Management vs.

Administration
Both management and administration are crucial to the growth of an organization.

Management and administration are both important functions that support the success of any
business or organization. 

But first, it’s important to note that both management and administration are needed in any organisation in
order for it to function successfully.

Management relates to conducting, controlling and taking charge of the course of action. The word
"management" comes from the word "manes" which means "to control by hand". It is a middle level
activity.
Management involves the achievement of results for which the responsibility pays the manager.
Management also includes involving organization to achieving objectives with maximum efficiency
and responsibility for the result.
Management is the act or function of putting into practice the policies and plans decided upon by the
administration.
Management is inferior to administration, and is focused on motivating and controlling functions as
well as technical abilities and human resources abilities. It deals with employees.

Administration relates to managing of different things.The word "administration" comes from word

"minor" and "ministrare" which means " to serve" and " to govern" accordingly. It is a top level activity,
above the management. It deals with executive and strategic work. Thus, it must incorporate both
leadership and vision

Administrating means directing, superintending the execution, using or conducting of various things. It
means, that administration involves setting and following instructions and service. Which relates to
setting up objectives and crucial policies of every organization.
The administration is focused on the planning and organizing of functions as well as administrative
qualities.

So, in summary:
Both administration and management are key managerial activities in the company. Administration
sets up plans and strategy which are executed in the management process. Administration is a
decision-making function, while management is an executive function. Management is focused on
"doing" because managers get work done under their supervision, while the administration is focused
on "thinking" because it is determining the plans and policies.

Functions of Management

Substantial management functions can be classified into four main functions. They are
as follows:
1. Planning: Planning is the most essential and fundamental activity of
management. The function also involves taking everything in mind what must be
done to improve the necessary levels of development and innovation. On the
basis of functions, there are two types of planning.

o Strategic planning: It focuses on long-range aims and the broad

procedures for managing the team.
o Operational planning: It concentrates on short-range goals and the
explicit means used to acquire them and on the associated managerial
activity of decision making.
 Organizing: It is the management function that targets on assigning and
arranging human and natural resources so that procedure can be implemented
successfully. Various tasks must be allocated to diverse people, and their work
must be coordinated.
 Leading: It is the management function that includes manipulating others
to engage in the trade conducts mandatory to reach organizational objectives.
 Controlling: It is a management function anticipated at managing
organizational actions so that substantial performance reaches the expected
targets and standards of the organization
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”. Whereas
Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O for Organizing, S for Staffing, D for
Directing, Co for Co-ordination, R for reporting & B for Budgeting. But the most widely accepted are functions of
management given by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but practically these
functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each
affects the performance of others.

1. Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in
advance the most appropriate course of actions for achievement of pre-determined goals. According to
KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from
where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus,
planning is a systematic thinking about ways & means for accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing
It is the process of bringing together physical, financial and human resources and developing productive
relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize
a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and
personnel’s”. To organize a business involves determining & providing human and non-human resources to
the organizational structure. Organizing as a process involves:

 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.
3. Staffing
 It is the function of manning the organization structure and keeping it manned. Staffing has assumed
greater importance in the recent years due to advancement of technology, increase in size of business,
complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square
pegs in square holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial function of
staffing involves manning the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure”. Staffing involves:

 Manpower Planning (estimating man power in terms of searching, choose the person and giving the
right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for
achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion
the action of people because planning, organizing and staffing are the mere preparations for doing the
work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following
elements:

 Supervision
 Motivation
 Leadership
 Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive,
negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.

5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to
ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs
in conformities with the standards. An efficient system of control helps to predict deviations before they
actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:

 Establishment of standard performance.

 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation if any.
 Corrective action.
 Management & Leadership Styles
Choosing the right style of management is so important and influential to an organisations success. With 75% of
employed people surveyed suggesting they left their last job because of the manager, not the position itself.

Put simply, people leave managers not companies. However, with so many to choose from, which strategy should a
business choose? This video looks at a number of options available to a business, including:

-Autocratic

Autocratic leadership is a management style wherein one person controls all the decisions and takes very
little inputs from other group members. Autocratic leaders make choices or decisions based on their own
beliefs and do not involve others for their suggestion or advice.
The most obvious examples of this are the military, the police and the fire services, but it can also benefit
situations such as health care or manufacturing. The leadership style can be used in situations where the
group is full of inexperienced people and/or the motivation levels of the group are extremely poor.

Autocratic leadership is often most effective when it is used for specific situations.

Characteristics of an Autocratic Leader

 You make all the important decisions.
 You don't consider input from team members.
 You dictate all the working methods and processes.
 You don't trust your teammates with important decisions.
 You have a highly structured working environment.

-Democratic

Democratic leadership, also known as participative leadership or shared leadership, is a type of leadership style in
which members of the group take a more participative role in the decision-making process. This type of leadership
can apply to any organization, from private businesses to schools to government.

The democratic management style involves managers reaching decisions with the input of the employees but
being responsible for making the final decision. There are many variations of this style of management
including consultative, participative, and collaborative styles.
The advantages and disadvantages of the democratic leadership style promote productivity, encourage each
employee to have a voice in the problem-solving process, and encourage individual creativity.

List of the Disadvantages of a Democratic Leadership Style

 It can create negative emotions. ...
 It can lead to procrastination. ...
 It takes time to reach a consensus. ...
 It offers an element of continuing uncertainty. ...
 It is often poorly defined. ...
 It does not guarantee the best possible solution.
 -Paternalistic

Paternalistic leadership is a managerial approach that involves a dominant authority figure who acts as a
patriarch or matriarch and treats employees and partners as though they are members of a large, extended
family. In exchange, the leader expects loyalty and trust from employees, as well as obedience.
Paternalistic leadership is very closely associated with patriarchy. This is another form of
authoritarian leadership. This leadership model is respected in eastern countries like India and China.
Paternalism is the interference with the liberty or autonomy of another person, with the intent of promoting
good or preventing harm to that person. Examples of paternalism in everyday life are laws which require seat
belts, wearing helmets while riding a motorcycle, and banning certain drugs.

-Laissez- Faire

Laissez-faire leadership is the direct opposite of autocratic leadership. Instead of a single leader making all
decisions for an organization, group or team, laissez-faire leaders make few decisions and allow their staff to
choose appropriate workplace solutions.
Laissez-faire leadership, also known as delegative leadership, is a type of leadership style in
which leaders are hands-off and allow group members to make the decisions. Researchers have found that
this is generally the leadership style that leads to the lowest productivity among group members.
An example of laissez faire are the economic policies held by capitalist countries. An example of laissez
faire is when a homeowner is allowed to plant whatever they want to grow in their front yard without having to
get permission from their city.

-Transactional

Transactional leadership theory is based on the idea that managers give employees something they want in
exchange for getting something they want. It posits that workers are not self-motivated and require structure,
instruction and monitoring in order to complete tasks correctly and on time.
 transactional management is the part of one style of leadership that focuses on supervision, organization,
and performance; it is an integral part of the Full Range Leadership Model. ... The rewards, from this
contingent reward, is solely based on an agreement between the leader and follower.

Characteristics of Transactional Leadership

 Revel inefficiency.
 Very left-brained.
 Tend to be inflexible.
 Opposed to change.
 Focused on short-term goals.
 Favor structured policies and procedures.
 Thrive on following rules and doing things correctly.

Many high-level members of the military, CEOs of large international companies, and NFL coaches are known
to be transactional leaders. 
Bill gates is a transactional. He delegates and guides through his employees on what exactly he needs and
how it can be worked on about, giving them very little freedom. Control plays the central part in Transactional
leadership. Bill Gates always focused on the completion of the task in hand for the efficient and quick
achievement of the target.
-Transformational

-Charasmatic