Difference Between Business Management and Administration (With Table)

Businesses are like the new future of the economy of the world, and it is very important to carefully handle them so that they can grow in the right direction. To ensure the proper growth of a business, two types of activities are performed in an organization. These are the activity of Business Management and Business Administration. The two terms can be confusing for many people, but in reality, they differ from one another a lot. 

Business Management vs Business Administration 

The main difference between Business Management and Business Administration is that the former is an activity that focuses upon managing the business-related tasks at their best. But on the other hand, the latter is an activity that not only focuses on managing the business but also ensures that it runs smoothly in almost all areas. Thus, the scope of the latter happens to be wider than the former one. 

Business Management is an activity that resembles the activity of management in almost any other field possible. In simple words, it ensures that the particular activities related to the business are being managed and looked after carefully. For example- managing the employees at work can be an efficient example that falls under the purview of business management. 

But on the other hand, when it comes to Business Administration, it holds a wider and broader scope relatively. It does not just focus on getting particular tasks done but ensures the running of the business as a whole. It operates in almost all the possible fields related to any business and aims to yield desired results as much as possible. 

Comparison Table Between Business Management and Administration 

Parameters of Comparison 

Business Management  

Business Administration 


This activity denotes the function carried out by the management of the business to ensure that a given area of operation runs smoothly. 

This activity denotes the function carried out by the administration of the business to ensure that the complete business setup works efficiently. 

Area of operation  

This activity is performed under the due guidance of the administration of the business. 

This activity is performed independently and the administration holds the utmost power. 


While managing, the focus is to get a particular area to work better. 

While administering, the focus is to make sure that no area related to the business faces any difficulty. 


This activity is usually performed in different business organizations and entrepreneurial areas. 

This function is carried out in places with a more defined structure of the organization. 


Less disciplined activity. 

This is a very well-disciplined activity. 


Comparatively narrower scope 

Comparatively broader scope 

What is Business Management? 

When the term management pops up, it talks about managing certain things or tasks or people at large. In any business or organization, management is a function that focuses upon how the right things should be delivered at the right time to the right people. It ensures that any task that is attached to the business and requires attention runs very smoothly without any hatchback.  

For this particular purpose, an organization comprises a very good team of certain experts in management, generally known as the management team of the organization. For example- the management team decides that what should be qualifications of the prospective employees of the organization to match up the expectations of the given job. After deciding so, the management schedules interviews and recruitment rounds with those prospects and selects the pool of talent required for the job.  

Management in any organization happens to be an activity that is highly structured and monitored. At different levels, multiple employees perform their functions and ensure that the activity as a whole remains intact. 

What is Business Administration? 

Business administration is a term that is used interchangeably by many people in the place of business management, but the truth is that even after so many similarities and overlapping, business administration is an activity that can easily be distinguished from other activities due to its uniqueness.  

Administering a business is like administering a whole country. While carrying out the administration, it is not necessary that what tasks should be kept in focus. Rather it is necessary to think about the business as a whole. For example- the administration of the business decides that what shall be the remuneration of the prospective employees after receiving certain inputs from the management team. 

All other departments of the business carry out their operation under the due guidance of the administration. The administration decides that what are the right things that should be given to the right people and who are the right people who deserve those right things. From planning the very core of business to calculating its growth and risks, everything takes place under the advice of the administration.  

Main Differences Between Business Management and Administration 

  1. While Business management is a function carried out to manage certain tasks related to business, the administration is the whole activity of taking care of all aspects related to a business. 
  2. In terms of cope, Business management has a narrower scope than business administration. 
  3. Business administration is an activity that requires a very high amount of discipline, while management can be carried out in easy terms as well. 
  4. Business management focuses on getting certain tasks right while business administration ensures that no area attached to a business faces any issue. 
  5. Business management can be found in the area having financial or economic nature of activity while on the other hand, administration can be found in almost all the organizations. 


Any major economy of the world is nothing without counting the major businesses and organizations that are working under it. It is very crucial that the needs of these enterprises are recognized within due time frame so as to save them from all the possible difficulties that might cross their ways. 

Business management and business administration are two such activities that are carried out in any organization so that the organization can reach to their full potential. But a drawback is that for many people, these two terms are very confusing, and it becomes very difficult for them to differentiate between the two. In reality, these two activities are similar yet different from one another, and these focus on different areas. 


  1. https://books.google.com/books?hl=en&lr=&id=BU6fxV5VCf8C&oi=fnd&pg=PA1&dq=business+management&ots=0eRfioHdLP&sig=TVCpuI5kZL0jOg0XrDPdgtoyViw 
  2. https://onlinelibrary.wiley.com/doi/abs/10.2307/3587338