Administration in all types of organizational activities is the act of getting people together to accomplish desired goals and objectives efficiently and effectively. An institution, which has to achieve a goal through people using certain infrastructure resources, which has to deliver services within a time and at prescribed cost of a specific quality, needs administration or management. Hospital administration is more specialized than administration of any other business organisation. The major differences are: Hospitals deal with human beings rather than materials or products as an end; it involves 24 hours work; is of emergency nature; involves high risk, ethical and legal issues. Work is challenging and interesting since the working atmosphere is a blend of hopes, sadness, grief and conflicting goals of the management, professionals, employees, patients, relatives, community, Government and the media.
Hospital administration is concerned with planning, organising, staffing, co-ordinating, controlling and evaluating health services to provide maximum patient care of superior quality at low cost.