Administration is a process of administering the management of a business organization, government office or any Profit or nonprofit organization. The main function of administration is the formation of plans, policies, and procedures, setting up of goals and objectives, enforcing rules and regulations for low level management.
Management is an act of managing people and their work, for achieving a common goal by using the organization’s resources. It creates an environment under which the manager and his subordinates can work together for the attainment of group objective. It is a group of people who use their skills and talent in running the complete system of the organization.
Thus, Management is able to manage these all functions Planning, organizing, leading, motivating, controlling, coordination and decision making are the major activities performed by the management.
Difference Between Management and Administration
|Meaning||It is the process of managing of low level workers, labour to accomplishing the organization goals and profitability||Process of administering an organization by a group of people is known as the Administration.|
|Managing||Middle and Lower Level employees||Top level management|
|Concerned with||Policy Implementation||Policy Formulation|
|Area of operation||It works under administration.||It has full control over the activities of the organization.|
|Applicable to||Profit making organizations, i.e. business organizations.||Government offices, military, clubs, business enterprises, hospitals, religious and educational organizations.|
|Decisions||Who will do the work? And How will it be done?||What should be done? And When is should be done?|
|Work||Putting plans and policies into actions.||Formulation of plans, framing policies and setting objectives|
|Focus on||Managing work||Making best possible allocation of limited resources.|
|Represents||Employees, who work for remuneration||Owners, who get a return on the capital invested by them.|
|Function||Executive and Governing||Legislative and Determinative|