Administration and management

The two terms administration and management are being used interchangeably for all practical purposes. However these two terms are different from each other. Oliver Sheldon summaries the distinction as follows.

Administration is the function in the industry concerned in the determination of corporate policy, the co-ordination of finance production and distribution, the settlement of complaints of the organization and ultimate control of executive”.

“Management is the function in the industry concerned in the execution of policy within the limits setup by the administration and the employment of the organization for the particular object set before it”.

William sprigeal distinguishes “Administration as the determinate function and “management” as the executive function.

Management is primarly concerned with carrying out of the broad policies laid down by the administration”. Thus the administration is concerned with the thinking function and management with doing function.

The essence of management is highlighted by the definition given by KOONTZ and O’ DONEL and by DONALD CLAGH. The later describe management a the art and science of decision making and leadership. Art of getting things done through people and with people. Human factor in industry has endless capacity for work provided planning and resources are made available to it. The manager’s goal of attainment of enterprise objectives in the more efficient manner can be accomplished only when the people in the enterprise work to the best of their ability in the spirit of cooperation and zeal.