Difference Between Management and Administration

Edited by Diffzy | Updated on: April 07, 2022

       

Difference Between Management and Administration Difference Between Management and Administration

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Introduction

The word administer is derived from the Latin word administrative which in literal terms means to look after the affairs of people OR to care for people. In simple terms, Administration is the process of running the organization.

The systematic process of organizing and synchronizing people according to the needs of a company is called management while Administration is the application of principles of management. The administration is an output-oriented activity in which the management is focused on getting desired level results with the help of resources.

In management the key functions are Planning, Organizing, leading, controlling, coordination, and decision making. It is the process in which we achieve uniform functions in our overall employees for example enforcing functions of discipline, time management, pay scale, and dress code to name a few. For any organization to be successful both the main aspects i.e administration and management should be implemented.

As well quoted by Lee Jaocca "Management is nothing but the act of motivating people “. The word administer is derived from the Latin word administaraire which in literal terms means to look after the affairs of people OR to care for people. In simple terms, the Administration is the process of running the organization. Astronomically speaking, the operation takes into account the commanding and controlling functions of the association, whereas administration is related to the planning and organizing function.

Over time, the difference between these two terms is getting vague, as operation includes planning, policy expression, and perpetration as well, therefore covering the functions of administration. In this composition, you'll find all the substantial differences between operation and administration.

Management vs. Administration

The major difference between management and Administration is that the former is concerned with Widely up to the formulation of policies and also implements the policies in the organization by identifying the people who will carry out the definitive roles and responsibilities. While Administration has much wide role in the total development of the business organization It is the policy framer of the organization which decides "What is to be done "and How it is to do? Pffiner and Presthus have quoted that Administration is the organization and direction of human and material resources to achieve desired goals. 

Table: Management vs. Administration
Parameters of Comparison
Management
Administration
Definition
Management is defined as “an organized way of managing people and things of a business organization.
The administration is a part of management in which we apply its principles of it in the framing of objectives, policies, and plans of the organization
Level of Job
May be middle level
Top- level
Nature of Function
Executive
Determinative
Scope of function
Operational and Narrow function
Conceptual and Broad
Designation in organizations
Plant head, General Manager, Managing director, Branch Manager, Controller
Ministry, Secretary, Director, Vice-chancellor, Registrar, etc.
Major Function
Policy framing for achieving the objective.
Execution of the policy framed by Management for achieving the objectives
Usage
Used All over the business organization
 The term Administration is concerned with non-business organizations for example public enterprises, government organizations, and Socio-cultural organizations administration.
Decision making
They help in identifying people who will implement the principles of Administration.
It is the main decisive power in the organization.it Decides what is to be done and How it is to be done.
Employer-employee relations
Employee
Entrepreneurs and Owners
Role
Known as the Soul of the organization
Known as the Brain of the organization
Affected by whom
Management is affected by the human force
The administration is affected by external factors.
Capacity
Ruling
Determinative
Zone of operation
Works under the framework of administration.
Fully control over the organization.
Enacts
The main goal of employees is payment
The administrator's goal is to increase the profit by increasing the investment.
           
Thought of action
Engaging people in work
Maximum utilization of resources
           
Consistency
Making actions and plans
Making objectives and principles.
Personality
Manager
Administrator

What is Management?

Management is defined as an act of managing people and their work, for achieving a standard 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 objectives. it's a gaggle of people who use their skills and talent in running the entire system of the organization. it's an activity, a function, a process, a discipline, and much more. The main activities performed by the management are Planning, organizing, leading, motivating, controlling, coordinating, and decision making (identified by Henri Foyal ). Management is concerned with motivating the people towards a common objective so that the goals and policies framed by the administration are achieved. Management brings together the 5M’s of the organization, i.e. Men, Material, Machines, Methods, and Money. it's a result-oriented activity, which focuses on achieving the specified output. In the development of the organization, the key element is the behavior between the manager and Staff.

Definition of Good Manager

What makes you a good manager because it is he manages the people and hence decides the performance of employees from being normal to exceptional. The relationship between Manager and the staff should be good and it can only be built on trust, commitment, and engagement. For the entire benefit of the organization, A good manager works hard and tries to build these relationships so that all the tasks assigned by him to staff are achieved with full zeal, potential, and enthusiasm.

Key Attributes of a Good Manager

A good manager has the following qualities -

1. Focus on customers and clients and help in improving the business by increasing the profits and reducing the expenses and surplus 

2. Conducts timely and effective meetings 

3. Works for continuous improvement 

4. Manages the staff effectively 

5. They are good at planning and organizing themselves 

6. Are adaptable to changes and accept them

7. Works hard for boosting the morale of employees well being of staff

8. Provide necessary training to employees and help in their overall development 

9. Provide creative feedback to the staff 

10. Value the contribution of everyone in the organization.

Management Styles

Definition:

Management style is the way a particular manager follows for accomplishing their objectives. Successful manager changes their management styles to suit different situations and environments/challenges faced in the organization.

Management styles vary from person to person and company and even the level at which it is applied. Lots of internal and external factors help in shaping the individual management style

Autocratic management styles:

It follows a top-down approach in which the flow of communication is from boss to employees. This leadership style is controlling in nature in which management takes all the decisions and holds all the power. All over the business world, this leadership style is criticized because employees are treated like drones in this moreover the atmosphere between employees and boss is not positive employees are not allowed to ask questions, submit ideas, or share their thoughts. Employees are very closely monitored.

Democratic Management styles: This is an encouraging type of leadership style in which the employees are free to give ideas and opinions in the decision-making process of the organization.

The approach is both TOP-DOWN AND BOTTOM-UP. This style allows for innovation and leads to a greater problem-solving approach.

Laiseez Faire Management styles: In this system innovation and creativity are encouraged in the system, and this is especially followed by highly skilled workers.

What is Administration?

It is the act and process of controlling something, an organization, or a business. This process is systematic and it lays down the structural framework of the organization within which the management functions. The nature of the administration is bureaucratic. In administration, we talk about broader terms in which forecasting, planning, organizing, and decision-making are involved.

Main functions of administration

The basic functions of administration are planning, managing, organizing, directing, and controlling. There are several hierarchical positions in the administration such as entry-level, top-level, and mid-level. Within the operation of the association functions, the administration lays down the abecedarian frame of an association. Regulatory is executive. We can explain it another way. Similar to the administration is a top- position authorized. It may be a proprietor, mate, and commodity differently. Still, they want to return their investment through gains. Operation is important for every company and association as each department has to be managed else. There are three significant kinds of operation styles, i.e., autocratic operation style, popular operation style, and laissez-faire operation style. One of the important exemplifications of operation is how a CEO of the company manages all the departments else.

1. Planning: Planning is deciding in advance what to do and how to execute the task. In planning the job of a good administrator is to find out the best sources from all possible options and alternatives.

2. Organization: It is the second step after planning in which the administrator prepares the ground zero report and prepares the staff and employees for the execution of the plan.

3. Staffing: It is the filling of staff positions whenever the need arises. Staffing involves placing recruitment ads, conducting interviews, screening candidates, and joining them.

4. Directing: This is the primary function of administration which involve leading the people for achieving the goals of the organization. Direction involves proper utilization of resources and also providing effective support to the staff.

5. Controlling: It is that function of administration in which they keep a "quality check " on all the to find out the difference between the actual plan they have executed and deviation from the plan. It is mandatory for achieving high-quality performance.

Functions of administration management 

1. Policy framing 

2. Planning of business activities 

3. Creating a budget 

4. Reducing the surplus costs 

5. Hiring and Training of employees.

6. Monitoring the performance of employees 

7. Providing resources for employees and staff so that they can work efficiently.

8. Handling visitors and account payables.

Types of Administration

Authoritative administration: It is the same as dictatorship in which the administrator forces his opinions and views on the employees due to which his subordinates are always frightened and feel demotivated. The main focus of this administration is on developing discipline and control over employees and there is no sympathy and relation for employees.

Democratic administration: The administrator who follows this style has the following attributes in their working -

Positive sides: They take group decisions 

All the team members work together. Since there is teamwork so the whole team is responsible for the goal achievement.

Negative sides: Some inefficiency may be there and there may be a compromise to be made for the profit of the company.

The Main Differences Between Management and Administration in Points

1. Administration is the act of administering the whole organization by a group of people. Management is the systematic way in which a manager manages the people and things within the organization

2. Administration is the top-level management and Management is the middle-level management

3. Administration is the "policy framer "while management is the "policy implementor "

4. Management takes all the decisions within the perimeters set by the administration while administration takes all the important decision-makers of the organization

5. The usage of administration is in government organizations. Management is implemented in the profit-making organization.

6. The owners of the organization i.e the managing director, vice-chancellors, and registrars are part of the administration. Management comprises all the employees of the organization.

7. Management's main goal is to focus on managing people and their work. The administration is concerned with making the best possible use of the resources of the organization

8. Administration role is executive in nature. Management's role is decisive in nature.

9. In management, the manager is responsible for managing the people but in administration, the administrator's job is to look after the whole organization.

10. Management is concerned with the execution of plans and strategies. The administration is related to the framing of policies.

11. The function of management is execution and governing. The administration function is legislation and determination.

12. Management is involved with the activities at the business level. The administration is related to the high-level activity.

Conclusion

By the aspects of theory we have seen several differences between management and administration but when applied practically both the terms appear to be the same. We have seen that in a business organization a manager performs both the functions for achieving the goals of the company. Middle-level managers are part of management and top-level managers are part of the administration. Planning is the first and foremost thing to be done in an administration. To conclude we can quote that administration is above management as they are policy framers and management are the policy implementors.

References

  • https://higherstudy.org/difference-between-management-and-administration/

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"Difference Between Management and Administration." Diffzy.com, 2022. Sun. 02 Oct. 2022. <https://www.diffzy.com/article/difference-between-management-and-administration-67>.



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