Management: The act of managing people and their work toward a common objective while utilizing the resources of the business is referred to as management. It establishes a setting in which the management and subordinates can cooperate to achieve the shared goal. It is a group of individuals who use their abilities and talents to manage the organization’s entire system. It is much more than just an action; it serves several purposes and is a process.
The management’s primary tasks include organizing, planning, motivating, controlling, coordinating, and making decisions. The 5Ms of the organization—Men, Materials, Machines, Methods, and Money—are brought together by management. It is a goal-oriented activity that concentrates on producing the desired results.
Administration: The management of a corporate organization, educational institution like a school or college, government office, or other nonprofit organization is administered in a methodical manner through the administration process. The creation of plans, policies, and processes, the establishment of goals and objectives, the application of rules and regulations, etc. are the main duties of administration.
An organization’s management operates under the fundamental framework that is established by administration.
The bureaucratic nature of administration. As it includes forecasting, planning, organizing, and decision-making activities at the highest level of the enterprise, it is a broader term. The organizational management hierarchy’s top level is represented by administration. These top-level decision-makers are either the firm owners or partners who invested funds to launch the company. They receive their payments as dividends or in the form of profits.
The differences between management and administration are given below:
- Management is a methodical approach to controlling individuals and resources within an organization. The act of running the entire organization by a group of people is referred to as the administration.
- Administration is a high-level activity, whereas management is a corporate and functional level activity.
- Administration is responsible for policy formation, whereas management concentrates on policy implementation.
- Legislation and decision-making are examples of administrative functions. On the other hand, management has executive and governing responsibilities.
- All of the organization’s major decisions are made by the administration, while management operates within the restrictions imposed by the administration.
- Management refers to a group of people who work for the company as employees. Administration, on the other hand, speaks for the company’s founders.
- Management is seen in organizations like businesses that are profitable. On the other hand, the Administration is present in all non-profit organizations, clubs, hospitals, government and military offices, and non-profit organizations generally.
- Administration is focused with formulating policies and establishing objectives, whereas management is all about plans and activities.
- Management has an executive function within the company. Unlike administration, whose function is mostly directive.
- The administrator is in charge of the organization’s administration, whereas the manager is in charge of the management of the organization.
- Managing people and their work is the main goal of management. The administration, on the other hand, is concerned with optimizing the use of the company’s resources.
