Difference Administration Management Nature of work It is concerned about the determination of objectives and major policies of an organization. It puts into action the policies and plans laid down by the administration. Type of function It is a determinative function. It is an executive function. Scope It takes major decisions of an enterprise as a whole. It takes decisions within the framework set by the administration. Level of authority It is a top-level activity. It is a middle level activity.
Basis of Difference Administration Management Nature of status It consists of owners who invest capital in and receive profits from an enterprise. It is a group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise. Nature of usage It is popular with government, military, educational, and religious organizations. It is used in business enterprises. Decision making Its decisions are influenced by public opinion, government policies, social, and religious factors. Its decisions are influenced by the values, opinions, and beliefs of the managers. Main functions Planning and organizing functions are involved in it. Motivating and controlling functions are involved in it. Abilities It needs administrative rather than technical abilities. It requires technical activities.
Operations within any organization having the same objective must be directed by only one manager using one plan in a department
For example there should not be two or more supervisors each having different policy to follow.
6. Subordination of the Individual Interest to General interest Individual interest must be subordinate to general interest when there is conflict between the two The agreement between the employers and the employees should be fair and there should be constant vigilance and supervision
We have this approach by decreasing the role of subordinates in decision making Managers should retain their final responsibility, while at the same time give their subordinates enough authority to do their jobs properly
Other Forms of Planning 1. Long-Range Planning - Short-Range Planning 2. Formal and Informal Planning 3. Strategic, Tactic and Operational Planning 4. Proactive and Reactive Planning 5. Functional and Corporate Planning
The Planning Process GOAL SETTING Identification and formulation of objectives DEVELOPING PLANS Choices between alternative plans IMPLEMENTATION Execution of the plan Reactive Planning Revision of goals and plans
Steps involved in Decision Making 1. Defining the Problem 2. Analysis of Problem 3. Alternative Course of Action 4. Evaluation of Alternatives 5. Experience 6. Experimentation 7. Taking Decision and Follow up
refers to the network of relationships that spontaneously establish themselves between members of the organization on the basis of their common interests and friendships.
5/6/2003 Organizational Structure Laura Hofman Miquel, Hanna Barst, Jörg Petzold informal organization
The formal and informal organization Formal organization Informal organization A structure (a) origin planned spontaneous (b) rational rational emotional (c) characteristics stable dynamic B position terminology job role C goals profitability or service to society member satisfaction D charting organizational chart sociogram
Paternalistic leader makes decision but may consult
Believes in the need to support staff
Douglas McGregor Theory X and Theory Y In 1957, Douglas McGregor (1906-1964), a famous American psychologist, published his article "The Human Side of Enterprise" in which he introduced what came to be called the new humanism, Theory X and Theory Y.
Theory X and Theory Y Theory X and Theory Y Theory X and Theory Y are two sets of assumptions about human nature and behavior that are related to the practice of management. Theory X: Representing a negative view of human nature that assumes people generally are naturally irresponsible for their work and require close supervision to do jobs. Theory Y: Indicating a positive view of human nature that assumes people are generally hard-working, creative and responsible for exercising self-control over their jobs.
Management is responsible for organizing the elements of enterprise including production, capital, materials, facilities and employees.
2. In terms of employees, management is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization.
3. Without effective management, employees would be passive – even resistant – to organizational needs. Hence, they must be advised, rewarded, punished, and controlled. Their activities must be directed.
McGregor’s Remarks on Theory X Theory X and Theory Y It is of "hard" management whose methods involve close supervision, rigid control and compulsion. It would lead to restriction of output, mutual distrust and even sabotage.
Employees are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.
2. Employees, by nature, have the motivation, potential for development and capacity for assuming responsibility and readiness to direct behavior toward organizational goals. It is the responsibility of management to make it possible for employees to recognize and develop these human characteristics for themselves.
3. The essential task of management is to arrange organizational conditions and methods of operation so that employees can achieve their own goals by directing their efforts toward organizational objectives.
McGregor’s Remarks on Theory Y Theory X and Theory Y It is of "soft" management whose methods as tolerance and need satisfaction. It can lead to more effective management of employees in the organization.
Management should have employees’ higher level needs met in the workplace.
2. Close supervision and the threat of punishment are not the proper means for encouraging employees to exercise productive efforts.
3. Some opportunities should be provided such as allowing employees to make decisions, redesigning jobs to make them more challenging or emphasizing on good working relations.
Theory X and Theory Y
Effects on Management Practice of Theory X and Theory Y Theory X: 1. Managers’ leadership styles are autocratic and the communication flow is downward from managers to the employees. This may cause resistance from employees. 2. The upper setting of objectives gets little or no participation from employees. 3. It results in outside, control, with the manager acting as a performance judge who focuses generally on the past.
Effects on Management Practice of Theory X and Theory Y
1. It may lead to cooperative objectives designed with input from both employees and managers, resulting in a stronger responsibility by employees for accomplishing the shared objectives.
It encourages leadership styles to be more participative and allows employees to seek responsibility for achievement of goals. Theory Y’s leadership is likely to improve communication flow, especially in the upward direction.
It leads to control processes based on employees’ self-control. The manager is more likely to act as an instructor rather than a judge who focuses on how performance can be improved in the future rather than on who is responsible for past performance.
Criticism of Theory Y Practice of Theory X and Theory Y
Rather than concern for employees, Theory Y style managers are simply engaged in an attractive form of management.
Sometimes, managers better match work tasks to basic human motivation through participative management, job enlargement and other programs based on Theory Y.
Actually, managers still focused on measures of productivity rather than employees’ interests.
It is a patronizing plan for bringing increased productivity from employees. Unless employees shared in the economic benefits of their increased productivity, they are just fooled into working harder for the same pay.
Theory X and Theory Y in the 21st Century Practice of Theory X and Theory Y
McGregor’s works on Theory X and Theory Y have had a great impact on management ideology and practice. They have been included in most basic management books. These books are still facing people of management today.
As for the practice of management, the workplace of the 21st century, which emphasizes on self-managed work teams and other forms of worker involvement programs, generally goes with the principles of Theory Y.
Steps in Controlling Step: 01 Establishment of standards Step: 01 Establishment of standards Step: 02 Measurement of Actual Performance Step: 02 Measurement of Actual Performance Step: 03 Comparison of Actual Performance with the standards Step: 03 Comparison of Actual Performance with the standards Step: 04 Corrective Action where Required Step: 04 Corrective Action where Required
Importance & relevance in the context of globalization of Indian economy
Techniques used to inculcate the quality approach in an organization
role of organizational behaviour-Quality Standards-ISO 9000/14000, SQC ERP MRP/MRP II (Brief introduction)
Why TQM? Ford Motor Company had operating losses of $3.3 billion between 1980 and 1982. Xerox market share dropped from 93% in 1971 to 40% in 1981. Attention to quality was seen as a way to combat the competition.
Quality - degree of excellence a product or service provides
Management - act, art or manner of planning, controlling, directing,….
Therefore, TQM is the art of managing the whole to achieve excellence .
What does TQM mean? Total Quality Management Total Quality Management means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high quality products and services.
What’s the goal of TQM? Total Quality Management “ Do the right things right the first time, every time.”
Another way to put it Total Quality Management
At it’s simplest, TQM is all managers leading and facilitating all contributors in everyone’s two main objectives:
(1) total client satisfaction through quality products and services; and
(2) continuous improvements to processes, systems, people, suppliers, partners, products, and services.
Productivity and TQM Total Quality Management
Quality cannot be improved without significant losses in productivity.
Improved quality leads to improved productivity.
Basic Tenets of TQM Total Quality Management 1. The customer makes the ultimate determination of quality. 2. Top management must provide leadership and support for all quality initiatives. 3. Preventing variability is the key to producing high quality. 4. Quality goals are a moving target, thereby requiring a commitment toward continuous improvement. 5. Improving quality requires the establishment of effective metrics. We must speak with data and facts not just opinions.
The three aspects of TQM Total Quality Management Counting Customers Culture Tools, techniques, and training in their use for analyzing, understanding, and solving quality problems Quality for the customer as a driving force and central concern. Shared values and beliefs, expressed by leaders, that define and support quality.
Total Quality Management and Continuous Improvement Total Quality Management
TQM is the management process used to make continuous improvements to all functions.
TQM represents an ongoing, continuous commitment to improvement.
The foundation of total quality is a management philosophy that supports meeting customer requirements through continuous improvement.
Continuous Improvement versus Traditional Approach
Focus on ‘who” and “why”
Status quo focus
Focus on “what” and “how”
Process improvement focus
Total Quality Management Traditional Approach Continuous Improvement
The TQM System Total Quality Management Customer Focus Process Improvement Total Involvement Leadership Education and Training Supportive structure Communications Reward and recognition Measurement Continuous Improvement Objective Principles Elements
Evolving effective training strategies and methodology
Standardising model syllabi for training various target groups
Formulating scientific selection procedure
Developing training aids, manuals and tools
Facilitating and supporting Central / State/ Other agencies in organising entrepreneurship development programmes
Conducting training programmes for promoters, trainers and enterpreneurs
Undertaking research and exchange experiences globally in development and growth of entrepreneurship. The Institute is actively involved in creating a climate conducive to emergence of entrepreneurship
Evolving Model Syllabi for training various target groups. Formulation of standardised procedures of identification and selection of potential entrepreneurs. Preparation of Training Aids Materials ú Manuals ú Handbooks ú Video Films ú Lesson Plans ú Learning Text ú Cases
Small Industries Development Organization (SIDO) New Delhi
Advising the Govt. in policy matters concerning small scale sector.
Providing techno-economic and managerial consultancy, common facilities and extension services.
Providing facilities for technology up-gradation, modernization quality improvement & infrastructure.
Human resources development through training and skill up-gradation.
Providing economic information services.
Maintaining close liaison and vital linkage with the Central Ministries, Planning Commission, Financial Institutions, State Govts. & similar other developmental organizations/agencies related to the promotion and development of SSI Sector.
Evolving and coordinating policies for development of ancillaries.