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Difference between

Administration & Management


 In 1923, Oliver Sheldon first raised the terminological
conflict – emphasizing administration as decision making
function and management as execution function.
 Mcfarmand states them to be synonymous. Although he

gave a minute difference – govt. agencies prefer adm over


mgt.
 Another way of differentiating the terms is through the

levels of organisation – adm refers to the activities of the


higher level in managerial ranks.
 Yet another way of distinction is again related to the levels

of organisation. It is based on the functions performed by the


respective level.
Difference between
Administration & Management
 Administration refers to the determination of major aims and
policies, while management to the carrying out of the operations
designed to accomplish the aims and make the policies.
 Administration is a wider term encompassing activities like
spelling out of policies and objectives, establishment of suitable
organisational structure, integrating human efforts, making
provisions for the realisation of necessary and required resources
for the accomplishment of the desired objectives, etc. On the
other hand, management is primarily concerned with those
operations leading the enterprise towards success within the
broader framework set by administration.
Difference between
Administration & Management

Top

Administration
(policy formation)

Orgnl level
Management
(policy execution)

Lower
Difference between
Administration & Management
Various views regarding this terminology
conflict, have led to the emergence of three
approaches:
 Management and Administration are same
 Management is above Administration
 Administration is above Management
Difference between
Administration & Management
Management and Administration are same:
Authors like Henry Fayol, Koontz and
O’donnell, Allen, Strong, Terry, Newman, etc., recognise
that management and administration are same. Both
involve the same functions, principles and objectives. It
goes this way- In order to function efficiently, all
undertakings require planning, organision, direction, co-
ordination and control. For timely achievement of
targeted goals, all must observe same and general
principles.
Difference between
Administration & Management
Management is above Administration:
According to this view, Administration is considered as a subordinate
function to overall management functions. According to Brech, the term
menegemnt has the responsibility of planning and integration of orgnl
functions in the most effective way. These involves-
 Making appropriate programmes and procedures according to the plans,
and
 Organising, directing and supervising the individuals in the organision.
Accordingly, management can be divided into three parts –
(i) top mgt: responsible for policy making
(ii) departmental or functional mgt: responsible for planning,
organising, directing and controlling
(iii) lower mgt: responsible for supervision
thus, administration is considered as a daily and routine function and
is part of management.
Difference between
Administration & Management
Administration is above Management:

According to this approach administration determines the


basic framework of the organisation within which managerial
functions are undertaken. Administration is related with
policy formulation and decision while management looks
after the execution of these policies and decisions.
Management is the process and agency through which
execution of policy is planned and supervised.

This approach states- `management is the executive


function that concerns itself with the carrying out of the
administrative policies laid down by administration.’
Difference between
Administration & Management
Sr. BASIS OF ADMINISTRATION MANAGEMENT
No. DIFFERENCE
1. Level in orgn. Top level Middle and lower level

2. Major focus Policy formulation & obj. Policy execution for onj.
determination Achievement
3. Nature of functions Determinative Executive

4. Scope of functions Broad and conceptual Narrow and operational

5. Factors affecting Mostly external Mostly internal


decision
6. Employer-employee Entrepreneurs & owners Employees
relation
7. Qualities required Administrative Technical