Difference between Administration and Management

Difference between Administration and Management

The terms administration and management are used synonymously. Some writers argue that both these terms have same meanings and there is no difference between these two terms.
1. Running of a business requires skill which is called management.
2. Functioning of government departments and non-profit institutions requiring skill is called administration.

Some writers argue that executive functions of a business unit are referred as management and executive functions of other institutions are referred as administration. In this way, administration is distinguished as a top level function while management as a lower level function. Policy and objectives of a business are determined by the top level executives (administration). At the same time, the lower level people (management) work to attain the objectives of the business unit and follow the policy framed by the administrators. This can be shown in the figure below :

Distinction between administration and management

Basis of Distinction

Policy and objectives 

Administration determines policy to be followed and decide the objectives to be achieved. Management implements the policy and achieve the objectives.

Directing of human efforts

Administration doesn't involves directly in the execution of plan and achievement of objectives. Management directly involves in the execution of
plan and achieving objectives.

Main functions

Administration include Planning, organising and staffing. Management include direction, motivation and control.

Levels of executive

Administration include top level executives (Owners or Board of Directors). Management include Lower level executives (Manager, supervisor and workers.)

5. Position

Administration acts as a principal. Management acts as an agency.

Knowledge