Management Notes

Reference Notes for Management

Difference Between Management and Administration – 8 Major Differences Explained | Principles of Management (POM)

Difference between Management and Administration

In an organization, management and administration play separate roles and functions, but are often used interchangeably. Although both are important for the success of an organization, understanding their differences is crucial. We will examine in greater detail the differences between management and administration, highlighting the roles, functions, and focus areas of each.

The difference between management and administration are as follows:

  1. Definition and Scope:

Management: Management is the process of planning, organizing, leading, and controlling resources in order to achieve organizational goals. Among other things, it entails decision-making, setting objectives, coordinating, and monitoring team efforts. It is the management’s responsibility to ensure that resources are efficiently utilized and plans and strategies are implemented effectively.

Administration: The administrative process involves designing and implementing policies, rules, and procedures to ensure that an organization operates efficiently. Administration focuses on the overall functioning and success of the organization and involves establishing organizational structure, formulating policies, creating coordination and control systems, and ensuring compliance with regulations.

  1. Focus and Orientation:

Management: It is the responsibility of management to translate the organization’s vision and strategy into actionable plans and tasks. Management focuses on execution and implementation.

The management group sets goals, allocates resources, and guides individuals and teams to accomplish those goals. In order to achieve the desired outcome, management is responsible for day-to-day operations, problem-solving, and decision-making.

Administration: Administrators set the direction, vision, and policies of an organization. They develop strategies, establish long-term goals, and guide managers in the implementation of those strategies.

Creating a favorable management environment, maintaining compliance with regulations and policies, and maintaining organizational stability and growth are the goals of the administration.

  1. Level of Decision-Making:

Management: The manager’s primary responsibility is to make operational and tactical decisions, including assigning tasks, supervising employees, and resolving issues on a daily basis. The objective of management decisions is to achieve short-term objectives, maximize efficiency, and resolve operational problems.

Administration: The administrative role involves formulating policies, setting long-term goals, and making decisions that shape the direction of the organization. Among the factors administrators consider are market trends, industry changes, and future challenges.

The administration decision process focuses on long-term planning, resource allocation, market positioning, and organizational development.

  1. Role in the Organizational Hierarchy:

Management: A manager is responsible for overseeing a specific department, team, or project within an organization. Management is positioned at various levels within an organization. In addition to coordinating and executing tasks, they manage people and ensure their respective areas are running efficiently.

Administration: Organizational administration is typically at the top of the organizational hierarchy. The administrator is responsible for setting strategic goals, formulating policies, and providing guidance to the management team.

They may hold positions such as CEOs, presidents, vice presidents, or board members. An administrator is focused on ensuring that the organization functions efficiently and successfully.

  1. Skills and Qualifications:

Management: An effective manager possesses a wide range of skills, including leadership, communication, decision-making, problem-solving, and interpersonal abilities.

A manager must possess in-depth knowledge of their specific functional areas, industry knowledge, and be able to work collaboratively with a team. A manager must be capable of managing people and conducting operational tasks.

Administration: The skills of an administrator include strategic planning, setting visions, developing policies, and analyzing and interpreting market trends and industry dynamics as well as many others. Leadership and communication skills are essential for guiding and influencing an organization’s direction.

Administrators are responsible for long-term planning, organizational design, and creating an environment conducive to effective management.

  1. Time Orientation:

Management: Managers are often responsible for ensuring daily operations run smoothly, meeting deadlines, and achieving immediate objectives. They are usually focused on the present and short-term goals. As part of the current operational cycle, they deal with operational tasks and focus on efficiency, productivity, and performance.

Administration: The administration department focuses on the organization’s long-term growth, competitive advantage, and sustainability in order to ensure its long-term success. Administrators plan for the future, anticipate industry changes, and adapt the organization to meet future challenges.

They engage in strategic planning, anticipate industry changes, and adapt the organization to future challenges. Administration emphasizes long-term success for the organization.

  1. Accountability:

Management: It is the manager’s responsibility to manage the team or department’s performance and results. In addition to achieving specific goals and targets, managers are responsible for managing resources efficiently and adhering to policies and procedures. They are held responsible for the operational aspects of their responsibilities.

Administration: An administrator is responsible for the organization’s overall success and performance. For an organization to achieve its objectives, they set policies, create a supportive infrastructure, and ensure resources are allocated efficiently.

A company administrator is responsible for its strategic direction and governance. It is accountable to its stakeholders, such as shareholders, board members, and regulatory bodies.

  1. Relationship with Employees:

Management: A manager’s relationship with employees in his or her department or team is direct. A manager’s role is to motivate and develop team members to achieve individual and team goals by providing guidance, support, and feedback, managing their performance, and ensuring their well-being on a day-to-day basis.

Administration: Administrators typically interact with managers rather than individual employees, so they have an indirect relationship with them. Policy, systems, and frameworks are the tools administrators use to guide the organization’s operations.

Providing the structure and environment necessary for managers to lead and manage their teams effectively, administrators ensure that management practices are aligned with the overall strategic vision and goals of the organization.

An organization’s management and administration have distinct roles and functions, despite being interrelated. In management, plans are executed, short-term goals are achieved, and daily operations are carried out, whereas administration develops policies, formulates long-term goals, and provides guidance to management.

It is essential for an organization to have both functions so that it can operate efficiently and succeed, and they complement one another in order to achieve its goals.

Bijisha Prasain

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