Management vs Economics: 10 not-so-obvious differences

The administration vs economics They are systems that complement the tools used by administrators and economists and in general have the purpose of promoting business development.

These two systems operate in companies to coordinate resources and solve financial problems through through the ability to practice and implement principles and thus achieve the objectives of the themselves.

Differences between administration and economics

There are a number of differences between administration and economics, which we will show below:

1. Difference by definition

The administration is in charge of the business operation and offers extensive development in the different areas or departments of the company, which includes finance, human resources, marketing and accounting of the company. organization.
The economy is in charge of the production and consumption of products within society and focuses on how companies want to develop financially.

2. Difference of economic principles

The administration involves the application of principles that help to improve financial difficulties.
In economics, the elaboration of principles is carried out in order to solve financial problems.

3. Difference of objectives and scope

The administration's main objective is to involve adequate decision-making and comprises a much narrower scope than economics.
The main objective of the economy is to satisfy the needs of companies and what allows their scope to be broader.

4. Difference of functions

The administration only takes care of the profits.
While the economy can take care of all business functions such as production, distribution and consumption.

5. Focus difference

The management approach is to be concerned with the economics of business problems that may arise.
The economy only focuses on the economic aspects of all the problems that arise in the company.

6. Difference in its application

The administration is determined as a subarea of the business system and is responsible for managing its financing. It is applied in the planning, development and decisions of the organization, in addition to supervising the finance, marketing and human resources departments.
The economy is the second subarea of the business system and is based on economic statistics. This system is essential in company decisions related to taxes, GDP and tariffs.

7. Difference from the labor system

Administrators have the responsibility to analyze, plan and support internal procedures related to the control, marketing and acquisition of products and thus achieve the proper functioning of the organization.
Economists seek to undertake a broader exploration of economic areas, where inspects the correct process of production and distribution of products within the conditions economic.

8. Difference by nature

The administration only comprises a normative nature.
While the economy has a normative and positive nature.

9. Analysis difference

Within the administration, micro-level analyzes such as supply, demand and profits, among others, are carried out.
The economy includes macro-level analyzes such as employment, growth and inflation, among others.

10. Difference in your job application

The administrator studies the legal aspects and the main functions of the organization, within their functions include law, corporate finance, entrepreneurship, marketing, and resource procedures humans.
Instead, the economist studies how the market works, the competition, the financial system and the technological effects in the company, among its functions are decision-making, analyze and advise the organization so that they correctly comply with the regulations of the herself.

Administration and the economy conducts important studies on the coordination of resources and the functioning of the finances of the company so that the objectives of the same are achieved, are two systems that help to strengthen the development business. If you want to see other topics related to this topic, you can see them on our website.

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