Business Administration vs. Business Management: What’s the Difference?

Pursuing a career in business and finance continues to remain a solid choice. According to the bureau of labor and statistics, jobs in this field will see a growth rate of 7% from 2021 to 2031 resulting in a total of just over 700,000 new jobs. 

Business administration and management are two excellent career choices but it’s important to understand that the two are not the same. So, what is the difference between business administration vs business management? Let’s discover which would be a better fit for you.

What is Business Management?

Working in business management is a bit like being the coach of a sports team. A coach’s focus is managing resources – players, assistant coaches, trainers, and equipment. Their goal is to have those resources functioning together so well that the goals of the franchise are realized. 

When you work in business management you organize and manage a company’s resources which include staff, revenue, and information. If you are a people-centric kind of individual, business management is a career that is right up your alley!

Developing communication skills, managing human resources, and general management theories are emphasized in business management degree programs. 

What is Business Administration?

Where business management leans toward managing people, business administration focuses on the more technical aspects of running a business. Business administrators like navigating the nuts and bolts of business operations and tend to be good strategists.

Business administration degrees focus on business theories and provide a solid framework for analytical training. After completing core courses, students choose a specialization in areas such as human resources, finance, accounting, and marketing. Graduates will not only have their specialization but they will be well-versed in the big picture and understand how different specializations work together toward a company’s goals and objectives. 

Career Opportunities: Business Administration vs. Business Management

The differences between business administration vs business management become clearer when you consider the types of careers each offers. It always helps to have examples, so let’s break it down and take a look at some of the business management and administration career opportunities.

Business Management:

• Financial Reporting Manager

The financial reporting manager is concerned with controlling costs and they work with the financial and legal departments to accomplish this goal. They gather and collate information and present reports to people like shareholders, directors, auditors, and regulators. 

• Operations Manager

Operations managers may oversee an entire organization or multiple departments. They are responsible for the production of all the goods and services that a company offers. They implement strategies that result in the smooth running of operations. 

• Sales Manager

Being a sales manager is a people-centric career. Sales managers recruit, hire, and train members of their sales teams. They work with their people to set team goals, analyze data, and develop training programs that help the team achieve its goals. 

• Business Consultant

A business consultant aids in the planning, education, and implementation of businesses. As professional advisors, they show business owners how to best streamline operations to achieve company goals. Business management and administration degrees are both suitable for a career in business consulting.

Business Administration:

• Staff Accountant 

Becoming a staff accountant is a great example of the type of specialized learning that is undertaken in business administration vs business management degree programs. Accounting is one business administration specialization and staff accountants oversee receivables, payables, and budgets. They also prepare reports and make sure the company is compliant with its tax obligations. 

• Marketing Specialist 

Marketing specialists oversee the marketing staff and the company’s campaigns. They work with the marketing teams to create campaigns, develop pricing strategies, and target their intended demographic. Marketing specialists are creative people who understand brands and who are adept at brainstorming.

• Human Resource Administrator

The job of a human resource administrator is a complex one and demands that an individual juggle several tasks at one time. They help create and maintain human resource documents, resolve conflicts, facilitate hiring and training, and occasionally help with payroll. They also ensure that a company complies with the legal issues surrounding employment.

• Business Analyst 

Data analysis is a crucial tool for a company that helps them to assess their strengths and weaknesses. A business analyst gathers and analyzes data to help identify and solve problems. Using that data they can assess how operations and production are running and whether there are ways to improve efficiency and lower costs.

• Executive Director

The executive director is the highest-ranking position in an organization and is a term more commonly used in non-profits. In for-profit companies, the executive director position is typically called the CEO (Chief Executive Officer). The executive director is the one responsible for steering the entire company and managing its operations. 

What’s the Difference Between Business Administration vs. Business Management?

There are a few points to consider when discussing the difference between business administration and business management. Goals are similar and both administrators and managers work toward a company’s success. But there are differences. Let’s take a look.

Job Expectations

Business managers are people-oriented and are the face of a company. The manager is usually the first point of contact for people inside and outside of an organization. They are concerned with the daily operations of running a business and possess strong communication and problem-solving skills.

Business administrators, on the other hand, spend most of their time supporting senior management and have a big-picture type of outlook. Company policies, timelines, working with stakeholders, and establishing priorities are the purview of business administrators. 

Career Outlook 

Business administration and management positions have similar salaries and job security is good. Wages will vary depending on the industry and job title but the median salary is $76,570.

External vs Internal Consideration 

While there are differences between business administration vs business management, we can also see that most often the divide isn’t written in stone, and the responsibilities of one sometimes bleed into the responsibilities of the other. Take a moment to consider your interests, strengths, and weaknesses when deciding on which career path you’re going to take. 

Internal considerations include your interests, skill sets, and career goals. If you enjoy managing groups of people and working with teams, business management may be a better fit. If you like big-picture thinking around projects, then business administration is a great choice. 

External considerations are those things that are outside your sphere of influence. Things like technological advancements, business trends, international relations, and global events like the pandemic all influence business. It’s vital to understand how each of these impacts the business career path that you are considering.

Earning Your Degree Online

University of the People offers degree programs in both business administration and management, as well as certificate programs. Earning an associate’s or bachelor’s of business administration or a master’s of business administration online is made easier because UoPeople’s program delivery is 100% online and accredited. UoPeople has also removed many traditional barriers to a college education by being tuition-free, and lowering the entrance requirements. Prospective students only need to have a high school diploma or equivalent and proof of English proficiency 

Wrapping Up

There are several points to ponder when choosing to pursue a business administration vs business management education or career path. Both fields offer solid job security and excellent wages. In the end, it’s helpful to undertake a self-assessment of your interests, goals, strengths, and weaknesses to make the best choice. 

No matter what, business management and administration are wonderful careers that offer impressive opportunities!