Comparaive management
- 1. COMPARAIVE MANAGEMENT (BUS 303) CHAPTER ONE AN OVERVIEW OF THE COURSE THE COMPARATIVE APPROACH TO MANAGEMENT ANDADMINISTRATION The essence of comparative management and administration is to examine the degree of similarities or disparity, in the theoretical formulations and practice of management and administration. This could be transnational or within the context of given country. It could also be at a particular point in time or over a specific period of time. DISTINGUISH BETWEEN CONCEPTS OF MGT FROM THAT OF ADMIN. Henri Fayol (1849) used the French word “administration” to mean what we now understand as “management” and this was so with Urwick (1947). However, the term management has within the last 40 years or so, been understood as encompassing much more than administration. Administration has tended to be understood in narrower sense of developing and maintaining procedure e.g. as office administration. In essence, administration is seen primarily as an aspect of organization. Management in comparison is concerned also with planning, controlling and motivating staff (Cole 2002) MANAGEMENT AS A CONCEPT - Functional process of accomplishing goals of the organization through the help of others. Division of labour and coordination of activities are necessary to attain organizational goals. - Management team ensure that goals are achieved by effectively utilizing the service of others - Management becomes a process by which the goals of the organization are attained by directing the efforts of others in the system (Sekaran, 1989). - Management is a collection activities including planning, organizing, motivating and controlling. Cole 2002. ADMINISTRATION AS A CONCEPT - Administration can be defined as the capacity to coordinate and often conflict social energies in a single organization in an orderly manner such that they can operate in unity. Adams(19 13). _
- 2. - Getting things done with the accomplishment of the defined objectives was the way Gulick and Chwick (1939) sees the administration. - The science of administraton as thus the system knowledge whereby one may understand reletionships, predict results and influence outcomes in any situation where people are organized at work together for a common purpose. - Administration therefore is seen as the process of organizing and directing persons and materials in order to accomplish a specific end. It involves (a) ends or purposes. (b) means (c)cooperation and (d)action activities. Gulick (1948) list the function of an administrator to include the following: - Planning: The broad policy guidelines and methods for implementing these in an organization. - Organizing: The activities of the personnel and arranging the structure of the organization. - Staffing: The organization by devisory an efficient and effective system of staff recruitments trany and providing favourable conditions of work. - Directing: The activities of the organization must be put into place in an appropriate way - Coordinating: The activities of the various sections and department of the organization must be well coordinate - Reporting: The activities of the organization in terms of research feedback and inspection and - Budgeting: Sufficient money for the effective function of the organization With the above definitions, we can deduce that administration as only a process i:e a means used to achieved stated objectives, whether or not these means are sufficient to achieve these objectives is the problem. - It customary to equate administrations with public sector, just as management is equated with private sector
- 3. ADMNISTRATION AND MANAGEMENT - It is arguable whether or not administration and management are two sides of the same coin. If we subscribe to the definition of administration as the organization and directive stated objectives, as applicable to both public and private organization, one wonders why there should be any controversy. Administration is therefore synonymous with management. The man controversy revolves around the efficiency or otherwise of the “means” in question. The difference between management and administration is a feature of the public sector and management a product of the private sector. - Wilson (1887) defines administration as the action part of government. Keeling (1971) regards management as a business like function and administration as mere foot dragging. These have tended to encourage a dichotomous perception of the two concepts. (administration to government “inefficiency” and management with “business” and (efficiency) - Most public enterprises are establishes by law and enjoy monopoly in their areas of operation. To this end customer base is solid as most of their services are essential in nature and, with support from the various government they are financially empowered to operate. - The management of public enterprises comprises individual appointment on political rather than on professional grounds. - With lot of innovative in government, administration in to day’s public sector also means management. Most importantly at the top levels where strategic and catalytic decisions are to be taken. “Development administration” is now being used synonymously with public administration in the technologically less developed countries. Comparative Management Management and administration have a common purpose, the use of men, materials, money, method, machine and moral to achieve objectives which hopefully are clearly communicated to all concerned. Management in private sector is characterized by “goal orientation” which involves the following; Determinant of objectives and their implementation through a planned programme to achieve results now called strategic management. Recruitment of professionally-qualified personnel to run the affairs of organizations separate from the business owners
- 4. Exercising leadership through the mobilization of human, material and financial resources for the actualization of stated objectives Accountability and responsibility In summary, management is concerned with the efficient and effective use of both human and material resources to achieve stated objectives. Comparative Methodology The comparative approach has been part of social science as an aid to further understanding of the issue or phenomenon under discussion. Castle (1992) states that comparison is not merely a means of explanation or hypothesis testing but a mode of location and exploring a phenomenon as yet fully understood, and that the two functions can and should be iterative in character. Rose (1991) emphasizes the concept of lesson-drawing as a way of explaining the usefulness of the comparative approach. A lesson is viewed as a programme that is new to an organization and attractive because of evidence that it has been effective elsewhere. Questions 1. Identify the similarities (if any) and disparities (if any) in these concepts i. Administration ii. Management 2. Concepts of comparative management and comparative administration are different but cannot be separated! Either concur or not, kindly elucidate. Elements of Management and Administration Introduction: The achievement of organization objective is basic to all organization, whether public or private. The key in private enterprises are known as managers while those in public enterprises are referred to as administrator: and the major attribute connecting both of them is the element of management and administration, otherwise known as the management process. The management process is the series of steps taken by managers and administrators to get their work done (Bello, 1988). These are: planning, organizing, staffing, leading, controlling and coordinating. First, goals must be established for the organization, and plans must be developed to achieve those goals. Next, managers must organize people and resources into a logical and efficient “well-oiled machine” that is
- 5. capable of accomplishing the goals that have been chosen. Third, managers must lead employees in such a way that they are motivated to work effectively to help achieve the goals of the organization And finally, managers need to maintain adequate control to ensure that the organization is working steadily towards its goals (Hughes and Kapoor, 1985). Planning: Whenever there is a gap between where we are and where we want to be in the future, there is the need for us to bridge that gap. In order to achieve this, we must undergo a process. That process is the planning process. Success in business does not come easily. This is because there so many factors at work, which are beyond the control of business. Hence, success does not necessarily depend on how hard the managers of a business have worked but how well they have planned and utilized available resources. Therefore, planning is highly imperative and critical to management. It is the most basic managerial function. Planning involves both what is to be done and how it is to be done. Robbins and Coultar (1996) assert that planning involves defining the organization”s objectives or goals, establishing an overall strategy for achieving these goals, and developing a comprehensive hierarchy of plan to integrate and coordinate activities. According to Osaze (1991), planning covers the means of attaining them as well as the mechanism for monitoring results. Planning is the formal process of choosing an organizational mission and overall goals for both the individual goals, and allocating resources (human, financial and material) to achieve the various goals, strategies, and tactics (Hellriegel and Slocum, 1996). Classification of Planning One can also define planning in terms of whether it is formal or informal: Formal Planning: This is an organized and developed system of planning. Specific objectives are defined. It is written down for organizational members to see and follow. Thus, it is a system involving clear and laid- down procedures. Informal Planning: This is based on the past experience or the manager. Nothing is written down for anyone to see and follow, and there is little or no sharing of objective with others in the organization.
- 6. Although the formal planning system has its merits, It is time-wasting in today’s turbulent and dynamic business environment. The informal planning system, on the other hand, lacks objectivity and continuity because of its nature. Robbins and Coultar (1996) however classify planning in terms of scope, time frame, specificity and frequency of use: Scope Time Frame Specificity Frequency of use Strategic Long-term Directional Single use Tactical/ Operation Short-term Specific Standing Strategic Planning: This planning is done at the corporate level of the organization. It applies to the whole organization, by establishing its overall objectives and seeking to position the organization in terms of its environment. This planning method covers a longer time period. Operational Planning: This involves the selection of the means of attaining specific objectives. It assumes the existence of objectives , and tends to cover a short time period. Short – term plan: This is a plan which does not cover more than a one- year period. Long- term Plan: This is a plan that extends beyond five years. Specific Plan: This plan has clearly- defined objectives. It leaves no room for interpretation and ambiguity. Specific procedures and schedules of activities to reach objectives are established. Directional Plan: This is a flexible plan that sets out general guidelines. It is better to use this planning method when uncertainty is high because it does not disclose a manager’s specific objectives or course of action. Single- use Plan: This is a one-time plan that is specifically designed to meet the needs of a unique situation and it is created in response to non- programmed decisions that managers make e.g mergers and acquisitions or the introduction of a new product. Standing Plan: This kind of plan is created in response to programmed decisions that managers make. It provides a guidance for activities repeatedly performed in the organization, e.g replenish stock every Monday. The Planning Process:
- 7. The Planning process comprises the steps that managers take in identifying and selecting appropriate goals and courses of action for an enterprise. The steps involves the determination of an organization’s mission, goals and objectives; strength, weaknesses, opportunities and threats (SWOT) analysis; formulation of strategy; and implementation of strategy. Figure 1 displays the planning process. Figurel 1: The Planning Process. Determination of mission, goals and objectives: The determination of the mission, goals and objectives is the first steps, and probably the most significant step in planning. A mission statement describes an organization’s overriding purpose; this statement is intended to identity an organization’s products and customers as well as distinguish the organization in some way from its competitors(Jones, et al 2000). In order to determine an organization’s mission, managers must first defined the business in terms who the customers are, and what and how customer needs are being satisfied. These will help managers plan and establish appropriate goals and objectives. Establishment of objectives gives a sense of direction or purpose to the organization. Osaze (1991) states that, in the propose of establishing objectives, an organization must ensure that the statement of objectives is clear and understandable to those who have the responsibility for developing operational strategies for achieving them. Objectives must be realistic; that is, they must be achievable. Objectives that are unrealistic and unattainable may force managers to give up their pursuit. The time frame within which the achievement of an objective is expected should be specified so that anyone can be held responsible for its non-attainment. SWOT Analysis: This is a step in which managers identify organizational strengths and weaknesses in terms of resource capabilities, and organizational opportunities and threats in the environment. Before an organization can establish attainable goals and objectives, it must search
- 8. for and identity potential opportunities and threats in its external environment which may affect the organization. This is because changes in the external environment forces in the form of economic factors, competition, government legislation or political instability can produce opportunities that an organization might take advantage of and threats that may harm its current situation. For a proper environment scanning to be done, the need for useful, accurate and timely information is highly imperative. No organization can survive in today’s turbulent environment without thoroughly scanning its operational environment. When organizational objectives have been established and the environment scanned, managers would need to identify (as another step in the SWCT analysis) an organization’s strengths and weaknesses: strength in terms of high-quality personnel, adequate cash flow and fantastic marketing techniques; and weaknesses such as increasing debts, rising operational cost and obsolete technology. This analysis will enable the organization capitalize its strengths and tackle its weaknesses. After the completion of the SWOT analysis and appraisal, managers can continue the planning process by determining strategies for achieving the organization’s and goals. Strategy Formulation: Strategy formulation is when managers analyze an organization’s current situation and then develop strategies to accomplish its mission and achieve its goals 9Andrews 1971). The strategy formulation stage involves developing strategies and designing them to suit the objective to be achieved. The strategies must be flexible to accommodate changes occurring in the environment. All strategies must be clearly defined in terms of their cost- benefit implications. An effective strategy ensures that objectives are achieved at minimum cost, at the time scheduled for their achievement and that optimum are derived therefrom(Osaze,1991). Implementation Strategy: According to Jones et al (2000), after identifying appropriate strategies to attain an organization’s mission and goals, manager confront the challenge of putting those strategies into action. Jones et al. (2000) state further that strategic implementation is a five- step process: Allocating responsibility for implementation to the appropriate individuals or groups. Drafting detailed action plan that specify how a strategy is to the implemented
- 9. Establishing a timetable for implementation that includes precise measurable goals linked to the attainment of the action plan. Allocating appropriate resources to the responsible individuals or groups. Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals. Benefits of Planning: Planning has a number of merits, among which are: 1. It gives a sense of direction and purpose to an organization. 2. It enables an organization to take advantage of opportunities and contain threats in the operating environment. 3. It provides awareness of a changing environment so that an organization can adapt better to it. 4. It helps an organization to concentrate resources on area of best potential. 5. It assists management in providing a method of ascertaining early financial and other resources or requirements. 6. It provides an organization some criteria for measuring corporate and employee performance. 7. It enables management to take calculated business risk and think ahead(Aluko et al, 1998). 8. It helps coordinate managers of different functional areas of an organization to ensure they all move in the same direction. 9. It helps an organization to achieve steady growth and development. 10. It helps to pick up the pace of a weak and tired organization. Pitfalls in Planning: Although the importance of planning cannot be overemphasized, many organizations still do not achieve the desired results because of pitfalls in planning. The reasons are:
- 10. 1. Too much time and effort of top management are spent on current problems, leaving little or no time for long- range planning. 2. Failure to develop meaningful and realistic goals and objectives. 3. Lack of commitment to planning and the belief that top management can delegate the planning function to a planner. 4. Personnel inertia to changes brought about by planning activities. 5. Too much formality and lack of flexibility in the system which hinders creativity Organizing Staffing Leading Controlling Coordinating To be discussed in the class. References OJK OGUNDELE. Comparative Management and AministrationKoopman, A. (1991): Transcultural Management Oxford: Blackwell. Mustafa, H.A. (1997): “Pragmatics of Accountability and probity in the civil service” Management in Nigeria. April – June, 1997.