In the initial level of management development, both management and administration were used synonymously.

However, Oliver Sheldon made distinction between management and administration in 1923 by stating that “administration is a decision function while management is an executive function.

Since then, the terminological conflict between management and administration attracted the attention of many management thinkers.

A/c to Theo Haimann,

Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects”.

Administration refers to the activities of higher level. It had also laid down basic principles of the enterprise.

According to Newman, “Administration means guidance, leadership & control of the efforts of the groups towards some common goals”.

While management involves the process of planning, organizing, staffing, directing, and controlling to achieve the organisational goals.

 In other words, it is an art of getting things done through & with the people in formally organized groups.

1 It is a determinative or thinking function. It is an executing or doing function.
2 It is concerned with determination of major objectives and policies. It is concerned with implementation of policies and objective achievement.
3 It is quite broad and conceptual. It is mainly narrow and operational.
4 It is mainly a top level function. It is largely a middle and lower level function.
5 Administrative decisions are influenced mainly by public and other outside forces. Managerial decisions are influenced by objectives and policies of the organisation.
6 It is not directly concerned with direction of human efforts. It is actively concerned with direction of human efforts in policy execution.
7 Planning and control are the main functions. Directing and organising are the main functions.
8 It requires most conceptual skills. It requires mainly technical and human skills
9 It is used largely in Government organisations. It is used mainly in business organisations.

Administration as different from Management:

According to this view, administration is different from management because the nature of functions of administration is quite different from the nature of functions of management.

Administration involves policy formation and is concerned with top level management and management involves policy execution and concerned with lower levels of management.

Administration as a part of Management:

 In contrast to this, some management thinkers have taken the view that management is a broader concept and administration is its part.

According to Brech, management is a generic name of the total process for the effective and economical planning and regulation of the operation of an enterprise.

Administration is that part of management which is concerned with the installation and carrying out the procedures by which it is laid down and communicated and the process of activities regulated and checked against plans.

Thus, according to this view, the earlier view that administration is above management is reversed.

Administration and Management as same:

According to this view, administration and management are same. Both have the same objective and principles.

The difference between the two terms lies mostly in their usage in different countries and different types organisations.

For example, the term administration is used in government department while the term management is used in non-government departments through both have same set of objective and functions.

This view is subscribed by most of the management thinkers of the present era.

Thus, management includes both policy formation and policy execution functions.

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