Differences between Business Administration and Management

July 12, 2024 Globalinfo247

Dictionary of management, by Hartzell (2006) says this about Business Administration and Management.

The terms management and administration have been used by different management authorities in a manner that sometimes they seem to be the same while at some other times; they diverge.

According to most modern writers like Fayol, Koontz, Allegri,, and Perry, there is no real distinction between the two terms. Fall for instance stated, “All understandings require planning, organization, command, coordination,, and control and to function properly, all must observe to some general principles, we are no longer confronted with several administrative sciences but with one which can be applied equally well to public and private affairs”.

Comparison between Administration and Management

Hartzell (2006) has differentiated administration and management as follows:

The aAdministration’s main functions include the formulation of broad objectives, plans,, and policies whereas the main function of the management is getting the work done through others to achieve the set goals.

The administration is a policy and decision-making function while management is an executive function.

The administration decides what is to be done and when it is to be done whereas the management decides who has to do it and how.

The administration is important at the top levels of management whereas management is more important at the middle levels.

The term administration is commonly used for non-business institutions whereas the term management is used for business enterprises.

Administrative Organization

It can be defined as an organization in which the jobs or functions to be carried out are clearly defined to achieve the target. The responsibilities and authorities at various levels of managerial positions are clearly defined. Hartzell (2000).

Types of Administrative Organization

You can classify administrative organization into three:

1. Line Organization

This is the type of organization in that you have direct authority over your respective subordinates through a chain of command. All the managers have full authority to decide and act concerning their area of functioning.

2. Line and Staff Organization

In this type of organization, there are two types of authority relationships i.e. true authority and advising authority co-exist most of the managers have line authority to decide and act in a line organization.

However, there are some positions where the job is of advisory and supportive nature. Some examples are personnel managers, and company secretaries.

3. Functional Organizations

It is defined as an organization in which line authority, staff authority,, and functional authority exist together.

Functional authority is a limited form of line authority given to functional experts over certain specialized activities under the normal supervision of managers belonging to another department e.g. if personnel policies are observed in all the departments throughout the organization. Hartzell (2006).

Types and Functions of Management

Management type can be classified according to;

Level of responsibility and;

Range of activities they are responsible for.

They are classified as:

Junior or First-Line Management – These are a set of managers at a lower level, they are in charge of other workers. An example of a junior manager is a foreman who is in charge of builders, a senior driver is in charge of other drivers.
Senior Management – You take titles like Chairman, Managing Director, Chief Executive, Rector, Vice Chancellor, etc. They are charged with a lot of responsibilities which include strategy formulation.