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Sunday, December 6, 2020

Administration is a Higher Level Function-Explain

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Oliver Shelden subscribed to the primary viewpoint. consistent with him, "Administration cares with the determination of corporate policy, the coordination of finance, production and distribution, the settlement of the compass of the organization and therefore the ultimate control of the chief . 

Management proper cares with the execution of policy within the bounds found out by administration and therefore the employment of the organization within the particular objects before it... Administration determines the organization; management uses it. Administration defines the goals; management strives towards it". Administration refers to policy-making whereas management refers to execution of policies laid down by administration. This view is held by Tead, Spriegel and Walter.

Administration is that the phase of commercial enterprise that concerns itself with the general determination of institutional objectives and therefore the policies unnecessary to be followed in achieving those objectives. Administration may be a determinative function; on the opposite hand, management is an executive function which is primarily concerned with completing of the broad policies laid down by the administration. Thus, 24 administrations involves broad policy-making and management involves the execution of policies laid down by the administration

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