Difference between Management and Administration

Feb 13, 2012 by

Difference between Management and Administration

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  1. daniel

    Administration and management may appear similar as they imply the overall maintenance of a company. However, there are a few differences between these words. Administration involves setting up the important policies and goals of a company. In contrast, management is essentially the act of acting on the plans and policies chosen by the administrators.

    1. Nature

    Management is considered to be executive in nature, whilst administration is regarded as determinative. Moreover, management is responsible for making the key decisions in the framework of the organization that are setup by administrators. In contrast, administration is accountable for making the crucial decisions of a whole company.

    2. Status

    While administration is top level activity, management is an important middle level function. If you consider the position or status of the administration, you would discover that it normally comprises of the owners who receive profits and invest capital into the organization. However, management comprises of several managerial individuals who use their professional skills to meet the goals of a company.

    3. Responsibilities

    In administration, organization and planning of work functions are some of the main responsibilities. However, management is normally concerned with controlling functions and motivating the workers. As such, when talking about the about the kind of abilities that administrators require, they need administrative skills, instead of technical skills. In management, human relations management skills and technical skills are important.

    4. Decision making

    Administrators are normally found in military, educational, government and religious organizations. The decisions made by any administration are based on government policies, public opinion and religious and social factors. In contrast, management is mostly used by enterprises. Additionally, managerial decisions are based on the opinions, beliefs and values of managers.

    In essence, management is part of administration that deals with mundane and technical parts of the organization’s operations. Administration controls the licensing and finance of the organization and is basically above management.

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