This document compares and contrasts management and administration. It defines administration as setting overall policies and objectives at higher levels, while management involves coordinating organizational components to achieve goals. Though managers at all levels perform both functions, higher-level managers spend more time on administration and lower levels on direction. It also distinguishes public and private administration, noting that public administration operates within a political and legal framework, prioritizes consistent treatment, and is accountable to the public, while private administration focuses on profit.

1. Management
v/s
Administration
A Comparison
By – Mohd Ahad khan
Roll no - 34
BBA lll semester

2. Definition
⚫“Administration means the overall determination of
policies, setting of majorobjectives, the identification
of general purposes and laying down of broad
programmes and projects.” – Theo Haimann
⚫“…[It is] guidance, leadership and control of the efforts
of thegroups towards somecommongoals.” – William
H. Newman
⚫The activities that relate torunning an organization

3. Administration vs Management
⚫Administration deals with the activities of higher
level/top level: setting upof objectivesand crucial
policiesof theorganization
⚫Management involvesconceiving, initiating and
bringing togetherthevariouselements: coordinating,
actuating, integrating the diverse organizational
components while sustaining the viability of the
organization towardssome pre-determined goals
⚫In short, it is theact or function of putting into practice
the policies and plans decided upon by the
administration

4. Administration vs Management
⚫Thedifferencecan be summarized undertwo
categories:
Functions and Usage/Applicability

7. ⚫Practically, there is no difference between
managementand administration. Every manager is
concerned with both—administrative and
management function and operative function.
However,
the managers who are higher in the hierarchy
denote more timeon administrative functionand
the lowerlevel denote more timeon directing and
controlling worker’s performance.

8. Public vs Private Administration
⚫Public Administration has special characteristics
which are derived from the natureof publicsettings in
which it operates. The distinguishing characteristics
are in termsof:
⚫Political Direction
⚫Absenceof Profit Motive
⚫Legal Framework
⚫Consistencyof Treatment
⚫PublicAccountability
⚫Large-scale Administration
⚫Essentialityof Some Public Services

9. Political Direction
⚫Public Administration is political. It takes place in
a political context and work under political direction
and scrutiny—putting intoeffect the policies made by
the elected members of the legislature & political
executive.
⚫Business/Private Administration is non political.
It is notsubject to political direction except in timesof
emergency. It functions largely under the influence of
marketeconomicconditions.

10. Absence of Profit Motive
⚫The primary purposeof governmentorganization is to
provideservices to the people topromotesocial good.
⚫Theends of publicadministration is communal.
⚫The major aim of private business organization is to
make profit for theirowners. Services to the public is
onlyan incidental benefitof businessactivity.
⚫Theends of private business is personal.

11. Legal Framework
⚫Theactivitiesof Public Administration are fixed bya set of
constitutional practices, law, rules & regulations.
⚫ Gov’tofficials must notactoutside the law and theiractions
must be supported by reasonablyclearstatutoryauthority.
⚫ Legal constraintsareessential to preventofficials from
abusing theirpowers.
⚫Activitiesof businessadministrationare subject to less
legal constraints.
⚫ Business executives can usually do anything which is not
forbidden by law, giving them the freedom to selectand carry
on only profitableactivities.

12. Consistency of Treatment
⚫A governmentofficial is required by law to maintain a
high degree of consistency in his dealing with the
public
⚫He has toobserve the principleof equalityof treatment
in serving the people; discrimination is prohibited
⚫Private businessesare not legallyobliged to treat the
small and big customersalike.

13. Public Accountability
⚫Publicaccountability is the hallmark of Public
Administration in democracy.
⚫A publicservant’s activities must beguided by public
needs and publicopinion.
⚫In a democracy, Public Administration is held
accountable for itsactivities through legislative
oversightand judicial review.
⚫Publicaccountability is notavalueeffecting business
administration.
⚫Business administration is not accountable to the public
forwhat theydo and what they fail to do

14. Large-scale Administration
⚫Publicadministration is larger than any big business in
termsof size, complexityand diversityof activities.
⚫Theactivitiesand policies of governments affect the
entiresocioeconomic structureof society.

15. Essentiality of Some Public Services
⚫Certain public services are vital to the existence of the
community itself.
⚫Examples: national security, law and order, health care,
transport, and communications.
⚫Service provided by the business organization such as
supply of costly clothes, shoes and other luxury items
are notessentials for theexistenceof society.

16. REFERENCES
⚫Google Sites. Distinction between Public and Private
Administration. N/A N/A N/A.
<https://sites.google.com/site/dheerajbpsc/home/public-
private-administration/1-distinction-between-public-and-
private-administration>.
⚫Kumar, Manisha. Difference Between Management and
Administration. 12 October 2011.
<http://www.differencebetween.net/business/difference-
between-management-and-administration/>.
⚫Management Study Guide. Management and Administration.
2013.
<http://www.managementstudyguide.com/management_ad
ministration.htm>.