Business administration is just a fancy term for operating a business or any for-profit or not-for-profit organization. It includes management but also extends up and out—into a macro-level understanding of business operations.
In other words, business administration professionals manage an organization’s resources, people and time.
The need for this kind of professional is strong. According to the Bureau of Labor Statistics, overall employment in management is expected to grow faster than the average occupation from 2022-2032.1
What does business administration include?
There are many functional areas of a business that need managing. These include marketing, human resources, research and development, information technology, legal, sales and accounting/finance.
However, it is important for business administrators to understand that (typically) no one will be an expert in multiple functional areas of business. If you go into business administration, your job is not to understand all the work you oversee, necessarily. It's more about understanding how to keep an organization running and thriving.
The only situation that might call for a general understanding of multiple functions would be management positions in smaller “mom and pop” types of organizations. For example, a manager of a small healthcare practice might manage human resources functions such as hiring and scheduling employees, along with operational items like ordering supplies, as well as light bookkeeping (accounting).
Beyond these functional and technical skills, which can vary depending on where you work, business administration also requires soft skills such as problem-solving strategic planning, decision-making, critical-thinking, and communication.
You need a general understanding of how a business operates, and how each function contributes to the whole.
What is a business administration degree?
The term business administration degree encompasses all functional areas of operating a business. Higher education institutions often title their general business degrees with the same name. This is due to the broad knowledge base business administration professionals need.
If you become a business administration major, you'll be getting as much exposure to the varied roles of business as possible.
Business administration vs. business management
In general, these terms are very similar. Business administration focuses on functions and operations, while business management tends to focus more on managing employees. But at the Associate's or Bachelor's degree level, the name of the program probably won't make a huge difference. This type of program could also be called a business management degree. For more on the distinctions here, check out Business Administration vs. Business Management: Is There Really a Difference?
The requirements for an Associate's or Bachelor's degree in business administration or management typically include courses in the following areas.
- Management
- Marketing
- Financial accounting
- Leadership
- Business law
- Human resources management
- Information technology
- Data analytics
- Business operations
As you can see, business administration students get a broad working knowledge of each functional area of a business. Additionally, some institutions provide the option to their business students, at the bachelor’s level, to specialize in a specific area of business.
A specialization or concentration in undergraduate degree allows for a deeper dive into the concepts, key skills and application of knowledge required of that specific focus.
If you know the area of business you want to specialize in, you can add a concentration to your Bachelor’s degree. For example, if you are torn between getting a degree in supply chain management or business management, at Rasmussen, you could get a Business Management degree with a specialization in Logistics and Operations.
Other Bachelor's level specializations are Business Intelligence and IT Project Management.
Business administration as an advanced degree
At the Master's level, a business administration degree program goes by its well-known acronym—the MBA.
If you already have experience, a Master’s degree in business administration can provide you with the theoretical and practical knowledge to boost your expertise level ahead of the competition. This is important if you are aiming for more senior roles in finance, management, project management, operations, data analytics, or information technology.
Master's in business administration degrees (MBAs) go deeper into business operations and principles, exploring areas like...
- Value chain management
- Operations management
- Accounting and financial analysis
- Organizational leadership
- Marketing strategy
- Business intelligence and analytics
- Entrepreneurship
- Change management
- Corporate responsibility and sustainability
- Strategic planning
What industries use business administration?
A degree in business administration can open the door to a plethora of positions across many industries.
For example, if you earn a degree in business administration, you could find yourself working in...
- Healthcare administration of a medical office or hospital
- A retail store
- A financial company
- The business office of a higher education institution
- The corporate office of a construction company
- The corporate office of a national grocery store chain
- A bank
- The sales division of any industry (such as pharmaceutical sales)
All of this is just to name a few examples!
The benefits of starting with a broad knowledge base
Business professionals tend to work their way into specified roles. One of the main appeals of studying business administration is that you will sample a wide variety of concepts and functional areas in the business world.
Learning a bit of everything
If you are drawn to a business career, but don't have lots of exposure to the industry, it can feel impossible to choose between different degree programs in so many functional areas. Students often learn more about what they want to do during their programs. Choosing business administration will allow you to explore and learn how things fit together in an organization.
A foundation to specialize from
If you find out you love a certain aspect of business, you can choose focus areas and specializations to give you more exposure to those areas.
And you can always explore training, certification, and professional development options after the degree is obtained. Experience, along with a concentrated educational focus, will demonstrate to prospective employers your capabilities in those areas and boost your marketability.
Versatility over time
Your career in business will shift over time. As you progress in an organization, you'll gain a better conceptual understanding of the internal organizational functions and project management, and learn the factors in the external environment that might impact the business (e.g., economy, competition, sociocultural trends). This will naturally give you a strategic perspective for best practices in the business management of your functional area or even beyond.
Being a life-long learner and continually seeking ways to expand your knowledge and skills will allow you to think clearly about the business and the big picture.
Looking toward the future of business administration
Some of the key trends happening right now in business administration are technology integration and data-driven decision-making. Businesses are increasingly using technologies like cloud computing and artificial intelligence for automation, optimizing operations, navigating globalization and meeting diverse customer needs. Business management professionals who have skills in these areas are very marketable in today’s dynamic, international business environment.
It is almost impossible to pinpoint the future of business administration as a whole because it changes by industry and by area. If you are considering a specialization, look at the anticipated growth for that position in the geographic area where you plan to work.
You can also research details for a specific position (for example, not just “accounting” but “controller” or “auditor” or “Vice President of Finance”) in specific geographic areas because the data can vary greatly depending on the role and location of the job.
Businesses are always looking for individuals with the right credentials and skill set to help them meet and exceed their goals and mission.
Understanding the buzz around business administration
If you've ever seen a business administration job posting, you've probably seen a whole list of jargon and buzzwords. But what everyone should understand about these roles is that capabilities and skills for a job in business will be aligned with the level of the position.
Often, buzz words like “strategy” are included in explanations of business administration skills. However, strategy decisions are made by senior executives in a business. If you are applying for an entry-level or even 1st-level leadership role (e.g., supervisor, branch manager, team leader, marketing manager, department manager)—you won't be doing that much strategic analysis.
Don't let the buzz words deter you from applying for a position you are interested in. The terminology changes, but the same general skillsets have been valuable in business for a long time. For example, what once might have been called a “positive and warm demeanor” and “strong relationship building skills” might now be referred to as “emotional intelligence."
In the same way, don't be intimidated by the language around business administration programs. If you are motivated to go farther in business, an MBA degree could be your next step.
Find out if an MBA can help with your career goals at Rasmussen's Master's of Business Administration page.
U.S. Bureau of Labor Statistics. (2024). Occupational Outlook Handbook: Management positions. https://www.bls.gov/ooh/management/
