Management and governance both are 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.
Management vs Governance
The main difference between management and governance is that management is responsible for delivering the strategic plans and managing the working of the organization. It plays an important role in the leadership aspect by supporting the staff and volunteers of the organization to implement the strategic mission and vision. On the contrary, Governance is carried and operated by the board, which is responsible for carrying out the planning and providing a direction to the organization.
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. Management of an organization support governance processes and implement the board decisions.
The governance of an organization determines the 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 the strategic plans.
Comparison Table Between Management and Governance
| 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 administered the management and the functioning of the organization by determining the mission, policy, and strategy. |
| Policy | It doesn’t set any policy for the organization | It set and formulate the right policy to make sure that work should be 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 administer the management |
| Performance | It administrates 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 risk 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 management and the functioning of the organization 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 the organizational performance, appointing the top executive and management personnel.
- Governance oversees and administers the overall performance of the organization and consequently provides insight and wisdom.
Main Differences Between Management and Governance
- Management and governance are two quite popular terms that work on some specified guiding principles along with some specified responsibilities. 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, the governance of an organization determines the mission and provides a direction to the organization. It supports the management to operate and deliver the strategic plans.
- Policy formulation and procedure play a vital role in providing a 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 in the right manner. Whereas, Management supports the staff to get and 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, and hence it has the right to appoint the top executives of the organization and also 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.
Conclusion
Governance and management both are important for the growth and development of the organization. Governance is all about strategy, planning, monitoring the overall performance of the organization that consequently provides wisdom and insights. Whereas the management is all about delivering the strategic vision and supporting the processes of governance by implementing the board decisions.
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