Difference Between Management and Administration
Largely speaking, management takes into account the controlling and directing functions of the organization, while the administration is related to organizing and planning function. As the passage of time, these two terms carry distinction between them as like implementation, policy formulation, planning as well. However, there will find all considerable difference between management and administration.
Table of Difference Between Management and Administration:
|Meaning||The administration is a process of administering an organization by a group of people.||Management is a thing of a business organization and organized way of managing people.|
|Authority||Top-level||Lower and Middle level|
|Concerned with||Policy Formulation||Policy Implementation|
|Area of Operation||Fully controlled over the activities||Worked under administration|
|Decides||When it should be done? and What should be done?||How will it be done? and Who will do the work?|
|Applicable to||Government offices, business enterprises, military, religious, hospitals, clubs and educational organizations.||Profit-making organizations|
|Function||Determinative and Legislative||Governing and Executive|
|Focus on||Making the best possible allocation of limited resources.||Managing work|
|Represents||Owners, who get a return on the capital invested by them.||Employees, who work for remuneration|
Definition of Management:
Management is an act of managing people and their work to achieve a common goal by using the resources of the organization. It creates an environment under which the subordinates and his manager can work together for the accomplishment of group objective. It is a group of people who use their talent and skills in running the comprehensive system of the organization. It is a function, an activity, a discipline, a process and much more.
Organizing, planning, coordination, motivating, controlling, decision making and leading are the main happenings performed by the management. Management brings together 5M’s of the organization as Men, Machines, Material, Money, and Methods. It is a result-oriented action, which focuses on attaining the wanted output.
Definition of Administration:
The administration defines as a systematic process of administering the management of a business organization, an educational institution for examples school, college, university, government office or any non-profit making organization. The main function of administration is the formation of policies, plans, and procedures, setting up of objectives and goals, implementing rules and regulations, etc.
Within the management of the organization functions, the administration lays down the fundamental framework of an organization.
Bureaucratic is an administration nature. It is a broader term as it involves planning, decision-making, organizing and forecasting functions at the highest level of the enterprise. The top layer of the management hierarchy of the organization characterizes by the administration. These top-level authorities are either business partners and owners who invest their capital in an initial business. They get their takings in the form of profits or as a dividend.
Key Differences Between Management and Administration:
The major key differences between management and administration are given below:
- Management is an activity of business and functional level, whereas Administration is a high-level activity.
- The administration defines as an act of administering the whole organization by a group of people. Whereas management is a system of managing people and things within the organization.
- Administration focuses on making the best possible utilization of the organization’s resources. On the other hand, Management focuses on managing people and their work.
- While management focuses on policy implementation, policy formulation performs the administration.
- The administrator is responsible for the administration of the organization whereas the manager looks after the management of the organization.
- Administration, whose role is decisive in nature. Unlike, management plays an executive role in the organization.
- Functions of management are executive and governing. Conversely, functions of administration include legislation and determination.
- The administration is concerned with framing policies and setting objectives. But, management is all about plans and actions.
- Management makes decisions under the boundaries set by the administration. While the administration takes all the important decisions of the organization.
- The Administration finds in government activities and hospitals, clubs, military offices, religious organizations and all the non-profit making enterprises. Conversely, the management can see in the profit-making organization like business enterprises.
- Administration represents the owners of the organization. On the other hand, a group of persons, who are employees of the organization collectively knows as management.
Finally, it can say that management and administration both are distinctive terms. You would have noticed; a manager performs both functional activities and administrative. Although the managers are working on the top level and say to be the part of administration while the managers working on the lower or middle level signifies management. So, we can determine that the administration is above management.