Administration One should be able to distinguish between management and administration as the concepts are interchangeably used in the world of business today. While management is more ‘executive’ in nature the concept of administration denotes the art of ‘decision making’ at the top and ‘evolving policies’ of the business undertakings either by the governments of various countries or the respective promoters of such business enterprises. Management is all about plans and actions, but the administration is concerned with framing policies and setting objectives. 12th Commerce Unit - - .
. AM The manager looks after the management of the organization, whereas administrator is responsible for the administration of the organization. Management focuses on managing people and their work. Board of Directors Administraon Management Managing Director Manager Supervisor So it is concluded that the administration is ought to take business decisions while the management need to execute them to get things done with and through other functional staff working under them who are called employees of the same organization(s).
For example, the Board of Directors with the CEO/MD may be called Administration, while the Managers of various units like Production, Marketing, Finance, Accounting, Distribution and Research & Development may be called Management of the said organization. Theoretically, it can be said that both are different terms, but practically, it is found that the terms are more or less same. A manager performs both administrative and functional activities. Although the managers who are working on the top most level are said to be the part of administration, the managers working on the middle or lower level represents management.
So, it could be concluded that administration is above management.