What are the differences between management and administration?
Even though the two terms are commonly used interchangeably, they differ in a number of ways. Whereas administration is responsible for making crucial decisions that affect an entire business establishment, management on the other hand only makes decisions within confines described by the administration.
Another difference is that contrary to the administration which plans, formulates policies and sets organizations’ objectives, management is responsible for the implementation of those plans and policies as well as achievement of the outlined objectives.
In terms of focus, management focuses on managing work and administration focus on the most efficient ways of allocating the available scarce resources.
Management is a term used in profitable ventures such as business establishments. Conversely, the term administration is used in government, religious, and education institutions.
In most instances, personnel who work at management level are salaried employees whereas those who work at administrative level are owners who benefit from profits based on based on their share capital.