Business Management vs Administration: Difference and Comparison

Businesses are like the new future of the economy of the world, and it is very important to handle them carefully so that they can grow in the right direction. To ensure the proper growth of a business, two types of activities are performed in an organization. These are the activity of Business Management and Business Administration. The two terms can be confusing for many people, but in reality, they differ greatly. 

Key Takeaways

  1. Business management focuses on directing and controlling organizations.
  2. Business administration involves overseeing daily operations and managing resources.
  3. Both fields involve strategic planning and decision-making.

Business Management vs Business Administration 

Business management and business administration are two related but distinct fields of study; management focuses on the organization and coordination of business activities, while administration emphasizes the operational and administrative aspects of a business.

Business Management vs Business Administration

Business Management is an activity that resembles the activity of management in almost any other field possible. In simple words, it ensures that the particular activities related to the business are being managed and looked after carefully. For example- managing the employees at work can be an efficient example that falls under the purview of business management. 

But on the other hand, when it comes to Business Administration, it holds a wider and broader scope relatively. It does not just focus on getting particular tasks done but ensures the running of the business as a whole. It operates in almost all the possible fields related to any business and aims to yield desired results as much as possible. 

Comparison Table

Parameters of Comparison Business Management  Business Administration 
Meaning  This activity denotes the function carried out by the management of the business to ensure that a given area of operation runs smoothly. This activity denotes the function carried out by the administration of the business to ensure that the complete business setup works efficiently. 
Area of operation  This activity is performed under the due guidance of the administration of the business. This activity is performed independently and the administration holds the utmost power. 
Focus  While managing, the focus is to get a particular area to work better. While administering, the focus is to make sure that no area related to the business faces any difficulty. 
Applicability  This activity is performed in different business organizations and entrepreneurial areas. This function is carried out in places with a more defined structure of the organization. 
Nature  Less disciplined activity. This is a very well-disciplined activity. 
Scope  Comparatively narrower scope Comparatively broader scope 

What is Business Management? 

When the term management pops up, it talks about managing certain things, tasks, or people. In any business or organization, management is a function that focuses on how the right things should be delivered at the right time to the right people. It ensures that any task attached to the business and requires attention runs smoothly without any hatchback.  

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For this particular purpose, an organization comprises a very good team of certain experts in management, known as the organisation’s management team. For example- the management team decides what qualifications of the organisation’s prospective employees match the job expectations. After deciding so, the management schedules interviews and recruitment rounds with those prospects and selects the pool of talent required for the job.  

Management in any organization happens to be an activity that is highly structured and monitored. At different levels, multiple employees perform their functions and ensure that the activity as a whole remains intact. 

business management

What is Business Administration? 

Business administration is a term that is used interchangeably by many people in the place of business management, but the truth is that even after so many similarities and overlapping, business administration is an activity that can easily be distinguished from other activities due to its uniqueness.  

Administering a business is like administering a whole country. While carrying out the administration, it is not necessary that what tasks should be kept in focus. Rather it is necessary to think about the business as a whole. For example- the administration of the business decides what shall be the remuneration of the prospective employees after receiving certain inputs from the management team. 

All other departments of the business carry out their operation under the due guidance of the administration. The administration decides what the right things should be given to the right people and who the right people deserve those right things. From planning the very core of business to calculating its growth and risks, everything takes place under the advice of the administration.  

business administration

Main Differences Between Business Management and Administration 

  1. While Business management is a function carried out to manage certain tasks related to business, the administration is the whole activity of taking care of all aspects related to a business. 
  2. In terms of cope, Business management has a narrower scope than business administration. 
  3. Business administration is an activity that requires a very high amount of discipline, while management can be carried out in easy terms as well. 
  4. Business management focuses on getting certain tasks right, while business administration ensures that no area attached to a business faces any issue. 
  5. Business management can be found in the area having the financial or economic nature of the activity, while on the other hand, administration can be found in almost all organizations. 
Difference Between Business Management and Administration
References
  1. https://books.google.com/books?hl=en&lr=&id=BU6fxV5VCf8C&oi=fnd&pg=PA1&dq=business+management&ots=0eRfioHdLP&sig=TVCpuI5kZL0jOg0XrDPdgtoyViw 
  2. https://onlinelibrary.wiley.com/doi/abs/10.2307/3587338  
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Last Updated : 13 July, 2023

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8 thoughts on ‚ÄúBusiness Management vs Administration: Difference and Comparison‚ÄĚ

  1. The article provides a clear, thorough explanation of the difference between business management and administration, along with a detailed comparison table.

    Reply
  2. It’s important to note that businesses will require a strong foundation in both management and administration in order to succeed. This distinction outlined here provides an insightful foundation for understanding each aspect.

    Reply
  3. The article provides a comprehensive overview of business management and administration, emphasizing the differences between the two. It’s a great resource for anyone seeking to improve their understanding of these concepts.

    Reply
  4. The comparison table makes it easy to understand the key differences between business management and administration. The article effectively highlights the distinct scopes and focuses of these two aspects.

    Reply
  5. A very well-structured and informative article. Clearly differentiating business management from business administration helps in understanding their unique roles in an organization.

    Reply
  6. The explanations are concise and illuminating, providing a solid understanding of business management and administration. The article effectively captures the essence of both fields.

    Reply
  7. The clarity in distinguishing between business management and administration offers valuable insights into the specific roles of each aspect in the context of business operations. A great read for those seeking to gain a deeper understanding of these areas.

    Reply
  8. The article effectively conveys the essence of business management and administration, shedding light on their respective nature and scopes. It’s a valuable reference for those interested in these areas.

    Reply

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