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CMA Foundation · Fundamentals of Business Economics and Management · Introduction to Management

According to the traditional view distinguishing management from administration, which of the following is primarily an administrative function rather than a managerial one?

Determining the overall objectives and major policies of the enterprise is the administrative function. Administration is top-level and decision-making in nature, setting direction, while management is executive, carrying out those policies through supervising, directing and implementing at middle and lower levels.

  1. ASupervising workers in a factory to achieve daily output targets
  2. BDetermining the overall objectives and major policies of the enterpriseCorrect
  3. CImplementing policies through departmental heads
  4. DDirecting operative employees on the shop floor

Explanation

In the traditional distinction, administration is a top-level, determinative function concerned with framing objectives and broad policies. Management is executive, implementing those policies and getting work done through others. The other three options describe execution, which is management.

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