Business Administration vs. Business Management

The difference between business administration and business management The job of the personnel that run a business is…

The difference between business administration and business management

The job of the personnel that run a business is to make sure that the day-to –day operations run smoothly and that the business is financially viable. In order for this to happen, there must be an efficient administrations and system of management in place. Without these two aspects, a business will not be profitable and will not experience growth. Although they are two different facets of a business, they work hand in hand to achieve the organizational goals. Administration sets the goals and management makes sure that they are achieved.

About Business Administration

The workforce or human resources of a business make up its business administration. The main objective is to set goals for the business to attain or exceed. In order to achieve this it is important to organize the personnel and recruit the needed resources to make the business profitable. The administration of a business usually consists of the Board of Directors, the CEO’s and managers at the various levels. The duty each one performs depends on the rank within the company. As a rule, administrators:

  • Plan for the current year and future years
  • Organize the resources and recruit any that are needed
  • Prepare budgets
  • Give directions to personnel
  • Control the workforce to maximize potential

About Business Management

Business management refers to the way in which the administrators manage the business. This is the way in which the workforce performs so that everything runs effectively and efficiently on a day to day basis. The management is responsible for organizing the workforce so that it makes the best use of the resources. Managers perform the following duties:

  • Manages the human resources for the most effective output
  • Manages the financial resources for the best use of the monies
  • Manages the technological resources to achieve maximum output with minimum effort

Through the business management, the administration can plan the resources to make the business as profitable as possible. A manager also manages others to work efficiently to obtain maximum output. It also involves forecasting for the company’s future based on its past performance.

The difference between business administration and business management

Business administration and business management are similar in that they are both indispensable in running a business to make it more profitable and to maximize the use of the workforce and the resources. They are different, but the line between them is very thin. Business administration is more focused on the planning and goal-setting part of the business, but business management focuses on putting these goals into practice to help the business grow and to maximize the profitability.


A business cannot prosper unless it has an effective administration and an effective management system. It helps develop business growth and make it profitable. However, a good administration alone cannot guarantee these results without having a good management to back it up. Actually the management is the most important part of a business because it is the managers that put the plans of the administration into action and organize the workforce and the resources.


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