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Management and Administration 99

Administration is a higher-level function focused on corporate policy and strategic decision-making, while management operates at middle and lower levels, executing policies and achieving specific objectives. Key differences include the nature of work, decision-making influences, and the skills required for each function. Ultimately, administration sets the direction for the organization, whereas management implements these decisions in daily operations.

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hamzhmom1998
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33 views2 pages

Management and Administration 99

Administration is a higher-level function focused on corporate policy and strategic decision-making, while management operates at middle and lower levels, executing policies and achieving specific objectives. Key differences include the nature of work, decision-making influences, and the skills required for each function. Ultimately, administration sets the direction for the organization, whereas management implements these decisions in daily operations.

Uploaded by

hamzhmom1998
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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management is more of a middle-level or lower-level

function, whereas administration is a higher-level function. For example, strategic

decisions such as mergers are taken by the top management of the organization,

which otherwise signifies administration, and to create a road map for the acqui-

sition, plans are formulated and executed by the lower and middle management,

which is management in general.

The differences between administration and management are shown in the table.

1. Definition

Administration: Concerned with determination of corporate policy, coordination of finance, production, and
distribution, and organizational structure under executive control. (Oliver Sheldon)

Management: Concerned with execution of policy within limits set by administration and achieving specific
objectives. (Oliver Sheldon)

2. Nature

Administration: Determinative or thinking function

Management: Executive function

3. Type of Work

Administration: Determination of policies and procedures

Management: Implementation of policies

4. Level

Administration: Top-level function

Management: Mostly middle- and lower-level function

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5. Decision-Making

Administration: Influenced by external forces (e.g., public opinion, government)

Management: Influenced by organizational policies and procedures

6. Functions

Administration: Planning and controlling

Management: Directing and controlling

7. Skills

Administration: Human and conceptual skills

Management: Human and technical skills

8. Process

Administration: Decides what and when to do

Management: Decides who and how to do

9. Applicability

Administration: Government and public sector

Management: Business firms

10. Direction of Human Efforts

Administration: Not directly concerned

Management: Directly involved in directing efforts

Final Difference: Management is considered a middle- or lower-level function, whereas administration is a


higher-level function. Administration focuses on making critical and strategic decisions, such as mergers,
which reflect the overall direction and major policies of the organization. On the other hand, middle- and
lower-level management is responsible for implementing these decisions through detailed planning and daily
operations, thereby representing management in its executive and practical sense.

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