Effective business strategies must be carefully crafted. They also must be precisely implemented to ensure they meet their intended goals. This requires that both business administration and business management are working at an optimal level.
For those who are looking to pursue a business career driven by leadership, it’s important to know the differences between business administration and business management, as well as the differences as they relate to business degrees, that is, business administration versus business management degrees.
Business Administration vs. Business Management: Similarities and Differences
Both business administration and business management are critical to an organization’s operations, and the decisions made by people within these areas can influence the organization’s direction. Professionals working in both areas require a fundamental understanding of essential business concepts. Because of this, business administration and business management degree programs may have similar courses covering key concepts such as business law, human resources administration, change management, and accounting.
The primary difference between business administration and business management is their core function. Business administration focuses on building and developing organizational strategies that keep a business running efficiently. Those in administrative roles develop growth and stability strategies and set strategic goals. These goals are often created in conjunction with specific departments such as finance, marketing, or human resources (HR). The specific strategies they design depend on the department. For example, an HR strategy may involve a company reorganization or staff hiring.
Business management, on the other hand, focuses on the execution of strategies. Those in management roles often are leaders within the company, and they seek ways to optimize the organization’s resources so that its goals may be reached efficiently. They also are often tasked with guiding the organization’s workforce toward reaching the goal.
Business Administration vs. Business Management Degrees
Because business administration and business management focus on different components of business operations, the degree programs associated with the two are also different. Knowing the differences when it comes to business administration versus business management degrees can help aspiring business students decide which degree path suits them best.
Program Duration
The time it takes to complete a business administration or a business management program depends on the type of degree. A bachelor’s degree program, such as a Bachelor of Business Administration (BBA) or a Bachelor of Science (BS) in Management and Ethics, typically takes four years to complete.
If a student pursues an advanced degree in addition to an undergraduate degree, like a Master of Business Administration (MBA) or a Master of Arts in Leadership (MAL) with a business management concentration, they can typically expect to add an average of two more years to the completion time.
Curriculum Differences
While there is some crossover, there are key differences between a business administration program’s curriculum and a business management program’s curriculum.
At the undergraduate level, business administration program coursework centers on administrative functions like strategic management. Some programs may also offer concentrations that allow students to focus on a specific type of business administration, such as data analytics or healthcare management.
In graduate programs, business administration students typically dig deeper into broader concepts that tie into large-scale business strategy, like marketing analysis and global economics. These programs also typically offer concentrations, such as management accounting and international business management.
Undergraduate business management coursework places greater emphasis on leadership functions such as people management, personal goal setting, and entrepreneurship. Some programs at this level may offer concentrations in areas such as communication and management information systems.
At the graduate level, the leadership focus is intensified through courses devoted to leadership theory, training and development, and nonprofit leadership.
Career Outcomes
Business administration and business management degree programs prepare individuals for different business roles. This naturally can lead to different career outcomes.
Business Administration
Those who earn an undergraduate degree in business administration can pursue roles such as the following:
- Project manager
- Systems analyst
- Information technology manager
- Entrepreneur
Earning a graduate degree in business administration can lead to more advanced roles, including the following:
- Financial analyst
- Investment banker
- Data analyst
- Management consultant
- Chief financial officer (CFO)
Business Management
On the business management side, earning an undergraduate degree prepares students to pursue roles such as the following:
- Account manager
- Sales manager
- Human resources manager
- Recruiter
Students who earn a graduate degree in business management can be prepared to take on advanced roles, including the following:
- Health services manager
- Public relations specialist
- Operations manager
- Corporate trainer
- Chief executive officer (CEO)
Business Administration vs. Business Management Salary
There are also differences between business administration and business management salaries, though both are competitive. Earning a degree in either area can lead individuals toward well-paying jobs. According to March 2024 data from Payscale, the median annual salary of those with an undergraduate degree in business management is $70,000, while the median annual salary of those with a bachelor’s degree in business administration is $79,000.
At the graduate level, the median annual salary of individuals with a graduate degree in business management is $91,000, according to March 2024 Payscale data, and the median annual salary of those with a master’s degree in business administration is $97,000.
Take a Step Toward an Important Career
A close look at business administration versus business management degree programs shows they both provide students with the knowledge and skills they’ll need to play a critical role in an organization’s growth and stability. They both also can lead to a business career that is immensely satisfying.
Enrolling in one of the online or on-campus business programs at Mid-America Christian University (MACU) can help you prepare to pursue your chosen career path in business. Our flexible programs provide expert instruction and personalized support to help you become an impactful and confident professional in the world of business. We seek to transform our students into effective servant leaders who make the ethical decisions necessary to move organizations forward while making the world a better place.
Learn how MACU can help you plan for a bright future.