Difference Between Business Administration And Business Management

The field of business can be complex and sometimes very confusing. While deciding on a business career, you must understand the difference between business administration and business management. People usually use them interchangeably, but there are distinct differences between them.

Business administration and business management are the two most popular disciplines for corporate work. They generally involve strategy making, managing resources, managing human resources, etc. Let’s dive deeper and find out the differences between these two courses.

What Is Business Administration?

Business Administration is the process of planning, managing, and organizing a business's overall operations to achieve its goals and objectives. It's a broader field encompassing a wide range of disciplines, such as accounting, finance, marketing, operations, etc.

Business Administration also involves coordinating the efforts of human resources to complete daily tasks to achieve organizational goals. People working in Business Administration are responsible for running the organization smoothly and efficiently.

The study of Business Administration teaches various skills like communication, problem-solving, decision-making, and straight thinking so that people working in this field can provide the necessary structure, resources, and direction.

Role of Business Administration

The role of business administration is to ensure that the business can achieve its goals. To do that, people working here set up goals, develop strategies, and evaluate the results. Another crucial role of Business Administrators is to ensure efficiency across the company by reducing costs and figuring out the best way to spend resources.

Education and Qualification

You need to have at least a bachelor’s degree in Business Administration related discipline. Some companies also ask for a Master’s degree in a related field. Again, some employees may need a specialized degree in accounting, finance, operations, etc.

Career Opportunities

Business Administration is a highly sought-after field. You will have many career opportunities that are in high demand, such as Finance Director, Operation Manager, Accounting Director, and Executive in various departments.

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What Is Business Management?

Business Management involves overseeing and coordinating various activities of an organization or business. It mainly focuses on the most important resource of a company, employees. People working in Business Management hold leadership roles and are responsible for managing day-to-day operations.

Business Managers have to have the same skills as Business Administrators but also deal with external factors like suppliers, customers, and other stakeholders. Business Management studies teach industry dynamics, competitive landscapes, and, most importantly, managing people.

Because they have the responsibility to hire, train, and motivate employees to bring the best out of them, create a positive working environment, and achieve the organizational goals.

Role of Business Management

The role of business management is to perform day-to-day tasks designed by the business administrators. For business managers, the most crucial role is managing human resources in an organization. But they are also involved in decision-making and strategy-making.

Education and Qualification

Like Business Administration, you will also need a bachelor's degree in a related field to the very least to work in Business Management. This can include degrees in Human Resources, Marketing, Operations, etc.

Career Opportunities

Business Management is also a highly demanding career. With a Business Management qualification, you can work as a Business Analyst, Manager of Human Resources, Marketing Manager, Operations Manager, Sales Manager, etc.

Differences Between Business Administrations and Business Management (Business Administration vs Business Management)

Although the difference between Business Management and Business Administration is opaque, you will find quite a few differences if you look closely.

Core Difference

Business Administration's core focuses on developing and implementing policies, systems, and procedures to run an organization. It mainly ensures that the resources of the organization are effectively used. People in Business Administration also make operational, financial, and legal plans.

On the other hand, business management is responsible for directing and leading employees by motivating them, running the organization daily, and setting up ambitious goals. Business managers create KPIs and appraisals and oversee business operations.

Business Management vs. Business Administration Salary

An employee's salary depends on many factors, including their role, level of expertise, and year of employment. It also depends on the organization.

However, you can expect to earn between $75,000 and $100,00 per annum in Business Administration with a bachelor’s degree. Of course, it will increase as you go on to have a master’s degree and more experience in the workplace.

On the other hand, a Business Management job will provide somewhere between $64,000 and $100,000 per annum with a bachelor’s degree. Again, it will increase if you get further education and experience.

In a word, while Business Administration is responsible for developing a system, creating the ultimate goal of an organization, and ensuring the efficient use of resources, Business Management is responsible for implementing the goals and making strategies to achieve them.

Frequently Asked Questions

What is the difference between business administration and business management?

The difference between these two is that business administration focuses on creating organizational goals and strategies to achieve them. In contrast, Business Management manages an organization's daily tasks to achieve its goals.

Are business management and business administration the same?

No, they are not the same. Many people think both are the same and use the terms interchangeably. However, you will find many distinct differences if you look closely.

What is a business administration degree called?

A business administration degree has various names depending on the level of study. For example, a bachelor’s course is known as a Bachelor of Business Administration or BBA. A master’s degree is called a Master of Business Administration or MBA.

What is a business management degree called?

Business management studies also have many names. Bachelor's degrees are called Bachelor of Business Management or BBM and Bachelor of Management Studies. Similarly, a master's degree is known as a Master's in Management Studies and a Master's in Business Management or MBM.

Final Thoughts

After knowing the difference between Business Administration and Business Management, one thing is clear: both are crucial parts of an organization. While the former focuses on planning and executing business operations, the latter focuses on performing routine operations.