The success of any business organization depends on management and administration. These crucial business activities can be executed through planning, controlling, and coordination.
Huge business brands employ top-notch experts to run the management and administration departments. The purpose is to increase business survival in this competitive world.
So, what is the main difference between management and administration? The former is concerned with directing the operations of an organization while the latter helps in laying down policies and establishing crucial objectives.
The management works for administration and administration decides everything for the company. Understanding the roles of these two departments is enough to tell their differences.
This article provides further differences between management and administration in a tabular form. Take the time to read through and learn how managers and administrators operate.
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Comparison Table (Management Vs Administration)
| Basic Terms | Management | Administration |
| Meaning | It is the skill of organizing people, resources and getting work done | It is the process of setting up objectives and crucial policies |
| Authority | Both middle and lower level | Strictly upper level |
| Core function | Policy implementation | Policy formulation |
| Role | Executive | Decisive |
| Area of Operation | Work under administration | Fully control over activities |
| Key Person | Manager | Administrator |
| Function | Governing and executive | Legislative and determinative |
| Main Focus | Managing work | Making policies and assembling resources |
| Application | Profit-making organizations | Government offices, business enterprises, military, religious, hospitals, clubs, and educational organizations. |
| Decides on | Who will do the work? And How will it be done? | What should be done? And when should it be done? |
What Is Management?
Management is the act of managing people, resources, and how to utilize them to achieve organizational goals. It is simply the process of getting work done by others.
The major activities found in management are planning, coordination, controlling, leading, organizing, and motivating among many other things.
A good management team enhances the success of the business organization. They create a proper working environment for the executive, staff, and other workers.
Research shows that management experts control the overall working environment with proper coordination and direction. It creates a channel to achieve the desired targets of the company.
The general manager and CEO are the leading characters to maintain the overall management process through acute planning, decision making, human resources, and financial activities.
The top management is controlled by a board of directors and chief executive officer. The team helps to fulfill the target goals and decision-making policies.
What Is Administration?
The administration is a systematic process of setting up objectives and crucial policies of any organization. These objectives and policies are set by top-level authorities.
Administration tends to comprise of forecasting, planning, organization, and decision making in the organization. The success of the company is dependent on the performance of the administration department.
A startup needs a powerful and skilled administrative planner for its welfare. The crucial responsibility of the administration is to ensure the quality results of the company.
The main duties of administrative experts are to maintain, properly plan, and coordinate the programs. The team also provides innovative direction for the company to achieve its goals without landing in crisis.
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Main Difference between Management and Administration
- Management implement policies and objectives whereas administration help in policy formulation.
- Management is done by both middle and lower level authority while administration by top-level authority
- Administration form the organization while management maintain the functions of the organization
- Management make executive decisions while administration make crucial decisions of the organization
- Management comprises of technical and human relationship skills while administration consists of administrative qualities
- The main function of management is governing and executive while the administration is legislative and determinative
- Administrative entails policy formulation while management policy implementation.
- Management work under administration while the administration has full control over activities of the organization
- Management represents employees while administration represent owners of the organization
- Administrators are mainly found in government, military, religious and educational organizations while managers in business organizations
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Summary
The core difference between management and administration is that management deals with policy implementation while the administration deals with policy formulation.
Both administration and management are crucial in developing any business organization. Keep in mind that the management department is guided by the administration department.
Besides that, the administration department is nothing without the assistance of the management department. It is a clear indicator that the success of the company is dependant on management and administration.
More Sources and References
- https://www.managementstudyguide.com/management_administration.htm
- https://smallbusiness.chron.com/difference-between-business-administration-vs-business-management-23505.html
- https://journals.sagepub.com/doi/abs/10.1177/0095399703035002005?journalCode=aasb