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Governance and Management: Understanding the Difference

Governance vs Management

The terms 'governance' and 'management' are often used interchangeably, but there are important differences between the two.

Governance is the process of making and enforcing rules, regulations and policies. Management is the application of those rules, regulations and policies.

Governance involves setting clear objectives, policies and procedures for an organisation, and ensuring that they are adhered to. It also involves ensuring that all organisation members are aware of their responsibilities and are held accountable for their actions. This includes ensuring that decisions are taken in the organisation's and its stakeholders' best interests.

On the other hand, management involves the day-to-day operations of the organisation, such as planning and budgeting, setting goals and objectives, organising resources and personnel, and overseeing operations. Management's responsibility is to ensure that the organisation's objectives are achieved.

In essence, governance is the process of setting the rules and regulations, while management is the process of implementing them. Governance ensures that the organisation is managed in a way that aligns with its objectives and values. In contrast, management ensures that the organisation is run efficiently and cost-effectively.

In terms of New Zealand, both governance and management are essential components of the public sector. The public sector provides critical health care, education, and infrastructure services. These services must be managed in a transparent and accountable way. This means that good governance practices must be implemented to ensure that decisions are taken in the public's best interests.

Although governance and management are closely related, they are quite distinct processes. Governance involves setting rules and regulations, while management applies them. However, both are essential for the effective running of an organisation and should be seen as complementary rather than competing processes.


Want to learn more? Check out the courses available at this link to gain a deeper understanding of the concepts of governance and management.


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