Management and Administration
In general sense, both management and administration are same concepts. Both terms are used for the same purpose and related with determination of objectives and preparation of policies and implementation of them in practical field. There is controversy among scholars regarding the concept of 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 board programs and projects”.
According to the Newman,”Administration means guidance, leadership and control of the efforts of the groups towards some common goals”
1. According to American Point of view, management and administration are two different concepts. Administration concentrates in higher level authority. Management is part of subordinate level authority and has responsibility to direct and control human efforts for execution of plans and policies by down by administration.
2. According to that British Point of view, management is a comprehensive term which includes both administration and entrepreneurship. They have view that administration is the part of management which is concern with providing guidance for formulation of plans and policies and for the development of strategy to achieve goal. It is function which covers middle and in some extended lower level management.
3. According to Modern concept, management and administration are same. There is no basic or fundamental difference between them. Both are intellectual and mental concepts. If any difference is there between management and administration it is only in terminology. Generally, the term administration is used in government and legal organizations whereas the term management is used in social and business organizations.
Difference between Administration and Management on the basis of Functions:
| BASIS FOR COMPARISON | MANAGEMENT | ADMINISTRATION |
|---|---|---|
| 1. Meaning | An organized way of managing people and things of a business organization is called the Management. | The process of administering an organization by a group of people is known as the Administration. |
| 2. Authority | Middle and Lower Level | Top Level |
| 3. Role | Executive | Decisive |
| 4. Concerned With | Policy Implementation | Policy Formulation |
| 5. Area of Operation | It works under administration | It has full control over the activities of the organization. |
| 6. Applicable to | Profit making organizations, i.e. business organizations | Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations. |
| 7. Decides | Who will do the work? And How will it be done? | What should be done? And When is should be done? |
| 8. Work | Putting plans and policies into actions | Formulation of plans, framing policies and setting objectives |
| 9. Focus on | Managing Work | Making best possible allocation of limited resources |
| 10. Key person | Manager | Administrator |
| 11. Represents | Employees, who work for remuneration | Owners, who get a return on the capital invested by them |
| 12. Functions | Executives and Governing | Legislative and Determinatives |
Key Differences Between Management and Administration
The major differences between management and administration are given below:
- Management is a systematic way of managing people and things within the organization. The administration is defined as an act of administering the whole organization by a group of people.
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- Management is an activity of business and functional level, whereas Administration is a high-level activity.
- While management focuses on policy implementation, policy formulation is performed by the administration.
- Functions of administration include legislation and determination. Conversely, functions of management are executive and governing.
- Administration takes all the important decisions of the organization while management makes decisions under the boundaries set by the administration.
- A group of persons, who are employees of the organization is collectively known as management. On the other hand, administration represents the owners of the organization.
- Management can be seen in the profit making organization like business enterprises. Conversely, the Administration is found in government and military offices, clubs, hospitals, religious organizations and all the non-profit making enterprises.
- Management is all about plans and actions, but the administration is concerned with framing policies and setting objectives.
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- Management plays an executive role in the organization. Unlike administration, whose role is decisive in nature.
- The manager looks after the management of the organization, whereas administrator is responsible for the administration of the organization.
- Management focuses on managing people and their work. On the other hand, administration focuses on making the best possible utilization of the organization’s resources.
