Difference adm & mgt

8/7/2019 Difference adm & mgt

1/8

Difference betweenAdministration & ManagementIn 1923, Oliver Sheldon first raised the terminological

conflict emphasizing administration as decision makingfunction and management as execution function.Mcfarmand states them to be synonymous. Although he

gave a minute difference govt. agencies prefer adm overmgt.

Another way of differentiating the terms is through thelevels of organisation adm refers to the activities of thehigher level in managerial ranks.

Yet another way of distinction is again related to the levelsof organisation. It is based on the functions performed by the

respective level.


2/8

Difference betweenAdministration & Management

Administration refers to the determination of major aims andpolicies, while management to the carrying out of the operationsdesigned to accomplish the aims and make the policies.Administration is a wider term encompassing activities likespelling out of policies and objectives, establishment of suitableorganisational structure, integrating human efforts, makingprovisions for the realisation of necessary and required resourcesfor the accomplishment of the desired objectives, etc. On theother hand, management is primarily concerned with thoseoperations leading the enterprise towards success within thebroader framework set by administration.


3/8


Administration

(policy formation)

Management(policy execution)

Top

Lower

Orgnl level


4/8


Various views regarding this terminologyconflict, have led to the emergence of threeapproaches:

Management and Administration are sameManagement is above AdministrationAdministration is above Management


5/8

Difference betweenAdministration & ManagementManagement and Administration are same:

Authors like Henry Fayol, Koontz andOdonnell, Allen, Strong, Terry, Newman, etc., recognise

that management and administration are same. Bothinvolve the same functions, principles and objectives. Itgoes this way- In order to function efficiently, allundertakings require planning, organision, direction, co-ordination and control. For timely achievement of targeted goals, all must observe same and generalprinciples.


6/8

Difference betweenAdministration & ManagementManagement is above Administration:

According to this view, Administration is considered as a subordinatefunction to overall management functions. According to Brech, the termmenegemnt has the responsibility of planning and integration of orgnlfunctions in the most effective way. These involves-

Making appropriate programmes and procedures according to the plans,andOrganising, 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 supervisionthus, administration is considered as a daily and routine function and

is part of management.


7/8

Difference betweenAdministration & ManagementAdministration is above Management:

According to this approach administration determines thebasic framework of the organisation within which managerial

functions are undertaken. Administration is related withpolicy formulation and decision while management looksafter the execution of these policies and decisions.Management is the process and agency through whichexecution of policy is planned and supervised.

This approach states- `management is the executivefunction that concerns itself with the carrying out of theadministrative policies laid down by administration.


8/8


Sr.

No.

BASIS OF

DIFFERENCE

ADMINISTRATION MANAGEMENT

1. Level in orgn. Top level Middle and lower level

2. Major focus Policy formulation & obj.determination

Policy execution for onj.Achievement

3. Nature of functions Determinative Executive

4. Scope of functions Broad and conceptual Narrow and operational

5. Factors affectingdecision Mostly external Mostly internal

6. Employer-employeerelation

Entrepreneurs & owners Employees

7. Qualities required Administrative Technical

Documents

Difference adm & mgt