August 13, 2012

Distinction Between Management And Administration

Management is the art of getting things from other people. On the other hand, administration is the act of administering people and resources in the organization.There are some differences between management and administration according to their nature, working style, authority, decision making process, functions, ability etc.

Following are the main differences between management and administration:

1. Nature of functions 

Management is executive function. Administration is thinking or determinable function.

2. Types of work

Management activates the policies and plans into action laid down by administration. It is concerned with implementation. Administration relates with formulation of objective, mission and purpose and policies of an organization.

3. Level of authority

Management is an operative level of the organization. Administration is top level activity.

4. Decision making

Management may take decision, however, it is influenced by values, opinions and beliefs of administration. Administration takes decision considering the public opinion, government policies, ritual norms and social values.

5. Use

The term 'management' is used in private business sector. The term 'administration' is used in public or government sectors of undertakings.

6. Functions

The main functions of management are directing, motivating and controlling. The main functions of administration are planning and organizing.

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7. Ability

Management requires technical and professional ability. Administration requires only administrative quality rather than technical quality.

8. Status of performer

Managerial personnel consists of paid employees with specialized knowledge to perform the 
given tasks. Administrative groups consists of owners who invest capital and participate in profit in the form of dividend.