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MANAGEMENT
VS
ADMINISTRATION

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A majority of people have confusion between the two
common terms: MANAGEMENT and ADMINISTRATION.
While both these terms may seem to be the same, they are
entirely different from each other, both in terms of their
utility and functionality. Administration is basically
determining the objectives and crucial policies of an
organization. On the other hand, management is the act of
putting into practice the objectives and plans decided upon
by the administration.

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Definition of Administration
According to Theo Haimann, “Administration means overall
determination of policies, setting of major objectives, the
identification of general purposes and lying down of broad
programs and projects”.
According to Newman, “Administration means guidance,
leadership & control of the efforts of the groups towards
some common goals”.
Administration refers to the activities of higher level that lays
down basic principles of an organization.

Definition of Management
“Management is the process of conducting a set of functions
[planning, organizing, staffing, directing and controlling] to get
the work done in an efficient and effective manner.”
The process of management brings together the acts of
visualizing, initiating and combining the various components
while sustaining the feasibility of the enterprise towards
company goals.
Management is an art of getting things done through & with
people organized formally in groups.
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Points of Difference between Administration and
Management
•While Administration is a high level activity, management is a
middle level activity done by business and functional level.
•Management is an executive function that makes the decision of
an organization within its framework. But administration is a
determinative function that sets up the organization’s decisions.
•Administrators are the people who invest the capital, and
receive profits from an organization. But, management consists
of a group of people who leverage their relevant skills to fulfill
the company objectives.

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Points of Difference between Administration and
Management
•Planning and organizing of functions in administration are the key
factors, whereas management involves functions like motivating and
controlling.
•As per the abilities of an administrator is concerned, administrative
qualities is a must. However, in management, ability to deal with
human resource and some technical skills are crucial.
•The management decisions are shaped by the opinions, values,
beliefs and decisions of the managers while the administrative
decisions are influenced by public opinion, government policies,
customs etc.

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Points of Difference between Administration and
Management
•Management is an art, science and profession. While administration
is perhaps both science and art.
•Administration usually covers the business aspects, like finance.
But, management is a subset of administration.
•Administration is a system of organizing the people and resources
to make them successfully achieve common goals and objectives.
Whereas management is all about the technical and everyday
aspects of the company’s operation.
•Administrators are judged by their performance and must possess
leadership and vision. Management is judged by the administrators,
deals with the employees and should possess managerial qualities.

From the above postulates, it can be said that administration
and management are entirely different terms. However, in
practicality, both these terms are more or less same. A manager
has to perform both administrative and functional activities
while dealing with the employees of the organization. While the
managers working on the top most level are said to be the part
of administration, the managers working on the middle or lower
level represents management. Thus, it can be said that
administration is above management or that it drives
management.
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