Management and Administration

Management- Management deals with the course of operations, control and action. The word “management” comes from the word “manes” which means “to control by hand”. It is a medium level activity.

Administration- Administration is concerned with managing different things. The word “administration” means “minor” and “minister” to mean “to serve” and “to govern accordingly”. This is a top level activity on management. It deals with executive and strategic functions. Thus, it should include both leadership and vision.

‘Broadly, management takes into account the directing and controlling functions of the organization, while administration is concerned with the function and planning.’

Basis of Comparison	Management	Administration
Meaning	An organized way of managing the people and things of a business organization is called management.	The process of administering an organization by a group of people is known as administration.
Authority	Middle and Lower level	Top level
Area of operation	It works under administration.	It has full control over the activities of the organization.
Role	Executive	Decisive
Key Person	Manager	Administrator
Represents	Employees who work for salary.	Owners, who receive a return on the capital invested by them.
Function	Executive and Governing	Legislative and Determinative
Focus On	Managing work	Making best possible allocation of limited resources.
Decides	Who will do the work? And How will it be done?	Who will do the work? And How will it be done?
Work	Putting plans and policies into action.	Formulation of plans, framing policies and setting of objectives
Applicable to	Profit making organizations, i.e., business organizations.	Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations.

Difference between Management and Administration

S.No.	Management	Administration
1.	Management is a systematic way of managing people and things within an organization.	Administration is defined as an act of administering an entire organization by a group of people.
2.	Management is an activity at the business and functional level.	Administration is a high-level activity.
3.	It focuses on policy implementation.	It focuses on policies formation.
4.	Management makes decisions under the limits set by the administration.	Administration takes all important decisions of the organization.
5.	A group of individuals, who are employees of the organization, are collectively known as management.	The administration represents the owners of the organization.
6.	Management focuses on managing people and their work.	Administration focuses on making the best possible use of the organization’s resources.