The terms management and administration are often used interchangeably, which is a mistake; since these concepts describe different levels of organization.
If you don’t know what the difference is between one and the other, keep reading; because this time we explain it to you.
MANAGEMENT Difference Between Management and Administration
Administration is the highest level of organization of critical functions within an institution or company. It is responsible for determining the policies and objectives that must be met so that everything operates in the correct way.
In the business context, management includes the people who are owners or partners of the firm, but also the rest of the staff. Generally, it helps the company obtain more capital and achieve higher profits that guarantee the recovery of the investment.
In a general sense, the functions of the administration include planning, organization, staffing, control and budgeting. It must integrate the leadership and vision of those in the upper hierarchical ladder, to organize people and resources so that the common objectives and objectives of the organization can be achieved.
Management has a middle-level directive function. It is responsible for implementing the policies and objectives of the organization, as determined by those in charge of the administration.
From the above it is deduced that management becomes part of the administrative process. This is carried out by the directors or the director of the institution and includes a wide variety of functions.
Through what has been determined through administration, the manager (who is in charge of management), represents the entire set of elements that make up the business system (employees) and coordinates all resources (including human) in a manner strategic to achieve the specific objectives that have been raised.
Note: management should not be confused with management, since the latter is a broader process and has more to do with the leadership of the person in charge of carrying it out.
Key differences between administration and management
- The administration is in charge of the organization, planning and distribution of resources to achieve certain objectives; while management deals with the strategic organization of resources to achieve the objectives set by the administration.
- Management is more general than management. The latter is more restricted to the director of the organization.
- Management is a top-level activity, while management is a mid-level.
- Management is used mostly in companies, while administration is used in companies, corporations , the government, military, educational institutions, public organizations….
- The main functions of management are to control and direct, while those of administration are to plan and organize.