Management as a Process
As a process, management refers to a series of inter-related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts. According to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective […]
Management as a Group
Management as a group refers to all those persons who perform the task of managing an enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus as a group technically speaking, management will include all managers from chief executive to […]
Objectives of Management
The main objectives of management are: Getting Maximum Results with Minimum Efforts – The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in […]
Features of Principles of Management
Principles of Management are Universal Management principles are applicable to all kinds of organizations – business & non business. They are applicable to all levels of management. Every organization must make best possible use by the use of management principles. Therefore, they are universal or all pervasive. Principles of Management are Flexible Management principles are […]
Levels of Management – Top, Middle and Lower
The term “Levels of Management” refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by […]
According to Theo Haimann, “Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”. It refers to the activities of higher level. It lays down basic principles of the enterprise. According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.
Whereas, management involves conceiving, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals.
In other words, it is an art of getting things done through & with the people in formally organized groups.
The difference between Management and Administration can be summarized under 2 categories: -
On the Basis of Functions: -
| Basis | Management | Administration |
| Meaning | Management is an art of getting things done through others by directing their efforts towards achievement of pre-determined goals. | It is concerned with formulation of broad objectives, plans & policies. |
| Nature | Management is an executing function. | Administration is a decision-making function. |
| Process | Management decides who should as it & how should he dot it. | Administration decides what is to be done & when it is to be done. |
| Function | Management is a doing function because managers get work done under their supervision. | Administration is a thinking function because plans & policies are determined under it. |
| Skills | Technical and Human skills | Conceptual and Human skills |
| Level | Middle & lower level function | Top level function |
On the Basis of Usage: -
| Basis | Management | Administration |
| Applicability | It is applicable to business concerns i.e. profit-making organization. | It is applicable to non-business concerns i.e. clubs, schools, hospitals etc. |
| Influence | The management decisions are influenced by the values, opinions, beliefs & decisions of the managers. | The administration is influenced by public opinion, govt. policies, religious organizations, customs etc. |
| Status | Management constitutes the employees of the organization who are paid remuneration (in the form of salaries & wages). | Administration represents owners of the enterprise who earn return on their capital invested & profits in the form of dividend. |
Practically, there is no difference between management & administration. Every manager is concerned with both - administrative management function and operative management function as shown in the figure. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e. management.
The Figure above clearly shows the degree of administration and management performed by the different levels of management
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