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Business Administration Vs Business Management

Business administration and management involve directing the operations of an organization. As business organizations grow, the responsibilities of business administration and business management diverge into specialized areas.

  • Business management generally deals with the human aspect of the operation of the business organization and covers human resources management, communication, logistics, and information systems.
  • Business administration, on the other hand,  includes personnel management and deals with the technical aspects of execution and planning of running the business organization.

Read on to gain a deeper insight into the differences between business administration and business management.

Business Administration

Business Administration


Business administration is the process of organizing resources and business personnel to meet the organizational objectives. Business administration students deal with the supervision of the company’s daily operation. Students of business administration focus on aspects like entrepreneurship, strategic planning, and research analysis, and effective commercial prediction for the organization. This business degree’s curriculum covers the following:

  • Development of strategic planning through market information for a broader understanding of the business
  • Analysis of the business administration role of information technology in business operations
  • Assessment and resolution of organizational problems
  • Implementation of data tools for the assembly of business intelligence
  • Application of critical thinking concepts
  • Development of the principles of financial management to ensure the viability

Career Scope

Career path outcomes for those with a bachelor’s degree in business administration program cover a wide range of options. Business Administration degree includes roles as a Marketing specialist, human resources specialist, accountant, business analyst, etc. They analyze different target audiences and strategize how to sell to them. They are often well-organized, strong leaders and are willing to overcome any challenges. Their responsibilities can range from determining what effectively sells a product and how their company can market to looking out for potential and current employees. Many will also work with current employees to build company culture and engagement. Those in business administration tend to have strong communication abilities, self-motivation, and time-management skills. They will also track and analyze data involving future or past financial decisions so that they can strategize and recommend changes to leadership that benefits the company and helps them manage proper spending habits. They also work on the developmental side of the business and will use software to build strategies to grow a business. They may also undertake project management and work on individual projects to build solutions to enhance these projects and benefit the company. 

Business Management

Business Management


Students of business management learn about designing, execution, governance, and analysis of the business enterprise. A student of business management is taught about the different functional levels of an organization that includes production, administration, finance, human resources, marketing and sales, and more. Business management curriculum covers:

  • Marketing
  • Business ethics and planning
  • Principles of management and business fundamentals
  • Business communication
  • Retail management
  • Taxation
  • Economics

Career scope

People who work in business management act in leadership roles and oversee the daily responsibilities of team members within the business department. They are strong leaders, critical thinkers, well organized, strategy-driven and have effective communication skills. Their responsibilities include supervising company operations, developing growth strategies, and marketing the business. One of the main goals of those in business management roles is to learn the responsibilities of each of their employees as well as how to lead teams and supervise them to increase the overall performance of the concerned department.

Career prospects include positions such as operations managers, sales managers, management analysts, and financial reporting business managers. Some of these positions require you to supervise different departments within the company. Many will require working with the supervisors, company leadership, HR team, sales team, and marketing team to ensure day to day tasks are being completed and goals are accomplished. People in business management roles encourage company engagement and develop a different budget and financial planning. They also ensure their employees are given the resources needed to succeed and often possess strong team-building skills, leadership abilities and are effective problem solvers. They train, challenge, and motivate employees to meet quotas, engage with potential customers, and will assist with any sales challenges. They will often create strategies to enhance the sales team’s efficiency and will act as a team mentor. 

Business Administration- Finance Vs. Accounting

Two key elements of business administration are finance and accounting. The main difference between them is that those who work in finance typically focus on planning and directing the financial transactions for an organization, while those who work in accounting focus on recording and reporting on those transactions. Put another way, accounting is the organization and management of financial information, whereas finance is the management of money. Finance is the business management role that involves the planning and direction of financial transactions of the organization, whereas accounting by administrators and professionals focuses on the archiving and preparation of reports on the basis of the financial transactions. Accounting deals with the flow of finances in the organization, whereas finance refers to the management of assets and liabilities. These are the differences between finance and accounting:

Parameters Finance Accounting
Primary employers who provide career opportunities for MBA degree Bank corporations Corporations and Public accounting firms.
Financial statement details responsibility Analytical decision making Preparation
Viewpoint in business activities Forward-looking Backward-looking
Organizational focus Analysis and insights Accuracy and reliability
Business objective Determination of the way to add value. Communication of the financial position.
Thought process of the operations manager Based on analysis Based on rules and protocol
Designation in business leadership to manage people  FVA, MBA CPA

Difference between Business Administration and Business Management:

Both administration and management involve the basic functions of planning, organizing, and controlling. The difference lies in their application. Management is about vision, planning, and communication, while administration concerns itself more with ensuring the nuts-and-bolts operations of a business continue to function in an optimal fashion. The focus of a business management program is typically on the bigger economic picture. Students in business management programs aim to have a broad understanding of modern business trends but may not necessarily concentrate on the specifics of any market. Conversely, business administration is sometimes considered most appropriate for people who plan to take specialized business roles when they complete their studies. Business administration roles include high-level accountants, chief technology officers, and chief operations officers. Candidates who pursue a business management degree focus on the overall management of the business organization. One of the key objectives of business management is to learn about the responsibilities of the employees and to lead them. The difference between management and administration is reflected in the workplace as well. The difference between business management and business administration becomes more nuanced at the higher levels of the organizational design.

Both the aspects mentioned above have their significance in organizations. Along with that, it is also important for the organizations to adhere to business rules to ensure efficient functionality of the business and achieve its goals. Click here to know about business rules and their significance in modern-day business.

Chen Meixiu

Chen Meixiu is a news writer at CapitalBay.News with a passion for technology. She draws on her years of experience as a business reporter and interviewer to bring to you the most salient issues and latest developments in the business world.

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