Difference between Management and Administration

Key difference: Administration frames the objectives and policies of an organization. Management implements these policies and objectives.

Management and administration are at times used interchangeably; however, they are two different levels of the organization. The administration is the top level of the organization with the decisive functions. They are responsible for determining the policies and objectives of the organization or the firm. Management, on the other hand is the middle level executive function. They implement the policies and objectives as decided by the administration.

The administration includes the people who are either owners or partners of the firm. They usually contribute to the firm’s capital and earn profits or returns on their investment. The main administrative function is handling the business aspects of the firm, such as finance. Other administrative functions usually include planning, organizing, staffing, directing, controlling and budgeting. Administration must integrate leadership and vision, to organize the people and resources, in order to achieve common goals and objectives for the organization.

Management usually incorporates the employees of the firm who use their skills for the firm in return for remuneration. Management is responsible for carrying out the strategies of the administration. Motivation is the key factor of a management. Management must motivate and handle the employees. It can be said that management is directly under the control of administration.

Further comparison between management and administration:





Art of getting things done through others by directing their efforts towards achievement of pre-determined goals.

Formulation of broad objectives, plans & policies.


executing function, doing function

decision-making function, thinking function


Decisions within the framework set by the administration.

Major decisions of an enterprise as a whole.

Level of authority

Middle level activity

Top level activity


Group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.

Consists of owners who invest capital in and receive profits from an enterprise.


Used in business enterprises.

Popular with government, military, educational, and religious organizations.


Decisions are influenced by the values, opinions, beliefs and decisions of the managers.

Influenced by public opinion, government policies, customs etc.

Main functions

Motivating and controlling

Planning and organizing


Handles the employees.

Handles the business aspects such as finance.

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Very very thanks

Very very most imporpants.so much thanks


Wov .....is the most significant of administration an. Managerial functions.it has define more popular in the world's...that's aim or goals have an excellent....good

i don't know much about management,,,,,,,,,,

nice work

this wil realy help me. thanks for this

Unfortunately, this comment are wrong! If you check who first wrote about this term - Henri Fayol - in his first book he used the word "Administration" as the most important and gave the name to this important area of knowledge.
But, after some years in his second book, he rectified writing that "Administration" is a function of "Management". So, Management is a broader area of knowledge, and Administration is one of it's function (the most important function) like to controll.
The doubts are due to the first book published and widely distributed, but corrected in its second book. And, also because most people, students and even teacher/lectures (it is unbelievable, but happens widely) make a confusion about, be a Manager and Management. Management is an area of knowledge. Manager is a person who holds a managerial position inside management. And, a manager have functions like to administrate the budget.
I hope you have understood.

very helpful


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