Concept and Principles of Administration and Management

Concept of Administration

Administration refers to the organization and direction of human and material resources to achieve desired objectives efficiently.

• Definition: “Administration is the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives.” – Luther Gulick

Key Functions of Administration:

1. 1. Planning – Setting goals and deciding in advance the actions to achieve them.
   2. Organizing – Structuring work, roles, and responsibilities.
   3. Staffing – Recruiting and managing human resources.
   4. Directing – Guiding and supervising employees.
   5. Coordinating – Ensuring all departments work together harmoniously.
   6. Reporting – Communicating relevant information and progress.
   7. Budgeting – Managing financial resources effectively.

Concept of Management:

• Management is the art of getting things done through and with people in an efficient and effective manner.
• “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” – Koontz and O’Donnell

Levels of Management

Difference Between Administration and Management

Principles of Administration (By Luther Gulick)

Luther Gulick introduced the POSDCORB model:

1. P – Planning: Determining objectives and methods
2. O – Organizing: Establishing formal structure
3. S – Staffing: Hiring and developing personnel
4. D – Directing: Motivating and leading staff
5. CO – Coordinating: Integrating efforts and timing
6. R – Reporting: Keeping stakeholders informed
7. B – Budgeting: Fiscal planning and control

Management

• Origin of the Term: The term “Management” is derived from the French word ‘Menage’, which means ‘housekeeping’.
• Definitions of Management: SRF (2016): “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”
  Management involves managing Men, Money, and Material.
• Mary Parker Follett: “Management is the art of getting things done through other people.”
• Management = Men + Money + Material + Method + Machine + Market (6Ms of Management)
• Peter Drucker (Father of Modern Management Practice): Management is a multi-purpose organ that manages business, managers, and workers.

Nature and Function of Management:

• Modern Management Functions (POSLC): Planning, Organizing, Staffing, Leading, Controlling
• Siamese Twins of Management: Planning and Controlling are called the “Siamese twins” because they are interdependent.
• Management as a Practice: It is considered an Art, because it requires skill, creativity, and experience.
• Aim of Management: To create surplus (maximize output using minimum input).

Productivity and Efficiency:

• Productivity: It is the output-input ratio within a given time period, with due consideration to quality. (Productivity = Output / Input)
• Efficiency: It is the achievement of goals with the least amount of resources, emphasizing doing things right.
• Effectiveness: Refers to doing the right things to achieve the desired goals.
• Management is concerned with both: Efficiency (optimal use of resources) and Effectiveness (achievement of objectives) Together, they enhance productivity.

Skills in Management

Three Basic Skills by Henri Fayol; Popularized by Robert Katz

📌 Top Management: Conceptual, Design & Human Skills
📌 Middle Management: Conceptual ↑, Technical ↓, Human Skills essential
📌 Essence of Managership: Coordination

Key Management Concepts

• Departmentation: Grouping of activities into units for administration.
• Supervision: “Acid Test” of management—measures effectiveness of interaction with subordinates.
• Development Administration: Term coined by George Gant.
• Father of Modern Management & Administrative Theory: Henry Fayol