CHAPTER – 3

BASIC ADMINISTRATIVE AND MANAGERIAL PRINCIPLES-I

Planning is a basic managerial function. It helps in determining the

course of action to be followed for achieving various organisational objectives.

The important areas like Management by Objectives, Policy and Strategy,

Decision Making etc. are included in the wide area of planning. Here the role of

all these concepts in academic administration is studied upon.

PLANNING

3.1.1 Introduction

Planning has assumed great importance in all types of organisations-

business or non- business, private or public sector, small or large, in developed

countries or developing countries. In fact the difference between successful and

unsuccessful organisations is because of the nature of planning undertaken by

them. The organisation which thinks much ahead about what it can do in

future, is likely to succeed as compared to one which fails to do so.

3.1.2 Fundamentals of Planning

Planning as a process involves the determination of future course of

action, that is, why an action, what action, how to take an action and when to

take an action. These why, what, how, and when are related with different

aspects of planning process. Why of action reveals that action has some

objectives or the end result which an organisation wants to achieve, what of

action specifies the activities to be undertaken and how and when generates

various policies, programmes, procedures and other related elements. Thus, all

these elements speak about futurity of action. “Whenever a number of

individuals join together and decide to achieve a common goal, planning

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becomes necessary. Planning has always been a prerequisite to effective

management”1

3.1. 3 Meaning of Planning

Planning in its broadest sense means systematic preparation for action.

Every action, unless it is the result of sudden impulse, is preceded by some

preparation, conscious or unconscious. Planning, therefore, is inherent in all

human activity, individual or collective. In a great enterprise involving the co-

operative effort of many, the role of conscious planning is more explicit and

pronounced than in the work of a single individual or small groups.

3.1.4 What is Planning

The origin of the word “planning” can be traced to the Latin word

‘planum’ meaning a flat surface. Its usage became common sometime in the 17th

century and was referred to principally for drawing a form on a flat surface such

as a map or blue print. Today “planning” encompasses a broad scope of the

human activity.2 By its very nature it is the antithesis of the “status quo”. It is

a process of examination and re-examination of continual consideration of the

future, of constant searching for more effective methods of accomplishment and

improved results. This is in sharp contrast with the concept of passive stability

— of moving only when necessary or when all signs point to a foregone

conclusion.3

“It is a process of drawing up schemes for accomplishing pre-determined

goals and has been in existence ever since one- man business in one form or the

other.”4 In planning, a good part of the business is the lie-in between

programmes and operations, procedures and people, planned goals and the

proven abilities and desires of the human organisations. Unless these lie-ins

are evaluated carefully, thoughtfully and realistically, all the numbers, such as

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ratios, projections, criteria, alternative programmes, simulations, and schedules

will be of little value. They will be spinach and nothing more.5

3.1.5 Definition

Planning means looking ahead, planning is to peep deep into the future.

Planning is estimating, forecasting and prognosticating. Planning enables us to

know and study the future course of events well in advance. Thus, a provision

can be made for the future eventualities. Planning is an intellectual process

whereby the management foresees and visualizes and determines what is to be

done, how, when and where it will be done and who has to do it. Thus planning

enables every organisation to draw a clear picture of the future.6

According to George R. Terry, “Planning is the selecting and relating of

facts and making and using of assumptions regarding the future in the

visualisation and formulations of proposed activities believed necessary to

achieve desired results.” 7

As G.K. Kanchan says “Planning is a process that involves making and

evaluating each of a set of inter related decisions before action is required in a

situation in which it is believed that, unless action is taken, a desired future

state canot be achieved and that by taking appropriate action the likelihood of a

favourable outcome can be increased.” 8

In short, planning is the conscious process of selecting and developing

the best course of action to accomplish a defined objective. It is a

comprehensive term and involves successive steps.

1 Determination of the objective- This may involve collection of available

data and an enquiry into all aspects of the problem, various alternatives

are examined and then a final decision is taken.

2 Consideration of possible courses of action to achieve the objective- Once

the objective has been determined, the next problem is the finding out of

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the best means to achieve it. This implies the posing of possible

alternative methods and examining each one of these.

3 Selections of the best course of action – This implies evaluations of the

results of investigations and tests of the various alternatives and finally

choosing the last of them.9

3.1.6 Ideal Plan

According to L.F. Urwick an ideal plan should possess the following

essential features:

(1) The plan must be based on well-defined objectives.

(2) The plan must be simple and clear to understand.

(3) The plan must provide for proper analysis, classifications of actions.

(4) The plan must be flexible (so as to incorporate the changes necessary for

making the plan more effective).

(5) The plan must be balanced (i.e., it must cover all the segments and

should allocate the resources in such a way that harmony is maintained

throughout the organisation without giving undue preference to certain

departments).

The plan must make best use of the available resources.10

3.1.7 Administrative Planning

Administrative planning is a phase of management and involves drawing

up a programme of operations in advance and the provision of the requisite

organisations, personnel, material, and procedures for carrying it out. In its

comprehensive sense administrative planning embraces problems of

organisations, budgeting, personnel, procedures- in fact all the phases of the

‘POSDCORB’ activites. Organisation is nothing but a plan of sorting relationship

among the personnel and the budget is only another name for the financial

plan.

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There are some, who divide governmental planning into administrative

(policy and programme planning) and management (operational planning).

Such terminological controversies need not worry us here. As shown above,

planning regarded as an important task of management. Administrative

planning comprehends all the activities of government and can be divided

roughly into policy, programme and operational planning. Thus division is

based on the level, the main objectives and that subject matter with which each

type deals.11

3.1.8 Planning in Academic Administration

Planning is done in every walk of life. It is an age-old phenomenon and

done by every one knowingly or unknowingly. The planning function of

management decides the future course of activities for a given period. It is the

basis of management to avoid crises. Planning is an intellectual process

whereby the management foresees and visualizes and determines what is to be

done, how, when and where it will be done and who has to do it. Thus planning

enables every undertaking to draw a clear picture of the future.

The term ‘Academic’ relates to learning, particularly higher level of

learning. The institutions of higher learning are mainly universities. These are

the centres of Higher Education. Academic Administration means

administration of Higher Educational Institutions. It is the duty of higher

educational institutions to satisfy the educational needs of the society and

deliver competent persons to the society. It also produces trained leaders for

the society. So the administration of higher educational institutions are very

important.

A higher educational institution or a University has two wings. Academic

and Administrative. It is the duty of the academic wing to teach the students.

The administrative wing manages or administers the teaching process ie. to

administer the various affairs of the students and teachers.

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In a university, the administrative wing possesses almost an equal

importance and status with the academic wing. Admission and registration of

students, conducting the examinations, issuing marklists and certificates,

timely delivery of study materials etc. are the duty of administrative wing. They

do a number of measures for the students and teachers and for the overall

growth of the institution.

So planning in Academic Administration has two faces. Planning in the

academic field and planning in administrative set up. Both these types of

planning are very important. Here academic administration is taken in its

narrower sense. It means the implementation or administration of the decisions

taken by the higher authorities of a university.

In Planning in Academic administration the various plans taken by the

university for the timely issue of applications, admission, examination,

valuation, issuing of marklists and certificates, and other measures taken by

the higher authorities of a university and undertaken by it’s administrative

officers are studied.

3.1.9 Importance of Planning in Academic Administration

Planning has assumed great importance in all type of organisations-

business or non- business, private or public sectors, small or large. Without

clear planning a university administration cannot become efficient. The lack of

clear planning about its administration leads a higher educational institution to

delay issuing applications, admission, examinations, valuation, issuing of mark

sheets and certificates and all other student support services. It causes the

inefficiency of the institution and gradually it fails in successfully fulfilling the

aspirations of the society. In particularly planning contributes in the following

way.

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(1) To effect uncertainty and change- There is a continuous change in the

environment and the organisations have to work coping with accelerate

changes. In order to cope up with the requirements of such changes,

organisations must look ahead for its future courses of action, which are

basically provided by planning process.

(2) To focus attention on objectives- Planning focuses on organisational

objectives and direction of action for achieving these objectives.

(3) To help in coordination- Though all managerial functions lead to the

coordination in the organisation, real beginning is made at the level of

planning. Well-considered overall plans unify interdepartmental activities

and consequently restrict the area of freedom in the development of

purely departmental plans. Thus, various departments work in

accordance with the overall plan, and harmony is achieved.

(4) To help in control – Control involves the measurement of

accomplishment of events against plans and the corrections of deviations

to assure the achievement of objectives set by the plans. Thus, controls

exercised in the context of planning, act as standards against which

actual results are to be compared or set up through planning.

(5) To increase organizational effectiveness – Planning ensures

organisational effectiveness in several ways. The concept of effectiveness

is that the organisation is able to achieve its objectives within the given

resources. Planning states the objectives of the organisations in the

context of given resources. Therefore, each resource of the organistions

has a specific use at a particular time. Thus planning along with control

answer whether resources are put in action in a way in which these have

been specified. If this is done, organisations will achieve effectiveness.

MANAGEMENT BY OBJECTIVES

3.2.1 Introduction

“Management by objectives is both a philosophy and a technique of

management. It represents a rational and systematic approach to management

wherein measurable goals are set up in consultation with subordinate managers

and the contributions of each individual is judged in terms of such goals.”12

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3.2.2 Objectives

Organisations, being deliberate and purposive creations, are created for

the fulfillment of some objectives. The ends for which they strive for are

variously known as ‘purpose’, ‘mission’, ‘objective’ or ‘goal’. Formulations and

definitions of objectives of an organisation are the basic requirements for

effective management. If they result from careful analysis and planning, they

would serve as guidelines for managerial actions.

3.2.3 Concept and Features of Objective

In a simple way, objectives may be defined as the end results, which an

organisation tries to achieve. According to Mc Forland,”Objectives are the goals,

aims, or purposes that organisations wish to achieve over varying periods of

time”13

3.2.4 Features of Objectives

(1) Each organisation, as group of individuals, has some objectives. In fact,

organisations or groups are created basically for certain objectives.

Members in the organisation or group try to achieve these objectives.

(2) Objectives may be broad, as they may not be specifically mentioned.

They may be set either for long term or for a short term.

(3) Objectives may be clearly defined. It provides direction for managerial

action

(4) Objectives have hierarchy. At the top level, it may be broad

organisational purpose which can be broken into specific objectives at

the departmental level. From departmental objectives, units of the

department may derive their own objectives. This is possible because

organisation is created by combining people into sections, departments,

divisions etc. All of them try to achieve organisational objectives and at

each level, a unit may contribute to the fulfillment of the task assigned to

it. Thus a hierarchy of objectives is created.

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(5) Organisational objectives have social sanction, that is, they are created

within the social norms. Since organisations are social units, their

objectives must conform to the general needs of the society.

3.2. 5 Management by Objectives (MBO)

Management by objectives (MBO) is at once a method of performance

appraisal and a technique of organisational planning and control. It is a

technique whereby organisational objectives are segmented into departmental

targets and then into objectives for individual employees. Superiors and

subordinates meet and jointly agree subordinates job specifications and goals,

preferably in quantitative terms. MBO supposedly motivates employees through

involving them in the determination of objectives, and should help them develop

their individual careers. Subordinates who achieve their targets will experience

a sense of satisfaction in their achievements.

3.2.6 Definition

According to Koonts “MBO is a comprehensive managerial system that

integrates many key managerial activities in a systematic manner, consciously

directed towards the effective and efficient achievement of organisational

objectives.”14

According to Chakravarty “MBO is a result-centred, non-specialist,

operational managerial process for the effective utilisation of various resources

of the organisations by integrating the individuals with the organisation and

organisation with the environment.”15

According to George Odiorne, “MBO is a process whereby the superior

and the subordinate managers of an enterprise jointly identifies its common

goals, define each individual’s major areas of reponsibility in terms of the

results expected to him, and use these measures as guides for operating the

unit and assessing the contribution of each of its members.”16

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3.2.7 Benefits of MBO

(1) Better managing- MBO helps in better managing the organisational

resources and activities. Resources and activities are put in such a way

that they result in better performance.

(2) Clarity in organisational Action – MBO tends to provide the key result

areas (KRAs) where organisational efforts are needed. Since

organisational objectives are defined very easily, they help in relating the

organisation with its environment .

(3) Personnel satisfaction- MBO provides greater opportunity for personnel

satisfaction. This is possible because of the two closely related

phenomena: participation in objective setting and rational performance

appraisal.

(4) Basis for organisational change – MBO stimulates organisational change

and provides a framework and guidelines for planned change, enabling

the top management to initiate, plan, direct and control the direction and

speed of change.

3.2.8 Process of MBO

MBO is a system for achieving organisational objectives, enhancement of

employee commitment and translation of basic concepts into management

practice. The MBO process is characterized by the emphasis on the rigorous

analysis, the clarity and balance of objectives, and participation of the managers

with accountability for result

(1) Setting of organisational purpose and objectives- The first basic step in

MBO is the definition of organisational purpose and objectives.

Questions, such as “Why does the organisation exist”, ‘what business are

we in’, and “what should be our business” provide guidelines for the

statement of purpose. Usually the objective setting starts at the top level

of the organisation and moves downward to the lowest managerial levels.

(2) Key result areas- Organisational objectives and planning premises

together provide the basis for the identification of key result areas

(KRAs). It may be emphasised that KRAs are derived from the

expectations of the various stake- holders and indicate the priorities for

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organisational performance. KRAs also indicate the present state of an

organisational health and the top management perspective for the future.

(3) Setting subordinates objectives- The organisational objectives are

achieved through individuals. Therefore, each individual manager must

know in advance what he is expected to achieve. Every manager in the

managerial hierarchy is both superior and subordinate except the person

at the top level and the lowest level. Therefore, there is a series of

superior and subordinate relationship.

Chart III-1

3.2.9 Process of MBO

Source: Principles and practice of management, L.M. Prasad.

Organisational purpose

and objectives Planning premises

Key result area

Superior’s objectives

Subordinate`s statement

of his objectives

Superior`s

recommendation for

subordinates objectives

Matching

resources

Subordinate`s

agreed objectives

Subordinates objectives

Performance review and appraisal

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(1) Matching resources with objectives – when objectives are sorted

carefully, they also indicate the resource requirement aspect of objective

setting because it is the proper application of the resources, which

ensures objective achievement.

(2) Appraisal – appraisal aspect of MBO tries to measure whether the

subordinate is achieving his objective or not. If not, what are the

problems and how these problems can be overcome. Appraisal is

undertaken as an on-going process with a view to find out deficiency in

the working and also to remove it promptly.

(3) Recycling- Though appraisal is the last aspect of MBO process, it is used

as an input for reaching objectives and other actions. Objectives are

neither set at the top and communicated to the bottom nor are they set

at the bottom and go up. Objective setting is a joint process through

interaction between superior and subordinate.

3.2.10 Problems of MBO

MBO systems require effective management information systems in order

to assess the effects of subordinates’ activities and the system should be

sufficiently flexible to enable rapid revision of individual targets as

environmental circumstance change. There are of course, problems associated

with MBO which include the following:

(1) The danger of meaningless attempts to quantify activities that are

innately unquantifiable. How, for example, could the objectives of a

manager whose role is purely advisory, be expressed in numerical terms?

(2) Possible encouragement of myopic emphasis on immediate quantifiable

goals to the detriment of nebulous but nonetheless important longer

term objectives.

(3) Difficulties created because subordinates are not given the information,

resources or authority necessary for the completion of tasks allocated to

them.

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(4) The enormous amount of time consumed by regular consultations

between higher and lower executives. A dictatorial system, whereby

superiors simply impose targets on subordinates without consultation,

might be more efficient. Moreover, firms operating in highly uncertain

and rapidly changing market environments may need to alter their

objectives. So frequently the MBO procedures become impractical.

(5) Tendencies of senior managers to pay more attention to subordinates’

personal qualities than to the work done by them.

(6) Possible concentration of effort on the achievement of individual rather

than departmental targets.17

POLICY AND STRATEGY

3.3.1 Introduction

Every organisation is involved in a complicated pattern of decisions

ranging from broad decisions about objectives of the organisations to specific

decisions about day to day operations. Some of these decisions are of long term

orientation while others are made within the context of earlier decisions.

Decisions with long-term orientations provide guidelines for subsequent

decisions. Two such parts of planning- policy and strategy – are important in

providing guidelines for organisational decisions.

3.3. 2 Policy

A policy is a broad statement formulated to provide guidance in decision

making at lower levels of management. It defines the area or limits within

which decisions can be made.

3.3. 3 Concept and Features of Policy

The term policy is derived from the Greek word ‘politeia’ relating to policy,

that is ‘citizen’ and Latin word ‘politis’ meaning ‘polished’, that is to say ‘clear’.

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According to New Websters Dictionary, Policy means the art or manner of

governing a nation, the line of conduct which rulers of a nation adopt on a

particular question especially with regard to foreign countries, the principle on

which any measure or course of action is based. While these descriptions of

policy relate to any field, policy in the organisational context is defined as

“management’s expressed or implied intent to govern action in the achievement

of company’s aims.”18

It suggests that it governs actions of people in the organisations but does

not say how the action is governed. Therefore, an operational definition of

policy may be as follows:

A policy is a statement or general understanding which provides

guidelines in decision making to members of an organisations in respect to any

course of action.

Policies may apply to the entire organisation or they may relate to only

one department. Generally, policy decisions are considered to be the more

important decisions of an organisation: yet many important decisions have no

policy implications.19

3. 3.4 Significance of Policy

The use of policies is vital in the task of planning a course of action.

Policies supply the standard guides who help managers to plan, to act in line

with legal requirements and to realize the derived objectives. Policies help an

executive to keep his activities within the prescribed framework of action. As a

matter of fact, policies give meaning to the objectives. The objectives of

organizations are usually couched in general terms. Policies give concrete form

to these goals.

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3.3.5 Meaning and Definitions

The term is often used rather loosely: It is confused with rule, custom and

decision. While it is true that a rule is a guide in as much as it prescribes the

do’s and don’ts, but rules, unlike policies are specific and rigid. A custom has

been defined as ‘a habitual course of action’. It is the way in which work is

actually done. A custom just grows while a policy may be the result of

deliberate action. However, customs and policies need not always coincide. A

decision is usually taken within the framework of policy, that is, policy may

involve a series of decisions. Similarly, a distinction should be made between

policy and method or procedure. Policy is concerned with basic issues while

method deals with the way of accomplishing a policy. In the words of Terry “A

policy is verbal, written or implied basic guide to action that is adopted and

favoured by a manager.”20

According to Koontz and O’Doennll, “policies are general statements of

understandings which guide or channel thinking in decision-making of

subordinates.”21 Policy should be distinguished from the goal or the objective on

the one hand, and the operative steps, on the other.

3.3.6 Policy and (Academic) Administration

It was Woodrow Wilson, who, in his essay, ‘The study of Administrations”

published in 1887, attempted a rigid distinction between policy and

administration. To him the policy-making was a political function while

administration was concerned only with the enforcement of policies. In his own

words, “The field of administration is a field of business. It is removed from the

hurry and strife of politics.”22

3.3.7 Formulation of Policy

Policy, it should be remembered, is not static and does not stand still. It

is dynamic and is prone to constant changes. Policy is formulated in the

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context of changing goals, shifting environments and varying situations.

Seckles – Hudson rightly regard’s even policy decision as a moment in a

process. In other words, policy formulation is a continuous obligation and the

reformulation of policy in the light of experience is as important as its

formulation in the first instance. Secondly, polices are not made in a vacuum,

that is to say, the policy maker is not free to formulate policies arbitrarily, he is

bound to take into consideration a number of factors.

It should be noted that in a given organisation there need not be only one

point from where policies emanate; in practice the process is widespread all

through the organisations. The whole process is indeed, two fold, namely, a

working down from the rules at the top, and a working up from the persons

affected. According to Gladden four different levels in policy-making may be

distinguished—(1) Political or general policy framed by the parliament: 2)

executive policy framed by the cabinet (3) administrative policy, that is, the form

in which the administrator carry out the will of the government; and (4)

technical policy, that is, the day to day policy adopted by officials in the working

out of the administrative policy.23

3.3.8 Strategy

The concept of strategy in business has been borrowed from military

science where it implies the art of the military general to fight the enemy. A

strategy is a broad plan of action for the deployment of resources in pursuit of

defined objectives.

3.3.9 Concept and Features of Strategy

The concept of strategy is even more confusing in management literature

as compared to policy. The word strategy has entered in the field of

management more recently. It has been derived from the Greek word ‘Strategos’

which means general. Therefore, the word strategy means the out of general.

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Frequently used in military science, it means the art of so moving or disposing

the instruments of warfare as to improve upon the enemy the place, time and

conditions for fighting by oneself. Strategy ends or yields tactics when actual

contact with enemy is made. However, in organisations, it is used in a different

form. For example, Earned, et. al. have defined strategy as follows:

Chandler is more explicit on the subject, when he defines strategy as

follows: “Strategy is the determination of basic long-term goals and objectives of

an enterprise, and the adaptation of a course of action and the allocation of

resources necessary for carrying out these goals.”24

Stragety is the determination of organisational objectives in the light of

environmental variables and determination of the course of action and

commitment of organisational resources to achieve these objectives.

DECISION MAKING

3.4.1 Introduction

Decisions are required to be made in every walk of life, so also decisions

are to be made in business regarding various aspects of business. Therefore,

Peter Drucker, an eminent management consultant, has aptly pointed out that

“Whatever a manager does, he does through making decisions”. That is to

emphasise that the manager has to make decisions, every now and then to

facilitate the smooth and efficient working of the organisations. The plans

framed are put into action through decision making. It is instrumental in

implementing the plans.25

3.4.2 Decision

To decide means to come to a conclusion or resolution. It is a choice

whereby a person comes to a conclusion about a situation. It represents a

course of behaviour or action about what must or must not be done. Decision-

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making may be defined as the selection of one course of action from two or more

alternative courses of action. It is a choice making activity and the choice

determines our action or inaction.26

3.4.3 Significance of Decision Making

Decision-making is a common, everyday phenomenon. Every man

has to make decisions whether on personal or public matters and on significant

or insignificant fields. Indeed, no organisation can be run without taking

decisions and if it is to be run on sound lines, decisions have to be, by and

large, correct and reached in time. Similarly, decision making is the essence of

all management public or private. The power to make decisions has been

correctly identified with the power to manage. No one can ever aspire to be a

successful executive, if he is either incapable of taking decisions or is prone to

making wrong decisions. A greater leader, somehow, develops an uncanny

development which usually results in correct decisions.

However, decision- making, though highly important, is equally difficult.

In the words of March, “An executive existing in the complex environment of the

business organisation has a three-stage decision problem- (1) to which of his

many problems should he direct his attention (2) How much time, effort and

expense should he invest in resolving uncertainty about that problem; and (3)

what solution to the problem should he use.”27

The simplest way to view decision-making is to see a decision as an act of

choice by which an individual or organisation selects one position or action from

several alternatives. Thus a decision represents an action or series of actions

chosen from a number of possible alternatives. Sometimes the chosen

behaviour is not reflected in specific actions, and actions are often not overt or

directly observable. A decision not to act at all is also possible. However most

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frequently, the decision results in some tangible action, such as rules, policies,

orders, or other concrete events.

3.4.4 Meaning and Definition of Decision Making

The product of the process is a decision that can be defined as a course of

action consciously chosen from available alternatives for the purpose of

achieving a desired result. Three ideas are important in this definition. First, a

decision involves a chance, if there is but one possible course of action, no

decision is required. Second, a decision involves a mental processes at the

conscious level. The logical aspects are important, yet, emotional, non-rational,

and subconscious factors do influence the process. Third, a decision is

purposive; it is made to facilitate the attainment of some objective.28

3.4.5 Meaning

Decision-making is the process of determining the most suitable course of

action from among the alternatives. Decision making means arriving and

deriving conclusions from a given set of facts regarding various aspects of the

enterprise. Decision is a commitment and therefore, the manager while taking

decisions has to exercise utmost diligence, vigilance and intelligence. A decision

is a deliberate action. The question of decision making arises mainly because of

the existence of alternative solutions or courses of action. If there is only one

course of action that itself becomes the decision. But, in practice a number of

alternatives are available and therefore, decision making assumes prime place

in management.29

3.4.6 Meaning and Nature

In short, to decide means to come to a conclusion. “A decision is usually

made within the guidelines established by policy. A policy is relatively extensive,

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affecting many problems, and is used again and again. In contrast, a decision

applies to a particular problem and has a non-continuous type of usage.”30

Shull et al have defined decision making as follows.“Decision making is a

conscious and human process, involving both individual and social phenomena

based upon factual and value premises, which concludes with a choice of one

behavioural activity from among one or more alternatives with the intention of

moving toward some desired state of affairs.”31

Decision has been rightly described as “a moment in the process of

policy formation”. However, the policy itself is the result of a decision. An

important point to remember about a decision is that it is only a means to an

end and never an end in itself. Again decision making is not a static process.

Decisions are constantly being made and remade in response to changing

requirements. There is nothing sacrosanct about a decision and nothing

permanent about it.

3.4.7 Decision Making Process

When a manager makes a decision, it is in effect the organisation’s

response to a problem. As such, decision should be thought of as means rather

than ends. Every decision is the outcome of a dynamic process, which is

influenced by multiple forces. This process should not be interpreted to mean

that decision making is a fixed procedure. A process is basically a dynamic

concept rather than static. Events and relationships are dynamic, continuous

and flexible and must be considered as a whole in which many forces interact: a

force affecting others and being affected by others.

The decision making process may be described in five steps:

(1) A good decision depends on the makers being consciously aware of the

factors that set the stage for the decision. Post actions and decisions

provide the structure for current decisions. The environment of the

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maker determines many factors that must be accepted as being out of

the construct of the maker.

(2) A good decision is dependent upon the recognition of the right problem.

Too often, a decision maker is so intent on jumping to the right to that he

does not ensures fail to look first for the right question. Even if, current

operations appear to be proceeding nicely, a good manager will not relax

and assume that there are no problems. One of the key duties of a

manager is to search for problems.

(3) Search for and analysis of available alternatives and their probable

consequences is the step most subject to logical and systematic

treatment. Various disciplines offer many ideas of practical help to the

manager, such as mathematical models, the theory of probability, and

the economists’ concept of incremental revenue and cost.

(4) Even in the best-designed framework of alternative consequences, the

crucial step remains-the selection of the solution. At this stage, the

ranking of preference is important. The executive who must make

decisions quickly may wish for the best solution but may settle for only a

satisfactory one. Often the theoretically best decision may be only

slightly better than a number of satisfactory ones.

(5) Finally, a decision must be accepted by the organisation. The entire

process is directed towards securing action. If others are affected, the

decision must be communicated to them; they must be motivated to

implement the decision; furthermore control provides information for

future decisions.

Decision-making is a process and decision is the product of such process.

Decision-making is the selection of a course of action from among alternatives.

To achieve a specific objective is to solve a specific problem: 1. Selection implies

discriminating. 2. Alternative implies a real opportunity for choice from two or

more things, courses etc. 3. Objective implies something tangible to be achieved.

4. Decision is also a solution to a problem.32

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3.4.8 Types of Decision

Basic Decisions- Unique - one time decisions, involving long term

commitments, large investments, costly mistakes.

Routine Decisions- Repetitive, involving little thought, tending to have

only minor effect on the organisations. These decisions are made with the help

of standing plans, eg. Procedures and policies.

Tactical Decisions- These are routine, unimportant and contain few

alternatives. Situation is given, requirements are evident. The only problem is

to find most economical adaptation of known resources. Decision shall achieve

the desired end with minimum effort and disturbance.

Strategic Decisions- Decisions upon basic objectives and basic policies.

They involve either finding out what the situation is, or changing it, either

finding out what the resources are or should be.

Programmed decisions- Those which are routine, repetitive, have set up

procedures, deal with low risk, more easily delegated, subject to quantitative

assessment, programmed into computers.

Unprogrammed decisions- New unique non-repetitive, high risk, many

courses of action possible, no easy quantitative assessment, involve greater

expenditure of resources, cannot be programmed into computer.

Personal decisions- Decisions made by a managers as an individual

cannot be delegated.33

ORGANIZING

Organisation is an essential part of human life. It is the establishment of

relationship among various persons and positions in the university

administration. It also involves the assignment of responsibility and delegation

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of requisite authority for carrying out the assigned task efficiently and

systematically. If the work is not allocated properly, there may arise conflict,

confusion and friction among people of academic administration.34

It would be better to make a detailed study about the problems in the

areas of Theories of Organisation, Organisation Structure, Departmentation,

Span of Management, Authority and Responsibility, Delegation of Authority and

Centralisation and Decentralisation in the university administrative system.

THEORIES OF ORGANISATION

3.5.1 Introduction

Organisations have been in existence from times immemorial. They are

as old as civilisation. However, organisation theory is of comparatively recent

origin. Several theories have been developed at different times to meet the

problems of increasing size and complexity of organisations.

Organising means providing the business with all the requirements for its

smooth functioning. This involves the assembling of all the resources viz., Men,

Money, Machines, Materials and Managerial Personnel. Organisation is

concerned with the creation of relationship amongst the employees for carrying

out the task as individuals and group as a whole with utmost efficiency.

3.5.2 Meaning and Definition

The term organisation is used in at least three different meanings, namely

(1) the act of designing the administrative structure, (2) both designing and

building the structure, i.e., planning is the scheme of the structure and

appointing suitable personnel to it and (3) the resulting administrative structure

itself.

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In the words of Gaus, “Organisation is the relation of efforts and

capacities of individuals and groups engaged in a common task in such a way

as to secure the desired objective with the least friction and the most

satisfaction for whom the task is done and those engaged in the enterprise.”35

Gaus highlights the importance of the human element in an organisation.

Gladden defines it as “the pattern of relationships between persons in an

enterprise, so contrived as to fulfil the enterprise’s functions.”36

“Organisation is the arrangement of personnel for facilitating the

accomplishment of some agreed purpose through allocation of functions and

responsibilities.”37

Let us define an organisation as a structured process in which

individuals interact for achieving stated objectives. This definition is simple but

quite comprehensive. It recognises both the concepts of organisation: a

structure and a process. At the same time, it does stress the twin aspects of

interaction and inter-relationship of people to achieve some purpose.38

3.5.3 Theories of Organisation

There is nothing more practical then a good theory properly applied and

those who refuse to go beyond fact rarely get as far as fact. Hence, management

theory in academic administration enables one to classify, establish

relationships, clarify and suggest solutions to many confusing problems in the

field. Some such important theories in academic administration are:

3.5.4 Theory of Organisational Behaviour

According to this theory, observed behaviour in an organisation is a

function of the interaction between the organisational (nomothetic) and

individual (ideographic) dimensions. Therefore, to understand the behaviour of

a focal occupant of a position (say, administrator) it is necessary to understand

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both organisational and individual dimensions where it emphasise on the

institutional roles and expectations. An ideal administrator is the one whose

behaviour is both organisational and personal. In other words, an

administrator endeavours to achieve the goals of an organisation and the

personal needs of an individual, known as transactional. Though not entirely,

this theory has some application congruence in academic administration,

specially in the organisational set up and the functional management of

different areas of educational enterprise.39

3.5.5 Theory of Human Resources Management

McGregor has propounded two theories: Theory X and Theory Y. These

theories aim at providing a framework for the management of people to achieve

their organisational goals. According to Theory X, average human being has

inherent dislike for work and will avoid it if he can. Therefore, people at work

must be coerced, controlled, directed and even threatened with punishment

towards the organisation goals and objectives. Whereas Theory Y, argues that

average person accept and seek responsibility and will exercise self-direction

and self-control towards organisational goals, if he is committed and provided

with sufficient security. The administrator in academic administration can

utilise the essential ideas in planning their policy and making decisions by

synthesising the vital elements of these theories after discovering the nature and

potentials of these theories after discovering the nature and potentials of

educational organisation for its efficient management.40

3.5.6 Theory of System Analysis

The concept of system analysis can be traced back to Aristotalian

Philosophy who suggested that ‘the whole is greater than the sum of its parts’.

Gordon and Parson held the view that it is not enough to understand the

relationship among the parts. The System Theory has logico-mathematical

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bearing and the formulation and derivation of those general principles are

applicable to all systems. The system may be defined as a series of interrelated

and interdependent parts such that the interaction any part (sub-system) would

affect the whole system.

The system theory is much more relevant to academic administration

because the educational system or an educational institution with its students,

teachers and other staff in it interact, inter-involve and interdependent with

others in the system and the wider system. Educational system, like all other

social systems have identical properties of other systems. Although, the

educational system like other human organisations, have some special

characteristics, yet such organisations, as a special class of open system has

some unique properties of its own, but they share other properties in common

with all open systems.

Some such common characteristics of educational system with open

system are: (1) Input-output of resources, (2) Cycle of events, (3) Negative

entropy, (4) Diversification and Common End.41

3.5.7 Integrated Contingency Theory of Management

While classical theory of administration concentrates on the welfare and

structure of organisation, the neoclassical theory stresses on the welfare of

individuals in the organisation. In recent years, modern management theories

tend to assume integrated contingency perspective on education. The modern

theorists argue that the appropriateness of any administrative theory depends

on the degree to which it perceives the integration of the individual with the

organisation in a specific situation and environment. Therefore, on one style of

administration is always appropriate. Different things motivate different people

differently and hence various administrative structures, principles and

techniques are appropriate at various times and situations. The emphasis

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therefore should be on the diagnosis than on the prescription. The diagnostic

approach demands the consideration of the environment and situation of the

organisation in addition to the variables contingent upon them. Although the

structural arrangement of organisation is probably the most effective and

simplest way of studying and solving the administrative problems, it must be

used in conjunction with examination of issues such as authority, tasks,

functions and duties, methods of communication and information flow,

structure of rewards and the expectation of its members.

The main concern of Integrated Contingency Theory is the

unpredictability of the environmental, influence and administrative situations.

This is truer on the case of education with its ever growing complexity and the

nature of changing administrative environment. These complexities generate

pressures, conflicts and contingencies. Each one of this must be examined and

treated in a systematic way. This further implies that (a) administrative plans

and policies must be flexible, they must consider both long and short range

aspect, (b) decisions must be open and participatory than fixed and mechanical,

(c) leadership must be open, diffused and broad-based with each member

sharing their roles, and (d) communication must be all types and all embracing.

Although, the relevance of modern theories of management have not been

critically studied in relation to academic administration, the stage is yet to be

set for the modernisation of educational administration through research,

experimentation and innovativeness since the clutches of bureaucracy and

classical thinking still dominates in this field.42

3.5.8 Importance of Organisation in Academic Administration

It is no exaggeration to say that we are living in the age of the

organisation “About the first thing we do to identify people today is to find out

the principal organisation of which they are members.”43 Organisations are

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important because a large number of people spend a big chunk of their time in

them. Following are the importance of organisation in academic administration.

(1) It is the foundation of management

(2) It smoothens administration in the university administration.

(3) It facilitates the proper grouping of activities to reap the benefits of

specialisation.

(4) It facilitates delegation of authority for carrying out activities efficiently in

the administrative system.

(5) It provides scope for expansion and diversification of the activities of the

university administration.

(6) It accommodates technological developments.

(7) It facilitates human use of human beings.

(8) It develops creative thinking.

(9) It is instrumental in achieving coordination in the university

administration.

ORGANISATION STRUCTURE

3.6.1 Introduction

Organisation structure is a basic framework within which the managers’

decision making take place. Structure basically deals with relationships. It is an

important scientific concept. In the management of university administration, it

is required to understand how organisations are structured and how these

structures are created and maintained. The problems in the area of the

structure of university administration may seriously affect the overall efficiency

of it.

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3.6.2 Meaning and Definition

In a simple term, structure is the pattern in which various parts or

components are interrelated or interconnected. This prescribes the

relationships among various activities and positions. Since various persons

hold these positions, the structure is the relationship among people in the

organisations. It is very difficult to study the organisation structure seperately

from its functioning. For example, Katz and Khan observes as follows in this

context: “A social system is a structure of events or happenings rather than of

physiological parts and it, therefore, has no structure apart from its

functioning.”44

3.6.3 Features of Good Organisation Structure

The contingency approach of organisational design suggests that there is

no one best way of designing an organisation structure. The good structure is

one which meets the demands of various contextual variables, namely

environment, technology, people, and size. However certain features of

organisation structure can meet all these demands. These features can be

obtained in an organisation structure of the university administration if

properly designed. If the following criteria are taken into account while

designing an organisation structure, it is likely to meet the demands of various

factors.

1. Simplicity- An organisation Structure should be basically simple.

Provisions of various net works are essential but it should not lead to

confusion and ambiguity. Every person in the organisation should be

clear about to whom he has to consult in a particular matter.

2. Flexibility- An organisation structure should be flexible enough so that

changes can be incorporated whenever needs arise. The structure is

designed not only for a time period but for a distant future also

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3. Clear Line of Authority- The concept of clear line of authority implies

that one should be very clear about what one is expected to achieve or

contribute and what relationships should be maintained by one officially.

4. Application of Ultimate Responsibility- it suggests that although a

superior manager assigns some of the work to his subordinates, he is

ultimately responsible for performance of total work. Thus he is

responsible for his own work as well as for the work performed by his

subordinates.

5. Proper Delegation of Authority- The concept of ultimate responsibility

can work only when there is proper delegation of authority at various

levels of the organisation. Delegation of authority refers to authorisation

of a manager to make certain decisions.

6. Minimum possible Managerial Levels- As for as possible, there should be

minimum managerial levels. Greater the number of managerial levels,

longer is the line of communications in the chain of command and the

communication has to travel along the line creating problems of delay

and distortion.

7. Principles of Unity of direction and Command- Unless absolutely

essential, principles of unity of direction and unity of command should

be followed. Unity of command suggests that one person should receive

orders and instructions from one superior only. Unity of command again

provides clarity in role while multiple command provides opportunity to

avoid responsibility.

8. Proper Emphasis on Staff- Line functions should be separated from staff

functions and adequate emphasis should be placed on important staff

activities. A line activity is that which serves the organisational

objectives directly on the other hand, contributions of staff activities are

indirect, that is, they help in carrying out the line activities so as to

achieve organisational objectives.

9. Provision for Top Management – The organisation structure should

clearly specify how the top management groups will participate in the

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management of the organisation, how they exercise control over the

functioning of the organisation, and so on.45

3.6.4 Role of Organisation Structure in Academic Administration

Organisation structure is capable of serving many functions in academic

administration, at the same time but cannot serve all functions equally well over

unlimited time. Structure created for one purpose may not serve other

purposes well. Therefore, it is important for managers to determine the

outcomes desired from organisation structure, and to match the organisation

with changing needs with multiple needs or roles of organisation structure, a

balance will have to be struck and priorities established in the operation of the

organisational mechanism. In general, there can be the following roles for an

organisation structure: (1) facilitating management actions, (2) encouraging

efficiency, (3) communications, (4) Optimum use of organisational resources, (5)

stimulating creativity, and (6) job satisfaction.

1. Facilitating Management Action- when large number of people work

together in the university administration, some sort of formal structuring

is required to place them according to the needs of the administrative

system. All of them perform various functions like finance, examination,

academic and administrative, which are interdependent and interrelated.

As such, there must be a plan for systematic completion of the work of

each specialised job so that total activities accomplish common

objectives.

2. Encouraging Efficiency- organisation structure is the framework within

which an organisation functions. In this functioning, efficiency is the

major criterion. Therefore, members of the university administration try

to maximise the output of services to the society resulting from a given

input of resources, or at least make a respectable showing in that

direction.

3. Communications- organisation structure provides the pathways for

communication among members of the university administration as well

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as between the university administration and its environment. In fact,

when is said that organisation structure establishes relationships, what

is meant that it creates reporting relationships, i.e, who will

communicate with whom.

4. Optimum Use of Organisational Resources- organisation structure tries

to make optimum use of resources of the university administration by

ensuring their allocation to points where these are needed. Organisation

structure gives higher place to activities which are more important to the

achievement of the objectives of the university administration.

5. Stimulating Creativity- a sound organisation structure based on

specialisation stimulates creative thinking of the employees of the

university administration by providing well-defined area of work with

provision of development of new and improved ways of working.

Organisation Structure tries to put people at places where they are

required.

6. Job Satisfaction – organisation structure provides for each person in the

university administration a place of status which confers a certain

standing among his fellows. This works as motivating factor for them.

The above roles of organisation structure are important. All these roles

can be performed by the structure in the university administration only when it

is properly designed. Further, organisation structure should be viewed as a

means to work specific ends. As such, it can be used as a tool, not an end.

DEPARTMENTATION

3.7.1 Introduction

The first real task in designing an organisation structure is the

identification of activities and to group them properly. The process of grouping

the activities is commonly known as departmentation. In academic

administration there arises four different functions, these are examination,

academic, administrative and finance. Under each head there are a number of

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subdivisions. So the problems in the area of departmentation seriously affect

the efficiency of university administration.

3.7.2 Meaning and Definition

Grouping of activities is an essential step in designing an organisation

structure. Grouping of activities into departments, divisions or other

homogeneous units is known as departmentation. Departmentation or

departmentalisation is the process of grouping tasks into jobs, the combining of

jobs into effective work groups and the combining of groups into identifiable

segments or departments. It involves horizontal differentiation of activities in an

organisation. Thus, the departmentation is the process of dividing the work of

organisation into departments or other manageable units.

Louis Allen: “ Divisionalisation is a means of dividing the large and

monolithic functional organisation into smaller flexible administrative units.”46

Koontz and O’ Donnell:” A department is a distinct area, division or

branch of an enterprise over which a manager has authorised for the

performance of specified activities.”47

Departmentation is the process of classifying and grouping all the

activities of an organisation into different units and sub units. The purpose is

to facilitate the carrying out of the activities efficiently for achieving overall

results. The management of the organisation is made more effective by

departmentation. It would have been a very difficult and complicated task to

manage a large organisation without divisionalisation.

3.7.3 Need and Importance of Departmentation in Academic

Administration

The basic need for departmentation in academic administration arises

because of specialisation of work and the limitation on the number of

subordinates that can be directly controlled by a superior in the university

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administration. Therefore, if there were no departmentation, there would be

serious limitation on the size of the university administration. Grouping of

activities and consequently of personnel into departments makes it possible to

expand the university administrative system to any extent. However, when

departments are created to overcome this basic limitation, they serve a number

of other functions leading towards the organisational efficiency of the university

administration. The major advantages of the departmentation in academic

administration is as following:

1. Advantages of Specialisation. The basic advantage of the specialisation

lies in terms of efficiency with which the work is performed because a

person focuses his attention on a narrow aspect of the work and he gets

mastery over that aspect.

2. Fixation of Responsibility. Departmentation helps in fixing the

responsibility and consequently accountability for the results.

Responsibility can be discharged properly when it is clear, precise, and

define.

3. Development of Managers. Development is possible because of two

factors. First, the managers focus their attention on some specific

problems which provide them effective on-the–job training. Second,

managerial need for further training can be identified easily because the

managers’ role is prescribed and training can provide them opportunity

to work better in their area of specialisation in academic administration.

4. Facility in Appraisal. Managerial performance can be measured when

the area of activities can be specified and standards in respect of these

can be fixed. Departmentation provides helps in both these areas.

Performance appraisal will be more objective when departments have

been created in the university administrative system.

5. Feeling of Autonomy. Departmentation provides motivation by developing

feeling of autonomy to the extent possible. Normally departments are

created in the university administrative system with certain degree of

autonomy and freedom.

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A department is the fundamental organisation unit of administration on

which rests the obligation of carrying on operations of the university

administration. This unit is the highest one in the administrative hierarchy,

immediately below the Chief Executive and responsible and subordinate to the

latter. “The departmental system is the natural outgrowth of the need for the

division of labour in administrations, and becomes acute when the functions of

an enterprise multiply over and over as in the case of a modern government and

especially the federal government.”48

We have to divide the work to be performed in the university

administrative system. First we have to group tasks arranging the work into

manageable units for individuals. Then we have to form sections. A section is a

group of workers under one Section Officer. Then sections are grouped to form

larger administrative units such as departments and divisions.

Departmentation is the process of analysing, dividing and arranging work or

activities into manageable portions for individuals, sections, and departments.

Thus, departmentation is the organisation-wide division of work. Logical

grouping of activities gives us (a) individual jobs, (b) sections and (c)

departments.

3.7.4 Key Factors in Departmentation of Academic Administration

(1) It should facilitate control over the various activities of the university

administration

(2) It should ensure proper coordination among various departments

(3) It should take into considerationn the benefits of specialisation in

university administration

(4) It should not result in excess cost

(5) It should give due heed to human aspects

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In order to make the university administrative system more and more

effective, the organisational structure must be capable of bringing about

changes in the organisation taking place from time to time. Such a process of

changing the organisational structure of the university administrative system is

known as reorganization.

SPAN OF MANAGEMENT OR CONTROL

3.8.1 Introduction

The grouping of activities to create various departments presents another

problem, that is, how many individuals should be placed under one superior.

This problem is related to the horizontal dimension of the organisation structure

of the university administration. In management literature, span of

management, span of control, or span of supervision are used to denote the

same concept of number of subordinates, that should be put under one

superior. It has an important role in a human centred organisation like the

university administration. So we should study about the problems of span of

management in it.

Span of management refers to the number of subordinates who can be

managed effectively by a superior. The number of subordinates that report to a

superior has two important implications. First, it is influential in determining

the complexity of individual managers’ jobs. Second, the span of management

determines the shape, or configuration of the organisation; the fewer the

number of people reporting to a superior, the larger the number of managers

required. However, Soujanen has suggested that span of management is a

traditional concept and is not valid because the coordination and control can be

achieved through formal and informal group activity. The replacement of the

old system of individual control by control through management team has

changed the whole system of communication and contact in the organisation,

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which has affected attention, paid to the way executive controls in the command

sense.49

3.8.2 Meaning of Span of Management

Span of management refers to the number of subordinates that report

directly to a single manager or superior. If the number of subordinates

reporting directly to a manager is very large, he may not be able to exercise

effective supervision and control. On the other hand, if the number is too small,

full use of the manager’s abilities may not be made and the subordinates may

not get adequate autonomy of work. There is a limit on the number of

subordinates that a manager can effectively supervise. This limit arises due to

limited time, capacity and attention available to a manager.

Graicunas, a French management consultant, has suggested the fixation

of number of subordinates based on mathematical calculations.50 Graicunas

has identified three types of superior subordinate relationships: direct single

relationships, direct group relationships and cross relationships.

(i) Direct Single Relationships. Direct single relationships arise from the

direct individual contacts of the superior with his subordinates.

(ii) Direct Group Relationships. Direct group relationships arise between the

superior and his subordinates in all possible combinations. Thus, the

superior may consult his subordinates with one or more providing

assistance.

(iii) Cross Relationships. Cross relationships arise because of mutual

interaction of subordinates working under the common superior.

3.8.3 Factors Affecting Span of Management

The basic idea behind limiting the span of management is to enable a

manager to manage his subordinates effectively. Therefore, such factors are

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quite important in determining the suitable span of management. Following are

such factors:

1. Capacity of Superior - Each manager has different ability and capacity

in respect of such factors as leadership, communication, decision-

making, control, etc. affecting management of subordinates.

2. Capacity of Subordinates- Capacity of subordinates also affects the

degree of span of management. Efficient and trained subordinates may

discharge their functions more efficiently without much help from their

superior.

3. Nature of Work- Nature of work affects the degree of span of management

because different types of work require different patterns of management

and hence time from superior.

4. Degree of Decentralisation- Degree of centralisation or decentralisation

affects span of management by affecting the degree of involvement of the

superior in decision-making process.

5. Degree of Planning- Higher is the degree of plans, particularly standing

plans clearly providing rules, procedures, methods, etc. in doing the

work, higher would be the degree of span of management.

6. Communication Techniques- Communication with staff assistant and

through the use of modern electronic communication devices will save a

lot of time and the span can be increased.

7. Use of Staff Assistance- Use of staff assistance in reducing the workload

of managers enables them to manage a higher number of subordinates.

8. Supervision for Others- It is not very uncommon that a subordinate

receives supervision from several other personnel besides his direct

superior. In such a case, the workload of direct superior is reduced and

he can supervise an increased number of subordinates.

The analysis of various factors affecting span of management suggests

that there cannot be any fixed number of subordinates under one superior.

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Koontz has analysed the role of various factors in determining the span of

management and has calculated the optimum span based on these factors.51

3.8.4 Importance of Span of Management in Academic Administration

How many subordinates can a manager supervise or control directly in

the university administration? What should be the span or range of control or

span of supervision is a controversial problem. The limitations of a human being

influencing his span of control are equally applicable to the university

administration.

(1) He has limited time at his disposal for his activities. Time is a

valuable but a scarce resource. (2) He has limited available energy and must

depend upon others to supplement his energy when his workload increases

considerably. (3) He can give attention and concentrate only on a limited

number of subjects or problems at a time.

These three limitations on the capacity of human beings (1) Support the

concept of span of control and (2) also indicate that the optimum span of control

varies among individuals and depends upon a number of situational factors,

such as presence of good communication devices, degree of decentralisation,

control practices, type of management, nature of work to be supervised and so

on. It is obvious that a single executive cannot supervise effectively too many

subordinates. Similarly, if the number of subordinates is very small, the

executive will be idle and his service underutilised.

AUTHORITY AND RESPONSIBILITY

3.9.1 Introduction

Formal organising in academic administration is complete with

determining necessary organisational units, providing suitable physical factors

and assigning competent personnel to each unit. The organisational units

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must also be given proper authority so that they can take certain actions.

Managers at various levels in the university administration, in reality, do not

perform the actual jobs but they get things done by others (operatives). This

shows that managers have some right by which they can get things done. This

right is generally known as authority which every manger must have, to perform

his functions effectively in the university administration. The problems in the

areas of authority and responsibility have an important role in the inefficiency of

the university administration. Authority and responsibility are the two sides of

the same coin. If the employees are not responsible, its base is that they don’t

have any authority.

3.9.2 Meaning and Definition

Authority is defined in various ways because of the various sources

through which one acquires authority in the organisation. For example,

authority may arise because of official position of a person, his personal

competence, or the nature of his subordinate. In management, authority may

be defined as the right to guide and direct the actions of others and to secure

from them responses which are appropriate to the attainment of the goals of the

organisation. Authorities are right to decide and to direct others to perform

certain duties in achieving organisational goals. According to Barnard,

“Authority is the character of communication (order) in a formal organisation by

virtue of which it is accepted by a contributor to, or member of the organisation

as generating the action he contributes, that is, as governing or determining

what he does or is not to do so far as the organisation is concerned.”52

Authority may be defined as the legitimate right to give orders and get these

orders obeyed. Thus, the exercise of authority involves superior-subordinate

relationship. For example, Simon has defined authority as follows:

“Authority may be defined as the power to make decisions which guide

the actions of another. It is a relationships between two individuals, one

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superior and the other subordinate. The superior frames and transmits

decisions with the expectation that these will be accepted by the subordinate.

The susbordinate executes such decisions and his conduct is determined

them.”53 On the basis of this definition of authority, its following features can be

identified:

1. The authority given to a position is legal and legitimate.

2. The authority enjoyed by a position is not limited.

3. Authority is a relationship between two individuals-one superior and the

other suboridinate.

4. Authority is used to achieve organisational goals.

5. Authority is the key to the managerial job.

6. Authority gives right of decision making because a manager can give

orders only when he decides what his subordinates should or should not

do.

7. Authority in itself is an objective thing but its existence is always

subjective.

8. Authority can be delegated.

3.9.3 Sources of Authority in Academic Administration

Some management experts believe that authority originates at the top

and flows downwards. Others suggest that authority originates at the bottom

and flows upwards as a kind of consent of the subordinates. As a result, there

are three different theories to explain the source of authority.

3.9.4 Formal Authority Theory.

According to this theory, authority originates at the top of the university

administration and flows downward through the process of delegation. The

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Senate and the Syndicate delegate authority to the Vice Chancellor who in turn

delegates it to departmental heads, and so on. Every manager in the university

administration has only that much authority which has been delegated to him

by his superior. He derives his authority from his formal position in the

university administration. Authority is concentrated at the top. It travels down

the scalar chain and each person enjoys formal authority by virtue of his

position in the scalar chain. Therefore, the authority is known as formal

authority.

3.9.5 Acceptance Theories

Acceptance theories view authority as being present when a directive is

legitimised by virtue of its acceptance from below. Authority exists when

subordinates are willing to be directed. For the first time, Bernard challenged

the traditional concept of flow of authority from top to bottom. According to

him: “Authority is the character of a communication (order) in a formal

organisation by virtue of which it is accepted by a contributer to or a member of

the organisation as governing… or determining what he does or is not to do so

far as the organisation is concerned.”54

An essential ingredient of Barnad’s concept of source of authority is that

the person subject to authority voluntarily accepts it. If the acceptance is

lacking among sufficient number of the employees affected, the manager has

lost whatever powers was involved in his authority, and finds that his right has

become meaningless.

3.9.6 Competence Authority Theory

According to this theory, an individual derives authority from his

personal competence and charisma. According to Urwick, formal authority is

conferred by organisation, technical authority is implicit in a special knowledge

or skill whereas personal authority is conferred by superiority or popularity.

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Thus, a person may get his order accepted not because he is having any formal

authority, but, because of his personal qualities. These qualities include

technical competence and social prestige in the organisation.

All the three theories have their utility. Formal authority is basic to

managerial job. Acceptance authority and competence authority is the products

of leadership. Thus authority is generated from all sources in the university

administration.

RESPONSIBILITY

3.10.1 Meaning and Definition

Some writers have defined responsibility in terms of duty or activity

assigned to an individual in the administration.

According to M.E. Hurley, “Responsibility is the duty to which a person is

bound by reason of his status or task. Such responsibility implies compliance

with directives of the person making the initial delegation.”55

The term responsibility is used in management literature in two different

senses. Some writers have defined it as duty or task assigned to a subordinate

by virtue of his position in the organistion.

In more comprehensive sense responsibility may be defined as the

obligation of an individual to perform the duty assigned to him. According to

Koontz and O’Donnel, “Responsibility may be defined as the obligation of a

subordinate, to whom duty has been assigned to perform the duty.”56

Responsibility is an obligation to perform certain functions and to achieve

certain results.

However, others define responsibility in more comprehensive way and

treat it as the obligation of an individual to perform activities or duties which

are assigned to him. For example, Terry has defined responsibility as “the

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obligation of an individual to carry out assigned activities to the best of his

ability.”57 Thus responsibility is not merely duty that is assigned but an

obligation that the duty is performed. Responsibility comes into existence

because a person with authority requires assistance from another and delegates

authority to him for the performance of a needed specific work. The acceptance

of the obligation by the individual to perform the work creates his responsibility.

The main characteristics of responsibility are as follows:

1. Responsibility can be assigned to human beings only.

2. Responsibility arises from a superior-subordinate relationship. By virtue

of his superior position, a manager has the authority to get the required

work done by his subordinates.

3. Responsibility may be a continuing obligation or confined to the

performance of a single function.

4. Responsibility may be defined in terms of functions or targets or goals.

5. The essence of responsibility is obligation of a subordinate to perform the

duty assigned to him.

6. Responsibility is a derivative of authority. When a subordinate is

delegated authority he becomes responsible to his superior for the

performance of assigned task and for proper use of delegated authority.

7. Responsibility is absolute and cannot be delegated. A subordinate may

himself perform the duty assigned to him or he may get it done from his

own subordinate.

8. Responsibility flows upward. Always a subordinate is responsible to his

superior.

9. The person who accepts responsibility is accountable for his

performance. Accountability arises out of responsibility and the two go

together.

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DELEGATION OF AUTHORITY

3.11.1 Introduction

Delegation of authority is one of the important factors in the process of

organising. To delegate means to grant or confer. In university administration

delegation means conferring authority from one manager to or organisational

unit to another in order to accomplish a particular assignment. There are a

number of problems in the area of delegation in the university administrative

system. So a detailed study is essential to solve the serious problems in it.

3.11.2 Meaning and Definition

To delegate means to grant or confer the authority from superior (boss) to

subordinate to accomplish a particular assignment. It is simply a matter of

entrusting a part of the work of operations or management to others. In this

way, through delegation or transfer of authority, a manager multiplies himself

and gets results through others.

According to Allen delegation means, “The entrustment of a part of the

work, or responsibility and authority to another and the creation of

accountability for performance.”58

According to Moony, delegation means conferring specified authority by a

higher to a lower authority. It is the devolution of authority by a person to his

agent or subordinates subject to his right of supervision and control. Terry does

not agree with this interpretation. To him “delegation means confereing

authority from one executive or organisation unit to another.”59 It is not

necessarily devolution from a higher to a lower level; it may as well as be from a

higher to a lower level or between equal levels. Delegation may, thus, be

“downward, upward or sideward”. Downward delegation of authority is

illustrated by a sales manager to his salesmen; upward delegation by

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stockholders to their board of directors; sideward delegation by certain African

tribal chiefs and their Central Tribal Authority.60

3.11.3 Elements of Delegation

In the process of delegation, three actions are involved. They are three

unique aspects of delegation.

1. Assignment of Responsibility: A manager assigns a certain

functions, work or duty to his subordinate for performance. This is termed as

assignment of responsibility. It is the creation of an obligation to perform the

assigned duties. Responsibility arises from the superior- subordinate

relationship.

2. Grant of Authority: A manager grants authority, i.e, rights and

powers to be exercised by the subordinate. Authority is derived from

responsibility. It is the right to perform certain assigned work or duties. It is

the power to order or command and is duly delegated or transferred from the

superior to the subordinate to enable him to discharge his or her responsibility

for the assigned work or duties.

3. Creation of Accountability: Just as responsibility arises from work,

and authority arises from responsibility, accountability is logically derived from

authority. Once a subordinate is entrusted with resposibility to perform certain

jobs and he or she is given sufficient authority to perform the assigned work,

the final phase in delegation (or basic organisation relationship) is holding the

subordinate answerable or accountable to his or her superior to fulfilling the

assigned responsibility, i.e., obligation to perform the assigned duties.

These three attributes or components of delegation (Responsibility-

Authority- Accountability) are like three legs of a stool. Each depends on

others.

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3.11.4 Process of Delegation

Delegation occurs when the responsibility or workload of one individual

manager becomes so great that he has to get help from others to get his work or

job done. Delegation is sharing know-how, responsibility, authority, budget,

materials and equipment to the degree necessary to get the work done and to

achieve the results as per plan.

The Executive Pyramid: The process of delegation creates an executive

pyramid with multiple levels of management. In a typical corporation, the board

of directors selects the chief executive. He is delegated the task of running the

entire business. He is the top man in the entire organisation and he has the

authority to do every thing required to achieve the corporate objectives.

3.11.5 Need for Delegation in Academic Administration

It is when university administration grows that the need for delegation

arises, because one person or a group of persons can no longer make all the

decisions in the university administration. Authority and responsibility along

with duties must, therefore, be divided. Delegation is one of the main ways for

dividing and distributing authority. Among the advantages of a sound system of

delegation are the following:

1. The various levels of the university administration are used more appropriately.

Thus, the Vice Chancellor is able to devote his attention to more important issues

and need not take time with decisions on operational details, which may suitably

be dealt with further down the line.

2. A sound system of delegation tends to develop an increased sense of

responsibility and an enhanced potential work capacity of individual

employees. One of the duties of the manager is to build up his

subordinates, and the best way to do it is to entrust them with

responsibility and authority.

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3. The activities rendered by the university administration are improved

and are discharged efficiently economically and expeditiously by

centering action points as far down the line as possible and as close to

the scene where action is to be taken.

4. Proper delegation of authority is conducive to an effective control over

operations due to clear definition of responsibility and of action at each

level of the university administration.

5. Delegation also minimises delay when decisions have no longer to be

referred up the line.

3.11.6 Benefits of Delegation in Academic Administration

Delegation of authority is the key to the university administration.

Without delegation there would be no organisation- only one- man operations.

(2) Delegation permits the mangers to concentrate the real profession, viz,

management. (3) It gives time to plan, motivate and control. (4) It helps

subordinate to show initiative and develop him or herself on the job. It is a good

method of motivation of subordinates. (5) It offers the managers as well as the

subordinates additional peace of mind. (6) It is a magic way to accomplish more

with less worry and tension, and with less risk to health through being one-

man operation. (7) It promotes management development training and builds up

a good reservoir of executive skill and talents, because it creates managers and

not merely messengers.

3.11.7 Barriers in Effective Delegation in Academic Administration

The higher authorities in the university administration may not prefer to

delegate authority to his subordinates because of the following reasons.

1. If the standards of performance are very high it may not, be possible for

the subordinates to attain those standards even though adequate

authority is delegated. In the case of university administration it may

not be effective.

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2. If the manager does not have the capability to direct the subordinates in

matters requiring his guidance, delegation becomes a failure. Moreover,

there must be proper communication of policies, programmes etc. to his

subordinates in order to make delegation effective in the university

administration.

3. If the superior in the university administration lacks confidence in his

subordinates he hesitates to delegate authority to them.

4. If qualitative controls cannot be established to measure the effectiveness

of delegation, it becomes difficult to know the extent of impact of

delegation in the university administration.

5. If the higher authorities do not have balanced temperament, he may not

wish to delegate, as he is afraid of taking chance.

6. If the higher authorities has dictatorial attitude and the desire to

dominate others, he will not delegate the authority.

7. If the higher authorities are afraid, that the subordinates may prove

themselves to be more efficient or competent, he will not delegate.

8. If the subordinates do not have the capacity to assume authority,

delegation is not possible.

9. If the subordinates have develop hostile attitude towards delegation; it

will not become effective.

CENTRALISATION AND DECENTRALISATION

3.12.1 Introduction

The issue of centralisation vs. decentralisation arises between the

superior and subordinate officers within an organisation. Broadly speaking, an

organisation is said to be centralised if most of the power of decision making is

vested in the top level so that the lower ones have to refer most problems to the

head of the organisation or his immediate subordinates for decision. A

decentralised organisation, on the other hand, is one in which the lower levels

114

are allowed the discretion to decide most of the matters which come up,

reserving comparatively a few bigger and more important problems only for

those higher up. The essence of centralisation or decentralisation, therefore,

lies in the distribution of the power of decision. If it were completely centralised,

it would mean the location of all power of decision in the head or chief who

would thus be overwhelmed with work. On the otherhand, complete

decentralisation would mean anarchy, each unit going its own way in its own

sphere. The issue of centralisation vs. decentralisation therefore, relates to the

point where the balance between the two should be struck. In academic

administration the organisations are more centralised than decentralised. All

the powers are vested in the top management, so the problems of centralisation

or the needs of decentralisation possess an important role in the academic

administration.

3.12.2 Meaning

Centralisation stands for concentration of authority at or near the top;

deecentralisation on the other hand, denotes dispersal of authority among a

number of individuals or units. In the words of White, “ The progress of transfer

of administrative authority from a lower to a higher level of government is called

‘centralisation’; the converse, ‘decentralisation’.”61 The essential element in

decentralisation is the delegation of decision-making functions.

3.12.3 Centralisation

According to Louis Allen: “Centralisation is the systematic and consistent

reservation of authority at central points within the organisation.”62

According to Henry Fayol, “Everything that goes to increase the

importance of the subordinates role is decentralisation, everything which goes to

reduce it is centralisation.”63

115

Centralisation refers to concentration of authority at one point or at

different levels. That is, the decision making power is reserved at higher levels

unlike the one in decentralisation, where authority is given to the personnel to

take routine decisions. Centralisation, reduces the importance of subordinates

and makes them mechanical, as the subordinates are only to execute whatever

is ordered.

3.12.4 Advantages:

1. Authority may be centralised by the Vice Chancellor and the Syndicate

as a matter of prestige and to show others that he is important in the

university administration.

2. Greater uniformity and standardisation can be achieved in policies,

decisions and other activities.

3. Overhead costs are less.

4. It facilitates strict control.

3.12.5 Disadvantages

1. It creates too many burdens on the Vice Chancellor and the Syndicate.

2. There is possibility of misuse of authority for selfish and self-centered

motives.

3. It kills the initiative and enthusiasm of the specialists and others, as they

are reduced to machines. They become puppets in the hands of the

executive.

4. Administration becomes dictatorial in nature, which may not be liked by

the employees.

3.12.6 Decentralisation

Decentralisation implies the dispersal of decision-making power at lower

levels of management. When the power to take decisions and formulate policies

does not lie with one person at the top but is passed on to different persons at

116

various levels, it will be a case of decentralisation. The decisions taken at lower

level should not only be more in number but important also. If insignificant

decisions are allowed to be taken at lower levels, then it will not be a case of

decentralisation.

3.12.7 Meaning and Definition

McFarland: “Decentralisation is a situation in which ultimate authority to

command and ultimate responsibility for results is localised as far down in the

organisation as efficient management of the organisation permits.”64 The

delegation of authority and responsibility is allowed downward upto a level it is

necessary. In McFarland’s views the degree and extent of delegations should be

determined as per the needs of the situation.

According to Louis Allen: “Decentralisation refers to the systematic effort

to delegate to the lowest levels authority except that which can only be exercised

at central points.”65

Newman, Summer and Warren: “Decentralisation is simply a matter of

dividing up the managerial work and assigning specific duties to the various

executive skills.” 66

Decentralisation of authority is not the same as delegation of authority.

Delegation of authority takes place from a superior to a subordinate. But in

decentralisation top management grants all the authority to the departmental

head or divisional head to make the unit autonomous or independent except the

authority for common policy matters of the organisation.

3.12.8 Making Decentralisation Effective in Academic Administration

Whether to decentralise or not depends on various factors. However,

when the university administrative system chooses for decentralisation to take

its benefits, it has to make some efforts to reap its advantages. Following are

some measures which make Decentralisation more effective.

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1. Centralised Top Policy and Control- Though it appears to be

contradictory, for decentralisation to become effective, there should be

appropriate centralisation particularly in the context of policy

formulation in the university administration. This ensures the

integration of various parts of the organisation into a unitary whole.

2. Appreciation of the Concept of Decentralisation- A major problem before

decentralisation and its working is that managers do not really

understand and appreciate the philosophy of decentralisation and,

therefore, they are ready to pratcise it as organisational philosophy. This

concept is based on the premise that considerable autonomy will be

given to various units within the framework of the university

administration.

3. Development of Managers- The success of decentralisation depends on

the quality of managers whatever the structure is adopted and they will

show good result, it may be true but only good managers can not turn

the results unless their abilities and potentials are utilised properly in

the university administration.

4. Competition Among Units- Since various units of decentralised

organisation work independently, there should be proper competition

among these units. One of the basic problems in university

administration is that the middle level managers tend to assume

protected monopoly position and may develop complacency unless their

performance is measured objectively and independently.

3.12.9 Advantages of Decentralisation in Academic Administration

1. Reduces Burden: Decentralisation reduces burden of the top

management. As the departments are made autonomous, the concerned

departmental heads takes routine decisions and the top management is

relieved of the burden, so that it can concentrate on policy matters.

2. Easiness of Diversification: Decentralisation overcomes the problem of

diversification, as expansion programmes can be easily accommodated.

This is of immense importance in these days, as the organisations are

becoming more and more complex on account of growth in size.

3. Develops Generalist Managers: Decentralisation thrusts all the authority

and responsibility on the departmental heads to carry out all the

activities of their departments effectively. This requires the generalist

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managers, who can look after all the functions of management namely

planning, organising, motivating, controlling, directing, coordinating,

communicating, and above all decision making.

4. Facilitates Control: As decentralisation makes the divisions autonomous

greater control can be achieved in the university administration.

5. Improves Morale: The employees are motivated to work with heart and

soul together as the authority is granted to them in its true perspective.

The morale of the employees also improves as they can take the

decisions.

6. Quick and Timely Decisions: Decentralisation permits to take quick and

timely decisions as the situation demands in the university

administration.

3.12.10 Limitations of Decentralisation in Academic Administration

1. Higher Cost: Decentralisation, because of its large set up is bound to

result in higher overhead costs in the university administration.

2. Problems of Coordination: Coordination becomes difficult as each

division is autonomous and authority is widely dispersed.

3. Emphasises Control at Policy Level: Decentralisation requires the

exercise of control at the time of framing the policy.

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121

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122

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