Management and Administration
Management is a structured approach to overseeing individuals and resources within a company. Administration refers to the collective effort of a group of individuals in effectively governing and operating the entire organization. Three perspectives have been provided by management experts regarding these two concepts, as outlined below:
1. Management and administration are different functions:
Management and administration are two separate functions within an organization. While they both play crucial roles in ensuring the smooth operation of the company, they involve distinct responsibilities and focus areas. Management primarily involves the coordination and direction of resources, including people, to achieve organizational goals and objectives. It entails activities such as planning, organizing, and controlling various operational aspects. On the other hand, administration involves the overall governance and decision-making processes within the organization. It encompasses activities such as policy formulation, strategic planning, and resource allocation. Although management and administration may overlap to some extent, they each have their own specific functions that contribute to the effective functioning of the organization as a whole.
2. Management and administration are same functions:
Management and administration are often used interchangeably as they share similar characteristics and objectives in overseeing organizational operations. Both management and administration involve the coordination, planning, and control of resources to achieve organizational goals. They both entail decision-making, leadership, and organizational oversight. While some may argue that there are subtle distinctions between the two, it is important to recognize that these differences are more semantic than substantive. Ultimately, both management and administration are integral to the efficient functioning of an organization, and their roles and responsibilities often overlap in practice. The specific terminology used may vary depending on the context and organizational structure, but the fundamental purpose of both management and administration remains the same: to ensure the successful operation and achievement of objectives within the organization.
3. Management is broad and wider in which administration is its part:
Management encompasses a broad and expansive scope, with administration being one of its constituent components. In the broader context, management refers to the overall coordination, direction, and control of various activities within an organization. It encompasses functions such as planning, organizing, leading, and controlling resources to achieve organizational goals. Administration, on the other hand, is a specific aspect or subset of management. It focuses on the implementation and execution of policies, procedures, and decision-making processes to ensure the smooth operation of the organization. While administration is an essential part of management, it represents a narrower set of activities within the larger framework of managing an organization.
According to Oliver Sheldon, administration is responsible for establishing corporate policies, while management focuses on implementing those policies within the boundaries set by administration. In practical terms, the areas, levels, roles, and responsibilities of management and administration can be understood as follows:
The Comparison between Management and Administration
| BASIS FOR COMPARISON | MANAGEMENT | ADMINISTRATION |
|---|---|---|
| Meaning | Management refers to the organized approach of overseeing people and resources in a business organization. | Administration involves the process of governing an organization by a group of individuals. |
| Authority | Management authority is typically at the middle and lower levels of the organization. | Administration authority resides at the top level of the organization. |
| Role | Management plays an executive role in implementing policies and plans. | Administration plays a decisive role in formulating policies and setting objectives. |
| Concerned with | Management is primarily concerned with policy implementation. | Administration focuses on policy formulation. |
| Area of operation | Management operates under the supervision of administration. | Administration has full control over the organization's activities. |
| Applicable to | Management is applicable to profit-making organizations, such as businesses. | Administration is applicable to government offices, military, clubs, business enterprises, hospitals, religious, and educational organizations. |
| Decides | Management decides who will do the work and how it will be done. | Administration decides what should be done and when it should be done. |
| Work | Management is responsible for putting plans and policies into action. | Administration is responsible for formulating plans, framing policies, and setting objectives. |
| Focus on | Management focuses on managing work and operations. | Administration focuses on making the best possible allocation of limited resources. |
| Key person | Managers are key figures in the management function. | Administrators are key figures responsible for administration. |
| Represents | Management represents employees who work for remuneration. | Administration represents owners who receive a return on their invested capital. |
| Function | Management serves as the executive and governing function. | Administration serves as the legislative and determinative function. |