Difference between Management and Administration with chart

Difference between Management and Administration: We all know that Administration and Management are two very important aspects of any organization.

CA Ridhi Dhoot

Difference between Management and Administration
Difference Between Management And Administration

Difference between Management and Administration:We all know that Administration and Management are two very important aspects of any organization. Administration is performed by the Administrator while the person performing the Management Decision is called the Manager. Without a proper functioning of these two departments and also without lack of co-operation between the two units, the organization won’t be able to function properly. now check more details forDifference between Management and Administration from below…..

Management and administration are at times used interchangeably; however, they are two different levels of the organization. The administration is the top level of the organization with the decisive functions. They are responsible for determining the policies and objectives of the organization or the firm. Management, on the other hand is the middle level executive function. They implement the policies and objectives as decided by the administration…

Difference between Management and Administration

These days there is no particular distinction made between the two departments, as a lot of roles are common between the two. However, we are presenting fine points of differences between the two:

Authority LevelIt is generally performed by the Middle LevelIt is mostly the responsibility of the Top Level
Responsibility of..Management is the responsibility of Manager/ ManagersAdministration is the responsibility of the Administrator/ Administrators
Major RoleThe Major Role of Management is Implementation of Strategies and Policies of the company.The Major Role of Administration is Formulation of Strategies and Policies of the company.
ControlManagement is controlled by the Administrator.Administrator is the Top Authority. It exercises control over all others.
CategoryIt has Implementation Powers.It has Decisive Powers.
Department consists ofStaff, that’s employees, who work for remuneration.Owners, who had earlier invested in the business and want returns from it.
FunctionsDecides who and when and how the employees will do the work.Decides what strategy can be implemented and when can that be done.
Kind of WorkExecution work is done by the Management.Planning Work is done by the Administration.

What’s Management?

Management – As the word suggests, ‘Management’ means to manage. It is both managing things and people. HR Management has always been a very important aspect in any entity. If we take management of Human Resources as an example to study our topic, we can understand that HR Management involves a lot of things. It includes hiring of best suited personnel, their training and overall development, including soft skills development, posting them on the right team for the right projects, observing their performance, keeping a check for promotions and increments, and always working for improving them.


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Thus, we can understand by this single example that how important management is for any organization. We can also analyze that the role of Management is to properly manage. But the instructions regarding the upcoming projects, approval or disapproval of projects, are not included in the definition of Management. These are covered by another Higher Authority called the Administration Department.

What’s Administration?

Administration is basically the Art of Administering things. It is basically running the Business. The owners of the Entity are generally the part of the Administration Team. The motto behind their efforts is to achieve huge returns on the capital investments made by them. Mostly, the word Administration is mentioned as regards to the Administration of the Government, Managing the Public Affairs, etc. Their Role is to formulate policies and just overview their Performance. They are the people who are actually behind the Growth and Expansion of any business. They get their strategies and policies implemented with the help of Managerial Staff.

It is only with the proper co-ordination between these two Departments – Management and Administration, can a task be accomplished successfully.

Key Differences Between Management and Administration

  • Management is the process of managing the activities in efficient and effective way for the achievement of certain goals of enterprise. On the other hand administration is the process of determining goals or objectives and policy of enterprise in systematic way
  • Administration deals with the activities of higher level/top level: setting up of objectives and crucial policies of the organization
  • 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 short, it is the act or function of putting into practice the policies and plans decided upon by the administration
  • The purpose of management is to achieve the pre-determined goals of organization in the most economic way. On the other hand the purpose of administration is to determine the goals, objectives, plans and policies of organization
  • Management decides, who will take responsibility for doing the various activities towards the attainment of pre-determined goals in proper way. On the other hand administration decides what activities will be done and when it will be done by means of management functions.

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CA Ridhi Dhoot

The writer is a Chartered Accountant & a Licentiate Company Secretary. You can reach out to her at ca.ridhidhoot@gmail.com

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