Key Differences Between Management and Administration

Management and administration may appear to be the same thing, yet there are differences. Administration is concerned with the establishment of goals and critical policies for any organization. Management, on the other hand, understands the act or role of putting the administration’s policies and goals into action.

Management is an executive function, whereas administration is a determining function. It therefore follows that management makes the major decisions for an organisation as a whole, whereas management makes decisions within the limitations of the framework established by management.

What is management?

Management is defined as the act of managing people and their work in order to achieve a common objective by utilizing the resources of the business. It fosters a climate in which the boss and his subordinates may collaborate to achieve the group’s goals. It is a collection of people who use their abilities and talents to administer the organization’s entire system. It is a function, a process, a discipline, and much more.

Management’s primary responsibilities include planning, organizing, leading, inspiring, controlling, coordinating, and making decisions. Management pulls together the organization’s 5Ms, which are Men, Material, Machines, Methods, and Money. It is a goal-oriented activity focused on reaching the intended outcome.

management vs administration explanation
management vs administration explanation

What is Administration?

Business administration is a broad field of study that encompasses all business and management activities in businesses and organizations around the world. It is the accomplishments or managerial operations of these organizations that make and achieve business arrangements. It controls the productive business or management responsibilities of staff members such as managing directors, chief executive officers, company secretaries, general managers, and corporate boards of directors.

A central administration department is found in many companies. The primary duty of this department is to handle paperwork and to assist all other departments with secretarial duties.

Key Differences

  • Management is the art of delegating labor to others by giving them instructions. Administration, on the other hand, demands strict adherence to the enterprise’s objectives and procedures.
  • The management structure is executive in nature. Administration, on the other hand, has a deterministic structure.
  • Management is demanding that policies be followed. However, the Administration is demanding that fundamental objectives and policies be guaranteed.
  • Management is a low- to mid-level function. Administration, on the other hand, is a high-ranking function.
  • Management decisions are influenced by an enterprise’s goals and policies. However, administrative decisions are influenced by a shared belief and other external pressures.
  • It is not concerned with the management of human effort. However, the Administration is quite concerned about the control of human resolution in the plan’s execution.
  • Management decides how work will be distributed among various personnel and how it will be done. Administration, on the other hand, decides what work is to be assigned to the enterprise’s distinct staff.
  • The fundamental goals of management are to supervise and coordinate. However, the administration’s primary goals are planning and regulation.
  • It necessitates both professional and personal expertise. In Administration, however, vision and personal proficiency are required.
  • Management is mostly in charge of business matters. Administration, on the other hand, has authority in government or national sectors.

Comparison Table

BASIS FOR COMPARISONMANAGEMENTADMINISTRATION
IntroductionIt is the practice of delegating tasks to others by giving them instructions.It implies total adherence to the company’s plans and policies.
AuthorityMiddle and Lower LevelTop level
RoleExecutiveDecisive
Concerned withPolicy ImplementationPolicy Formulation
Area of operationIt works under administration.It has full control over the activities of the organization.
Applicable toProfit making organizations, i.e. business organizations.Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations.
DecidesWho will do the work? And How will it be done?What should be done? And When is should be done?
WorkPutting plans and policies into actions.Formulation of plans, framing policies and setting objectives
Focus onManaging workMaking best possible allocation of limited resources.
Key personManagerAdministrator
RepresentsEmployees, who work for remunerationOwners, who get a return on the capital invested by them.
FunctionExecutive and GoverningLegislative and Determinative

Conclusion

It may be inferred that designing and accomplishing are two major activities of management that are performed by all organizers. It is more accurate to say that management performs two types of functions, which include policy enforcement and application.

Conflicts arise in proportion to their importance. Higher-level management is responsible for policy formation, whereas lower-level management is responsible for policy implementation. The middle level is responsible for a variety of tasks and provides significant assistance to both the high and low levels of management. In today’s world, several experts and management writers advise avoiding the age-old debate and viewing administration and management as synonymous.