What Is Business Administration?

When it comes to running a business, it is crucial to have on-board professionals who are highly knowledgable about specific issues related to the administration since the company's success depends on it. Suppose you are interested in administration, helping companies improve, and creating a line of communication between workers for problem-solving. In that case, you might be a great candidate for pursuing business administration.

Before you make any decision, you must have a good understanding of what this field is, its requirements, outlook, and salary. So read on as we go through a business administration description and business administration degree description, providing you with information about the career paths you can follow upon receiving your degree and what duties to expect as a business administration professional, among other things.

What Is Business Administration?

Business administration is a term used to refer to the process of managing a business efficiently and effectively, as well as its workers and resources. The professionals in charge of this process are called business administrators, and they are responsible for monitoring all business areas to ensure things run smoothly and achieve stability, growth, and profitability through this process.

In some cases, business organizations choose to have a hierarchical structure of administration that includes stockholders, the board of directors, the executive committee, and other business administrators. They all work together to apply business principles such as accounting, marketing, finance, and management so that they can achieve their common goals.

Specialists have categorized the process of business administration into four fundamental functions, i.e., planning, organizing, leading, and controlling. Each of these functions blends with and affects the other three.

1. Planning

One of the essential functions of administration is thinking out a prospective course of action and determining in advance what the most appropriate approach would be to achieve the company’s goals and ambitions.

2. Organizing

This function correlates to the process of bringing together all the company's physical, financial, and human resources so as to develop effective and productive connections amongst them for the accomplishment of administrative goals.

3. Leading

The function of leading in business is that aspect of administration that deals directly with influencing, guiding, training, supervising, and motivating other staff professionals to achieve organizational goals.

4. Controlling

Lastly, controlling has to do with the monitoring and evaluation of activities to measure the improvement and efficiency of work within the business organization to ensure that everything progresses according to the set standards and policies.

What Can You Do With a Business Administration Degree?

For both bachelor and master levels, business administration degrees are designed to provide students with the necessary skills, academic and practical knowledge in the essential business functions such as accounting, information technology, business ethics, financial management, resource management, and others.

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But, what is a business administration degree worth? Well, its worth lies in the many doors it can open to various careers related to management and other routes. Some of the many career paths you can follow once you complete your business administration degree include:

Financial analyst

Working primarily in banks, insurance companies, and other enterprises directly related to finance, these professionals are responsible for guiding organizations and individuals regarding their funds, stocks, or types of investments.

Accountant

Accountants are responsible for maintaining and analyzing their client's financial records. They have to deal with a wide range of finance-related tasks such as creating financial statements, working with data management, surveying, and consulting on the company's accounting practices, among other things.

Human resources manager

As an HR manager, you would be responsible for the workforce administration, starting from recruitment to training, counseling, and more.

Marketing manager

In this position, you would be responsible for the organization and management of marketing campaigns, including having to deal with the budget, working with advertising agencies, preparing contracts, and so on.

Business consultant

As a business consultant, you would be responsible for offering advice to organizations in order to help them improve their performance, profitability, strategy, structure, and overall management.

Management analyst

As the name suggests, when working as a management analyst, you would be responsible for analyzing either an entire business or a division and recommending ways for them to improve their efficiency by reducing costs or increasing revenues.

What Does a Business Administrator Do?

A business administrator is responsible for observing, directing, and evaluating each component of the company, maintaining records, and regularly analyzing each department's information to guarantee everything is operating according to plan. This position has significant influence over important business decisions the company makes, so we can safely assume that a business would very likely fail without a good business administration team.

Among the more general duties, when working as a business administrator, you will also deal with the following:

  • Supervising day-to-day business activities

  • Implementing business goals

  • Consulting with clients, staff, and suppliers

  • Managing budget activities

  • Evaluating team members' performance

  • Taking part and negotiating agreements in meetings with stakeholders

  • Working on improving company policies and programs

  • Overseeing business growth

  • Working to avoid business stagnation

In addition, it is worth mentioning that to be a successful business administrator, you should possess strong leadership, analytical, financial management, people, and mathematical skills and be able to thrive under pressure.

Business Administration Job Outlook

Upon earning a degree in business administration and pursuing a career in this field, you will be high in demand as a professional since today's economy values employers fit to help them reach success. According to experts at the U.S. Bureau of Labor and Statistics, employment in business and financial operations occupations, which also include business administration, is projected to grow around 8% from 2020 to 2030. This growth rate is as fast as the average for all other occupations and will guarantee approximately 750,800 new job openings throughout this decade.

Business Administration Salary

The average salary for a business administrator in the United States is $45,839 per year. The lowest salary for an entry-level position to this career path is $27,726 per year, whereas the highest salary can go up to $75,784 per year. The more experience you gain, the higher you can climb on the career ladder and earn more as a senior business administrator.

Final Thoughts

Undoubtedly, business administration is one of the most crucial processes of running a business. A simple business administration definition would be to say that it is a process that deals with the running of a company to ensure the business is performing to the best of its ability. If you are intrigued by what we have stated so far, then it might be time for you to begin your journey in this field.

You will not only be arranging, analyzing, and supervising resources, reports, and people, but you will be responsible for improving, enhancing, and nurturing all aspects of business for the best of the company. So, step up and take the lead!

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