Every business needs people who make sure that the enterprise is organized, well managed and meets its goals and objectives.

The performance of people in business administration and business management ensures that a company continues to work smoothly. Without these roles, employees would have no direction and no clear idea of expectations. The company’s goals would not be formed, and the implementation of goals would fail.

But what exactly is business administration and business management? What career goals are available, and how can these skills benefit a business or entrepreneur?

Business Administration vs. Business Management

People seeking a career in business may be confused by the labels of business administration and business management.

While people often use the terms interchangeably, there are some key differences.

In short, people who study business administration are usually more focused on the day-to-day functions of a business. They often have a more specialized focus and understand how to operate an organization.

Business management, on the other hand, is more leadership and employee-focused. People in business management learn how to work with employees, train them if necessary, and direct them toward a goal.

One of the reasons these two career choices are thought to be so similar is in degree programs, they often share many of the same courses and areas of study. Both business management and business administration students learn about things like finance, ethics, business law, economics, accounting and many other business-related courses.

Not only that, but a person who studies business administration is not precluded from management positions, and a person who studies business management may end up with a job helping run a company.

Still, there are important distinctions that make them unique. A person who is more interested in a job in human resources may be better suited for studying management. Likewise, someone who is interested in being an entrepreneur would tend to gravitate toward studying business administration.

Career Options for People in Business Administration

Again, people who study business administration may end up with the same job opportunities as someone in business management. This is especially true for jobs at an entry level.

However, for jobs specifically targeted toward business administration, there are some common career paths.

People in business administration can do anything from working as a receptionist to an accountant to an entrepreneur.

Here are some other common career choices for people in business administration.

  • Clerical aide
  • Budget analyst
  • Marketing
  • Logistics
  • Banker
  • Education supervisor
  • Sales management
  • Finance management
  • Operations
  • Event manager
  • Project management
  • Budget director
  • Treasurer
  • Tax manager
  • Financial examiner
  • Auditor
  • Tax accountant

People who work in business administration can also work in many different types of industries including healthcare, government, insurance, education and finance.

How Does Business Administration Help an Organization?

Without some kind of business administration, a business will flounder.

People in business administration maintain the flow of a company from the front desk to top management. This includes all elements of business including advertising and marketing, production, clerical work, finances, budget management, market research and so much more.

People who excel in this field are good at communication, problem-solving and attention to detail. Their experience is an asset to companies and also gives them the knowledge to start their own successful businesses and startups.

People in business administration are also vital to nonprofit organizations, government offices and other enterprises.

Career Options for People in Business Management

Those who choose business management are more focused on jobs that include working with people and employees in a company.

People in business management can work in jobs that include customer service, accounting and of course, various management positions.

Here are some other common career paths for people in business management.

  • Sales manager
  • Marketing manager
  • Administrative assistant
  • Auditing clerk
  • Business analyst
  • Human resources
  • Legislator
  • Industrial production manager
  • Financial manager
  • Management analyst
  • General operations manager
  • Medical and health services manager
  • Hospitality management
  • Engineering management

People who study business management are able to work in many industries as well. Some of these include government, hotels, restaurants, insurance, health care and finance.

How Does Business Management Help an Organization?

In order to succeed, a business or organization needs workers who understand their expectations.

Those who work in business management are responsible for maintaining the daily functioning of the staff. They’re also responsible for hiring new employees and letting go of employees if and when needed.

Managers are extremely important to the everyday functioning of a business. All top executives can’t explain the goals of the company to each and every employee every day. Top executives understand the objectives of their businesses, but they need managers to distribute the information.

Managers are also necessary because they keep employees motivated. Poor managers discourage and frustrate their workers. This leads to low morale and loss of production. A good manager is able to encourage while keeping employees on task. Not everyone has this ability, but it’s the mark of a good manager.

Henri Fayol’s Five Functions of Management

Henri Fayol was a theorist, industrialist and manager born in 1841 in Istanbul. Alongside Frederick Winslow Taylor, Fayol is considered the “father of modern management.” He was the first person to understand that managers are an essential part of industrial modern workplaces.

During his life, he wrote about five functions and 14 principles of management. His theories are still used today to guide managers. In fact, his five functions traverse the job descriptions of both those in management and in administration.

Here is an outline of Henri Fayol’s Five Functions of Management.

  • Planning—Henri Fayol believed that people in business should plan ahead. A successful business includes people who are able to think about their future goals and plan accordingly. These plans must be distributed company-wide and are not just reserved for upper management and executives.
  • Organizing—A company is not able to succeed without significant structure and organization. Management should provide all the raw elements needed for production including materials, personnel, tools and other resources.
  • Commanding—The manager should inspire and effectively communicate the company goals. They should consistently explain company policies and guidelines and consistently point employees in the right direction.
  • Coordinating—Fayol believed that a manager should encourage harmony across many levels of an organization and help promote continuity. This function requires good communication skills and integral thinking.
  • Controlling—This refers to controlling both resources and personnel to make sure plans are running smoothly. This function also means making sure that processes and people are working according to policies. If not, they should be corrected. Managers should also record and report issues that may arise and keep track of employees’ general job performances.

How Can Business Administration and Business Management Help Entrepreneurs?

Today’s world is an exciting time for entrepreneurs. With modern technology, there are endless options for small business and start-up opportunities.

Understanding the art of business administration and business management is supremely beneficial to entrepreneurs.

As a small business begins to grow, their need for business administration knowledge grows as well. Those in business administration are able to market, understand financing and forecast marketing patterns. Not only that, but they understand the basic functions of a business and the necessary tasks that must be performed to be successful. They have knowledge of the raw materials needed for a business, the cost of running a business and how to maintain a budget.

Business management is also integral to a successful business. Small startups may only have one or two employees, but as time goes on, adding employees becomes paramount. Hiring workers and making sure that they perform well is not an easy task. Many people lack the necessary skills for proper management. They don’t have good instincts when it comes to hiring and struggle to motivate employees. That’s why a strong education in business management is helpful in an entrepreneurial context as well.

Is Business Administration or Business Management Right for You?

Deciding what type of degree to study in college is sometimes difficult. If you have a mind for business, or if you have a business that you want to grow, either of these degrees is outstanding.

Whether you choose management or administration, either one will equip you with important knowledge about finance, ethics, business law, accounting, marketing and more. These skills are extremely marketable and necessary in almost every company or organization.

Learn more about growing into these career fields and the practical experience gained through a degree by learning more about a business administration and management program at PGS.

B.S. Business Administration and Leadership

B.S. Organizational Management