What is the Difference Between Management and Administration?

Management is the implementation of policies that are created through effective administration. To ensure proper administration, each process must be managed at each level.

Management and administration are two terms that are often used interchangeably. To understand the difference between administration and management, you must know that these two are not synonyms. The two terms are different in terms of functions, but these two have the same objective. Through this article, we will explain these terms individually and what is the difference between management and administration. 

Management refers to a broader terminology that indicates several functions. These including planning, staffing, organizing, monitoring, supervising and leading. On the other hand, administration is an action which involves the implementation of rules, regulations and policies set by the management.

These terms are closely related but represent different responsibilities. Management is linked with higher-level positions in comparison with administration. In management, strategic-thinking, decision making and leadership are must-have skills. For administration, one must have skills such as organization, communication and attention to details.

Table of Contents

• Administration vs Management
• What is management?
• Need for management
• What is administration?
• Need for administration
• Difference Between Management and Administration As Roles in Companies
• What is the Difference Between Management and Administration: Category-Based

Management vs Administration: What is the Differences Between Management and Administration?

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Detailed Difference Between Administration and Management

Following are the differences between administration and management.

1. Management is the process of managing people at every level. From an individual to a team, it is done at micro and macro level. Within each level of the hierarchy, there are managers working to ensure a smooth workflow. On the other hand, the administration is at an upper level where high-level authorities are involved. This is done on a macro level.
2. Administration represents creating plans and actions to achieve the objectives of the company. Management is the process of implementing these plans to achieve the final goal.
3. Administrative functions are legislative in nature, whereas managerial functions are executive in nature. 
4. In administration, decisions related to the people involved in accomplishing a set of task are taken. This means that administrators decide which professionals are appropriate for a particular objective. On the other hand, management involves making decisions on actionable items that will help in achieving that goal.  

Let us take a look at the summary to understand differences between administration and management:

What is management?

Management deals with managing people and their work to achieve a common goal. It is a process that is required at every level of the organization. The aim is to streamline processes, workflow, goals, and objectives. It also helps in achieving the maximum result. 

Professionals called managers are involved in management to supervise the entire process. Managers perform duties to manage processes properly. This ensures that every process, team, and workflow syncs with changing economic, technological, and socio-political changes. 

Management takes place in four phases. First, the manager plans out strategies to achieve the objectives set by the management. Once the planning is complete, the manager organizes a team who have the skill set to achieve these objectives. The manager also establishes internal processes and structures to successfully implement the plan and get the results. To ensure that the selected team performs well, the manager should have leadership skills. For successful implementation, the entire process must be monitored as well.

Need for Management

For any organization, management is essential for the following reasons:

1. Timely delivery: For timely delivery, it is essential that processes, production, and output are on time. For this, proper supervision is important since it can help prevent lags and unwanted disruptions. Once things are properly managed, delivery of services and products is always on or before time.
2. Less wastage: With a better-managed system, there is an exact idea about the requirement and how you can efficiently accomplish tasks. This prevents the use of any extra raw materials, resources or funds. 
3. Decision-Making: Through proper management, better business decisions are made. Since everything is aligned, you have clarity about making choices that benefit the business.
4. Achieving goals: If things are well managed at a functional level, the probability of success is higher. This allows you to achieve goals within time and budget.
5. Profits: If a business organization operates in a managed way, it can produce quality products and services within budget and time. This helps the company earn more profits.  

What is Administration?

The administration is a subset of management which is a systematic process of administrating management. It involves building plans, procedures, and policies and enforcing rules to achieve goals. Administration sets up a framework for organizations on a fundamental level. More precisely, it involves authorities like bureaucrats. The administration process involves the top-level management. Administrators deal with the processes to ensure proper administration. 

Need for Administration

Whether it is a profit-making organization or an NGO, proper administration is required to achieve the objectives of the organization. 

1. Improves efficiency: Proper administration ensures that resources are being utilized in an optimum manner. Less time is consumed to perform tasks. This increases efficiency and optimization within the workflow. 
2. Increases Productivity: As soon as the system becomes more efficient, the team can generate more than before when efficiency was less. This makes the team more productive and improves operations.
3. Fewer errors: If the administration is appropriately done, it ensures proper supervision, due to which the team makes fewer mistakes. This makes the system less prone to errors.

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Difference Between Administration and Management As Roles in Companies

One of the crucial differences between management and administration lies in their significance within the company. Let us understand this in detail:

Management: Macroscopic Approach

Those who are responsible for the management of company operations do the following:

• Management professionals are involved in planning the vision and long-term goals of the company. During the planning process, budgeting for projects or hiring employees is also done. The objective is to achieve the long-term goal of the company.  
• Those who manage processes and operations within the company, also work at organizing, optimizing and allocating the resources of company. 
• Management also involves effectively leading employees. Through strong management, a company together with its employees can progress faster to achieve its long-term goal.

Administration: Microscopic Approach

Within a company, administration involves the following tasks:

• Administration includes supervision of daily operations to ensure that the company functions smoothly. 
• Day-to-day requirements within a business are administered to ensure that processes are not hindered.

• Administration is responsible for enforcing company policies and rules as well as procedures are followed.

What is the difference Between Management and Administration: Category-Based

The difference between management and administration can be further explained within the following two categories: 

1. Functions of management and administration
2. Usage of administration and management 

1. What is the Difference Between Management and Administration Based on Functions?

On the basis of functions, the difference between management and administration is as follows:

Management

1. Management focuses on setting up long-term organisational goals while developing strategies for achieving these goals and creating approaches to tackle business challenges. Management is responsible for deciding in what direction will the business move ahead and accordingly building strategies to make a profit.
2. Managers have to make business-relevant decisions related to organizational performance, resource allocation and human resource utilization. 
3. Management has to guide team members, build a positive work environment and motivate employees to accomplish tasks.
4. Another responsibility of the management is to monitor the team's performance both overall and individually. The management needs to set performance metrics, provide feedback and implement performance strategies. They have to ensure that organizational goals are accomplished.

Administration

1. The focus of the administration is on maintaining the day-to-day operations of an organization. Administrative professionals ensure that organizational processes are running smoothly. These professionals have to coordinate with different departments and ensure that workflow systems are being efficiently maintained.
2. Administrators develop, implement and enforce organizational policies as well as procedures. The aim is to ensure that the organization is operating within the established guidelines, regulatory requirements and internal standards.
3. The administration manages organizational resources such as financial and human resources as well as physical assets. The administration department handles tasks such as resource allocation, budgeting and maintaining organizational infrastructure.
4. Administration manages different communication channels, maintains official records, handles correspondence and ensures that organizational activities are properly documented. 

2. What is the Difference Between Administration and Management Based on Usage?

Management:

• Management is conducted within the higher-level organizational system for the decision-making process. It is more commonly prevalent in corporate and private work cultures. The emphasis is on strategic planning and organizational growth as well as creating and implementing better strategies.
• Managers require skills related to strategy and leadership, financial analysis, problem-solving, and negotiation.

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Administration:

• Administration is conducted in low to middle-level organizational structures. It is more prevalent in government, educational and public sector institutions. The aim is to maintain established systems and processes while following existing protocols.
• Those who are involved in administration require strong organizational, business communication, process management and documentation skills. 

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Conclusion

Both management and administration are crucial for achieving the final goal. These two go hand in hand since administration and management are incomplete without the other. If the system has poor administration, weak policies and procedures will be created. This will lead to poor decisions that will adversely impact everyone from higher level to lower level. In the end, managers will have no clue of what path to take to achieve the end goal.

On the other hand, if the administration is strong but management is weak, it will also cripple the system. Even if the policies are effective, due to weak management, their implementation will be poor. This will hamper the workflow, efficiency, and productivity of a group of people in the company. Hope that this article has helped in understanding the difference between management and administration in detail.

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