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Business Administration vs. Business Management

Updated on 09 October, 2023

upGrad Abroad Team

upGrad Abroad Team

upGrad abroad Editorial Team

Students often confuse the best managerial education options that suit their requirements. Some think of venturing into a business management course, while some others consider business administration to be a better option. Which one is the better option for you? Here’s looking at some of the core aspects of both program types, helping you choose the best possible option for yourself. 


Differences between Business Management and Business Administration 

There are several differences between business administration and business management. Some of them include the following: 

Different business styles- 

Business management concentrates on an organization’s day-to-day operations and functioning. At the same time, business administration is about ensuring the smooth functioning of company systems and procedures while ensuring that the organizational goals are intact. Managers are those managing the workforce, while administrators have responsibilities about administration. The names say it all. 

Focus Areas- 

Business managers have responsibilities like planning, taking new company initiatives, expanding and organizing teams, getting new business and sales figures, understanding market trends, and catering to the same. At the same time, while these managers have a broader or wider perspective of the business industry, business administration professionals have a specialized focus on things like administrative duties and responsibilities. 

Operational differences- 

Business managers emphasize engagement between the world of business and the organization, while business administrators are more engaged in the inner operations of the organization. Business management graduates are more in touch with clients, to whom they pitch the services/products of the company. Business administrators usually ensure that the company has the internal capabilities to deliver on its promises to clients while delivering on the commitments made by the sales team. They manage specific departments, including human resources, marketing, supply chains, product teams, accounting, IT, and finance

Team Management – 

Business managers usually have bigger teams to supervise and lead. Business administrators usually have smaller teams with higher expertise in specific divisions. 

Business Management vs. Business Administration Salary 

Business administration offers several careers like human resources managers, business analysts, auditors, and financial officers. The average salaries hover between $56-67,000 per year. Executive business administration job roles include Chief Information Officer, Chief Financial Officers, General Managers, and Chief Operating Officers. Average salaries usually range between $97-162,000 per year. Business analysts can expect around $60,444 per year (average), while HR managers may earn around $67,252 per year (average estimates). Chief operating officers may earn up to $142,735 per year, while chief information officers can also draw packages of $161,274 per year. 

Business management offers several job roles for aspirants. Sales managers may earn up to $61,000 per year, while marketing managers earn up to $65,267 per year. Operations managers earn around $65,185 per year, while account managers earn approximately $54,275 per year. Financial managers may earn around $91,433 per year, while business development managers earn average salaries of $72,777 per year. 


Which is Better- Business Administration or Business Management? 

Both business degrees offer a wider understanding of the business market for aspirants. Hence, both have their strengths. Business management, i.e. MBA degrees, are still more popular amongst students since they usually lead to fulfilling global careers. A degree in Business Administration may also help achieve top positions internally within companies. A Business Management specialization is ideal for those who want to lead bigger teams, are comfortable taking leadership, and specialize in visualizing planning and communication. This suits those who wish to communicate with customers while developing a broader skill set directly. This also suits those still unsure about the management branch they wish to specialize in. 

A business administration degree would suit you better if you are looking for a more specialized and niche function that involves smaller teams but higher expertise and internal responsibilities. Those who are more technically inclined may also consider these programs

Frequently Asked Questions

Is business administration or business management better?

Business administration is a better option if you are considering getting into an entry-level career in business. If you are looking more at managing teams or operations or are already well-set in your profession, then business management could be a better choice. 


What is the difference between administration and management?

Management is a systematic method of management for things and people within the organizational framework. The administration is the action of administering an organization by specific people and groups. Administration is a top-level responsibility, while management is a business and functional responsibility. 


Is Business Administration the same as business education?

The business administration field gives students a sound business education in specialized areas, including human resources, business management, marketing, and finance. There are several elective options for getting a thorough business education as well. 


upGrad Abroad Team

upGrad abroad Editorial Team

We are a dedicated team of study-abroad experts, ensuring intensive research and comprehensive information in each of our blogs. With every piece written, we aim at simplifying the overseas education process for all. Our diverse experience as journalists, content writers, editors, content strategists, and marketers helps create the most relevant and authentic blogs for our readers.

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