A debate arises between the two associated terms, Management and Administration. According to various management writers, both of them are identical and can be used conversely; the divergence exists in their use regarding distinct areas of human activities.
Yet few authors don’t comply with this conclusion. In the initial stage of management evolution, both the management and the administration were treated equivalent. In 1923, “Oliver Sheldon” discriminated among the two. He related administration with decision making and management with operation function.
At present, there are three points of view on the subject Management Vs Administration. They are as follows:
- The administration is beyond management: Few European thinkers are of the belief that administration is beyond management.
Both are participating in various activities, though one and the others are carried out by the same entity in the company. The administration is mainly interested in the formulation of policies, although management is involved in the execution of the policies.
- The administration is a unit of management: This approach recognizes the administration as a unit of management. According to this path, management is an extensive term consisting of a number of functions along with some administrative functions.
Here, administration manages routine periodic functions although management is involved with the policy creation function.
- Administration and management are equivalent: This is the most prominent and practical approach to evaluate the kind of relationship among them.
Various famous management contributors counting Henry Feyol, George R Terry do not recognize any diversity between the management and the administration. Both contain similar functions, processes, and principals and chases the same targets.
Management Vs Administration can be outlined beneath two sections, i.e., on the basis of functions and on the basis of usage which is described below in the table of comparison between management and administration.
Basically, there is no discrepancy between both of them. Every manager is involved with both managerial functions and operational functions. Yet, top-level managers give more time on managerial functions, and the junior level managers give more time in managing and controlling employee’s performance.
Content: Management Vs Administration
- Difference and Comparison
- What is management?
- Functions of Management
- What is Administration?
- Functions of Administration
Difference and Comparison
On the basis of Functions
|Basis of Comparison||Management||Administration|
|Meaning||It is a skill of getting things performed by|
others by addressing their efforts towards
attainment of prearranged goals
|It is involved with the construction of
vast objectives, policies and plans
|Nature||It is an executing function||It is a directing function|
|Process||Management concludes who will do |
the work and how they should do it
|Administration determines what work
is to be done and how it is executed
|Function||Supervising and coordinating |
are the major functions of it
|Planning and regulating
are the primary functions of it
|Skills||Professional and personal|
skills are required in it
|Visionary and personal skills
are required in it
|Level||It is intermediate or secondary|
|It is primarily a top grade
|Direction of human efforts||Precisely, it is not affected by |
the direction of human exertions
|It is seriously concerned with the
control of human resolutions in
the accomplishment of a plan
On the basis of Usage
|Basis of Comparison||Management||Administration|
|Applicability||It is suitable for business establishments.|
i.e., profit-making concerns.
|It is relevant to non-profit business establishments
such as hospitals, schools, etc.
|Influence||The decisions of management are |
affected by the policies of the organization
|Decisions of administration are altered by
public opinion and other external forces
|Status||It empowers the staff members of a|
company who are rewarded in the form of
salaries and wages
|It symbolizes the owner of the company
who gains return on the capital invested
and income in the form of dividend received
|Usage||It is used primarily in business concerns||It is used mostly in government
or national sectors
|Examples||Branch manager, managing director, |
sales manager, etc.are the
examples of the management of the organization
|Commissioner, minister, registrar, governor,
etc. are the examples of the administration
of the organization
What is Management?
It is a definite process comprising planning, activating, organizing and controlling, ascertain and achieve the goals of the organization with the help of people and resources.
In other words, it is a procedure of accomplishing managerial objectives by captivating in the four main functions of organizing, planning, controlling and leading by the governance of technological, human, material and financial resources.
The main objective of any business concern is to transform the available material goods into superior products or services; this needs the competent and productive use of resources to get the utmost output.
Functions of Management
Substantial management functions can be classified into four main functions. They are as follows:
- Planning: Planning is the most essential and fundamental activity of management. The function also involves taking everything in mind what must be done to improve the necessary levels of development and innovation. On the basis of functions, there are two types of planning.
- Strategic planning: It focuses on long-range aims and the broad procedures for managing the team.
- Operational planning: It concentrates on short-range goals and the explicit means used to acquire them and on the associated managerial activity of decision making.
- Organizing: It is the management function that targets on assigning and arranging human and natural resources so that procedure can be implemented successfully. Various tasks must be allocated to diverse people, and their work must be coordinated.
- Leading: It is the management function that includes manipulating others to immerse in the trade conducts mandatory to reach organizational objectives.
- Controlling: It is a management function anticipated at managing organizational actions so that substantial performance reaches the expected targets and standards of the organization.
Business administration is a significant area of study that comprise all business and management activities in companies or organizations across the world. It resides the achievements or managerial operations of these organizations where business arrangements are made and achieved.
It holds the key to the productive business or management remits of the staff members such as managing director, chief executive officers, company secretaries, general manager and corporate board of directors.
Several organizations have a central administration department. The major function of this department is to handle the paper-work and to assist all the other departments by administrating them with secretarial work.
- Data input
- Making phone calls
- Entering paper-work
- Handling incoming and outgoing e-mails
- Assembling information from other departments for further use
The administration section of an organization deals with various range of data and information from distinct places. The information collected is usually processed by the administrative personnel to make it beneficial for others.
Functions of Administration
Following are the substantial tasks or functions of the administration of an organization.
- Researching and obtaining information: This may contain seeking information on the internet or from the book repository or the reference books.
- Summarizing the information: This manages the form of learning something and then demonstrating it in a more compact, reduced form.
- Presenting the information: Administration workers have to be experienced about the methods in which the business chooses to submit information. The advice can be conferred in a various number of methods containing letters, memos, reports, notices or articles.
- Management is a specific method subsist of organizing, planning, controlling, activating, and it establishes and carries out the objects by utilizing the people and resources. Although, Administration is a way of managing the tasks which are to be performed means it is a conclusive or rational function.
- Management is an action or accomplishing function; the policies and decisions started being those arranged by administration. It includes workers of the organization. Although the administration is affected by deciding the major policies and targets of the organization. Administrators are the holder of the organization.
- Management is not strictly concerned with the direction of the human act. Although, Administration is sincerely attentive with the guidance of human efforts.
- Management analyses which will perform the task and how they will perform it. Although, Administration decides what is to be done and how it is to be accomplished.
- The major function of management is supervising and coordinating; the sphere for decision making is restricted. Although, the primary function of Administration is planning and regulating. Decision making is mainly persuaded by public assessments and government policies.
- Management desires professional and personal skills. Although, Administration demands visionary and personal abilities.
- Managerial tasks designated to the lower and middle-level managers. Although Administrative task is constrained for the top-level managers. Top-level management is a link between middle-level management and the administrators.
- Management is advisable to business enterprises. i.e., profit-earning organizations. Although Administration is significant for non-profit business organizations like schools, hospitals, etc.
- Decisions of the management are formed according to the organization’s policies. Although decisions of the Administration are mixed up with the opinions of the public and other outside forces.
- Management authorizes the personnel of the organization who are remunerated in the form of salaries and wages. Although, Administration personifies the ownership of the organization, which earns a return on the invested capital and income in the form of interest on dividends.
- Management is generally used in business concerns. Although, Administration is often used in government organizations.
- Management comprises of Branch Manager, Sales Manager, Managing Director. Although, Administration, includes Commissioner, Minister, Registrar, Governor etc.
It can be concluded that designing and accomplishing are two major functions of management, and all organizers perform them. It is enhanced to say that management executes two types of functions that includes enforcement and application of such policies.
The conflicts arise in their corresponding importance. Higher-level management involves with policy formulation, and lower-level management involves with policy implementation. The middle level has an assorted task and grand aid to both high and low levels of management.
In a current scenario, various experts and management writers suggest to avoid the old-age argument and consider administration and management as the same.