Administration in management means the top-level function that sets goals, makes policies, and decides the overall direction of an organization. Management then carries out those policies through day-to-day planning, organizing, and supervising.

Core idea

Administration is mainly about deciding what the organization should do, while management is about deciding how to do it. In many texts, administration is described as a thinking or policy-making function, and management as an executing function.

Main functions

  • Formulating policies and objectives.
  • Setting long-term plans and broad strategies.
  • Defining the organizational structure.
  • Providing overall direction, control, and coordination.

Simple example

A school board deciding the school’s vision, rules, and major programs is administration. The principal and staff who put those decisions into practice are management.

In one line

Administration is the policy and direction side of management, while management is the implementation and execution side.

TL;DR: Administration in management is the process of setting objectives, making policies, and guiding the organization’s overall direction.