Business management emphasizes more on leadership and employees; that is, people who are in business management usually learn how to work together with employees, train them, and even direct them towards certain goals. On the other hand, business administration puts more emphasis on the daily functions of the business. People who are in business administration have more understanding of how to effectively operate a business, and they usually have a more specialized focus.

When it comes to academics, the two fields of study are quite similar due to the many shared courses. As a result, a person who has studied business management can perfectly run a company without any inconveniences while the one who studies business administration can perfectly fit in a management position. However, there are also clear differences when it comes to the two.

Career options for Business Administration people

At entry-level, people who’ve studied business administration have the same job opportunities as those who study business management. However, there are specific career choices for people who have studied business administration such as:

• Budget analyst
• Banker
• Logistics
• Event manager
• Project management
• Sales management
• Auditor
• Tax manager
• Finance management
• Marketing among others

These people can also work in different sectors such as insurance, healthcare, education, government, and finance.

How Business Administration helps an organization

People in business administration are very important when it comes to the proper functioning of an organization. They carry out various tasks such as marketing and advertising, budget management, clerical work, production, market research among other activities.

Career options for people in Business Management

• Financial manager
• Sales manager
• Human resource
• Management analyst
• Medical and health service manager
• Engineering manager
• Auditing clerk
• Marketing manager among others

Some of the industries that people in business management can work in include health care, insurance, government, restaurants, finance, and hotels.

How Business Management helps an organization

People in business management help an organization by being responsible for maintaining day to day functioning of the employees. Managers in business usually distribute information to employees who are conveyed by the top executive. This ensures the smooth running of the business. A good manager helps in increase in productivity and good Morales among the employee by occasionally motivating the employees.

Five functions of Management according to Henri Fayol

Henri Fayol is considered as the father of modern management. He was a theorist, an industrialist and a manager. He came up with five functions and 14 principles of management which are used up to date. These five functions include:

1. Planning – he believed that for a business to be successful, then it must plan that has plans. The plans should neither be preserved by the upper management nor the executive, but instead, they should be distributed in the company.

2. Organization – he believed that for a business to be successful, it must have a significant structure and organization.

3. Commanding – the manager should be able to inspire and communicate the company’s goals.

4. Coordinating – he believed that a manager should encourage continuity and harmony in various levels of an organization

5. Controlling – he believed that a manager should be able to control both resources and employees for the smooth functioning of the company.

How Business Administration and Business Management help entrepreneurs

People in business administration can help entrepreneurs by forecasting market patters, marketing, managing finances, budget management, and determining the cost of running a business while people in business management helps entrepreneurs when it comes to hiring workers and also motivating employees.


About the Author:


Anna Kucirkova works as a copywriter for over 4 years. She speaks 3 languages, loves travelling and has a passion for kids and writing. While she has been to many places in Europe and South-East Asia, she still wants to explore the rest of the world.

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