In business studies and organizational theory, the terms 'Management' and 'Administration' are often used interchangeably, but they represent two distinct functions, especially in large organizations.
Administration: Decides 'What' is to be done and 'When'.
Management: Decides 'Who' will do it and 'How'.
Hierarchy: Administration sits above Management.
Nature: Administration is deterministic; Management is executive.
Administration is the top-level function of an organization. It is responsible for determining the main objectives, policies, and goals of the enterprise.
Management is a middle and lower-level function. It involves the actual execution and implementation of the policies set by the administration. It focuses on directing people and getting work done to achieve the set goals.
| Feature | Administration | Management |
|---|---|---|
| Role | Decision-making function (Thinking). | Executive function (Doing). |
| Level | Top-level authority. | Middle and lower-level authority. |
| Focus | Formulating policies and setting objectives. | Implementing policies and achieving goals. |
| Applicability | Mostly in Govt, military, educational, and religious organizations. | Mostly in business and profit-making enterprises. |
| Skill Required | Conceptual and human skills. | Technical and human skills. |
Administration determines the policies and objectives of an organization (the 'what' and 'why'), while management implements those policies to get the work done (the 'how').
Administrative functions are usually performed by top-level authorities like the Board of Directors, owners, or government officials.
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