hand cash reserves daily. Consider Corrective Action Decisions regarding corrective actions draw heavily on a managers analytic and diagnostic skills. After comparing performance against control standards, one of the three actions is appropriate. Maintain status quo (do nothing) : preferable when performance matches the standard Correct the deviation: some actions are needed to correct the deviation. Sometimes, if performance is higher than expected it may cause problems. Example: Ford enjoyed a huge demand for Contour (car). There were customers waiting list and many were willing to pay more for the car. Ford did not increase production in the fear that demand would eventually drop. To deal with the excessive demand, ford reduced its advertising for the car. That curtailed the demand for the car. Change the standards: changing standard is necessary if it was set too high or too low. This is apparent if most employees routinely beat the standard by a wide margin or if no employees ever meet the standard. Also, standards that seemed appropriate when they were established may need to be adjusted because circumstances have changed.

D) Steps in the Control Process (contd) Establish Standards Control standarda target against which subsequent performance will be compared. Control standards should be expressed in measurable terms. Control standards should be consistent with organizational goals. Control standards should be identifiable indicators of performance. Performance measurement is an ongoing process.

Measure Performance

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Performance measures must be valid indicators (e.g., sales, costs, units produced) of performance. Define what is a permissible deviation from the performance standard. Utilize the appropriate timetable for measurement. Maintain the status quo (do nothing). Correct the deviation to bring operations into compliance with the standard. Change the standard if it was set too high or too low.

Compare Performance Against Standards

Determine the Need for Corrective Action

E) Explain the type of control in response of area and level Organizations practice control in a number of different areas and at different levels, and the responsibility for managing control is widespread. Areas of Control Physical resourcesinventory management, quality control, and equipment control. Human resourcesselection and placement, training and development, performance appraisal, and compensation. Information resourcessales and marketing forecasts, environmental analysis, public relations, production scheduling, and economic forecasting. Financial resourcesmanaging capital funds and cash flow, collection and payment of debts.

Levels of Control Operational control: Focuses on the processes used to transform resources into products or services. Concerned with financial resources. Example : Monitoring receivables to make sure that customers are paying their bills on time. How the elements of organizations structure are serving the intended purposes. Example : Monitoring the administrative ration to make sure that staff expenses do not become excessive. Financial control:

Structural control:

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Characteristics of Effective Control The more control is linked to planning, the more effective the control system.

Integration with Planning

Flexibility The control system must be flexible enough to accommodate change. Accuracy Inaccurate information results in bad decision making and inappropriate managerial actions. Timeliness A control system should provide information as often as necessary. Objectivity A control system must be free from bias and distortion. Strengths and Weaknesses of Budgeting Strengths Budgets facilitate effective operational controls. Budgets facilitate coordination and communication between departments. Budgets establish records of organizational performance, which can enhance planning.

Weaknesses Budgets can hamper operations if applied too rigidly. Budgets can be time consuming to develop. Budgets can limit innovation and change.

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