Management and governance are both considered as the board of authority that is responsible for various operational and other activities that consequently play a major role in the growth and development of the country. Various guiding principles are defined and drafted to represent a better outlook and differentiate these two terms.
Key Takeaways
- Management is organizing and coordinating resources to achieve a specific goal, whereas Governance is the process of decision-making and policy implementation to achieve the organization’s objectives.
- Management focuses on the organization’s day-to-day operations, while Governance focuses on the long-term strategy and direction of the organization.
- The responsibility for Management lies with the managers, while Governance is the responsibility of the Board of Directors.
Management vs Governance
Management is a team appointed to run an organization on a day-to-day basis and also manages the staff by guiding them to implement the company vision. Governance is the higher authority that represents the interest and manages an organization, a company, or a country. It is the core body of an organization.
The management of an organization is responsible for the daily or day-to-day activities and running of the organization. It plays a crucial role in overseeing and setting yearly or annual operational business plans. The management of an organization supports governance processes and implements the board’s decisions.
An organisation’s governance determines its mission and provides a direction to the organization. It is responsible for appointing the management and monitoring the performance of the organization to ensure that policies and strategies should be implemented appropriately. Governance supports the management to operate and deliver strategic plans.
Comparison Table
| Parameters of Comparison | Management | Governance |
|---|---|---|
| Definition | Management is appointed to administer the day-to-day running of the organization. It plays a crucial role in managing the staff and implementing the strategic vision. | Governance is a governing body that administers the organisation’s management and functioning by determining the mission, policy, and strategy. |
| Policy | It doesn’t set any policy for the organization. | It sets and formulates the right policy to ensure that work is done in a defined manner. |
| Authority | Management is bound to act or strive according to the instructions of the governing body. | Governance has the higher authority, and it is called the governing body or board of the organization. |
| Appointment | It appoints the manager and staff | It appoints top executive and oversees or administers the management |
| Performance | It administrates the day-to-day activities of the organization | It administrates or oversees the overall performance of the organization |
What is Management?
Management is appointed to administer the day-to-day running of the organization. It worked by following the board and governing body of the organization. It plays a crucial role in managing the staff and guiding them to provide a better understanding and implementation of a decided strategic vision.
Some key responsibilities of Management include:
- Delivering the policies and strategies drafted by the appointed board of the organization.
- Appointing the staff and manager and administering the operational and strategic risks associated with the functioning of the organization.
- Overseeing the running of the organization and measuring the performance accordingly.
- Management enhances the productivity of the organization and implements the board decisions effectively.
What is Governance?
Governance is considered as the higher authority that represents the interest of the owner or group of people who manage the company or the organization. It is a core governing body that administers the organisation’s management and functioning by determining the mission, policy, and strategy.
Major working and responsibilities of Governance include:
- This governing body manages the governance processes and is responsible for setting the right procedure and policy that provide direction to the organization.
- Governance is the core body that evaluates organizational performance, appointing the top executive and management personnel.
- Governance oversees and administers the organisation’s overall performance and consequently provides insight and wisdom.
Main Differences Between Management and Governance
- Management and governance are two quite popular terms that work on specific guiding principles and responsibilities. The management of an organization is responsible for the daily or day-to-day activities and running of the organization. It plays a crucial role in overseeing and setting yearly or annual operational business plans. On the contrary, an organisation’s governance determines the mission and provides a direction to the organization. It supports the management in operating and delivering strategic plans.
- Policy formulation and procedure play a vital role in providing direction to the organization. Governance is responsible for setting the appropriate policy and procedure for better working of the organization and ensuring that things should get done appropriately and in the right manner. Whereas, Management supports the staff to get governance processes. It is also responsible for implementing the strategic aspect of the vision.
- Management and governance both vary from each other in responsibilities and authority. Governance has the higher authority, and it is called the governing body or board of the organization. On the contrary, management is bound to act or strive according to the instructions of the governing body.
- Management and Governance can appoint various specified positions and departments. Governance is the core governing body; hence, it has the right to appoint the organisation’s top executives and administrate the management. On the contrary, Management is responsible for appointing staff, managers, and volunteers.
- Management and governance work collaboratively for the growth and development of the organization. Governance performs planning and monitors the overall performance of the organization. On the other hand, management administers the day-to-day activities and running of the organization to implement the strategic vision in a defined manner.
References
- https://books.google.com/books?hl=en&lr=&id=F41-dGpOf4YC&oi=fnd&pg=PP2&dq=difference+between+governance+and+management&ots=3r2iJJ-ImH&sig=q-z7GOHv3PQLtxZJDAOh58tXXWg
- https://www.sciencedirect.com/science/article/pii/S0167404805001057
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