Management and Administration (IEM Mgt 27April 2021)

Management and Administration

The difference between Management and Administration can be summarized under two categories: -

1.               Functions

2.               Usage / Applicability

On the Basis of Functions: -

Basis	Management (Manager)	Administration (Administrator)
Meaning	Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals. (Rules & Policies Followers)	It is concerned with formulation of broad objectives, plans & policies. (Rules & Policies Maker)
Nature	Management is an executing function.	Administration is a decision-making function.
Process	Management decides who should do it & how should he do it.	Administration decides what is to be done & when it is to be done.
Function	Management is a doing function because managers get work done under their supervision.	Administration is a thinking function because plans & policies are determined under it.
Skills	Technical and Human skills	Conceptual and Human skills
Level	Middle & lower-level function, Budget User	Top level function, Budget Allocation

 

On the Basis of Usage: -

 

Basis	Management	Administration
Applicability	It is applicable to business concerns i.e., profit-making organization.	It is applicable to non-business concerns i.e., clubs, schools, hospitals etc.
Influence	The management decisions are influenced by the values, opinions, beliefs & decisions of the managers.	The administration is influenced by public opinion, govt. policies, religious organizations, customs etc.
Status	Management constitutes the employees of the organization who are paid remuneration (in the form of salaries & wages).	Administration represents owners of the enterprise who earn return on their capital invested & profits in the form of dividend.

 

Practically, there is no difference between management & administration. Every manager is concerned with both - administrative management function and operative management function. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e., management.