What is the difference between management and administration

What is the difference between management and administration
Management vs Administration

Management and administration may seem the same, but there are differences between the two. Administration has to do with the setting up of objectives and crucial policies of every organization. What is understood by management, however, is the act or function of putting into practice the policies and plans decided upon by the administration.

Administration is a determinative function, while management is an executive function. It also follows that administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration.

Administration is the top level, whereas management is a middle level activity. If one were to decide the status, or position of administration, one would find that it consists of owners who invest the capital, and receive profits from an organization. Management consists of a group of managerial persons, who leverage their specialist skills to fulfill the objectives of an organization.

Administrators are usually found in government, military, religious and educational organizations. Management is used by business enterprises. The decisions of an administration are shaped by public opinion, government policies, and social and religious factors, whereas management decisions are shaped by the values, opinions and beliefs of the mangers.

In administration, the planning and organizing of functions are the key factors, whereas, so far as management is concerned, it involves motivating and controlling functions. When it comes to the type of abilities required by an administrator, one needs administrative qualities, rather than technical qualities. In management, technical abilities and human relation management abilities are crucial.

Administration usually handles the business aspects, such as finance . It may be defined as a system of efficiently organizing people and resources, so as to make them successfully pursue and achieve common goals and objectives. Administration is perhaps both an art and a science. This is because administrators are ultimately judged by their performance. Administration must incorporate both leadership and vision.

Management is really a subset of administration, which has to do with the technical and mundane facets of an organization’s operation. It is different from executive or strategic work. Management deals with the employees. Administration is above management, and exercises control over the finance and licensing of an organization.

Therefore, we can see that these two terms are distinct from one another, each with their own set of functions. Both these functions are crucial, in their own ways, to the growth of an organization.

Summary:

1. Management is the act or function of putting into practice the policies and plans decided upon by the administration.

2. Administration is a determinative function, while management is an executive function.

3. Administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration.

4. Administrators are mainly found in government, military, religious and educational organizations. Management, on the other hand, is used by business enterprises.

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What is the difference between management and administration
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Cite
APA 7
Kumar, M. (2018, February 26). Difference Between Management and Administration. Difference Between Similar Terms and Objects. http://www.differencebetween.net/business/difference-between-management-and-administration/.
MLA 8
Kumar, Manisha. "Difference Between Management and Administration." Difference Between Similar Terms and Objects, 26 February, 2018, http://www.differencebetween.net/business/difference-between-management-and-administration/.

According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.

Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals. In other words, it is an art of getting things done through & with the people in formally organized groups.

The difference between Management and Administration can be summarized under 2 categories: -

  1. Functions
  2. Usage / Applicability

On the Basis of Functions: -

Basis Management Administration
Meaning Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals. It is concerned with formulation of broad objectives, plans & policies.
Nature Management is an executing function. Administration is a decision-making function.
Process Management decides who should as it & how should he dot it. Administration decides what is to be done & when it is to be done.
Function Management is a doing function because managers get work done under their supervision. Administration is a thinking function because plans & policies are determined under it.
Skills Technical and Human skills Conceptual and Human skills
Level Middle & lower level function Top level function

On the Basis of Usage: -

Basis Management Administration
Applicability It is applicable to business concerns i.e. profit-making organization. It is applicable to non-business concerns i.e. clubs, schools, hospitals etc.
Influence The management decisions are influenced by the values, opinions, beliefs & decisions of the managers. The administration is influenced by public opinion, govt. policies, religious organizations, customs etc.
Status Management constitutes the employees of the organization who are paid remuneration (in the form of salaries & wages). Administration represents owners of the enterprise who earn return on their capital invested & profits in the form of dividend.

Practically, there is no difference between management & administration. Every manager is concerned with both - administrative management function and operative management function as shown in the figure. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e. management.

What is the difference between management and administration

The Figure above clearly shows the degree of administration and management performed by the different levels of management




Authorship/Referencing - About the Author(s)

What is the difference between management and administration
The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.



What is the difference between administration and management in education?

Educational administration gets into the role of setting up of goals of education, review, feedback and evaluation. Education management on the other hand is the function that coordinates and directs the human resources to meet the goals and objectives of the institution by using the available resources effectively.

Is administrator higher than management?

Yes, an administrator is higher than a manager. An administrator is typically a higher position than a manager in most companies' management structures.

What are major differences between administration and organization?

Organization
Administration
2. It is a component of management.
2. Composition and organization of planning is done by administration.
3. The work of management is done by administration. It is the —– management
3. Administration is the creator of organization. The work of management is done by this organization.
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Is administration a part of management?

The administration is a subset of management which is a systematic process of administrating management. It involves building plans, procedures, and policies and enforcing rules to achieve goals. Administration sets up a framework for organizations on a fundamental level.