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.
Fig : Difference Between Management and Administration
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:
|BASIS FOR COMPARISON||MANAGEMENT||ADMINISTRATION|
|Meaning||An 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.|
|Authority||Middle and Lower Level||Top level|
|Concerned with||Policy Implementation||Policy Formulation|
|Area of operation||It 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.|
|Decides||Who will do the work? And How will it be done?||What should be done? And When is should be done?|
|Work||Putting plans and policies into actions.||Formulation of plans, framing policies and setting objectives|
|Focus on||Managing work||Making best possible allocation of limited resources.|
|Represents||Employees, who work for remuneration||Owners, who get a return on the capital invested by them.|
|Function||Executive and Governing||Legislative and Determinative|
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.