Business Administration vs Business Management
In any business venture the collective responsibility of the personnel running it, is to make it profitable and work with a common goal of giving it an annual growth. A good and disciplined administration combined with efficient management are the prerequisites for running a profitable business and giving it annual growth. Business administration and business management are like two hands of a business that work in synch to achieve the goals that are set by the organisation. Administration on one hand provides the organisation with the required goals and workforce whereas management provided the means to achieve the goals effectively and efficiently.
Business Administration
Business administration is the term used for the collective workforce in an organisation whose main objective is to set the aims and goals for the organisation. This is achieved by organising the personnel and recruiting the apt resources that work collectively in making the organisation grow in size and making it more profitable. The administrators in the business can be board of directors, CEO’s and managers at different levels, who are given different duties according to their rank, keeping the goal of the business in mind. The main tasks that are performed by administrators are
• Planning for current time and for future
• Organising the resources by recruitment
• Making budgets for running the business
• Giving directions to the personnel by making plans
• Controlling the workforce to achieve maximum output
Business Management
Business management is the term used for managing an organisation efficiently by the administrators. This efficiency is achieved when the personnel working for the organisation perform according to the rules of good management. Business management organises its workforce so that all the resources are aptly tapped for the maximum benefit of the organisation. These resources are
• Human resource is managed to get the combined output efficiently
• Financial resources are managed for the optimum use of finances
• Technological resources are managed to get the latest technology available to get maximum output with minimum efforts and expenses
Business management allows the administration of the organisation to plan its resources to make the business more profitable. It also helps a person to manage other people apart from managing oneself to work efficiently so that maximum output is achieved. Forecasting is another important function of management for taking the business to new heights in the future.
Difference between Business Administration and Business Management
Business administration and business management are the terms used for running business efficiently that have common aim of making the business prosperous for its workforce and for the investors. The proficient administration and management work for a common goal to achieve excellence in running the organisation. A very thin line separates these two terms, business administration is the term used collectively for the personnel employed in an organisation whereas business management is the term used for managing the affairs of the organisation in the best of interests of the enterprise by the administration of the organisation.
Conclusion
Business administration and business management are very important aspects of a fruitful venture. A business cannot prosper without a good administration and efficient management. A professional administration and management is the need of today for making a business profitable and for a bright future. It can be inferred from the above statements that a good administration does not guarantee the business to become profitable until and unless the administration is managed efficiently. Thus the business management should be the most important aspect for running the business as it guides the organisation through the process of controlling and organising it efficiently and profitably.