The terminological difference between these two terms is analyzed on the basis of two major schools of management described as follows:
(a) Administration and Management are Two Separate Functions:
(i) This view belongs to the American school of thought. According to management thinkers such as Sheldon, Tead, Schulz and Spriegel, the term administration is broader than management. Administration determines the specific goals and lays down the broad areas within which those goals are to be achieved.
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Administration is a policy-making function. On the other hand, management involves implementing the broad policies laid down by administration.
Administration is largely determinative whereas management is basically executive in nature. In other words, administrators do the thinking while managers act; administration is a top-level activity and management is a lower level function.
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(ii) As opposed to this, management thinkers belonging to the British school of thought such as Brech, Fayol, Kimball, etc., assert that management is a broader concept as compared to administration.
Administration handles the problems arising out of execution of policies laid down by management. According to them, management is the rule-making and rule-enforcing activity. It is a much more comprehensive and an all-encompassing term of which administration is a part.
(b) Management and Administration are Synonyms:
Some of the modern writers such as Koontz, McFarland, Newman do not maintain a distinction between the two terms.
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According to Davis, top management function is labeled as ‘administrative management’ and lower level management is labeled as ‘operating management.’ Drucker opines that any attempt to divorce planning from doing is bound to be ineffective.