Managers and administrators play an influential role in the activity of any company, as they contribute to its smooth functioning and achievement of goals. What are the prerequisites for being successful workers in a business? Such employees should master specific skills and competencies concerning business management and administration. On the one hand, managers must be well-versed in management techniques in today’s dynamic business climate. On the other hand, the administration is more concerned with a firm’s day-to-day functioning and constant support of tactical objectives than business management (Pacific Oaks College, 2021). Both, administrators and managers, should understand the fundamentals of economics and finance, analysis, resource management, including human resources, but some of their responsibilities differ. While business administration and management may seem similar, they have significant differences, and both are critical to business.
Positions’ Differences
Specialists involved in business administration must have particular competencies to fulfill their duties. The peculiarity of business administration is that it focuses on the daily activity and strategy of the company (“Comparing business,” n.d.). Employees in this area need strategic planning, forecasting, entrepreneurship, and research skills. Mastering these competencies enables business administrators to analyze current trends in a rapidly changing environment. As a result, they offer solutions to ensure a better future for their companies and move towards established strategic goals.
At the same time, business administration allows specialists to narrow the focus of their activities and engage in a more specialized job. Examples include accounting, logistics, leadership positions in a particular department or other areas. In various spheres, the focus of business administrators is on planning and execution processes and their technical aspects. They can make policy and procedure recommendations and put them into action, which will lead to improved outcomes and faster completion of projects. By performing their duties, such specialists contribute to the optimal functioning of the enterprise.
The activities of business managers differ from administrative ones, in their own way contributing to the organization’s success. In particular, managers mainly focus on controlling employees – teams, departments, and interpersonal relationships. They often serve as a connection between employees and representatives of the company’s top management. Such work is suitable for those who are ready to communicate a lot and openly and act as mediators and leaders for others. As a consequence, the key competencies that a business manager should have are communication skills, diplomacy, conflict resolution, and other abilities (Iordanoglou, 2018). Such skills contribute to better leadership, helping employees, providing them with opportunities for effective work, and motivating on goals achievements.
Another critical difference between business management and business administration is the specialization of work. Unlike administration, which often narrows to a specific direction, management covers more general topics. Employees in such a position understand the comprehensive economic ideas and business trends (“Comparing business,” n.d.). Knowledge helps them better understand the business environment, navigate it, and make decisions according to trends. However, the main thing remains the management of processes related to people.
Significance of Roles
Applying the skills of both business administrators and managers is vital in organizations. While large enterprises may need several specialists for each role, one person can deal with their tasks in a small business. Employees who possess strong administrative and management abilities are better able to communicate with both their superiors and their subordinates, which facilitates the smooth operation of the business. Practical management skills enhance a company’s vision and mission by enabling it to accomplish its objectives with fewer hurdles and objections from internal and external factors in a rapidly changing business environment (Oliva et al., 2018). As a result of the manager’s and administrator’s success, all business processes work smoothly and efficiently.
Combining the skills and efforts of business administrators and managers is profitable, but focusing on only one direction will not suit all enterprises. While managerial abilities are critical in business administration, they may not match all company demands. According to Paturusi (2017), managers omit the concept of vision and are more concerned with successfully managing present activities than envisioning a brighter future for the institution. Without a specific goal or direction for the development, a business is unlikely to succeed and stand out among competitors. In turn, administrators, as already mentioned, also pay considerable attention to the company’s strategy and its future. Therefore, businesses should take into account the fact that management and administration complement each other.
The position of manager significantly stands out among other activities. While they help other employees do their jobs, they have key accountability for the team’s actions (Schermerhorn & Bachrach, 2019). This feature implies that managers should have the talent to inspire others to do the work that managers themselves do not do but are responsible for it. For this reason, the development of skills and competencies becomes so crucial in their work.
Managers with the necessary skills play a significant role in the organization’s structure as they perform important actions for its better functioning. Knowing all the technical capabilities and the abilities of employees, managers make essential decisions on planning activities. Understanding the business and team also allows managers to set goals for all employees, which will later lead to achieving the company’s global goals. At the same time, the achievement of personal, professional purposes serves as a motivation for each employee. These responsibilities emphasize the guiding aspect of managers’ activities towards employees.
Although guidance and control are essential for managers, the focus of their activities is shifting in the modern world. Successful managers are aimed at supporting, helping, and overcoming obstacles that can prevent their employees from doing their job (Schermerhorn & Bachrach, 2019). To achieve this goal, they need interpersonal skills, critical thinking, the ability to organize and lead. Having established optimal work processes in their team, managers can focus mainly on support since employees will be able to work independently and without constant control.
Conclusion
Business management and administration have several differences in their areas of activity. Specialists of these directions should be aware of economics, entrepreneurship, and modern business trends. However, administrators deal more with daily processes, planning, strategy, and technical aspects of work. Moreover, they can narrow their activities to a particular specialization, for example, accounting. Managers, in turn, are more involved in interpersonal relations at work and human resource management. They support employees, provide them with the opportunities they need for work, and solve problems. Administration and management complement each other embracing various aspects of work. Both directions are essential because they ensure the optimal flow of all processes necessary to support the business. Thus, a company’s managers and administrators must have the skills and abilities required to improve and progress business activities and achieve success.
References
Comparing business management and business administration degrees. (n.d.). Maryville University. Web.
Iordanoglou, D. (2018). Future trends in leadership development practices and the crucial leadership skills. Journal of Leadership, Accountability & Ethics, 15(2), 118-129. Web.
Oliva, F.L., Couto, M.H.G., Santos, R.F. & Bresciani, S. (2019). The integration between knowledge management and dynamic capabilities in agile organizations. Management Decision, 57(8), 1960-1979. Web.
Pacific Oaks College. (2021). Business administration vs. business management: What’s the difference? Voices Digital. Web.
Paturusi, A. (2017). Contributions of leadership style, managerial skills of principals and compensation to the performance of teachers. Journal of Education and Human Development, 6(4), 105-114. Web.
Schermerhorn Jr, J. R., & Bachrach, D. G. (2019). Management (14th ed.). John Wiley & Sons.