Difference Between Governance and Management

What Is the Difference Between Governance and Management?

Effective Governance is a whole system of approaches and methods for streamlining processes in various areas of human activity. There are different views on this process, which can be fundamentally different from each other.

Management and Governance, in fact, are similar concepts, but there are a number of fundamental differences between them. Mainly, they concern with the demarcation of concepts and their application to specific areas of human life.

Definition of Management and Governance

Management is a way of modeling and using socio-economic systems in which the efficiency of resource allocation is put first. The main task of the manager is to create a self-organizing system that will reproduce and develop in any conditions.

Advanced management approaches and progressive technologies are used for this purpose. The main quality criterion is efficiency, i.e., achieving goals while using the minimum amount of resources.

Governance is a purposeful human activity aimed at the orderliness of labor and production processes. You can manage anything and anyone: a person, a car, a project, a database, a legal entity.

In modern science, Governance is opposed to management as a system of outdated tools. If the project functions successfully, then they speak of well-established management. If there are failures in the implementation of decisions and the need to push them, then they speak of “manual management.”

Comparison of Management and Governance

So, the similarities and differences of the concepts depend on the specific situation. Governance is a general process, and management is a private one. Professional organizers and managers use a set of tools that is ideal for a specific situation.

Management is primarily based on practice, while management is based on theory. There are also different approaches to assessing the quality of work and the distribution of resources. Applied to the modern world, management is a scientifically based method of influencing social and economic systems.

The difference between management and management is as follows:

  • Scale. Governance is a process older and more comprehensive than management, which is only a part of management mechanisms;
  • Quality assessment. The main criterion of efficiency for management is the achievement of the goal. If we are talking about management, then quality assessment is done differently here. The calculation takes into account both compliance with the rules of the game (principles and methods defined by the system), and the efficiency of resource allocation (achieving goals at minimum costs);
  • Scientific discipline. Management is a science that has its own subject and method, and management is a set of sciences characterized by different subjects and methods;
  • Commercial component. In practice, the concept of “management” is most often used in relation to profitable projects and management – to any processes of influence of the subject on the object.