Earning an undergraduate degree in a business field can be a strong foundation for any professional who is looking to manage people and projects in a corporate setting. And for nontraditional students, such as working adults, it can be the key to breaking through from individual contributor to manager. However, choosing what major to pursue can be a tricky decision. Two majors that are often mistaken for one another include business management and business administration. While these degrees may have similar core topics, they have different practical applications. Understanding these differences can help you make a choice that aligns with your skills and interests, as well as your career goals.
Professionals with a business degree have a median annual salary of $75,000, $5,000 higher than the average for all degree holders.
Business Management vs. Business Administration at a Glance
Both degrees provide transferable skills that are valuable across industries. However, the way students develop and apply these skills differs:
| Business Management | Business Administration | |
|---|---|---|
| Focus | Managing people and projects | Managing systems and processes |
| Approach | Practical, hands-on | Analytical, strategic |
| Career Outcomes | Operations manager, HR manager, entrepreneur | Marketing manager, financial analyst, administrator |
| Best For | Students who enjoy operational management, project coordination and decision-making | Students who enjoy data, organization and planning |
What Is Business Management?
Business management professionals manage and supervise the day-to-day operational work of teams as they work on projects and complete goals. Students in a business management program will learn how to:
- Coordinate projects and supervise employees
- Manage budgets, schedules and resource allocation
- Set and track performance metrics
- Execute on high-level strategic direction
- Make stronger decisions under resource and time constraints
For those who want to earn a promotion from individual contributor to first-time manager roles, a business management degree is ideal. Graduates tend to excel in roles where they’re responsible for operational effectiveness and efficiency, such as operations management and project management. A business management curriculum includes courses in management efficacy and practical operational skills, giving students opportunities to apply classroom knowledge to real-world scenarios.
California Lutheran University’s BS in Business Management is part of the Bachelor’s Degree for Professionals program. Flexibly designed for working adults and lifelong learners who already have some college credits, this program empowers professionals to complete their bachelor’s and advance their careers. Learn more about how a bachelor’s degree can benefit you.
What Is Business Administration?
Business administration primarily focuses on managing the big-picture systems and processes within an organization. A degree in this field instills analytical and strategic thinking so that graduates can handle high-level operational needs. Students seeking business administration degrees typically find themselves supporting company goals, especially those related to efficiency, using data analysis. Because business administration graduates often develop strong analytical and strategic thinking skills, they are well-suited for positions that require long-term planning and policy development.
What Are the Key Differences Between Business Management and Business Administration?
Business management and business administration degrees share foundational business coursework; the difference between them lies in their approaches toward tackling business problems. This is demonstrated through different curriculum focuses:
- Business management courses are action-oriented and focus on coordinating resources, managing timelines, supervising teams and improving processes. These skills allow graduates to be the leader that makes sure daily work is being accomplished. In these programs, students often engage in hands-on projects and internships.
- Business administration coursework leans toward analytics and organizational systems (like accounting or finance). These students study case analysis and work to develop new strategies, meaning that they can solve problems at the holistic level in their careers.
Business management programs tend to emphasize practical experience that leads to team and project management positions after graduation. On the other hand, business administration graduates may find roles that emphasize research, analysis and general business planning.
What Skills Will You Gain in Each Program?
The skills that business students develop essentially shape the roles they’ll likely pursue after graduation. Each program focuses on different competencies that prepare students for specific professional responsibilities.
| Business Management Skills | Business Administration Skills |
|---|---|
The gist: Students in business management programs develop action-oriented skills that enable them to directly lead teams and oversee projects. |
The gist: Business administration programs focus on analytical and organizational competencies that strengthen strategic decision-making. |
What Is the Career and Job Outlook for Business Management and Business Administration?
Overall, graduates of either program benefit from strong employment prospects. There can be some overlap between careers in business management and business administration. However, most business management professionals find themselves in hands-on team and project management, while business administration professionals have more abstract, analytics-focused responsibilities.
What Is the Salary and Career Growth Potential for Business Professionals?
The demand for business professionals has remained steady for decades, and this will continue through at least the next 10 years. According to the U.S. Bureau of Labor Statistics, management, business and finance occupations are all expected to grow in demand faster than the average for all occupations. Management roles, which are most relevant to business management graduates, tend to offer higher starting salaries and faster growth opportunities. This occupation group had a median annual salary of $122,090 in 2024, more than double the average for all occupations. Business administration graduates typically find themselves in the business and finance sectors, which had a median annual wage of $80,920 in 2024. Business administration grads typically start in analytical or administrative roles, but can advance into senior management or specialist positions over time for a strong earning potential and more responsibilities.
Business Management and Business Administration Careers
Overall, business management graduates often pursue positions that involve direct management and operational responsibility: planning, organizing, and making sure work gets done. This degree, especially for working adults going back to school, offers the opportunity to land a promotion involving team and project management.
Want to learn more about what business management graduates do on a daily basis? Read our careers article to discover the possibilities.
Graduates of business administration programs most often work in analytical or systems-focused roles.
| Job Title | Median Annual Salary | What Would I Do in This Role? |
|---|---|---|
| Business Management Roles | ||
| Management Analyst | $101,190 | Analyze organizational performance and recommend improvements |
| Business Development Manager | $94,100 | Identify opportunities to increase revenue or expand operations |
| Operations Manager | $90,000 | Oversee daily business activities and coordinate departments |
| Project Manager | $109,400 | Lead projects to ensure delivery is timely and matches company goals |
| Business Administration Roles | ||
| Account Manager | $85,900 | Manage client accounts |
| Health Care Administrator | $83,300 | Oversee hospital or clinic operations and ensure compliance |
| Supply Chain Analyst | $79,100 | Monitor and improve supply chain efficiency |
| Marketing Specialist | $69,000 | Analyze campaigns and support marketing strategies |
Source: Lightcast
Business Management vs. Business Administration: Which Is Right for Me?
A degree in business management or business administration can give you a strong foundation in the skills you need to excel in business leadership. However, business management prepares you for dynamic, operational roles with immediate impact, while administration equips you for the analytical and strategic positions that may lead to management positions later on. Exploring program details, connecting with advisors and reflecting on your career goals will help you select the degree that best fits your path. You should (at minimum) consider the following:
Business management is generally better if you:
✅Have a strong interest in management — you want to be the leader who makes sure that work is done right, fast and efficiently
✅Are interested in management roles across the business industry where you’ll be making decisions related to daily operations
✅Want to learn in a hands-on, project driven environment
Business administration might be for a fit if you:
✅Have a strong interest in systems and analysis — business administration professionals tend to organize processes and analyze data
✅Are interested in analyst and administrator roles where you’ll be making strategic decisions that affect holistic processes
✅Want to learn in a research-focused environment where theory is the name of the game
About the BS in Business Management at Cal Lutheran
Continue your education and transform your career with our Bachelor’s Degree for Professionals. This undergraduate degree completion program offers a focused major in business management that teaches students to plan and execute business projects effectively. Students will gain crucial interpersonal skills for informed, ethical decision-making, leading and motivating teams and persuasive communication. If you’ve earned undergraduate credits in the past, you can apply these toward an affordable degree program that fits your career objectives.
Cal Lutheran’s School for Professional and Continuing Studies serves individuals who desire to grow educationally, personally and professionally. Our work is grounded in the assessment of students’ needs and expectations. We meet these individuals where they are in order to provide tailored programs and resources that will help them clarify and deepen their purpose so that they can transform their communities — and the world.
Download a program brochure or start your application for the Bachelor’s Degree for Professionals program.
