G11 ABM Org and MGT Lesson 1 Handouts (Part 3)

PACE ACADEMY
G11 ABM – Organization and Management

Handouts 1.1 (Part 3)
Lesson 1: Theories and Conceptual Framework of Management
OBJECTIVES:
a. Differentiate between administration and management
b. Understand the roles of a manager
ADMINISTRATION AND MANAGEMENT
The terms administration and management are used synonymously. Some writers
argue that both these terms have same meanings and there is no difference between these
two terms.
• Running of a business requires skill, which is called management.
• Functioning of government departments and non-profit institutions requiring skill is called

administration.
Some writers argue that executive functions of a business unit are referred as
management and executive functions of other institutions are referred as administration. In
this way, administration is distinguished as a top-level function while management as a lower
level function. Policy and objectives of a business are determined by the top-level
executives (administration). At the same time, the lower level people (management) work to
attain the objectives of the business unit and follow the policy framed by the administrators.
Distinction between administration and management
1
The basic points of distinction between administration and management:
Basis of Distinction Administration Management
Policy and Objectives Determines policy to be Implements the policy and

followed and decide the achieve the objectives.
objectives to be achieved.
Directing of human efforts Not directly involved in the Directly involved in the
execution of plan and execution of plan and
achievement of objectives. achieving objectives.
Main functions Planning, organizing, staffing. Direction, motivation and

control.
Levels of executive Top-level executives (Owners of Lower level executives

Board of Directors). (Manager, supervisor, and
workers.).
Position Acts as a principal. Acts as an agency.
Knowledge Requires administrative ability Requires technical ability

more than technical ability. more than administrative
ability.
MANAGEMENT
Management is a creative process, which integrates and uses various available

resources effectively to accomplish certain goals. For which, an individual is responsible to
develop ideas and get things done through others. The concerned individual is designated
as manager. “Any person who performs the functions of planning, organization, staffing,
directing and controlling for the accomplishment of pre-determined organization goals is
called a manager.”
Manager does not actually do the work but guides others to do things correctly. In
other words, manager does not build factory or install machines and operate them or sell
goods in the market but he/she directs the efforts of others at lower levels of an organization.
The primary job of a manager is the management of people. The job of manager is very
difficult and requires some significant qualities to get the possible results. The manager should
have the capacity and capabilities to meet the challenges of his/her job.
Roles of a Manager
A manager is responsible to integrate all the activities, which are performed in an

organization. Managers play various roles:
Ø Director: A manager gives direction to people working under him.

Ø Motivator: A manager understands likes and dislikes of people working under him/her
and motivates them accordingly. Hence, motivation stimulates their performance of
job.
2
Ø Human being: A manager treats all the people working under him/her equally and
without any personal bias. She/ He must mingle with others and understand the
feeling of other executives.
Ø Guide: Managers should be aware of using the equipment, techniques and
procedures involved in performing specific tasks. If so, the manager can guide others
whenever need arises.
Ø Friend: A manager acts as a friend by coming forward voluntarily and eliminating the
misunderstandings.
Ø Planner: A manager has to plan the work and assign the same to the workers working
under him/her according to their position held on a daily basis.
Ø Supervisor: A manager has to supervise and control workers’ performance and
maintain personal contacts with them.
Ø Reporter: A manager acts as a reporter by providing the feedback information of the
workers to the top management. The manager also acts as a liaison between the low
level management and the top-level management.
SUMMARY:
• A business develops in course of time with complexities. With the increasing of
complexities, managing the business concern becomes a difficult one. The need of
existence of management has increased tremendously.
• Every business unit has its corresponding objectives. These objectives can be achieved
with the co-operative efforts of several personnel. The work of a number of persons is
properly coordinated to achieve the objectives through the process of
management.
• An individual cannot be treated as a managing body running any organization. A
minimum of two persons is essential to form a management. These persons perform
the functions in order to achieve the objectives of an organization.
• Management is the group of activities, which drafts, plans, prepares policies and arranges
men, money, machine and materials required to achieve the objectives.
• Management is concerned with the achievement of objectives of an organization. These
objectives are achieved through the functions of planning, organizing, staffing,
directing, controlling and decision-making. The organizational objectives are clearly
defined and explained to every employee.
• Management is a must for every enterprise. The existence of management ensures proper
functioning and running of an enterprise. Management can plan the activities to
achieve the objectives and utilize the available resources at minimum cost.
3
• Management thought was developed due to the contributions of many intellectuals who
have different background. These contributions have not been suitably and
adequately integrated to give a unified theory of management. Hence, various
approaches for management analysis have been developed with the passage of
time.
• A manager must create a climate, which brings in and maintain satisfaction and discipline
among the people. A manager directs the efforts of others at lower levels of an
organization.
References:
•Principles of Management by Verma, Takale
•Organization and Management by Edilynda Enriquez

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PACE ACADEMY

G11 ABM – Organization and Management

ADMINISTRATION AND MANAGEMENT

• Running of a business requires skill, which is called management.

• Functioning of government departments and non-profit institutions requiring skill is called

Distinction between administration and management

Basis of Distinction Administration Management

Policy and Objectives Determines policy to be Implements the policy and

Main functions Planning, organizing, staffing. Direction, motivation and

Levels of executive Top-level executives (Owners of Lower level executives

Position Acts as a principal. Acts as an agency.

Knowledge Requires administrative ability Requires technical ability

Management is a creative process, which integrates and uses various available

A manager is responsible to integrate all the activities, which are performed in an

Ø Director: A manager gives direction to people working under him.

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