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: -

  1. Functions
  2. Usage / Applicability

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

Management vs Administration

Management and administration may seem the same, but there are differences between the two. Administration has to do with the setting up of objectives and crucial policies of every organization. What is understood by management, however, is the act or function of putting into practice the policies and plans decided upon by the administration.

Administration is a determinative function, while management is an executive function. It also follows that administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration.

Administration is the top level, whereas management is a middle level activity. If one were to decide the status, or position of administration, one would find that it consists of owners who invest the capital, and receive profits from an organization. Management consists of a group of managerial persons, who leverage their specialist skills to fulfill the objectives of an organization.

Administrators are usually found in government, military, religious and educational organizations. Management is used by business enterprises. The decisions of an administration are shaped by public opinion, government policies, and social and religious factors, whereas management decisions are shaped by the values, opinions and beliefs of the mangers.

In administration, the planning and organizing of functions are the key factors, whereas, so far as management is concerned, it involves motivating and controlling functions. When it comes to the type of abilities required by an administrator, one needs administrative qualities, rather than technical qualities. In management, technical abilities and human relation management abilities are crucial.

Administration usually handles the business aspects, such as finance . It may be defined as a system of efficiently organizing people and resources, so as to make them successfully pursue and achieve common goals and objectives. Administration is perhaps both an art and a science. This is because administrators are ultimately judged by their performance. Administration must incorporate both leadership and vision.

Management is really a subset of administration, which has to do with the technical and mundane facets of an organization’s operation. It is different from executive or strategic work. Management deals with the employees. Administration is above management, and exercises control over the finance and licensing of an organization.

Therefore, we can see that these two terms are distinct from one another, each with their own set of functions. Both these functions are crucial, in their own ways, to the growth of an organization.

Summary:

1. Management is the act or function of putting into practice the policies and plans decided upon by the administration.

2. Administration is a determinative function, while management is an executive function.

3. Administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration.

4. Administrators are mainly found in government, military, religious and educational organizations. Management, on the other hand, is used by business enterprises.

What is the difference between business administration and management?

Answer:
"There's no difference. The word "administration" and "management" are somewhat different when defined in a dictionary. But in the real world of business, they are the same unless one begins splitting hairs.
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Some might say that administration involves more things of a paper-pushing or clerical nature. And some may think that management implies some authority over others that administrators do not have. If a company makes this distinction, so be it. But in general, business administration and business management are the same. " I got this from... -- http://www.answerbag.com/q_view/538865 "Generally speaking, business administration is usually the name of the degree or program (like BBA or MBA) and not really a concentration. Every business discipline combined is pretty much "business administration" as a whole. In fact, you can even take out the word "administration" and just leave it at "business" as a field of study. So saying you study "business administration" is saying you study "business."

Management is the actual concentration within business administration, and you cover organizational behavior/structure, leadership in organizations, managing change, and things like human resources (people) management. Some schools might have "business administration and management" to refer to the management major.

Econ and finance is pretty clear. Econ is about the allocation of scarce resources among competing uses. The main theme is supply and demand and price determination. At the micro level, you narrow in on firm and consumer behavior. At the macro level, you learn about national and international issues like interest rates, GDP, inflation, etc. Finance is more about investing (in the general sense of the word, not just in the stock market). The main theme is risk and return. You learn about the time value of money and apply it in many ways. Finance uses some econ, and econ uses some finance.