Business

Difference between Management and Administration

Main difference

The main difference between management and administration is that management is the act or purpose of putting into practice the policies and strategies determined by the management while the management sets the crucial goals and policies for the company.

Comparison chart

management Management
An organized way of managing people and things in a business organization is called Management. The process of managing an organization by a group of people is known as Administration.
Authority
Middle and lower level Upper level
Paper
Executive Decisive
Worried
Policy Implementation Policy formulation
operation area
It works under administration. Has full control over the activities of the organization.
Applicable to
For-profit organizations, that is, business organizations. Government offices, military, clubs, commercial companies, hospitals, religious and educational organizations.
decide
Who is going to do the work? And how will it be done? What should be done? And when should it be done?
Job
Putting plans and policies into action. Formulation of plans, formulation of policies and establishment of objectives
Focus on
manage work Make the best possible allocation of limited resources.
Key person
Manager Administrator
It represents
Employees who work for pay Owners, who obtain a return on the capital invested by them.
Function
Executive and President Legislative and determinant

What is management?

The term “management” originated from the term “manes” which means “to control by hand”. Management focuses on motivation and control functions, as well as technical and human resource skills. It is an art of managing employees and their work. Management is a dynamic process consisting of different elements and actions. These actions are different from operational functions like marketing, finance, purchasing, etc. Many experts have categorized management functions; the most accepted management functions are Planning, Organizing, Staffing, Directing and Controlling. Management is an activity of medium level and lower than administration. He cares about the employees.

What is administration?

The term “administration” originated from the term “minor” and “ministrare” meaning “to serve” and “to rule” accordingly. Management comprises the people who are partners or owners of your business. They typically invest in the company’s funds and earn a return or profit on their investment. The key administrative purpose is to manage the business aspects of the company, such as financing. Other administrative purposes typically include planning, organizing, staffing, directing, budgeting, and controlling. Management must incorporate vision and leadership, to organize resources and people, to achieve common goals and targets for the company.

Key differences

  1. Management implements the policies and goals established by management. Rather, management forms the policies and objectives of a company or firm.
  2. The management is a mid-level executive authority and is responsible for the execution of the policies and goals determined by the administration. On the other hand, management is at the top level of the organization with the critical functions. They are responsible for determining the policies and objectives of the business or company.
  3. Management maintains the function of the business while management maintains the form of the company.
  4. The management makes the decisions within the limits of the framework, which can be taken from the administration while the management makes the vital decisions of the company as a whole.
  5. In management, technical skills and human relations management skills are crucial. On the contrary, in administration, administrative qualities are required, instead of technical ones.

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