Q.NO.1) What is the difference between management and administration?

Management and administration may seem the same, but there are differences
between the two. Administration has to do with the setting up of objectives and
crucial policies of every organization which is understood by management,
however, is the act or function of putting into practice the policies and plans
decided upon by the administration. Administration is a determinative function,
while management is an executive function. It also follows that administration
makes the important decisions of an enterprise in its entirety, whereas
management makes the decisions within the confines of the framework, which is
set up by the administration.

Administration is the top level, whereas management is a middle level activity. If

one were to decide the status, or position of administration, one would find that it
consists of owners who invest the capital, and receive profits from an
organization. Management consists of a group of managerial persons, who
leverage their specialist skills to fulfill the objectives of an organization.

Administrators are usually found in government, military, religious and

educational organizations. Management is used by business enterprises. The
decisions of an administration are shaped by public opinion, government policies,
and social and religious factors, whereas management decisions are shaped by
the values, opinions and beliefs of the mangers.

In administration, the planning and organizing of functions are the key factors,
whereas, so far as management is concerned, it involves motivating and
controlling functions. When it comes to the type of abilities required by an
administrator, one needs administrative qualities, rather than technical qualities.
In management, technical abilities and human relation management abilities are
crucial.
Administration usually handles the business aspects, such as finance. It may be
defined as a system of efficiently organizing people and resources, so as to
make them successfully pursue and achieve common goals and objectives.
Administration is perhaps both an art and a science. This is because
administrators are ultimately judged by their performance. Administration must
incorporate both leadership and vision.

Management is really a subset of administration, which has to do with the

technical and mundane facets of an organization’s operation. It is different from
executive or strategic work. Management deals with the employees.
Administration is above management, and exercises control over the finance and
licensing of an organization.

Therefore, we can see that these two terms are distinct from one another, each
with their own set of functions. Both these functions are crucial, in their own
ways, to the growth of an organization.

Summary:

1. Management is the act or function of putting into practice the policies and
plans decided upon by the administration.

2. Administration is a determinative function, while management is an executive

function.

3. Administration makes the important decisions of an enterprise in its entirety,

whereas management makes the decisions within the confines of the
framework, which is set up by the administration.

4. Administrators are mainly found in government, military, religious and

educational organizations. Management, on the other hand, is used by
business enterprises.
There are many factors according to which administration can be distinguished
from management. These are as follows:

S.No Factors Administration Management

1. Nature of work It is concerned about the It puts into action the policies and
determination of objectives and plans laid down by the
major policies of an administration.
organization.

2. Type of function It is a determinative function. It is an executive function.

3. Scope It takes major decisions of an It takes decisions within the

enterprise as a whole. framework set by the
administration.

4. Level of authority It is a top-level activity. It is a middle level activity.

5. Nature of status It consists of owners who invest It is a group of managerial

capital in and receive profits personnel who use their
from an enterprise. specialized knowledge to fulfill the
objectives of an enterprise.

6. Nature of usage It is popular with government, It is used in business enterprises.

military, educational, and
religious organizations.

7. Decision making Its decisions are influenced by Its decisions are influenced by the
public opinion, government values, opinions, and beliefs of the
policies, social, and religious managers.
factors.

8. Main functions Planning and organizing Motivating and controlling functions

functions are involved in it. are involved in it.

9. Abilities It needs administrative rather It requires technical activities.

than technical abilities.

10. Management Management handles the Administration handles the

employers. business aspects such as finance.
Q.N0.2) Explain the contingency theory approach of management.

It is a management approach that focuses on adapting management

behavior to the particular circumstances of the organization and to each given
situation. Contingency theorists embrace any of all appropriate principles that
enable managers to manage more efficiently. Regardless of the organizational
structure or the obstacles and opportunities they encounter, managers have
some leeway in the choices they make and in the actions they initiate. Theorists
have applied this theory to management problems of leadership, decision
making, organization change, employee motivation, human resource
management and organization structure. Managers have a new set of techniques
to try, including participative work groups and situational leadership styles.

The contingency approach to management emerged from the real life experience
of managers who found that no single approach worked consistently in every
situation. The basic idea of this approach is that number management technique
or theory is appropriate in all situations. The main determinants of a contingency
are related to the external and internal environment of an organization.

The process, quantitative, behavioural, and systems approaches to management

did not integrate the environment. The often assumed that their concepts and
techniques have universal applicability. For example the process theorists often
assumes that strategic planning applies to all situations; the quantitative experts
generally feel that linear programming can be used under all conditions; the
behavioural theorist usually advocates participative goal setting for all superior-
subordinate pairs; and the system advocates tend to emphasize the need for
computerized information flows in all situations. On the other hand practicing
managers find out that a particular concept or technique from the various
approached just does not work effectively in various situations. The theorists
accuse practitioners of not applying the technique properly, and the practitioners
accuse the theorists of being unrealistic. The contingency approach does
incorporate the environment and attempts to bridge this existing theory-practice
gap.

Contingency approach advocates that managerial actions and organizational

design must be appropriate to the given situation and a particular action is valid
only under certain conditions. There is no one best approach to management
and it all depends on the situation. In other words, managerial action is
contingent upon external environment. There is no one best approach for all
situations. What a manager does depends upon a given situation and there is an
active inter-relationship between the variables in a situation and the managerial
action. Contingency theory attempts to analyze and understand these
interrelationships with a view towards taking the specific managerial actions
necessary to deal with the issue. This approach is both analytical and situational,
with the purpose of developing a practical answer to the question at hand.
There are three major elements of the overall conceptual framework for
contingency management; the environment, management concepts and
techniques and the contingent relationship between them.

Features of contingency approach:

1. Management is entirely situational.

2. There is no best way of doing anything.

3. One needs to adapt himself to the circumstances.

4. It is a kind of “if” “then” approach.

5. It is a practically suited.

6. Management policies and procedures should respond to environment.

7. Managers should understand that there is no best way of managing. It dispels

the universal validity of principles.

Superiority of contingency approach:

Clear-cut emergence of contingency approach was noticed after the

popularization of systems approach. The contingency theorists accept open
adaptive nature of the organization and the interdependency between various
sub-systems of the organization. But they have pointed out that the systems
approach does not adequately spell out the precise relationship between
organization and its environment. It is too abstract and difficult to apply in
practice. They have tried to modify and operationalise the system framework.

Management Functions - PODSCoRB

What are management functions?
Gurus have given different thoughts to this question.
The accepted word is "PODSCoRB" (Gulick and Urwick, 1937).

PODSCoRB is:
Planning
Organizing
Directing
Staffing
Co-ordination & Controlling
Reporting
Budgeting

All these are not management functions but are part of modern management functions. They follow each
other in the same order.

Planning - It is where you put your think-tank to use.

Organizing - Deciding, who will do what and when.

Directing - Issuing directions to put all the decisions (made above in organizing) in such a way that they
deliver the required output.

Staffing - It surely has nothing to do with arranging hands to Work. It has a lot more than this. This is the
management function of putting Right Person for the Right Job at the Right Place and at the Right Time.
This function decides effectiveness of the management.

Co-ordination & Controlling - Putting people to job is not enough. Even best of the staffing can not
perform if they are not co-coordinated to achieve goals of organization. One has to have co-ordination and
control between different departments to perform them to the best.

Reporting - The FEEDBACK function. Its about listening your employees, customers, shareholders,
vendors and everybody involved.

Budgeting - Allocation of funds. Easiest to say and toughest to do. Deciding, which unit needs what kind
of finances at what time and arranging them on time.