Management and Administration - Comparison, Difference, Distinguish

Comparing Management and Administration: Functions and Application

Theo Haimann defines administration as the overarching determination of policies, establishment of major objectives, identification of general purposes, and the outlining of broad programs and projects. It pertains to higher-level activities and establishes fundamental principles for an enterprise. According to Newman, administration involves providing guidance, leadership, and control to guide group efforts towards common goals.

On the other hand, management encompasses the conception, initiation, and integration of various elements within an organization. It entails coordinating, activating, and harmonizing diverse organizational components while ensuring the organization's sustainability towards predetermined objectives. In essence, management is the skill of achieving tasks through organized groups of people.

Distinguishing between management and administration can be categorized into two areas:

1. Functions:

   Management:

   • Definition: Management is the skill of accomplishing tasks through others by directing their efforts towards achieving predetermined goals.

   • Nature: Management is an operational function focused on execution.

   • Process: Management determines who should perform a task and how it should be done.

   • Function: It's a practical function as managers oversee work execution.

   • Skills: Technical and human skills.

   • Level: Primarily middle and lower-level function.

   Administration:

   • Definition: Administration is concerned with formulating broad objectives, plans, and policies.

   • Nature: Administration is a decision-making function.

   • Process: Administration decides what needs to be done and when.

   • Function: It's a conceptual function as it involves planning and policy formulation.

   • Skills: Conceptual and human skills.

   • Level: Predominantly a top-level function.

2. Usage/Applicability:

   Management:

   • Applicability: Applicable to profit-making organizations, such as businesses.

   • Influence: Management decisions are shaped by managers' values, opinions, beliefs, and decisions.

   • Status: Management comprises employees who receive salaries and wages.

   Administration:

   • Applicability: Applicable to non-business concerns, like schools, clubs, hospitals, etc.

   • Influence: Administration is influenced by public opinion, government policies, customs, and religious organizations.

   • Status: Administration represents the owners of the enterprise who earn returns on their invested capital and dividends.

In practice, the distinction between management and administration blurs. Managers are involved in both administrative and operative management functions. Higher-level managers allocate more time to administrative functions, while lower-level managers focus more on directing and controlling worker performance, which falls under management functions.

Management and administration are closely intertwined yet distinct concepts within an organization, each serving essential roles and functions.

Management is a comprehensive process encompassing strategic planning, resource organization, coordination, activity direction, and control within an organization. Its purpose is to achieve the organization's intended objectives. Managers are responsible for making informed decisions, optimizing resource allocation, fostering team collaboration, providing leadership, and monitoring progress to ensure alignment with established goals. Management practices draw from various theories and models, adapting approaches to factors like organizational culture, industry dynamics, and leadership preferences.

Administration, on the other hand, focuses on overseeing an organization's day-to-day operations to ensure they function smoothly. Administrators implement policies and decisions set by management, managing schedules, facilitating communication, optimizing resource distribution, and resolving operational issues. They play a crucial role in policy implementation, ensuring adherence to guidelines and pursuing organizational goals. Administrators coordinate teams and individuals, demonstrating adaptability in response to changing circumstances. While management provides strategic direction, administration handles practical and operational aspects, both contributing to the organization's overall functionality and success.

Difference between Management and Administration:

Focus:

• Management: Primarily concerned with planning, organizing, directing, and controlling resources to achieve organizational goals.

• Administration: Focuses on establishing policies, guidelines, and procedures for smooth organizational operation.

Scope:

• Management: Broader term covering functions like planning, organizing, staffing, leading, and controlling.

• Administration: Narrower term related to implementing policies, rules, and regulations set by management.

Decision-Making:

• Management: Makes strategic decisions on goal-setting, planning, and resource allocation.

• Administration: Makes decisions about policy, procedure, and guideline implementation.

Nature:

• Management: Dynamic, action-oriented, aiming for objectives through efficient resource use.

• Administration: Concerned with stability, rule adherence, and maintaining organizational order.

Time Horizon:

• Management: Focuses on short and long-term goals, adapting to changing circumstances.

• Administration: Has a longer-term perspective, establishing enduring structures and processes.

Function:

• Management: Involves guiding, directing, and leading employees toward organizational goals.

• Administration: Involves creating policies, rules, and regulations to guide employee actions and ensure efficiency.

Role:

• Management: Executive role, involving strategic decision-making.

• Administration: Decisive role, ensuring policy implementation.

In smaller settings, these roles may overlap, while larger organizations might distinguish separate departments or individuals for each function. Ultimately, the synergy between management and administration facilitates an organization's success by harmonizing strategic vision with practical implementation.

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