Management Principles - Environment


In this chapter, we will discuss the environment of management and the factors that affect the environment.

The terms organization, administration and management are often used interchangeably. Sometimes they are used to mean one and the same thing.

Organization is −

  • The collection, preservation and co-ordination of the elements of an enterprise in an integrated manner.

  • It brings together various resources of an enterprise into a single harmonious whole.

  • It warrants the utilization of resources for the accomplishment of its objectives.

Administration is −

  • The efficient organization or utilization of the resources of an organization to achieve the goals.

  • It determines the principles for ensuring the effective performance of the activities of different divisions and branches of the enterprise.

  • Administration is above management, and exercises control over the finance and licensing of an organization.

Management is −

  • An executive function that makes the decisions within the confines of the framework, which is set up by the administration.

  • Management consists of a group of managerial persons, who leverage their specialist skills to fulfill the objectives of an organization.

  • The success of an enterprise/institution is dependent on how efficiently the management can execute plans and policies set by the administration.

The Management & Administration Inter-Relationship

Management is the act or function of putting into practice the policies and plans decided upon by the administration. Administration cannot be successful without the co-operation of management. The job of each manager is, therefore, to win the co-operation of all those who work under him so that they work for enterprise goals set by administration.

Administrators are mainly found in the government, military, religious and educational organizations. Management, on the other hand, is used by business enterprises. The role of a manager is to monitor and shape the environment, to anticipate changes, and react quickly to them.

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