Administration vs Management A Comparison Definition Administration means

Administration vs. Management A Comparison

Definition �“Administration means the overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects. ” – Theo Haimann �“…[It is] guidance, leadership and control of the efforts of the groups towards some common goals. ” – William H. Newman �The activities that relate to running an organization

Administration vs Management �Administration deals with the activities of higher level/top level: setting up of objectives and crucial policies of the organization �Management involves conceiving, initiating and bringing together the various elements: coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals �In short, it is the act or function of putting into practice the policies and plans decided upon by the administration

Administration vs Management �The difference can be summarized under two categories: Functions and Usage/Applicability

�Practically, there is no difference between management and administration. Every manager is concerned with both—administrative and management function and operative function. However, the managers who are higher in the hierarchy denote more time on administrative function and the lower level denote more time on directing and controlling worker’s performance.

Public vs Private Administration �Public Administration has special characteristics which are derived from the nature of public settings in which it operates. The distinguishing characteristics are in terms of: �Political Direction �Absence of Profit Motive �Legal Framework �Consistency of Treatment �Public Accountability �Large-scale Administration �Essentiality of Some Public Services

Political Direction �Public Administration is political. It takes place in a political context and work under political direction and scrutiny—putting into effect the policies made by the elected members of the legislature & political executive. �Business/Private Administration is non political. It is not subject to political direction except in times of emergency. It functions largely under the influence of market economic conditions.

Absence of Profit Motive �The primary purpose of government organization is to provide services to the people to promote social good. �The ends of public administration is communal. �The major aim of private business organization is to make profit for their owners. Services to the public is only an incidental benefit of business activity. �The ends of private business is personal.

Legal Framework �The activities of Public Administration are fixed by a set of constitutional practices, law, rules & regulations. �Gov’t officials must not act outside the law and their actions must be supported by reasonably clear statutory authority. �Legal constraints are essential to prevent officials from abusing their powers. �Activities of business administration are subject to less legal constraints. �Business executives can usually do anything which is not forbidden by law, giving them the freedom to select and carry on only profitable activities.

Consistency of Treatment �A government official is required by law to maintain a high degree of consistency in his dealing with the public �He has to observe the principle of equality of treatment in serving the people; discrimination is prohibited �Private businesses are not legally obliged to treat the small and big customers alike.

Public Accountability �Public accountability is the hallmark of Public Administration in democracy. �A public servant’s activities must be guided by public needs and public opinion. �In a democracy, Public Administration is held accountable for its activities through legislative oversight and judicial review. �Public accountability is not a value effecting business administration. �Business administration is not accountable to the public for what they do and what they fail to do

Large-scale Administration �Public administration is larger than any big business in terms of size, complexity and diversity of activities. �The activities and policies of governments affect the entire socioeconomic structure of society.

Essentiality of Some Public Services �Certain public services are vital to the existence of the community itself. �Examples: national security, law and order, health care, transport, and communications. �Service provided by the business organization such as supply of costly clothes, shoes and other luxury items are not essentials for the existence of society.

REFERENCES �Google Sites. Distinction between Public and Private Administration. N/A N/A. <https: //sites. google. com/site/dheerajbpsc/home/publicprivate-administration/1 -distinction-between-public-andprivate-administration>. �Kumar, Manisha. Difference Between Management and Administration. 12 October 2011. <http: //www. differencebetween. net/business/differencebetween-management-and-administration/>. �Management Study Guide. Management and Administration. 2013. <http: //www. managementstudyguide. com/management_ad ministration. htm>.