20+ Differences Between Business Administration And Business Management (Explained)

We all have heard the terms Business Administration and Business Management, especially when we can pursue a bachelor’s degree in the same. Business Administration and Management are two processes or concepts which are very similar yet very different.

The primary difference between Business Administration and Business Management is that the former is about formulating organizational goals, strategies, and policies. In contrast, the latter is concerned with the execution of the defined goals, strategies, and policies.

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Key differences

Business Administration

1. It can be best defined as a process or a concept that focuses on formulating organizational goals, objectives, strategies, and policies. This process does not focus on telling everyone in the organization how to perform tasks; rather, it emphasizes what has to be done and when it has to be done.

2. Speaking of the five basic functions of management, i.e., planning, organizing, staffing, directing, and controlling, this process is only associated with management’s planning, organizing, and staffing functions.

3. Since it is only concerned with formulating organizational goals, policies, objectives, and policies; thus, the task of framing these things is entirely done by the top-level management as they happen to be the individuals who know the organization and its desired goals better.

4. The main people associated with this function are generally owners, shareholders, and the board of directors of an organization or a business. The people who are considered a pro in this process are also known as Administrators.

5. This process or concept is primarily concerned with administrative and decision-making skills than technical skills. Thus, to excel in this area, one must have great administrative skills and abilities.

Business Management

1. It can be best described as a process or a concept that is concerned with the execution or implementation of the organizational goals, strategies, and policies that are framed in the Administration process. In this process, people know what and when things have to be done; they have to figure out who and how things will be done to ensure the fulfillment of the defined organizational goals and objectives. It can also be said that this process focuses on formulating business tactics.

2. This process is associated with the left-out other management functions, i.e., directing and controlling functions.

3. Since this process focuses on the implementation or execution of the defined organizational goals and objectives with the help of predefined policies and strategies; thus, it is primarily performed by the middle-level and lower-level management as they are equipped with the technical abilities.

4. The main people who happen to be associated with this function are always the employees of an organization or business. People who are masters in getting the desired work done are known as managers.

5. Since this process emphasizes getting the work done or implementing strategies and policies to achieve organizational goals and objectives; hence, employees working at middle and lower-level management are expected to have greater and better technical knowledge and skills than the administrating skills.

Comparison Between Business Administration And Business Management

Parameter	Business Administration	Business Management
Meaning	It refers to a process, function, or concept which is associated with the formulation of organizational goals and objectives, along with the formulation of policies and strategies that would be used to achieve those goals and objectives. It can be said that this process deals with the planning part of an organization or business.	It refers to a process, function, or concept that is associated with the implementation or execution of the framed organizational goals and objectives with the help of framed strategies and policies.
Performed by	It is primarily performed by top-level management that consists of owners, shareholders, stockholders, or board of directors who happen to have a better understanding regarding their organization’s betterment.	It is mainly performed by middle-level and lower-level management, which consists of employees of the organization who happen to have a better knowledge of technical skills that would be applied to ensure there is a fulfillment of organizational goals and objectives.
Gives answers to	It is associated with answering “what needs to be done?” and “when it needs to be done?” When the top-level management is framing goals and objectives, they tell the organization’s employees what work has to be done and when it has to be done.	It is concerned with answering “who will do the work?” and “how will the work be done?” When the employees understand what and when work needs to be done, the question arises of who will do the work and how? Middle and lower-level management then assign the desired work to relevant employees, who determine how to complete the given tasks.
Focuses on	It lays its emphasis on strategies of an organization or planning part of an organization where organizational goals, objectives, strategies, and policies are planned.	It lays its emphasis on the tactics of an organization, meaning it focuses on the actual work done or the implementation or execution of the planned strategies framed by top-level management.
Represents	It is concerned with depicting the blueprint of an organization or business as it deals with planning part of an organization by planning for future organizational goals, objectives, strategies, and policies.	It is not always when the planned output or results match the actual output. Real results depend on how the goals and strategies have been implemented. Thus, this process represents the actual or end results of the concerned organization.
Key person	A person who is skilled in this field of work is referred to as an Administrator.	A person who is skilled in this field of work is referred to as a Manager.
Skills	This field of work demands a better knowledge of administrative and decision-making skills than technical skills, as this field primarily focuses on the planning part of a business.	This field of work demands a better knowledge of technical skills than administrative skills, as this field emphasizes the execution of the planned goals and objectives.
Functions of management	It deals with the first three functions of Management: planning, organizing, and staffing.	It deals with the last two functions of Management: directing and controlling.
Influences by	It is largely influenced by the external factors of the business environment, including what the competitor organizations are doing, customers’ expectations, tastes, preferences, inflation, deflation, etc.	It is largely influenced by internal factors of the business environment, some of which include human resources, capital, technology, organization structure, etc.
Higher education	People wanting to pursue higher education in this field can opt for a Bachelor’s in Business Administration.	People wanting to pursue higher education in this field can opt for Bachelor’s in Business Management.

Major Differences Between Business Administration and Business Management

What Exactly Is Business Administration?

It refers to a process or concept of defining or framing the organizational goals and objectives along with strategies and policies that will help achieve concerning goals and objectives. The task of defining or formulating these things is done by top-level management, primarily consisting of the owner, shareholders, and board of directors.

This process is estimated to use the first three functions of management, i.e., planning, organizing, and staffing. People working in this area typically have better administrative skills than technical skills.

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Key characteristics of Business Administration:

1. It refers to a concept or process of defining and framing organizational goals and objectives and formulating strategies and policies to achieve the goals and objectives possible.

2. It can also be said that this part is generally concerned with the strategic part of an organization or business.

3. It is primarily concerned with defining things and gives answers to “what needs to be done?” and “when it has to be done?” It does not tell “how it has to be done?” and “who will do it?”

4. The task of formulating organizational goals, objectives, strategies, and policies is mainly done by top-level management, primarily consisting of the owner, shareholders, and board of directors.

5. This working field demands more administrative and decision-making skills than technical skills. Thus, people wanting to excel or make a career in this field must possess these characteristics.

6. People who work in this field are known as Administrators.

7. People pursuing higher education in this field can opt for a Bachelor of Business Administration.

8. This process is associated with the first three functions of management, i.e., planning, organizing, and staffing.

What Exactly Is Business Management?

It refers to a process or concept that emphasizes the implementation or execution of defined organizational goals and objectives with the help of pre-defined strategies and policies.

The task of implementing policies and strategies to achieve goals and objectives is primarily done by middle-level and lower-level management, which consists of only employees of the organization.

This process typically uses the other two management functions, i.e., directing and controlling. People working in this field have better knowledge and understanding of technical skills than administrative skills.

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Key characteristics of Business Management

1. It refers to a concept or process which is concerned with the implementation and execution of pre-defined organizational goals and objectives with the help of pre-defined strategies and policies to ensure the achievement of desired goals and objectives.

2. It can also be said that this part is associated with the tactical part of a business or company.

3. It is mainly concerned with the implementation of things and gives answers to “how the work will be done?” and “who will perform it?”

4. The task of implementation and ensuring the goals and objectives are achieved is done by middle-level and lower-level management, which comprises employees of an organization or business.

5. This field of work demands better technical skills than administrative and decision-making skills, as employees are primarily expected to complete the given goals and objectives.

6. People who work in this field are known as Managers.

7. People pursuing higher education in this field can opt for a Bachelor of Business Management.

8. This process is associated with the last two functions of management, i.e., directing and controlling.

The Contrast Between Business Administration and Business Management

Meaning

• Business Administration – It can be best described as a concept, process, or function which emphasizes formulation and planning of organizational goals and objectives accompanied by the framing of strategies and policies that would help achieve defined goals and objectives.

• Business Management – It can be best described as a concept, process, or function which emphasizes the implementation and execution of framed strategies and policies to achieve organizational goals and objectives.

Performed By

• Business Administration – It is mainly performed by top-level management, which typically comprises the owner, shareholders, stockholders, and board of directors of an organization or a business. Since these people own the business or organization, thus, they are the ones to decide their organization’s goals and objectives.

• Business Management – It is primarily performed by middle- and lower-level management, consisting of only an organization’s employees or business. Since these people are working for the organization and have technical skills and knowledge in that area; thus, they are the ones to ensure the desired goals and objectives are fulfilled.

Answers To

• Business Administration – It is associated with answering “what has to be done?” and “when it has to be done?” When the top-level management prepares the goals and objectives, they let everyone in the organization know what the employees must do and when they have to do it.

• Business Management is associated with answering “who will perform the desired work?” and “how will the work be done?” After being assigned the work by the Administration department, middle and lower-level management has to figure out how to do the work effectively and efficiently and who will be the employees doing this and that particular work.

Focuses On

• Business Administration – It primarily focuses on the planning part wherein the top-level management has to plan the goals and objectives and corresponding strategies and policies for the same. It can be said it deals with the strategies of an organization or business. 

• Business Management – It primarily focuses on the implementation, managing, and execution part wherein the work is done to achieve the planned objective. In short, it deals with the tactics of an organization or business. 

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Strategies Vs. Tactics

Strategies 

1. It refers to any plan that formulates the objectives or goals of an organization or a business and how the task of attaining those goals is to be carried out. The only work that has to be done while framing Strategies is planning things.
2. It is associated with being future-oriented as, in this stage, we only work by planning everything and setting the organizational goals and objectives.
3. The task of formulating these plans is considered a proactive approach wherein we define and understand everything from every angle that can happen in the future.

Tactics

1. It refers to the actual work done or a way or a method of achieving the defined plans or Strategies. In this stage, the actual work has to be done to move onto the path of achieving the framed objectives or goals. 
2. It is associated with being present-oriented as this is the stage where the actual work is done to achieve the plans set out in the Strategy stage.
3. The Tactics are concerned with following a reactive approach which can be best defined as an approach that deals with issues as and when they arise without making any planning provisions to combat the same.

Represents

• Business Administration – It is concerned with representing the blueprint of an organization or a business as this field depicts future planning in the form of organizational goals and objectives and the strategies and policies needed to achieve them. It can be said that this field depicts what the organization is expecting in the future. 

• Business Management – It is concerned with depicting the end or final result of an organization or a business. What we are expecting often does not happen in reality, and this is where this field truly represents the actual stage or reality of the concerned organization or business. 

Key person

• Business Administration – People who excel in this area of work, i.e., planning and framing part of management, are referred to as Administrators. 

• Business Management – People who excel in this area of work, i.e., managing and execution, are referred to as Managers. 

Skills

• Business Administration – This field of work demands great capabilities in administrative and decision-making skills compared to technical skills. 

• Business Management – This field of work needs great capabilities in technical skills in comparison to administrative and decision-making skills. 

Functions of management

• Business Administration is concerned with using the first three basic functions of management, i.e., Planning, Organizing, and Staffing. Planning is associated with drafting in advance what and when things will take place; organizing is concerned with giving or allocating resources consisting of human and material resources. Lastly, Staffing focuses on recruiting the right human resources at the right time to achieve organizational goals. 

• Business Management is concerned with the last two functions of management, i.e., Directing and Controlling. Directing can be best defined as leading and motivating an organization’s human resources towards achieving organizational goals along with their personal goals, and controlling is nothing but matching the actual results with the planned results and taking corrective measures to make them right. 

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Functions of Management

1. Planning – It is the first function of Management on the basis on which every other function of Management is based. It is associated with preparing in advance what has to be done when it has to be done, who will perform it, and how it will be done. 
2. Organizing – It is the second function of Management, which deals with allocating resources such as human resources, capital resources, and technological resources to people to ensure the fulfillment of organizational goals and objectives. 
3. Staffing – The third function of Management is concerned with recruiting and selecting the right individuals for the right job and at the right time to achieve organizational goals and objectives. 
4. Directing – The fourth function of Management deals with leading, motivating, influencing, and guiding human resources and aligning their personal goals and objectives with organizational goals and objectives to ensure the achievement of both organizational and personal goals. 
5. Controlling – The last but very important function of Management deals with matching the actual results or performance with the planned output to find deviations, if any, and taking corrective measures. 

Influences by

• Business Administration – It is primarily influenced by the external forces of business environments as one’s decision towards an organization or business is influenced by what the competitors are doing, what are the demands of the customers, what are their tastes, preferences, and expectations, what are the market forces, etc. Only based on such things top-level management makes significant decisions. 

• Business Management – It is largely influenced by internal forces meaning factors that lie internally within the organization or business. These factors may include the human resources of the organization, what is the organizational structure, what is the current technology, what are the capital resources, etc. 

Higher education

• Business Administration – People wanting to undergo higher education and make a career in this field should opt for a Bachelor of Business Administration. 

• Business Management – People wanting to undergo higher education and make a career in this field should opt for a Bachelor of Business Management. 

Conclusion

Business Administration and Business Management are business-related fields and revolve around finance, marketing, business ethics, human resources, etc.

The major difference between Business Administration and Business Management is that the former focuses on framing organizational goals and objectives along with formulating strategies and policies. In contrast, the latter focuses on implementing those strategies and policies to achieve organizational goals and objectives. 

Frequently Asked Questions (faQs)

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