Management vs Administration & Skills of Manager

Management :Management is the art of knowing what you want to do and then seeing that it is done in best and cheapest way. Management is the process involving planning , organising, staffing, directing and controlling human efforts to achieve stated objectives in an organisation Management basically relates group goals. These group goals may be set by an individual or by a group. We have to achieve these goals in optimum manner . It basically relates o rganisations rather than individual. Administration: Administration is that phase of a business enterprise that concerns itself with the overall determination of institutional objectives and and the policies necessary to be followed in achieving those objectives. Management vs Administration: There is often a terminology conflict between management and administration. Some authors suggest that there is no fundamental differen ce between management and administration, whatever the difference between the two exists, it exists only in term of usage in different walks of life. In 1923, the terminology conflict between the two was raised by Oliver Sheldon when he emphasised administration as decision making function and management as execution function. These controversies have resulted into three different approaches :

1. Administration is above management : According to many many classical thinkers (e.g. oliver Sheldon, Florence, Milward etc.) , administration is above management. They perceive that both administration and management activities are different though both of them may be performed by a single individual in an organisation. The general view is that administration relates to policy formulation and management relates to policy execution and these two activities are not the same. Administration is that phase of a business enterprise that concerns itself with the overall deter mination of institutional objectives and the policies necessary to be followed in achieving those objectives. M anagement on the other hand, is an executive function which is primarily co ncerned with carrying out broad policies laid down by the administr ation . This phenomenon has been shown in figure :

TOP LEVEL

LOWER LEVEL

FIGURE :- Administration and Management functions

This basic approach of these authors is that administration determines the basic framework of the organisation within which management functions are taken.

Difference between Administration and Management :-

S no. 1

Basis of difference Levels in Organization Major Force Nature of function Scope of functions

Administration Top Level

Management Lower level

2 3 4

Policy Formulation Determinative Broad and conceptual

Policy Execution Executive Narrow and operational Technical / Managerial Mostly Internal

Qualities required

Administrative

Factors affecting Decisions

Mostly External

Relationship

Enterpreneurs and owners

Employees

2. Administration is a part of management :This approach holds the view that management is a comprehensive term and administration is its part. If this view is accepted , administration becomes a subordinate function to overall

management function.Thus the previous analysis of distinction between management and administration stands completely revised if this view is accepted. 3. Management and administration are same :According to the third approach which is the most popular and practical one, management and administration are same. Both involve the same functions, principles and objectives. For example, Fayol , one of the most important early thinkers on management thought has said, all undertakings require planning, organisation, command, coordination and control and in order to function properly, all must observe the same general principles. Thus there is no difference between management and administration, whatever the difference between the two lies is mostly in their use in different fields of human activities. Administrations origin is found in the bureaucratic structure of government or in regulation of some laws. The government often uses the word administrator, instead of manager , to handle and manage its affairs. On the other hand, management is normally used in business sphere. The contents of management functions in terms of policy formulation and execution can be presented as follows:

Board of Directors Chief Executive

m

General Manager Superintendent Supervisor

Figure:- Management functions at various levels of

Management

The content of policy formulation is higher at higher levels, it is lower at lower levels while execution is otherwise. Therefore it becomes unimportant whether policy formulation function is known as administration or management.

Skills of Managers : Managres need a knowledge base. This knowledge base provides a context for the managers activities. It can include information about an industry and its technology, company policies and practices, company goals and plans, company culture, the personalities of key organisation members and important suppliers and customers. Managers need three type of key skills to perform the duties and activities associated with being a manager. 1. Technical skills 2. Human skills 3. Conceptual skills Technical skills :Technical skills are skills that reflect both an understanding of and a proficiency in a specialized field as engineering, computers, accounting, or manufacturing. These skills are more important at lower levels of management. Human skills :Human skills are associated with a managers ability to work well with others as a member of a group and as a leader who gets things done through others. Because managers deal directly with people, this skill is crucial ! Managers with good human skills are able to get the best our of their people. They know how to communicate, motivate, lead and inspire enthusiasm and trust. These skills are equally important at all levels of management. Conceptual skills :This is ability to use the thinking part. Conceptual skills are skills related to the ability to visualize the organisation as a whole. Conceptual skills are the skills managers must have to think and to conceptualize about abstract and complex situations.

Using these skills managers must be able to see the organisation as whole, understanding the relationship among various submits and visualize how the organisation fits into its broader environment. Canceptual Thinking Human Skills

Technical Skills