Business Management & Business Administration Comparison

By: Shay Rosen

For most in the business world, the distinction between business management and business administration is clear. Business management is associated with the personnel related and day to day operations of a business while business administration is often considered an upper tier position that focuses on the management of a business' overall objectives.

The truth lies somewhere in between, as effective business administration shares many of the common traits of business management best practices. Decisions involving the management of personnel can be likened to decisions involving the allocation of company resources, where assets are utilized to produce the best results possible. Where production is concerned, managers often rely on data to determine where weakness can be improved. Likewise, administrators are responsible for the same data but from all departments, locating areas of concern company wide. .

Even in the world of education, the similarities are less than evident. A postgraduate business administration degree or more aptly master's of business administration is considered a doorway to business management on a grand scale. Still, the lessons of personnel management skills taught in a typical business management program are applicable to administration at higher levels. It's no secret that an organization's expectation of success starts at the top, yet many company's administrative leaders are more concerned with how resource allocation and profit margins can affect the bottom line than how personnel can be motivated to make the most of those resources. The realization of profit is more than just a matter of buying low and selling high, as the old adage goes. No matter what the industry, successful management encompasses every area of business and seeks to determine how the melding of human and hard capital can be used efficiently and effectively.

This is an area of concern that business administration is often deficient in recognizing, and one that could be properly dealt with through the simplicity of business management. There's a lot more to management than simply motivating personnel. The way in which managers are proficient at balancing the allocation of resources on a smaller scale in the context of employee production can be used departmentally as well. For administrators, dealing with management personnel should be approached in the same way.

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