Question
Differentiate between ’management’ and ’administration’.
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Basis of difference
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Administration
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Management
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Meaning/type of work
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It is concerned with the formulation of plans, policies and objectives of an organisation.
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It is concerned with the implementation of these plans and policies.
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Nature of function Level of management
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It is a thinking (decision making) function.
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It is a doing function. It is more relevant at middle and lower levels.
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Usage
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Administration term is widely used in non business org. e.g. government department, public enterprises, military organisation, etc.
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This term is used mainly in business org. like general manager, sales manager, production manager, etc.
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Type of authority
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Administration has strategic authority to take strategic and policy decisions.
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Management has operational authority to execute administrative decisions.
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Decision-making
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It decides what is to be done and when is it to be done.
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It decides who should do it and how has to do it.
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Factors influencing decision-making
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Administrative decisions are influenced by economic environment, social environment, government policy, etc.
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Managerial decisions are influenced by organisational values, policies and beliefs of managers.
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Stage of performance
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Administration comes first as plans and policies are framed first.
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Management follows administration as execution of plans and policies comes later.
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Designation
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Directors, Chairman, CEO etc.
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GM, Sales Manager, Purchase Manager.
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