principles of management and administration

PRINCIPLES OF MANAGEMENT AND ADMINISTRATION

LECTURE OUTLINE

• DEFINITIONS AND CONCEPTS OF MANAGEMENT

• STEPS IN MANAGEMENT PROCESS



DEFINITIONS

The Principles of Management and

Administration

• Management principles are guidelines for the decisions and actions of managers and administrators.

• They were derived through observation and analysis of events faced in actual practice.

• They are the essential, underlying factors that form the foundations of successful management. PRINCIPLES OF MANAGEMENT AND ADMINISTRATION

Management

Some people use management to mean administration.

• However, management in an organization involves: planning, designing, initiating actions, monitoring activities and demanding results on the basis of allocated resources.

• It is policy making, policy control and monitoring.PRINCIPLES OF MANAGEMENT AND ADMINISTRATION

Administration

• Administration involves implementation of the policies, procedures, rules and regulations as set up by the management.


DEFINITION OF MANAGEMENT

A process of influencing others with specific intention of getting them to perform effectively and contribute to meet the organisational goals.


Organisation

• Social units or human groupings deliberately established for the accomplishment of specific objectives.

• People working together and coordinating their actions to achieve specific goals.

• An organization is thus the result of the grouping of work and the allocation of duties, responsibilities and authority to achieve specific goals.


• Goal: A desired future condition that theorganization seeks to achieve.

KEY CONCEPT


SPECIFIC CONCEPTS

1. Authority: it is the legitimate right given to a manager to command subordinates and act in the interest of the organisation.

2. Power: it is the ability to influence others to act to bring about a certain behaviour.


Resources are organizational assets and include:

Additional Key Concepts


People MachineryFinancial

capitalInformation

Raw materials

Time skills

Principles of Management


Introduction

• Managing well requires a good knowledge of the principles and practices of management

• The survival and success of an organization largely depends upon the quality of management


Introduction

• Principles of management are the guidelines to be followed by every organization.

• Managers in all organizations whether big or small business, or non business, and all levels (top, middle or lower) must follow the principles of management.

• The founder was Henry Fayol

PR

PRINCIPLES OF MANAGEMENT


Division of work

Discipline

Authority and Responsibility

Subordination of Individual interest to general interest

Unity of Direction

Remuneration

Principles of Management(cont)


Centralization/ Decentralization

Hierarchy/Scalar Chain

Order

Equity

Stability of tenure of personnel

Initiative

Espirit de corps

1. Division of Work

• According to this principle the whole work is divided into small tasks.

• The specialization of the workforce according to the skills of a person , creating specific personal and professional development within the labor force and therefore increasing productivity;


2. Authority and Responsibility

• The issuance of commands followed by responsibility for their consequences.

• Authority means the right of a superior to give order to his subordinates;

• Responsibility means obligation for performance.

• Authority must be commensurate with responsibility.


3. Discipline

• Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc.

• It is essential for the smooth functioning of all organizations.

• This will also help shape the culture inside the organization.


4. Unity of Command

• This principle states that each subordinate should receive orders and be accountable to one and only one superior.

• If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

• Unity of Command also makes it easier to fix responsibility for mistakes.


5. Unity of Direction

• All those working in the same line of activity must understand and pursue the same objectives.

• All related activities should be put under one group with one plan of action.

• They should be under the control of one manager.

It seeks to ensure unity of action, focusing of efforts and coordination of strength


6. Subordination of Individual Interest

• The management must put aside personal considerations and put company objectives firstly.

• Therefore the interests of the organization must prevail over the personal interests of individuals.


7. Remuneration

• Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity.

• The methods of remuneration payable should be fair, reasonable and rewarding of effort.

• Remuneration is paid to worker as per their capacity and productivity.

• The organization pays wages, salary, and benefit to their staff properly so that organizational efficiency can be ensured.


8. The Degree of Centralization/Decentralisation

• Centralization implies the concentration of decision making authority at the top management.

• The amount of power wielded with the central management depends on company size.

• Sharing of authority with lower levels is called decentralization.

• The organization should strive to achieve a proper balance.


9. Scalar Chain/Hierachy

• Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank.

• There should be a clear line of authority from top to bottom linking all managers at all levels

• It involves a concept called a "gang plank" using which a subordinate may contact any superior or his superior in case of an emergency, defying the hierarchy of control. However the immediate superiors must be informed about the matter.


VERTICAL HIERACHY

CMD

HOD HOD HOD

DCS


VERTICAL HIERACHY 2

CMD

DCS

DCMAC CLINICAL SERVICE

DCMAC TRAINING

DA

ADMIN MANAGER


HORIZONTAL HIERACHY

HOA

ACCOUNTANT

SALARY OFFICER

CASHIER

ADMIN OFFICER

OFFICE ASSISTANT


HIERACHY

TOP LEVEL MANAGERS

MIDDLE LEVEL MANAGERS

LOWER LEVEL MANAGERS


10. Order

• Social order ensures the fluid operation of a company through authoritative procedure.

• It means systematic arrangement of men and materials in the organization

• There should be place for everything and everything should be in its place


11. Equity

• Employees must be treated kindly, and justice must be enacted to ensure a just workplace.

• Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees.


12.Stability of Tenure of Personnel

• The period of service should not be too short and employees should not be moved from positions frequently.

• An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him.

• From the point of view of management it is absolutely harmful to change employees frequently as it is a reflection of inefficient management


13. Initiative

• Using the initiative of employees can add strength and new ideas to an organization.

• Initiative on the part of employees is a source of strength for organizations because it provides new and better ideas.

• Employees are likely to take greater interest in the functioning of the organization.


14. Esprit de Corps

• This refers to the need of managers to ensure and develop morale in the workplace; individually and communally.

• Team spirit helps develop an atmosphere of mutual trust and understanding.

• Team spirit helps to finish the task on time. PRINCIPLES OF MANAGEMENT AND ADMINISTRATION

Functions of Management


Key Roles of Management

Fayol divided the management function into five key roles:

• To organize

• To plan and forecast (Prevoyance)

• To command

• To control

• To coordinate


Management Roles

Organising Planning Controlling

Coordinating Commanding


Organizational Performance


• Measures how efficiently and effectively managers/administrators use resources to satisfy customers and achieve goals.

Organizational Performance


• A measure of how well resources are used to achieve a goal. Usually, managers must try to minimize the input of resources to attain the same goal.

• It also means skillfulness in avoiding wasted time and effort.

• It is also the ratio of output to the input of any system

Efficiency


• A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.

• Organizations are more effective when managers choose the correct goals and then achieve them.

Effectiveness is in other words, the capacity to produce the desired effect.

Effectiveness


• Organizations must provide a good or service desired by its customers.

– Physicians, nurses and health care administrators seek to provide healing from sickness.

Achieving High Performance


Management Process


What is a process?

• A process is a series of steps or actions which lead to achieving a goal; and it is dynamic.


Management Process

• Gathering data from different sources• Diagnosing the problem by analyzing the

data carefully• Plan appropriate actions according to

priorities• Carry out the interventions• Evaluate the outcomes of interventions• Replan until the identified problems are

resolved.


Elements of Management Process

• Planning

• Organizing

• Staffing

• Directing

• Coordinating

• Controlling

• Reporting

• Budgeting

(POSDECORB)


The Major Elements of Management Process

• Planning

• Organising

• Staffing

• Directing

• Controlling


• Planning is the process of determining a future course of action.

• Planning can be applied at any stage and to every aspect of the managerial process eg Financial Planning such as budgeting, Strategy Planning, Personnel Planning etc.

• The more deliberate and meticulous it is the better.

• Failure to plan is plan to fail.

PLANNING


Planning

• It is the preliminary and most important step of management process.

• It is a continuous , intellectual process of determining philosophy, objectives, policies, procedures and rules and standards, long and short-term projected outcomes


1. Which goals should be pursued?

2. How should the goal be attained?

3. How should resources be allocated?

3 steps to good Planning


Planning

• – The planning function determines how effective and efficient the organization is and determines the strategy of the organization


• In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.

Organizing


Organising

• It is establishing the structure to carry out the plans.

• It is grouping activities to meet the goals.

E.g. Determining the best method of patient care delivery in a health agency, or educational programs in an institution.


Other functions of Organizing

• Working within the structure of an organization

• Understanding and using power and authority.


• Managers will group people into departments according to the tasks performed.

• Organizing also involves developing the organizational structure and chain of command within the organisation.

– Managers will thus lay out lines of authority and responsibility for members


Organising

• An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.

• It is also called an organogram

An Organizational Structure



ORGANOGRAM

MANAGER

HOD

HEAD OF UNIT

HEAD OF UNIT

HOD

HEAD OF UNIT

Organizational Structure

• The organizational structure is the foundation of a company; without this structure, the day-to-day operation of the business becomes difficult and unsuccessful.


Organising

• Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks.


Staffing

It is the process of assigning competent people to fill the appropriate roles in an institution, designated for the organizational structure through:

• Recruitment and selection of staff

• Hiring and orienting staff

• Staff scheduling


Staffing

• Staff development activities.

• Performance appraisal

• Promotion and transfer


Staffing

• The main purpose of staffing is thus to hire the right people for the right jobs to achieve the objectives of the organization.

• Without the staffing function, the business would fail because the business would not be properly staffed to meet organizational goals


• In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals

Leading or Directing


Directing

Directing or leading is a process involving many human resource management responsibilities such as:

• Motivating

• Managing a conflict

• Communicating

• Facilitating, collaborating and coordinating the team.


• Leadership involves a manager using authority, power, influence, vision, persuasion, and communication skills.

• The outcome of the leading function is a high level of motivation and commitment from employees to the organization.


Leading

Controlling

• It is the process to ensure that the activities of an institution or organization adhere to the plan. It includes:

• Quality assurance

• Performance appraisal

• Fiscal accountability

• Legal, ethical and professional control.PRINCIPLES OF MANAGEMENT AND ADMINISTRATION

• In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.

• Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.

Controlling


• Managers will also take action to increase performance as required.

• The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.


Controlling

Coordinating

• The coordinating function of leadership controls all the organizing, planning and staffing activities of the company and ensures all activities function together for the good of the organization.


Coordinating

• Coordinating typically takes place in meetings and other planning sessions with the department heads of the company to ensure all departments are on the same page in terms of objectives and goals.

• Coordinating involves communication, supervision and direction by management.


Budgeting

• This is the process of creating a plan to spend money for a defined period of time.

• It is balancing expenses with income

• In the midst of changing business environment, company management must make decisions about the future to sustain profitability. This is budgeting


Essentials of Budgeting

• Helps planning of actual operation

• It helps coordinate the activities of the organisation by compelling managers to examine the relationship between their operation and those of other departments.

• Helps to control resources

• Helps to communicate plans to various responsibility centre managersPRINCIPLES OF MANAGEMENT AND ADMINISTRATION

Budgeting

• To motivate managers to strive to achieve budget goals.

• To evaluate the performance of managers.

• To provide visibility into the company’s performance.

• For accountability.


Budgeting

• It is a tool that allows the actual financial performance to be measured against forecast.

• It is a tool to establish cost constraint for a project, program or operation


Reporting

• This is the means by which specific organisational information is relayed or certain event is recounted in a widely presentable form.


Types of Report

• Annual report

• Auditor’s report

• Budget reports

• Investigative report


Types of Report

• Appraisal report

• Financial report

• Management report

• White paper( states an organization’s position or philosophy about a subject)


CONCLUSION

• An effective manager uses the management process to achieve agency goals through group efforts and follows a predetermined plan in directing employees.

• The overall plan for the institution is developed jointly from all hierarchical levels.



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