Difference Between Business Management and Administration

Edited by Diffzy | Updated on: September 22, 2023


Difference Between Business Management and Administration

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A business thrives fruitfully in the market when every operation of the company is carried out effectively. Plus, consistency is crucial to success in every endeavour. Therefore, a company needs to shoulder the responsibility of maintaining a healthy environment both on the inside and outside. Business Management and Administration go hand in hand. Both are vital for a business to stay in the running for a long time.

Business Management’s primary focus is on making the decisions for the company - the decisions that would set a forthcoming path. On the contrary, Business Administration makes sure that the daily functions and requirements of the company are met satisfactorily. Both Business Management and Administration are the functioning limbs of a company. However, there are subtle differences between the two regarding their roles in the business.

Business Management vs. Administration

Business Management and Administration are equally important for a business. Though related, there is a difference in the role played by both. Business Management is pivotal to laying a path for the company to work on, whereas Administration is essential to make sure that the functions and operations decided by the Management are fulfilled thoroughly.

Although there is a similarity in the activities included in both Business Management and Administration, the focus is different for both. Business Management mostly throws light on the bigger picture of the business’s function. On the other hand, the Administration works on the intricacies of the plan. The Administration is the backbone of a company taking care of the resources, personnel, brand image, and much more.

Difference between Business Management and Administration in a Tabular Form

Basis of ComparisonBusiness ManagementBusiness Administration
DefinitionEncompasses organizing, planning, and directing operations to ensure the company’s longevity in the market.Encompasses day-to-day tasks of the company to ensure smooth functioning every day.
AspectsManagerial and OrganizationalTechnical
FocusDesigning the pathSteering the path
SpecificityLess specific.More specific and specialized.
VisionFocuses on the bigger picture.Laser-focused.
Zone of functionDeals with attracting new clients outside of the company.Deals with internal functions of the company.

What is Business Management?

Business Management stands for organizing, planning, and directing operations and various other processes of the company to ensure the expected results from the company, and to ensure longevity in the competitive market. Besides, the company’s resources, personnel, technology, and finances are both controlled and managed to reap maximal revenue.

Effective management is a prerequisite for a business to function without a hitch. Business management is a demanding and strenuous task. Business managers need to develop strategies, processes, and tasks to benefit from the efforts and hard work of the team. Similarly, keeping the teammates together and ensuring that their spirits are always high is also one of the facets of business management.

Therefore, business management is critical to the success of the business team and the company as a whole. A business manager has to helm the operations and plans efficiently to keep the company sailing in varied currents.

Types of Business Management

Business management encompasses various sectors to secure a company’s position in the market. These are all different facets of the company managed differently by different managers. 

Different types of Business Management are:

Financial Management

Financial Management focuses on the financial resources of the company. It deals with understanding the relationship between profit and loss. The main aim here is to strike a perfect and healthy relationship between the two. Therefore, financial management makes certain that the finances of the company are well-maintained.

There are various ways to manage the money in a business. Some of these include - investments, insurance, banking, accounting, and other such activities. The management works on maintaining the essential cash flow in the business. Plus, investing the profits for better benefit is undertaken by the management. 

Human Resources Management

Human Resources Management (HRM) explores the approaches required to maintain a healthy work environment in the company. In addition, it deals with recruiting and managing the staff of the company. HRM also makes certain of the health, safety, and benefits for the employee.

For a team to yield maximal outcomes, it is important to sustain high morale among the employees. Hence, several employee programs are designed and materialized to garner productivity plus a positive environment. The employees are offered various benefits by the company which encourages them to stay in the company along with giving their cent percent to the company.

Strategic Management

Strategic Management stands for building the required plans to achieve the objective of the company. Subsequently, decisions are made after taking into account the external factors. The ongoing competition, the past trends, and threats are weighed. Finally, the best strategies are considered and then employed to sustain the competition.

The management includes strategies such as - financial, operational, and marketing. Additionally, the strategic activities to measure the factors affecting the strategy include the SWOT Analysis. SWOT Analysis stands for analyzing the Strengths, Weaknesses, Opportunities, and Threats of the company. 

Operations Management

Operations Management is vital to the fluent functioning of an organization. This type of management affirms maintaining coordination between the various departments of a company. Furthermore, the management is responsible for devising the design and operation of the system. As a result, the business becomes smooth to manage.

Besides, Operations Management focuses on product design, quality control, production process, inventory, cost reductions, supply chain, and customer satisfaction.

All of these activities result in increasing the efficiency and profit of the company.

Marketing Management

In the present times, the market has become highly competitive. Maintaining the brand value has become of utmost importance for every flourishing business. Here, Marketing Management comes into play. It focuses on utilizing the resources of the company to reach and increase its potential. Hence, different marketing strategies and tactics are employed to manage the brand. 

Marketing Management covers four C’s - Customer Analysis, Competitor Analysis, Company Analysis, and Collaborator Analysis. After the careful analysis of the four C’s, suitable processes are put to work to improve as well as increase the customer base. The feedback is carefully taken into account and worked upon. As a result, the brand image can withstand the ever-changing market trends.

Sales Management

Marketing management works hand in hand with Sales Management. The sales operations are often carried out by connecting the sales team with the appropriate resources to reach the desired output. Sales management covers the sales activities such as operations, strategies, teams, and techniques. 

Therefore, the chief goal of Sales Management is to achieve the desired target by exercising the correct strategies and tactics. 

Project Management

Project Management is responsible for overseeing the planning and organizing of the resources for the completion of a project successfully and completely. Several aspects of a project are critical for its completion, such as time, budget, completion, and personnel. Therefore, it becomes important to set the activities appropriately related to the project. 

A project manager is responsible for gathering all the tools, knowledge, and resources required to complete the project within the given timelines. 

What is Business Administration?

Business Administration holds the chief aim of making certain that the company works efficiently daily. The mundane operations of the company should run smoothly every day to ensure, that the company works fluently, and internally. Business administration deals with - financing, accounting, sales, marketing, and budgeting of a company.

Also, Business Administration makes sure that all the resources of the company are utilized properly. The working hours as well as the staff are managed by the business administration daily. Good communication skills are significant for running business administration since presentations are required on an everyday basis to communicate the forthcoming plans for the company.

Business Administration to a business is what atoms are to a molecule, that is, the building blocks. The Administration takes care that the staff stays motivated to achieve their paramount potential. All the internal issues of the company are fixed by the Business Administration.

Types of Business Administration

Business Administration focuses on the internal operations of the company for the daily functioning of the business. Every sector of the administration is specialized. Subsequently, the sectors are handled by individual teams to direct their focus on individual goals.

Different types of Business Administration are


The finances of a company need to be maintained and checked regularly. Accounting helps in dealing with the company's financial statements, financial documents, and business operations. The accounting department aids in providing a picture of the financial health of the company. 

Then, as per the financial data, the expenditure of the company is determined. It gives an idea about the spending capacity on new ventures. Apart from this, the cost-cutting strategies are also designed if the new ventures are difficult to afford. 


Marketing is the branch of business administration that comes up with innovative ideas for better marketing of the product. At present, every social handle has become an advertising ground. It has become easier for the brands to reach customers. This bridging of the communication leads to better advertising and promotion of the brand.

Market research, consumer behaviour, current trends, etc. are used to produce data for strategizing promotional campaigns. Strong analytical thinking, and progressive and intellectual ideas, further help in strengthening these programs to increase brand awareness. 


Selling a product is a crucial skill! Learning the market trends, pitching the correct idea, strong communication skills, and an optimistic approach are vital to making a successful sale. Building a strong network is always beneficial in sales. The sales department sets up the sales team. Then, daily targets are provided to the teams. This ascertains that the company’s day-to-day goals are set and met every day. 

Human Resources

The Human Resources (HR) department of a company ascertains the hiring process. It is important to determine that a candidate will fit in the role and environment of the company. The hiring process focuses on the skills and expertise of the candidate. Besides, the HR department ensures that the staff is treated properly on an everyday basis.

Apart from this, compensation packages and bonuses are also provided to the staff. As a result, it maintains the zest in the employees to keep striving for better.

Difference Between Business Management and Administration in Points

  • Business Management focuses mainly on the links between the company and the outside world, whereas Administration focuses on the internal functioning of the company.
  • Business Management strives to attract new clients, whereas Administration strives towards the smooth functioning of the company on a day-to-day basis.
  • Business Managers are the architects deciding the direction of the company. On the other hand, the Administration makes sure that the company moves in the decided direction, smoothly.
  • Business Management revolves around the goals and operations of the company as a whole. The Administration, however, is more specific, specialized, and laser-focused.
  • Business Management helps in improving the leadership skills of an individual. Business Administration, however, helps in focusing on specialized areas of business.
  • Business Management aids in building a bigger picture of the functions of the company. Business Administration, on the other hand, is the building block of the company. 


Both Business Management and Administration are extremely important for running a company. One sets the goals for the company, whereas the other aids in implementing these goals. A business comprises many sectors - financial, organizational, personnel, and more. Thereby, different managements and departments build policies and processes to handle these sectors effortlessly.

Ultimately, it is a tight coordination between the management and administration that results in leading the company toward new heights. New and competent resources are hired regularly to gain new as well as fresh perspectives. Next, the finances of a company need to be managed to get an insight into the possibilities of new endeavours. 

Finally, sales, marketing, and organization are handled by both management and administration in a different but conjoined manner. The management fixates more on planning and organizing a design for the company’s next move, whereas the administration guarantees that the designed plans are carried out in an organized and perfect fashion. 


  • https://timespro.com/blog/types-of-business-management-everything-you-need-to-know
  • https://talentedge.com/articles/types-business-management/
  • https://www.proofhub.com/articles/business-management


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"Difference Between Business Management and Administration." Diffzy.com, 2024. Mon. 15 Jul. 2024. <https://www.diffzy.com/article/difference-between-business-management-and-administration>.

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