Key Differences

Know the Differences & Comparisons

Difference Between Management and Administration

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Management Vs AdministrationSimply put, management can be understood as the skill of getting the work done from others. It is not exactly same as administration, which alludes to a process of effectively administering the entire organization. The most important point that differs management from the administration is that the former is concerned with directing or guiding the operations of the organization, whereas the latter stresses on laying down the policies and establishing the objectives of the organization.

Broadly speaking, management takes into account the directing and controlling functions of the organization, whereas administration is related to planning and organizing function.

With the passage of time, the distinction between these two terms is getting blurred, as management includes planning, policy formulation, and implementation as well, thus covering the functions of administration. In this article, you will find all the substantial differences between management and administration.

Content: Management Vs Administration

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Video
  5. Conclusion

Comparison Chart

Basis for ComparisonManagementAdministration
MeaningAn 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.
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 to Profit 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

Definition of Management

Management is defined as an act of managing people and their work, for achieving a common goal by using the organization’s resources. It creates an environment under which the manager and his subordinates can work together for the attainment of group objective. It is a group of people who use their skills and talent in running the complete system of the organization. It is an activity, a function, a process, a discipline and much more.

Planning, organizing, leading, motivating, controlling, coordination and decision making are the major activities performed by the management. Management brings together 5M’s of the organization, i.e. Men, Material, Machines, Methods, and Money. It is a result oriented activity, which focuses on achieving the desired output.

Difference Between Management and Administration

Video: What is Management?

Definition of Administration

The administration is a systematic process of administering the management of a business organization, an educational institution like school or college, government office or any nonprofit organization. The main function of administration is the formation of plans, policies, and procedures, setting up of goals and objectives, enforcing rules and regulations, etc.

Administration lays down the fundamental framework of an organization, within which the management of the organization functions.

The nature of administration is bureaucratic. It is a broader term as it involves forecasting, planning, organizing and decision-making functions at the highest level of the enterprise. Administration represents the top layer of the management hierarchy of the organization. These top level authorities are the either owners or business partners who invest their capital in starting the business. They get their returns in the form of profits or as a dividend.

Key Differences Between Management and Administration

The major differences between management and administration are given below:

  1. 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.
  2. Management is an activity of business and functional level, whereas Administration is a high-level activity.
  3. While management focuses on policy implementation, policy formulation is performed by the administration.
  4. Functions of administration include legislation and determination. Conversely, functions of management are executive and governing.
  5. Administration takes all the important decisions of the organization while management makes decisions under the boundaries set by the administration.
  6. 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.
  7. 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.
  8. Management is all about plans and actions, but the administration is concerned with framing policies and setting objectives.
  9. Management plays an executive role in the organization. Unlike administration, whose role is decisive in nature.
  10. The manager looks after the management of the organization, whereas administrator is responsible for the administration of the organization.
  11. 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.

Video: Management Vs Administration

Conclusion

Theoretically, it can be said that both are different terms, but practically, you will find that the terms are more or less same. You would have noticed that a manager performs both administrative and functional activities. Although the managers who are working on the topmost level are said to be the part of administration whereas the managers working on the middle or lower level represents management. So, we can say that administration is above management.

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Comments

    • Surbhi S says

      POSDCORB stands for Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting, which determines the functional responsibilities of chief executive officer and it is an element of Management and Administration.

      Reply

  14. FAZAL WAHID JADOON says

    Both the Definition and Comparison of Management and Administration was really very very comprehensive and analytical one. I have really gain a lot from it.
    Thanx a lot.
    FAZAL WAHID JADOON

    Reply

  17. Maryam says

    Wow, this is an intelligent explanation. It was so helpful to me, well explained. I found the real information in your write up. You’re a genius. I really do appreciate. May GOD continue to improve your wisdom. GOD Bless you.

    Reply

  24. Mohammed Mahdi says

    This very nice comprehensive explanation.Please if I would like to make use of part of this paper how I could cite ?? With best regards

    Reply

  30. Dee says

    Thank you. Now I know what my Administrative Degree in accounting covers. I totally see myself in a different light.

    Reply

  31. Ali says

    Hi all
    it’s very useful to be here
    I like the differences
    so I would like to ask if I quote some words from here as a script for Radio program …is it ok
    please confirm

    Reply

    • Janet says

      This is a very wonderful piece of work. it has been very helpful to me in understanding the two concepts. very grateful.

      Reply

    • Jonathan Favour says

      I liked the fine distinction between the both. Not many articles can provide such precise information in a simple, easy-to-understand way. Thank you.

      Reply

    • Surbhi S says

      POSDCORB means Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting, while POCCC stands for Planning, Organizing, Commanding, Coordinating and Controlling

      Reply

  46. musa Abdi says

    please try to make easy access to download this important and useful concept of administration and management to enable us to be successful in terms of managing organizations and companies thank you

    Reply

  52. Harry says

    Hi, i am looking for a clear information about the difference between medical administrator and Primary health organisation manager? . If you could site some examples for each. Thank you very much..

    Reply

  57. Vikash Kumar says

    Hey there!
    Good Day
    Good and amazing article, i loved it. I found this article very informative and the clarity of the article is amazing. Thanks a million and please keep up the enjoyable work.

    Reply

  59. Marco says

    By having a clear understanding of these two concepts the persons understand why “leadership” became part of the standard model.

    Reply

  61. Dryford Chimutu says

    Well intended effort. I found this quite useful. Management and administration, though often thought of as one and the same term, they are microscopically different – so to say. Hence, having someone to get us to know such a hard-to-detect difference is a rare opportunity. Thank you for this entry.

    Reply

  64. Elizer M says

    This is a very informative article.

    One needs to really think and meditate through the differences because the divergent is very minimal.

    Reply

  68. ssalongo george sebanenya says

    wa-awo

    this was very
    helpful…..
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    well set…..

    words are not enough to express the beauty and selection of words….

    Reply

  72. Andy Denge Numambo says

    This is really genius. I was well thought with your explanations. May God fill you with good thoughts and blessed your carrier.

    Reply

  74. Collen Mabena says

    Well articulated and easily comprehended. I am studying Management in Library and Information Services. Relevant content for research.

    Thank you!!!

    Reply

  78. workaya hussein says

    it is very interesting comparison between management and administration. but can we find both of them in , for example in hospital and commercial bank organizations?

    Reply

  79. workaya hussein says

    I am too much interested by your explanation give for the between management and administration

    Reply

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