Difference between management and administration-- by Mahboob ali khan
Difference between Management and Administration
By Mahboob ali khan MHA CPHQ
Key difference: Administration frames the objectives and policies of an organization.
Management implements these policies and objectives.
Management and administration are at times used interchangeably; however, they are
two different levels of the organization. The administration is the top level of the
organization with the decisive functions. They are responsible for determining the
policies and objectives of the organization or the firm. Management, on the other hand
is the middle level executive function. They implement the policies and objectives as
decided by the administration.
The administration includes the people who are either
owners or partners of the firm. They usually contribute to the firm’s capital and earn
profits or returns on their investment. The main administrative function is handling the
business aspects of the firm, such as finance. Other administrative functions usually
include planning, organizing, staffing, directing, controlling and budgeting.
Administration must integrate leadership and vision, to organize the people and
resources, in order to achieve common goals and objectives for the organization.
Management usually incorporates the employees of the firm who use their skills for the
firm in return for remuneration. Management is responsible for carrying out the
strategies of the administration. Motivation is the key factor of a management.
Management must motivate and handle the employees. It can be said that management
is directly under the control of administration.
Further comparison between management and administration:
Art of getting things done
through others by directing
their efforts towards
achievement of predetermined goals.
Formulation of broad
objectives, plans &
executing function, doing
Decisions within the
framework set by the
Major decisions of an
enterprise as a whole.
Level of authority
Middle level activity
Top level activity
Group of managerial
personnel who use their
specialized knowledge to
fulfill the objectives of an
Consists of owners who
invest capital in and
receive profits from an
Used in business
Popular with government,
military, educational, and
Decisions are influenced
by the values, opinions,
beliefs and decisions of the
Influenced by public
policies, customs etc.
Motivating and controlling
Planning and organizing
Handles the employees.
Handles the business
aspects such as finance.