What is business administration? Definition and meaning

In most cases, the term, Business Administration, refers to the programs available in colleges. Specifically, programs that teach the basic principles and practices of a business. These academic programs are designed to provide students with a foundational understanding of business theory, alongside practical skills for real-world application.

The term also refers to the management of a business, i.e., management in all aspects. This includes finance, marketing, human resources, and accounting. It also includes business operations.

SmallBusiness.Chron.com says the following regarding the term on its website:

“Business administration is the process of organizing the business’s personnel and resources to meet business goals and objectives.”

“These processes include human resources, as well as operations management, financial management, and marketing management.”

MBA courses can be expensive

MBA stands for Master of Business Administration. It is a post-graduate program that provides people with the skills they need to manage a business.

Universities and colleges across the world earn significant incomes from their business administration courses.

An MBA course at the Wharton School of Business, for example, costs $141,740. MBA stands for Masters in Business Administration, i.e., it is a post-graduate degree. The Wharton School of Business is part of the University of Pennsylvania.

Business Administration – day-to-day operations

A business administrator is usually somebody who has studied business administration and is in charge of the day-to-day operations of a company. They are also in charge of the planning of long-term strategies and projects.

Business Administration
Business administration refers to either a university course or the management of a business. When it is a post-graduate course, we call it an MBA.

Common day-to-day operations may include:

  • Working individually and as a team.
  • Organizing and supervising staff members.
  • Hiring new people.
  • Motivating employees.
  • Reporting and overseeing the main aspects of the business.

Business administration career prospects

As a business administrator, you can reach top positions. You can, for example, eventually become a company’s CEO, CFO, or General Manager. CEO stands for Chief Executive Officer. CFO stands for Chief Financial Officer.

When starting this career, people qualify for basic management positions and gradually make their way up the corporate ladder.

Apart from academic qualifications, a good business administrator must have certain skills. Adaptability, being able to multi-task successfully, and leadership skills, for example, are vital. You must also be a good leader who can motivate people.

Business Administration Career Paths
The salaries quoted in this illustration are for executives working in the United States. (Data Source: U.S. Bureau of Labor Statistics)

If you are considering starting a degree in Business Administration, bear in mind that it comprises many areas of business.

Courses such as marketing, finance, accounting, human resources, and ethics are common. The course outline also includes project management and global business.

Furthermore, emerging fields like digital marketing, data analytics, and sustainability practices are increasingly incorporated to reflect modern business challenges and opportunities.

This holistic approach equips students with a comprehensive understanding of contemporary business dynamics, preparing them for leadership in a rapidly evolving global market.

Compound nouns

Compound nouns, such as “business administration,” are terms that consist of two or more words. There are many compound nouns in the English language that contain the word “administration.” Let’s take a look at some of them, their meanings, and how they are used in a sentence:

  • Public Administration

The implementation of government policy and the management of public programs and affairs.
Example: “She pursued a career in public administration to improve local government efficiency.”

  • Healthcare Administration

The field concerned with the management, leadership, and administration of hospitals, hospital networks, healthcare systems, and public health systems.
Example: “With a degree in healthcare administration, he was able to significantly improve the quality of patient care services at the clinic.”

  • Educational Administration

The management of educational institutions like schools, colleges, and universities.
Example: “Her expertise in educational administration was instrumental in reforming the curriculum to meet contemporary needs.”

  • Sports Administration

The field related to managing sports teams, facilities, leagues, or sports organizations.
Example: “After retiring from professional football, he excelled in sports administration, promoting youth leagues across the country.”

  • Network Administration

The task of managing and maintaining computer networks.
Example: “She worked in network administration, ensuring the company’s internal communications were secure and efficient.”

  • Database Administration

The role involved in the maintenance and care of a database or databases, ensuring their operational integrity and security.
Example: “His skills in database administration helped safeguard the company’s sensitive information against cyber threats.”

  • Property Administration

The management of real estate properties, including residential, commercial, and land assets.
Example: “Her firm specialized in property administration, managing several high-profile commercial properties in the downtown area.”

Two Videos

These two interesting video presentations, from our sister YouTube channel – Marketing Business Network, explain what ‘Business Administration’ and ‘MBA’ are using simple, straightforward, and easy-to-understand language and examples.

  • What is Business Administration?

  • What is an MBA?