Business Administration vs. Business Management: What’s the Difference?
Before deciding which career in economics to pursue, you should learn about the differences between them to see which fits best with your skills and ambitions. In this regard, business administration and business management are paths in the field of economics that have both points in common and differences.
These two majors are continually chosen by multitude of students at many accredited universities worldwide. Both business management and business administration prepare you for a prosperous career in the field of economics and provide you with technical and specific knowledge of the managerial and administrative aspects of businesses.
Read below about the difference between business administration and business management and the specifics of each degree path to see which one fits your goals.
What Is Business Administration?
Business administration is one of the degrees most in demand, as it offers excellent employment and career opportunities in the field of business. It prepares you for the supervision and administration of all the activities and operations of a company or enterprise, including specific areas, such as finance or marketing.
Additionally, since business administration is about organizing work, people, and resources, by pursuing this degree you will gain better communication, decision-making, and strategic planning skills.
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Business administration career paths
A business administration degree will provide you with the set of skills needed for a variety of jobs. Based on your interests and the knowledge you gain during your studies, you can choose the career that suits you best.
Also, the careers you are qualified to pursue with a business administration major are ever-increasing, which adds more value to this branch of economics.
Below we describe three jobs you can pursue with a business administration degree. Keep reading if you are interested in the possibilities this presents.
Project manager
Project management is one of the most in-demand jobs of the present and the future. As the name implies, a project manager has the task of planning, managing, controlling, and monitoring a project for a business or organization by overseeing every step and organizing the team, schedules, and resources. In short, project managers are responsible for the failure or success of a project, as they are in charge of every aspect of the work.
As a project manager, you will need skills and qualities such as communication, integrity, accountability, strategic planning, and encouragement.
As far as job opportunities, it is worth noting that there are quite a few industries where you can work as a project manager, such as construction, engineering, finance, healthcare administration, advertising, and information technology.
Salary
In general, project managers earn a high salary. How much you can make as a project manager depends on the company or organization you work for, the qualifications and certifications you possess other than university degrees, and the experience you have gained over the years.
A project manager receives an average of $75,213 annual salary.
Sales manager
Another lucrative and in-high-demand job that you can pursue with a business administration degree is that of sales manager.
As a sales manager, you will be in charge of:
monitoring and organizing the employees working in sales;
creating sales plans;
preparing budgets;
hiring and firing process;
communicating with customers regarding their potential complaints;
organizing training programs and workshops for the employees.
As a sales manager, you can work in industries such as real estate, insurance, manufacturing, retail, etc.
Salary
To begin with, the average annual salary of a sales manager is $71,987. Nonetheless, how much you can earn as a sales manager will ultimately depend on the company where you are employed, the number of hours you work, and your experience. For instance, if you have 1-2 years of experience, you can earn up to $69,384 per year. On the other hand, if you have more than 10 years of experience, you can earn up to $82,132.
In large companies with more employees, a sales manager has more significant responsibilities and more challenging tasks. Therefore, their salary will be higher in comparison to sales managers in smaller companies. To give an illustration, big companies such as AT&T, Total Quality Logistics (TQL), Network Capital Funding Corporation pay sales managers around $122,101, $120,65, and $120,097 per year respectively.
Human resources manager
Human resources (HR) managers are in charge of the hiring process of new employees in a company.
The task of an HR manager is to create strategies that help find the best candidates in the market for a particular job position, to adapt the company’s requirements to those of the candidates, and to develop collaborative relationships between a team member and an employer.
An HR manager organizes the hiring process and follows through till the end.
Salary
As it is one of the most sought-after jobs nowadays, the job of the HR manager is financially profitable.
An HR manager can earn up to $80,000 annual salary. If you have only a bachelor’s degree, then you will be making around $63,000 per year, according to the U.S. Bureau of Labor Statistics (BLS).
Business administration job outlook
Given that the field of business, entrepreneurship, and economy, in general, is quite dynamic and constantly changing, employment in these fields is therefore expected to increase. Moreover, according to BLS, employment in business and financial operations is projected to grow 8% from 2020 to 2030.
What Is Business Management?
Business Management is a degree path within economics that prepares you for managerial positions within a business or organization.
In this degree, you will be exposed to subjects related to economics, finance, strategic planning, and statistical analysis, to name a few. Additionally, you will be trained for leadership positions since you will be responsible for supervising a business or organization by leading and overseeing employees and operations.
The fundamental goal of business management is to get people within the organization to work together to achieve the desired goals. To do this, management teams put into work various business plans, guidelines, and tactics.
Business management career paths
A university degree in business management will open the doors to a variety of jobs in various industries and lead to a prosperous career.
Since in business management studies you learn about finance, marketing, analytical skills, accounting and similar, the range of jobs you can choose from is wide. For instance, you can work as an office manager, accountant, marketing specialist, logistician, financial analyst, public relations specialist, etc. You can read below about some of them.
Financial analyst
A financial analyst within an enterprise has the task of gathering data and providing analysis, reports, and forecasts of the company's financial affairs. Based on the financial information provided by them, the company will find it easier to make decisions, attract investments, or evaluate results.
As a financial analyst, you can work not only in businesses but also in organizations, banks, and insurance companies.
Salary
The job as a financial analyst is one of the fastest-growing and most challenging positions in the finance industry. Therefore, it is quite lucrative.
A financial analyst can earn an average base salary of $67,706 per year. However, this figure will change depending on several factors, one of them being the location. To give an illustration, a financial analyst gets paid $94,395 per year in Washington, DC, $68,918 in Chicago, $72,304 in New York, and the lowest, $66,379 in Phoenix.
Public relations specialist
Working as a public relations specialist is one of the most exciting and creative jobs within a company. A public relations specialist has the task of creating a more positive and favorable image for the company they represent through various programs, media platforms, and communication with clients.
To be more concrete, a PR specialist builds brand awareness and encourages people to buy certain products/use certain services by creating stories and news about the business/organization worth sharing in various media.
Salary
Given that nowadays the position of a public relations specialist is more than necessary within a well-functioning company, business, or organization, their salaries are also reasonable.
The average base salary for a PR specialist is $60,186. Yet, it is worth noting that if you live in a certain geographical region, you can get a lower or higher annual salary, depending on the economic and industrial development of that location. For example, a PR specialist in Los Angeles receives an average of $90,366 per year (highest salary), while in Houston, they will earn an average of $50,095 (lowest salary).
Logistician
The work of a logistician is quite dynamic and requires good communication and organizational skills. Logisticians organize the work and the employees for the purchase, sale, and shipping of goods. To perform their tasks, they use sophisticated software programs, which they use to track and manage the movement of goods.
Additionally, a logistician has the task of building good business relationships with clients, putting their needs and wants first.
Salary
Working as a logistician brings stable profits, and this is because this job is in high demand and is expected to increase.
The average base salary for logisticians is $58,742; however, as a logistician you may receive additional benefits such as health insurance, paid time off, referral program, tuition reimbursement, etc.
Business management job outlook
The coming years are expected to be prosperous for business management jobs. With the advancement of the economy in most countries and its modernization, the demand for employment in specific fields has increased. In general, according to BLS, employment in management occupations is projected to grow 9% from 2020 to 2030.
Difference Between a Business Administration and a Business Management Degree
Despite both being under the branch of economics and having similarities, business administration and business management degrees share differences, and it is advisable to analyze them carefully before deciding which degree to pursue. Both programs will strengthen and expand your knowledge in finance, strategic planning, marketing, statistical analysis, communication, etc.
One of the fundamental differences is that business management prioritizes the human aspect of the business, organizing workers within a company. Jobs you can get with a business management degree are usually management positions, where you have to supervise the work and the employees, to build relationships with business partners, to communicate with customers, and similar. Therefore, strong interpersonal skills will be required. On the other hand, business administration prepares you for the more technical and strict aspects of running a business, as well as the administration of all managerial activities within the company. In this case, a predisposition to order and organization will be crucial.
Conclusion
Ultimately, it is your choice which degree to pursue. Given the global economic climate, both degrees are profitable. Therefore, you may want to consider your strengths, ambitions, and long-term plans. However, either of these degrees will equip you with the knowledge and skills to start a successful career in economics and follow a specialty of your choice.