Photo manipulation (retouching) is the application of image editing techniques to photographs in order to create an illusion or deception (in contrast to mere enhancement or correction), through analog or digital means. (wikipedia)
Retouching is often used interchangeably with enhancement & correction. Thus, when the word retouching is used it is referring to any action that has been taken to alter an image from how it was originally captured by a camera.
Retouching can be seen as a hierarchy of actions. First is correction, followed by enhancement, ending with retouching/photo manipulation. This order is determined by a few factors including: logical workflow, how the application work, final medium/s and personal style.