A major obstacle in the governance of community organisations is ensuring the Governing Body and Managers are able to delineate their different responsibilities. "Governance" is the strategic task of setting the organisation's goals, direction, limitations and accountability frameworks. "Management" is the allocation of resources and overseeing the day-to-day operations of the organisation.
One way to think about this is that Governance determines the "What?" - what the organisation does and what it should become in the future. Management determines the "How?" - how the organisation will reach those goals and aspirations.
(http://www.actcoss.org.au/oik/infosheets/governance/boardnEOresponse.html#vs). Look also at this link: http://siteresources.worldbank.org/EXTGLOREGPARPROG/Resources/grpp_sourcebook_chap12.pdf
The use of the terms is further complicated by the use of "governance" to indicate the coordination of cross-sectoral, inter-organizational networks to supply social services. This is the use of the term that became popular in the early-to-mid 90s. A good place to chart the emergence of this interpretation is in the work of Larry Lynn and his co-authors.
The use of "governance" in the previous answer is closer to that of the nonprofit management literature where the governance of organizations by boards of directors is distinguished from the day-to-day management of the chief executive.
Governance is the organization of the governing authority while management is concerned with the way things are done to acieve objectives of the organization.
I think context confers meaning to a term or a group of letters. The word 'Governance' was introduced to denote the way state affairs was organised and handled. Similarly, 'management' was coined in the quest of enhancing efficiency and overall performance in a particular setting...
Governance refers to processes and traditions of decision making. It is about who makes decisions and how the decisions affect the target audiences. It is a social function involving the establishment and administration of rights, rules and decision-making procedures to direct actors along pathways that are collectively desirable. It is designed to inter alia, generate social capital needed to solve a variety of collective-action problems (Graham et al., 2003; Delmas and Young, 2009; Young, 2012.
Management on the other hand is how decisions are turned around through efficient allocation and use of various capital assests to achieve desirable ends.
Board of directors govern the organization, while the CEO and his team manage the organization. Governance is overseeing the corporate policy implementation for fulfilling all the stakeholders' expectations. Governance includes, discharging of: Economic, Legal, Ethical and Social responsibilities. Management's job is prudent utilization of corporate resources for sustainable growth and development by creating competitive advantage through research, innovation and development of intellectual capital. Decision makings & control, are integral part of both governance and management.
Governance is a set of relationships between the Board, management of the organization, shareholders and the stakeholders. It deals with the macro policy issues related to the operation of an organization. It normally reflects on Board practices, top management, transparency and accountability, risk management, and structural issues. Management is the operational issues that implement the policies. Governance sets the broader framework for the management to work with.
Governance covers all facets and all interfaces of organizations through caring all stakeholders inside and outside. Management produces strategies, tactics and operations to make organization compete, survive and sustain. Shortly, these two scuffles each other. Mostly governance is utilized in curbing management practices which may harm all or some of the stakeholders and helps organization to survive longer.
Management, as a practice, traditionally is oriented more to setting direction. Governance is usually oriented towards setting and enforcing bounds.
See David Ing, David Hawk, Ian Simmonds, and Marianne Kosits, "Governance and the Practice of Management in Long-Term Inter-Organizational Relations", Proceedings of the 47th Annual Meeting of the International Society for the System Sciences at Hersonissos, Crete, July 7-11, 2003 at http://systemicbusiness.org/pubs/2003_ISSS_47th_Ing_Hawk_Simmonds_Kosits.html
governance has to do with political leadership whereas management has to do with business leadership. management skills can be applied in governance
While governance aims at fulfilling all the stake holders' expectations, management aims at prudent utilization of organizational resources for achieving the organizational objectives. Governance is at higher plane than management.
Governance is usually carried out by an authority in power & takes into consideration the requirements of its subjects, though it may fail in many aspects.This is because, the constituents responsible for framing & effecting the rules & regulations could be ill advised or may not be in touch with ground reality. They go by the rule book & are at times irrelevant. Stake holders would then have to spend enough time to get redressed the problems, though not to the full extent. Management is the art for getting things done adroitly through members of the lower rung in a set up.Management involves the ability to get the almost required results within as short time as possible, where time,money & energy elements are not the constraints. Management involves to get things done even by bending the rules - though not to the verge of breaking them, but once broken, has the ability to patch them up so as to show that nothing has been done out of turn for the gullible, but not for ardent observers.
Those who excell in governance, will then have acquired the ability of management in respective subject,though a majority of them fail. Where as management will have the wherewithall to run things in a better method,with expected deliveries.
Tricker says, governance is concerned with "doing the right thing" , management is concerned with " doin things right".
I think this is enough to understand these terms but its diffucult to distinct boundary between them.
In smes it is more often than not that governance and management are closely interlinked and it is the same people that are carrying out both - often in a seamless manner by simply taking of one hat and replacing it with another according to circumstances. The dominant model of agency theory is closely related to large corporates with dispersed shareholdings yet 99.9% of all businesses are smes and corporate governance functions here in a particular context. To be of benefit it must be relevant, appropriate and meaningful and be seen as adding value in that it competes for time and resource with operational imperatives where payback and cost can be identified. The survival mentality that dominates owner-managers thinking tends to focus on the short term whereas governance resides within the strategic and policy domains that are rarely inhabited by sme owners.
Regards
Leslie
Governance relates to the different processes of making and setting rules and institutions that takes into account the different actors and networks that negotiate acceptable positions in balancing trade-offs in policy and its instruments (Pahl-Wostl 2009 ) . As the UNDP ( 1997 ) states, ‘Governance is seen as encompassing institutions, as well as the broader laws, regulations, policies and actions with which natural resources are managed, as well as the networks of in fl uence beyond just government, such as civil society, private sector actors, and non-governmental organisations’. Management on the other hand, is concerned with the application of these rules and operationalisation of the policy visions with the practical aspects of water allocation, protection, prevention of harm from extremes (Folke et al. 2005 ; Pahl-Wostl 2009 ) .
M. Hill, Climate Change and Water Governance
DOI 10.1007/978-94-007-5796-7_2, © Springer Science+Business Media Dordrecht 2013
Corporate Governance is about direction and control of an organization - It involves Strategy formulation and policy making - (Strategic Planning) - vision and mission statements and reshaping them where necessary.
Whiles Management has to do with setting up the Operational systems, processes and procedures in achieving the goals and objectives set by the Board to ultimately achieve Shareholder's Wealth Maximization and satisfying other Stakeholders needs.
sometimes governance and management can be interchangeably if both the concept and defenition base on the empowerment of organizational resources for reaching the organization objektives.
Governance is like write algorithm for accomplishment whereas management is like run that algortihm.
Governance (Director) never accept direction commands but goal OR goals and to reach that goals draw routes. The management then follow that routes.
Management is more related to the private sector with key idea's such as effectiveness, efficiency and profitability, while governance is more related to the complex bureaucratic system, is rule based and has more accountability to the public interest. Good governance doesn't have to be efficient, it must be applied equally to everybody. Private companies can become very complex that management only is not enough and that they have to take into account the public interest and have to apply governance: corporate governance.
Governance is concern with decision process (How is the decision made?) . Management is to implement the rules ( is the decision made according to the rules?)
Taken from COBIT 5 (my copy is from 2012), https://www.isaca.org/resources/cobit:
The COBIT 5 framework makes a clear distinction between governance and management. These two disciplines encompass different types of activities, require different organizational structures, and serve different purposes. COBIT 5’s view on this key distinction between governance and management is:
– Governance
Governance ensures that stakeholder needs, conditions, and options are evaluated to determine balanced, agreed-on enterprise objectives to be achieved; setting direction through prioritization and decision making; and monitoring performance and compliance against agreed-on direction and objectives.
In most enterprises, overall governance is the responsibility of the Board of Directors under the leadership of the chairperson. Specific governance responsibilities may be delegated to special organizational structures at an appropriate level, particularly in larger, complex enterprises.
– Management
Management plans, builds, runs, and monitors activities in alignment with the direction set by the governance body to achieve the enterprise objectives.
In most enterprises, management is the responsibility of the executive management under the leadership of the Chief Executive Officer (CEO).
Governance answers to what is in the organization (what it does and what it should become in a few years) while management answers to how in the organization (how to achieve the organization's goals
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