LECTURE 1. BHProf 1
Review of Principles of Management
DISTINCTION BETWEEN ADMINISTRATION AND MANAGEMENT
Although the terms ‘Administration’ and ‘Management’ may appear to be similar,
they are actually different. In our daily conversation we use the two terms
interchangeably. Administration is concerned with laying down suitable policies for the
whole concern whereas management will simply execute these.
Administrators are the owners of the business. Managers, on the other hand, are
the salaried employees of the concern.
The differences between Administration and Management may be tabulated as
shown below:
Administration
All policy decisions are made by the
administration.
Management
It is concerned with the implementation of
the polices. Certain routine decisions may
be made by the managers on less important
matters.
Administrators are the owners of the
concern.
Managers are the paid employees of the
concern.
Administration is basically interested in
results, i.e., profitability, sales, future
prospects and so on.
Managers actually work for the
remuneration they get. They direct their
efforts towards the attainment of the goal set
by the administration.
Administrators do not take part in the daily
activities of the concern.
The managers are responsible to the
administrators on the dailywork done in the
concern.
The decisions made by the administrators
are influenced by the availability of capital,
Government regulations and such other
factors.
The managers are empowered to take
decisions only on routine matters. They are
usually guided by opinions, values and
beliefs in making decisions. They also act
based on precedents. i.e., past happenings.
Administration is almost a permanent
body. No major change, therefore, takes
place in it.
Management is not a static body. Managers
may resign, retire or may even be removed
from service.
It is a top-level function.
It is a lower-level function.
The P-O-L-C Framework
KOONTZ and O’DONNEL’s Five Functions of Management
The Changing Roles of
Management and Managers
5M’s of Management
-Men
-Money
-Machines
-Materials
-Methods
LEVELS OF MANAGEMENT
1. First-Line (First Level) Managers – are responsible for the work of operating
employees only and do not supervise other managers, they are the “first” or lowest level
of managers in the organizational hierarchy; ex: foreman, supervisor
2. Middle Managers – are managers in the midrange of the organizational hierarchy;
they are responsible for other managers and sometimes for some operating employees;
they also report to more senior managers
3. Top Managers – at the top of the organizational hierarchy and is responsible for the
overall management of the organization; they establish operating policies; ex: President,
Vice President, CEO
1. Technical Skill – is the manager’s understanding of the nature of job that people
under him have to perform; job-specific knowledge and techniques needed to
proficiently perform specific tasks
2. Human Relation Skill – is the ability to interact with people at all levels; the ability to
work well with other people both individually and in a group
3. Conceptual and Decision-making Skill – refers to the ability of a manager to take
a broad and farsighted view of the organization and its future, his ability to analyze the
forces working in a situation, his creative and innovative ability, and his ability to assess
the environment and the changes taking place in it. The manager must know when and
how to act on any given situation.





The Management Theory of Max Weber
Use the bureaucratic management theory to increase efficiency
The Max Weber theory of management, sometimes called bureaucratic
management theory, is built on principles outlined by Frederick Taylor in his scientific
management theory. Like Taylor, Weber advocated a system based on standardized
procedures and a clear chain of command. Weber stressed efficiency, as did Taylor, but
also warned of the danger of emphasizing technology at the expense of emotion.
Key elements of the Max Weber management theory include:
Clearly defined job roles
A hierarchy of authority
Standardized procedures
Meticulous record-keeping
Hiring employees only if they meet the specific qualifications for a job