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You are interested in pursuing a business degree, and when you start looking for business-focused degree programs, you may find yourself a little confused. The reason for this confusion is universities offering multiple business degree programs that seem mainly the same! That is when you will be asking yourself the question; what really is the difference between business administration and business management?
They do seem virtually similar, but there is a subtle difference between the two. In order to understand the difference between these vastly similar but actually different business degrees, it is better to explore the meaning of administration and management. These subtle differences provide the reason for the dichotomous business degrees.
Administration is the creation and enforcement of principles or rules and regulations in an organization.
Management involves dealing with people to implement those principles that are designed by the administration.
Both administration and management are interlinked and therefore, there are several similarities between the two types of degrees. What can help you decide which business degree you should pursue? You must be aware of your core competency and where your interest lies in accordance with it before deciding upon pursuing either a management or administration degree. Exploring a few of the differences between the two degrees can help you make your decision a little more easily.
The core courses in both management and administration degrees are the same. This means that whether you opt for business management or business, administration you will be taking classes in accounting, economics, finance, marketing, and management. From this, it can be ascertained that these courses are at the core of any business degree. In order to understand global business practices, you need to master these courses.
The difference between business administration and business management is the specialization or focus area. A business administration degree is focused more on accounting, marketing, or finance. After the core courses, you will be taking more advanced courses in these domains in a business administration degree. The specialization fields in a business management degree include human resources, logistics, and communications. In short, a business management degree will teach you a more people-centric approach.
- People vs. Operations
It is a well-known fact, and the diversity of humanity that some of us are good with people, and some are better in innovation and design. You must identify for yourself your strength; whether you are a people person, or you are a thinker. In case you feel more at home in the operation side of things, it will be better for you to opt for a business administration degree. If you specialize in business administration, you will be capable of devising business strategies and action plans that are integral for any business. A business administrator is also more likely to start a personal business as well. If you are more at home when dealing with people, guiding them and motivating them to work, helping them follow a specific guideline and are good with keeping everyone on board during a task achievement then a degree in business management is for you.
- Career Path
The career choices after either management or administration degree are not very different. You will be working in the business field, regardless. If you can bring new ideas to the table that are worthy of implementing, then you should opt for a degree in business administration. If you have a degree in business administration, the career paths that will be open for you include those in accounting, marketing, and finance primarily. A graduate in business administration is more likely to be an entrepreneur as well. The reason for this is advanced level learning in all the core domains of business.
The best career path after a business management degree is that of human resource management. No organization can succeed without a well functioning human resource department. If you are not looking out for your employees and not providing them a good platform, then you will have dissatisfied employees and poor work performance. Therefore, if you are a people’s person consider going for a degree in business management. You will be doing a great service to the organization you join.
If you are of those who approach a career or an area of specialization in terms of its final output, then it is useful if you carry out your research as regards salary. Market research has shown that depending on your business degree, there is a difference in salary at the entry-level. According to the reports, the difference is not quite marked, but it is there, nonetheless. If you have a degree in business administration, you can expect to earn more at an entry-level position then you would if you had a business management degree. It in no way means that a business management graduate is paid less. The salary is quite competitive in the latter case as well, but if you are conscious about numbers, then reports show that business administration graduates are paid more. However, this observation is valid at entry-level for the most part. As you progress further into your career, regardless of your degree, you will earn more based on your experience and accomplishments. Further along in your career, the title of your degree matters less as compared to your experience.
- Course Requirements
If you are unsure about your capabilities and aptitude as regards either administration or management, then carry out a little research on the course requirements of both degrees. Apart from the core courses in both disciplines, most of the classes and course content are different. You can look into the course contents of both business administration and business management and decide for yourself which concepts can be easily learned and implemented by you. At the end of the day, there is not much difference between the two degrees, so it is wise to make your decision based on a maximum learning experience. Go for the degree whose courses align well with your aptitude and learning preferences.