2. Contents
This content talks
about similarities and
differences of
Administration &
Management
INTRODUCTION
This content
explains about
Administration
ADMINISTRATION
This content
explains about
Management
MANAGEMENT
How are they
identical &
different and their
applications in
business
SIMILARITIES &
DIFFERENCES
This content
concludes
conclusion
CONCLUSION
3. Introduction
The differences between management and administration are a topic of discussion among
management experts. Different experts view the role and relevance of these concepts in different
ways. A few management writers consider management and administration as identical concepts.
According to them, these two are basically similar terms while majority others consider them
dissimilar. British management experts view administration as a part of management. management
in its totality is wider than administration. They believe management is a broad term as it includes
activities like planning, organizing, leading and controlling besides enterprise promotion activities.
However, American management experts generally do not concur with the views of the British
management experts,they believe administration is broader than management in many aspects.
Administration involves objective formulating and policy-making activities while management aims
at shaping goals and procedures for accomplishing those objective.
4. ADMINISTRATION
The administration is a systematic process of administering the management of a business
organization, an educational institution like school or college, government office or any
nonprofit organization. The main function of administration is the formation of plans, policies,
and procedures, setting up of goals and objectives, enforcing rules and
regulations.Administration lays down the fundamental framework of an organization, within
which the management of the organization functions. The nature of administration is
bureaucratic. It is a broader term as it involves forecasting, planning, organizing and decision-
making functions at the highest level of the enterprise. Administration represents the top layer
of the management hierarchy of the organization. These top level authorities are the either
owners or business partners who invest their capital in starting the business. They get their
returns in the form of profits or as a dividend.
5. MANAGEMENT
Management is defined as an act of managing people and their work, for achieving a common
goal by using the organization’s resources. It creates an environment under which the manager
and his subordinates can work together for the attainment of group objective. It is a group of
people who use their skills and talent in running the complete system of the organization. It is
an activity, a function, a process, a discipline and much more.Planning, organizing, leading,
motivating, controlling, coordination and decision making are the major activities performed by
the management. Management brings together 5M’s of the organization, i.e. Men, Material,
Machines, Methods, and Money. It is a result oriented activity, which focuses on achieving the
desired output. Level wise Authority Representation
Board of Directors
Managing Director
Manager
Supervisor
6. Differences Between Administration
and Management
6
Administration Management
• It is basically a determinative function because
it predominantly involves decision making
activities.
• It is mainly an executive function as it is
largely concerned with the implementation
of decisions made by the administration.
• Scope of administration is wider as it
governs the entire system, i.e., the whole
organization.
• The scope of management is comparatively
limited to any subsystems (a function or
department or unit) of the organization.
• Objectives and policies formulation are the
top priorities of the administration.
• Fulfilment of those objectives and plans
within the policy framework is the priority
of the management.
• It is usually a top-level activity of an
organization and remains above management.
• It is generally a middle- and supervisorylevel
activity and remains above nonmanagerial
employees.
7. Differences (Continued)
Administration Management
• Planning and organizing are the essential
functions of administration.
• Employee control and motivation are the
important functions of management.
• Conceptual skills are the key to successful
administration.
• Technical skills are vital for successful
management.
• It consists of people who act on behalf of the
capital holders (i.e., owners) of the enterprises.
• It usually consists of people who are
professionals in their area of operations and are
employed by the organization
• Administrative activities are influenced mostly by
external factors like government policies and
guidelines, social and economical developments,
industry-wide developments and market trends.
• Management activities are largely influenced by
internal factors like organizational environment
and culture.
• The term administration is frequently associated
with non-business enterprises like educational,
military and government institutions.
• It is mostly associated with business enterprises.
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