1. Management Vs. Administration
There has been a controversy on the use of the two terms – management and administration.
Many experts make no distinction between administration and management and use tem as synonyms.
Several American writers consider them as two distinct functions.
A few experts treat administration as a part of management.
These three points of view are explained below :
Administration is above management : According to this viewpoint, administration is a top-level function while management is a lower-level function.
Administration is a determinative (thinking) function concerned with laying down objectives and policies of an organisation.
Management is an executive (doing) function involving the direction of human effort towards the realisation of such objectives.
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2. This view is held by eminent American experts on management.
Oliver Sheldon was the first person to make a distinction between management and administration.
According to him, “Administration is the function in industry concerned with determination of corporate policy, the coordination of finance, production and distribution, structure of organisation and control of the executive. Management is the function in industry concerned with execution of policy within the limits set up by administration and the employment of the organisation for the particular objectives set before it.”
Administration defines the goal, management strives towards it.
Other American expers such as Florence, Lansburg, Theo Haimann, G. E. Milward, D. E. McFarland, W. R. Spriegel, Ordway Tead and Schulze also hold similar view.
According to them administration involves policy formulation whereas management is concerned with execution of policies and supervision of day-to-day operations.
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3. Kimball and Kimball, Richman and Copen also hold similar views.
Administration is a part of management : European School of thought holds that management is a comprehensive term and administration is a part of it.
According to E. F. L. Brech, “Management is the generic term for the total process of executive control involving responsibility for effective planning and guidance of the operations of an enterprise. Administration is the part of management which is concerned with the installation and carrying out of the procedures by which the programme is laid down and communicated and the progress of activities is regulated and checked against plan.
Kimball and Kimball, Richman and Copen also hold similar views.
In their opinion, management comprises both policy-making and execution. Administration is that of management which involves doing routine things in a known setting.
European viewpoint is exactly opposite to the American viewpoint.
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4. Administration and management are one : Henry Fayol, William Newman, Chester Barnard, George R. Terry, Louis A. Allen, Harlod Koontz and many other writers make no distinction between administration and management.
According to William Newman, management or administration is the guidance, leadership, and control of the efforts of a group of individuals towards some common goals.
Fayol said that all undertakings require the same functions and all must observe the same principle. There is one common science which can be applied equally well to public and private affairs.
The distinction between administration and management is meaningless. In practice, the two terms are used interchangeably because both involve the same principles and function.
The word management has become popular in business enterprise where economic performance is of primary importance. On the other hand, the term administration is preferred in government departments, hospitals, religious trusts, educational institutions and other non-business organisations.
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5. In order to resolve the terminological conflict between administration and management, management may be classified into : Administrative management and Operative management.
Administrative management involves determination of objectives and polices whereas operative management is concerned with the execution of plans for achievement of the objectives.
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6. Distinction between Administration and Management
It is a determinative or thinking function
It is concerned with the determination of major objectives and polices.
It is mainly a top level function.
Administrative decisions are influenced mainly by public opinion and other outside forces.
It is not directly concerned with direction of human efforts.
Planning and control are the main functions involved in it.
Conceptual and human skills.
Used largely in government and public sector.
Minister, Commander, Regitrar, Cimmissioner, Vice-Chancellor, etc.
It is an executive or doing function.
It is concerned with the implementation of polices.
It is largely a middle and lower level function.
Managerial decisions are influenced mainly by objectives and policies of the organisation.
It is actively concerned with direction of human efforts in execution of plans.
Directing and organising are the main functions involved in it.
Technical and human skills.
Used mainly in business organisation.
Managing Director, General Manager, Sales Manager, etc.
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