Fundamentals of Business Economics and Management · Introduction to Management

Management Principles and Management vs Administration

Updated 10 October 2026 · Fact-checked

Management principles are broad guidelines that help managers make decisions and act. They are flexible, based on experience and tested in practice. Management means getting work done through others to reach goals. Administration is mainly top-level policy making, while management mainly executes those policies. Writers differ on how the two relate.

Understand Management Principles and Management vs Administration

A principle is a fundamental truth that explains cause and effect. In management, principles of management are broad guidelines for decisions and actions. They are not rigid laws like those in physics. They tell a manager what usually works, and the manager adapts them to the situation.

The nature of management principles is a favourite exam point. They are universal, so they can apply to any organisation (a school, a factory, a hospital). They are general guidelines, not fixed rules. They are formed by practice and experimentation, not just theory. They are flexible, so a manager can change them as needed. They mainly influence human behaviour. They have cause-and-effect relationships, but these are less exact than in science, because people are involved. They are also contingent: how well one works depends on the situation.

The significance of principles is the reason they are studied. They give managers useful insight into reality and guide decisions. They help use resources optimally and support effective administration. They help meet changing environment needs, support scientific decisions based on logic rather than guesswork, and help fulfil social responsibility. They also form a base for management training and research.

Now the second half: management vs administration. Administration is about deciding the overall objectives and policies of the organisation. Management is about implementing those policies and getting day-to-day work done through people. Writers hold different views on how the two relate:

Administration is a higher-level function than management. Administration decides policy and management carries it out.
Management is a part of administration. Administration sets policy and management executes it within that policy.
Administration is a part of management. Here management is the wider process and administration is one of its functions.
They are the same. Some writers use the two words interchangeably.

The traditional distinction is what MCQs test. Administration is a determinative function (decides what to do). Management is an executive function (decides how to do it). Administration works at top level, management at middle and lower levels. Administration is concerned with policy, management with implementation. In a company, the board of directors is the typical administrative body and managers and supervisors carry out the plans.

Key formulas to remember

Nature of principles (memory list): Universal + General guidelines + Practice-based + Flexible + Behavioural + Cause-and-effect + Contingent; Principles are guidelines, not rigid laws. Any option calling them 'rigid' or 'fixed' is wrong.
Administration (traditional view): Administration = Determinative function = Policy making = Top level = decides WHAT and WHY; Usually linked with board of directors, owners or government bodies.
Management (traditional view): Management = Executive function = Policy implementation = Middle and lower level = decides HOW and WHO; Usually linked with managers and supervisors working under the policies set.
Views on the relationship: Administration > Management | Management ⊂ Administration | Administration ⊂ Management | Administration = Management; First: administration is a higher-level function. Second: management is a part of administration. Third: administration is a part of management. Fourth: some writers treat the two as the same.

How to solve Management Principles and Management vs Administration questions

Use this method for any MCQ on principles or on management vs administration.

1Read the stem and decide which type it is: nature of principles, significance of principles, or management vs administration.
2For a nature question, ask whether each option says the principle is flexible, universal and a guideline. Reject words like 'rigid', 'exact' or 'only for business'.
3For a significance question, look for benefits: better decisions, optimum use of resources, training base, social responsibility.
4For a management vs administration question, find the keyword in the stem: policy, determine, top level or board points to administration; implement, execute, supervise or middle level points to management.
5Check whether the stem asks for the traditional distinction or for a particular view on the relationship. One view treats the two terms as interchangeable, but do not assume a stem about the 'modern view' wants that. Read the stem for which view it asks about.
6Eliminate options that swap the two terms, then choose the one that fits fully.
7If two options look close, pick the one that matches the exact keyword in the stem.

Quickest way: Keyword matching for management vs administration

When to use it: Use it for any MCQ asking which statement is correct about management and administration, or which function belongs to which.

Memorise the pairs: administration with policy, determine, top level, board; management with implement, execute, middle and lower level, managers.
Spot the keyword in the question or options.
Match it to the correct side and cross out options that reverse it.
For principles questions, cross out any option with rigid, fixed, absolute or only-in-business wording first.

Common mistakes in Management Principles and Management vs Administration

Saying management principles are rigid rules that must be applied exactly
Students confuse them with laws of physics.
Fix: Remember they are flexible guidelines. Managers change them to suit the situation.
Swapping the roles: calling policy making a management function and implementation an administration function
The words sound alike and students learn the table without keywords.
Fix: Link administration with determine and policy, and management with execute and implement.
Assuming the traditional distinction is the only view
Notes often list only the differences.
Fix: Remember writers differ: administration higher than management, management part of administration, administration part of management, or the two the same. Read the stem for which view it asks.
Thinking principles apply only to business firms
Examples in class are mostly companies.
Fix: Principles are universal. They apply to schools, hospitals, clubs and government bodies too.
Treating principles and techniques as the same
Both are guides to managers.
Fix: A principle is a broad guideline for decisions. A technique is a specific method or procedure for doing a task.
Believing principles give exact results like science
Students overlook that managers deal with people.
Fix: Principles show cause and effect, but results are less exact because human behaviour varies.

Worked examples

Example 1

Which of the following best describes the nature of management principles?
(a) Rigid rules that give exact results
(b) Flexible guidelines that can be modified as the situation needs
(c) Rules that apply only to business organisations
(d) Laws that have no link with human behaviour

Show the solution

Recall that principles are guidelines, not rigid laws.
Option (a) says rigid and exact. This is wrong.
Option (c) says only business. Principles are universal, so this is wrong.
Option (d) says no link with human behaviour. Principles mainly influence human behaviour, so this is wrong.
Option (b) says flexible guidelines that can be modified. This matches.

Answer: (b) Flexible guidelines that can be modified as the situation needs

Example 2

In a company, the board of directors decides the overall objectives and policies, and the plant manager makes sure the production staff carry them out each day. Which statement is correct as per the traditional distinction?
(a) The board performs a management function and the plant manager an administrative function
(b) The board performs an administrative function and the plant manager a management function
(c) Both perform only administrative functions
(d) Both perform only a determinative function

Show the solution

Find the keywords. The board decides objectives and policies, so this is policy making and determination.
Policy making and determination point to administration, a top-level function.
The plant manager makes sure staff carry out policies daily. This is implementation and execution.
Implementation and execution point to management.
So the board is administrative and the plant manager is managerial. Options (a), (c) and (d) do not fit this split.

Answer: (b) The board performs an administrative function and the plant manager a management function

Exam tips

Questions on this topic are mostly direct and conceptual. Learn the keyword pairs for management and administration and you can answer in seconds.
Read option wording carefully. Words like rigid, absolute or only are usually signs of a wrong option about principles.
Remember the views on the relationship. One view treats the two terms as interchangeable, but do not assume 'modern view' always means 'the same'. Read the stem for which view it asks about.
No negative marking applies, so never leave a question blank. Eliminate two options and guess if needed.
Learn at least four points each for the nature and significance of principles. Questions often ask which one is not a feature.

Practice questions from Introduction to Management

Management Principles and Management vs Administration: frequently asked questions

What is the nature of management principles?

Management principles are universal, general guidelines formed by practice and experience. They are flexible, mainly influence human behaviour, and show cause-and-effect links that are less exact than in science. Their use depends on the situation.

What is the main difference between management and administration?

In the traditional view, administration decides policy and overall objectives at the top level, while management carries out those policies through people at the middle and lower levels. Administration is determinative and management is executive.

Are management and administration the same thing?

Writers hold different views. One says administration is a higher-level function than management. Another treats management as a part of administration, and a third treats administration as a part of management. Some writers treat the two as the same. For exams, check which view the question asks about.

Why are management principles important?

They give managers guidance for decisions, help use resources well and support scientific decision making. They also help meet changing needs, support social responsibility and form a base for training and research.