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Management and Administration
the groups towards some common goals.
Whereas, management involves conceiving, initiating and bringing together the
various elements; coordinating, actuating, integrating the diverse organizational
components while sustaining the viability of the organization towards some pre-
determined goals. In other words, it is an art of getting things done through &
with the people in formally organized groups.
The di erence between Management and Administration can be summarized
under 2 categories: -
1. Functions
2. Usage / Applicability
On the Basis of Functions: -
Basis Management
Meaning Management is an art of getting
things done through others by
directing their e orts towards
achievement of pre-determined
goals.
Nature Management is an executing
function.
Process Management decides who should as
it & how should he dot it.
Function Management is a doing function
because managers get work done
under their supervision.
Skills Technical and Human skills
Level Middle & lower level function
On the Basis of Usage: -
Basis Management
Applicability It is applicable to business
concerns i.e. pro t-making
organization.
In uence The management decisions
are in uenced by the
values, opinions, beliefs &
decisions of the managers.
Status Management constitutes
the employees of the
organization who are paid
remuneration (in the form
of salaries & wages).
Practically, there is no di erence between management & administration. Every
Management Basics
According to Theo
Haimann,
Administration means
What is Management ?
overall determination of
(what_is_management.htm)
policies, setting of
major objectives, the Management as a Process
identi cation of general (management_process.htm)
purposes and laying
down of broad Management as an Activity
programmes and (management_activity.htm)
projects. It refers to the
Management as a Discipline
activities of higher level.
(management_discipline.htm)
It lays down basic
principles of the Management as a Group
enterprise. According to (management_group.htm)
Newman,
Administration means Management as a Science
guidance, leadership & (management_science.htm)
control of the e orts of Management as an Art
(management_art.htm)
Management as a Profession
(management_profession.htm)
Features of Management
(management_features.htm)
Levels of Management
(management_levels.htm)
Administration
It is concerned with
formulation of broad
objectives, plans &
policies.
Administration is a
decision-making
function.
Administration decides
what is to be done &
when it is to be done.
Administration is a
thinking function
because plans &
policies are determined
under it.
Conceptual and Human
skills
Top level function
Administration
It is applicable to non-
business concerns i.e. clubs,
schools, hospitals etc.
The administration is
in uenced by public opinion,
govt. policies, religious
organizations, customs etc.
Administration represents
owners of the enterprise who
earn return on their capital
invested & pro ts in the form
of dividend.
 Practically, there is no di erence between management & administration. Every
manager is concerned with both - administrative management function and
operative management function as shown in the gure. However, the managers
who are higher up in the hierarchy denote more time on administrative function
& the lower level denote more time on directing and controlling workers
performance i.e. management.

The Figure above clearly shows the degree of administration and management
performed by the di erent levels of management

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/ Functions of Management

Functions of Management Management Basics

Management has been described as a social process involving responsibility for

economical and e ective planning & regulation of operation of an enterprise in
the ful llment of given purposes. It is a dynamic process consisting of various
What is Management ?
elements and activities. These activities are di erent from operative functions
(what_is_management.htm)
like marketing, nance, purchase etc. Rather these activities are common to each
and every manger irrespective of his level or status. Features of Management
(management_features.htm)
Di erent experts have classi ed functions of management. According to George
& Jerry, There are four fundamental functions of management i.e. planning, Levels of Management
organizing, actuating and controlling. (management_levels.htm)
Objectives of Management
(management_objectives.htm)

According to Henry

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Planning, Organizing, Sta ng, Directing and Controlling.
According to Henry Importance of Management
Fayol, To manage is to (management_importance.htm)
forecast and plan, to
organize, to command, Management and Administration
& to control. Whereas (management_administration.htm)
Luther Gullick has given
a keyword POSDCORB Functions of Management
where P stands for (management_functions.htm)
Planning, O for Co-ordination -
Organizing, S for Introduction
Sta ng, D for Directing, (coordination.htm)
Co for Co-ordination, R
for reporting & B for Co-ordination and Co-
Budgeting. But the most operation
widely accepted are
functions of
management given by
KOONTZ and
ODONNEL i.e.

For theoretical purposes, it may be convenient to separate the function of

management but practically these functions are overlapping in nature i.e. they
are highly inseparable. Each function blends into the other & each a ects the
performance of others.

1. Planning (planning_function.htm)
It is the basic function of management. It deals with chalking out a future
course of action & deciding in advance the most appropriate course of
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
bridges 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 utilization of human & non-human resources. It is all pervasive, it
is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

2. Organizing (organizing_function.htm)
It is the process of bringing together physical, nancial and human
resources and developing productive relationship amongst 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 personnels. To organize a
business involves determining & providing human and non-human
resources to the organizational structure. Organizing as a process
involves:

Identi cation of activities.

Classi cation of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.

3. Sta ng (sta ng-function.htm)

It is the function of manning the organization structure and keeping it
manned. Sta ng 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 o sta ng is to put right man on
right job i.e. square pegs in square holes and round pegs in round holes.
According to Kootz & ODonell, Managerial function of sta ng involves
manning the organization structure through proper and e ective
selection, appraisal & development of personnel to ll the roles designed
un the structure. Sta ng involves:

Manpower Planning
(http://www.managementstudyguide.com/manpower-
planning.htm) (estimating man power in terms of searching, choose
the person and giving the right place).
Recruitment, Selection & Placement.
Training & Development (training-and-development.htm).

Remuneration (employee-remuneration.htm).
 Remuneration (employee-remuneration.htm).
Performance Appraisal (performance-appraisal.htm).
Promotions & Transfer.

4. Directing (directing_function.htm)
It is that part of managerial function which actuates the organizational
methods to work e ciently for achievement of organizational purposes. It
is considered life-spark of the enterprise which sets it in motion the action
of people because planning, organizing and sta ng are the mere
preparations for doing the work. Direction is that inert-personnel aspect
of management which deals directly with in uencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

Supervision
Motivation (what_is_motivation.htm)
Leadership (leadership_basics.htm)
Communication (understanding-communication.htm)

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 de ned as a process by which manager guides and

in uences 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 (controlling_function.htm)
It implies measurement of accomplishment against the standards and
correction of deviation if any to ensure achievement of organizational
goals. The purpose of controlling is to ensure that everything occurs in
conformities with the standards. An e cient system of control helps to
predict deviations before they actually occur. According to Theo Haimann,
Controlling is the process of checking whether or not proper progress is
being made towards the objectives and goals and acting if necessary, to
correct any deviation. According to Koontz & ODonell 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 nding
out deviation if any.
d. Corrective action.

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Organizing Function of Management (organizing_function.htm)
Sta ng Function of Management (sta ng-function.htm)
Directing Function of Management (directing_function.htm)
Controlling Function of Management (controlling_function.htm)
Principles of Management (management_principles.htm)
Importance of Management (management_importance.htm)
Management and Administration
(management_administration.htm)

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/ De nition of Coordination

De nition of Coordination Management Basics

Co-ordination is the
uni cation, integration,
synchronization of the
What is Management ?
e orts of group
(what_is_management.htm)
members so as to
provide unity of action Management as a Process
in the pursuit of (management_process.htm)
common goals. It is a
hidden force which Management as an Activity
binds all the other (management_activity.htm)
functions of
Management as a Discipline
management.
(management_discipline.htm)
According to Mooney
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ordination is orderly (management_group.htm)
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Doc Simply With The Free Online e orts to provide unity Management as a Science
App! of action in the pursuit (management_science.htm)
of common goals. Management as an Art
According to Charles Worth, Co-ordination is the integration of several parts into (management_art.htm)
an orderly hole to achieve the purpose of understanding.
Management as a Profession
Management seeks to achieve co-ordination through its basic functions of (management_profession.htm)
planning, organizing, sta ng, directing and controlling. That is why, co-
ordination is not a separate function of management because achieving of Features of Management
harmony between individuals e orts towards achievement of group goals is a (management_features.htm)
key to success of management. Co-ordination is the essence of management Levels of Management
and is implicit and inherent in all functions of management. (management_levels.htm)
A manager can be compared to an orchestra conductor since both of them have
to create rhythm and unity in the activities of group members. Co-ordination is
an integral element or ingredient of all the managerial functions as discussed
below: -

a. Co-ordination through Planning - Planning facilitates co-ordination by

integrating the various plans through mutual discussion, exchange of
ideas. e.g. - co-ordination between nance budget and purchases budget.
b. Co-ordination through Organizing - Mooney considers co-ordination as
the very essence of organizing. In fact when a manager groups and
assigns various activities to subordinates, and when he creates
departments co-ordination uppermost in his mind.
c. Co-ordination through Sta ng - A manager should bear in mind that
the right no. of personnel in various positions with right type of education
and skills are taken which will ensure right men on the right job.
d. Co-ordination through Directing - The purpose of giving orders,
instructions & guidance to the subordinates is served only when there is a
harmony between superiors & subordinates.

e. Co-ordination through Controlling - Manager ensures that there should

 e. Co-ordination through Controlling - Manager ensures that there should
be co-ordination between actual performance & standard performance to
achieve organizational goals.

From above discussion, we can very much a rm that co-ordination is the very
much essence of management. It is required in each & every function and at
each & every stage & therefore it cannot be separated.

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