Administration and Management
Table of Content
Introduction to Management and Administration
In the study of business and organizations, the terms Management and Administration are very often used interchangeably. In everyday conversations, people might use these words to mean the exact same thing. However, in academic studies, they differ significantly in their exact meaning, scope, and focus.
To understand the difference clearly, we must look at how different management experts and researchers have viewed these two terms over time. Historically, the debate over whether management and administration are the same or different is divided into two major groups: the British School of Thought and the American School of Thought. Let us understand both perspectives step by step.
The Core Debate: Two Schools of Thought
The British School of Thought
The British scholars have a very specific view of how organizations operate. According to them, Management is a much wider and broader concept compared to Administration.
Key features of the British perspective include:
Superiority: They argue that management is superior to administration. Management is seen as the ultimate authority in an organization.
Top-Level vs. Operational Level: Management is usually related to the top-level executives who guide the entire organization. On the other hand, administration relates to carrying out activities at the lower, operational level.
Long-term vs. Immediate Focus: Management focuses on long-term objectives and the future direction of the company. Administration focuses on solving immediate, day-to-day problems.
Rule-Making vs. Situation Handling: Management involves making the rules and enforcing them. Administration simply engages itself with handling the situation currently at hand within those rules.
Comprehensive Nature: Ultimately, the British school believes that management is an all-inclusive, comprehensive concept, and administration is merely a smaller part of it.
The American School of Thought
The American researchers (supported by scholars like Orway Tead and William Sprigel) take the completely opposite view.
Key features of the American perspective include:
Thinking vs. Implementing: According to this school, Administration is the "thinking" function, while Management is the "implementing" function.
Role of Administration: Administration is responsible for formulating policies, setting major goals, and making high-level decisions. It is the brain of the organization.
Role of Management: Managers are the ones who take these policies and implement them. They get involved in the day-to-day operations to ensure the administration's goals are actually achieved.
Comparative Analysis: British vs. American Perspectives
| Feature / Aspect | British School of Thought | American School of Thought |
|---|---|---|
| Broader Concept | Management is the wider concept; Administration is a part of it. | Administration is the wider concept (sets policies for management). |
| Primary Role | Management makes rules and focuses on long-term objectives. | Administration formulates policies (Thinking function). |
| Secondary Role | Administration deals with immediate problems at the operational level. | Management implements the policies in day-to-day operations. |
| Level in Organization | Management = Top Level Administration = Operational/Lower Level | Administration = Top Level Management = Executing/Lower Level |
| Key Supporters | British Scholars | Orway Tead, William Sprigel |
The Contemporary (Modern) Perspective
While the historical debate between the British and American schools is important to understand, modern businesses operate a bit differently. Today, contemporary thinking equates management and administration, seeing them as essentially the same thing.
Keith Davis’s View
Keith Davis is a strong supporter of this modern thinking. He argues that the management process is essentially the exact same in all types of organizations. Therefore, whether you call it administration or management, people in these roles have to go through the same processes to get things done, meaning they remain the same.
Herold Koontz’s View
Herold Koontz also maintained this practical stand. He observed that trying to make a strict distinction between management and administration is a misleading exercise. While modern thinkers have historically drawn lines to make the two concepts distinct and unique, in practical, everyday business today, managers and administrators perform overlapping duties.
Examples and Practical Applications
To help you visualize the concepts, let us look at a simple real-life example of a hospital:
Under the American View: The Board of Directors of the hospital decides to build a new pediatric wing and sets a budget of $5 Million. This policy-making and goal-setting is the Administration (the thinking function). The head doctor and nursing staff who schedule shifts, order materials, and oversee the daily construction progress are performing Management (the implementing function).
Under the British View: The CEO who focuses on the hospital's 10-year growth plan and sets the ultimate rules is performing Management (top-level, comprehensive). The front desk supervisor who solves an immediate problem with a patient's billing is performing Administration (operational level, immediate problem).
Under the Contemporary View: Both the CEO and the front desk supervisor are simply performing different levels of the same cohesive management/administration process.
Quick Revision Summary
Interchangeable Terms: Management and administration are mostly used interchangeably, but academics differentiate them.
British School: Believes Management is top-level (long-term, rule-making) and Administration is lower-level (operational, immediate problems).
American School (Tead & Sprigel): Believes Administration is top-level (policy-making, thinking) and Management is lower-level (implementing, day-to-day operations).
Modern View (Davis & Koontz): Equates the two terms. They believe distinguishing between them is misleading because the core process of getting work done is the same across all organizations.