What Is Business Administration, and Why Should You Study It?

Business administration involves managing an organization’s resources to efficiently achieve its goals. This may include navigating global markets, overseeing a range of teams, and making strategic decisions in complex environments.

Business administration students can gain career advantages, including professional growth potential and flexible career opportunities.

Want to learn more about business administration degrees? Here’s what you need to know, including key insights from Charles Fail, PhD, MBA, faculty member in the School of Business and Information Technology at Purdue Global.

Defining Business Administration

“In its simplest terms, business administration involves managing a business organization — its resources, its time, and its people,” says Fail.

As a discipline, business administration focuses on achieving organizational objectives through effective and efficient management practices.

Here’s how Fail breaks down the two terms:

• Effectiveness: “Effectiveness relates to how well a manager can meet the overall goals and objectives of the organization. It is more of a qualitative measure,” says Fail.
• Efficiency: “Efficiency is primarily a quantitative measure, reflecting how well a manager uses resources [to optimize operations],” observes Fail. “Areas such as operations management, accounting, finance, and information science seek to address efficiency.”

According to Fail, a successful business manager must be both effective and efficient.

Reasons to Study Business Administration

1. Professional Growth Potential

According to the U.S. Bureau of Labor Statistics (BLS), there are more than 20 business career categories that require a bachelor's degree as the entry-level education needed by most workers, including:

• Financial analysis
• Human resources
• Management
• Market research
• Appraisers and assessors of real estate

Business careers could also be found in the fields of health care and government.

Certain business administration degree programs may allow you to further tailor your education by choosing a specific area of emphasis. At Purdue Global, for instance, business administration students can choose from various degree concentrations. Common concentrations under the business administration umbrella include business development, global marketing management, information systems management, project management, and supply chain management and logistics.

A business degree can show employers that you have the competency and discipline needed to work effectively with others in a business setting. Earning a degree gives you an opportunity to practice and develop business skills in a supportive environment so you’re prepared to succeed in the real world.

2. Wide Range of Career Paths

Employment in business and finance occupations is expected to increase faster than the average for all occupations between 2023 and 2033. The BLS projects an average of about 963,500 openings each year.

Completing a business administration program can help you take advantage of these opportunities. No matter what degree level you pursue, you’ll build relevant, practical skills, and you’ll learn the foundations of business. This helps narrow your career search to the types of companies or trades that appeal most to you.

Business graduates can confidently transition into various roles or work environments, knowing their skills and knowledge will be valuable almost anywhere.

>> Read: What Can I Do With a Business Administration Degree?

3. Leadership Skills

A degree in business administration can help you develop leadership and management skills.

You’ll learn how to lead and motivate people, communicate effectively, and think critically. You’ll study how to make sound decisions, troubleshoot and solve problems, and be resourceful. This will complement your education in fundamental topics, including finance, business operations, human resources, marketing, and management.

What to Expect From a Business Administration Degree Program

If you’re interested in a business career path, here’s what to know about your business education options:

Business Degree Levels

When choosing your degree, you’ll have three main options:

Associate Degree

Our online associate degree in business administration helps you build practical knowledge in accounting, management, software applications, and more. It can prepare you for roles, including:

• Administrative services manager
• Transportation, storage, and distribution manager
• Cost estimator

You can also choose an optional concentration to personalize your education. Examples include customer service, entrepreneurship, sales, and small business management.

Bachelor’s Degree

The online bachelor’s degree in business administration prepares you to become an effective leader by developing communication, management, and critical-thinking skills. It can put you on your desired career path for roles, including:

• Sales manager
• Human resources specialist
• Project management specialist
• Management analyst

You can also choose from 17 concentrations, including:

• Business development
• Digital and social media management
• Information systems management
• Project management
• Supply chain management and logistics

Master’s Degree

With our online MBA program, you’ll study a curriculum developed by global business professionals. This MBA program prepares you for a potential career in roles, including:

• General and operations manager
• Sales manager
• Human resources manager
• Logistician
• Management analyst

Choose from optional concentrations such as finance, information technology, and health care management.

Business Skills

What skills are important in business administration? According to Fail, these include:

• Critical thinking: “Businesses need graduates who can critically evaluate complex problems in a timely manner and propose logical solutions.”
• Interpersonal skills: “Teamwork is now the norm, and graduates must be able to collaborate with colleagues who have different perspectives, experiences, and ways of thinking.”
• Communication: “[Graduates need] good oral and written skills. Business is a marketplace of ideas, and graduates must be able to communicate effectively at every organizational level.”
• Ethics and morals: “Business managers must model ethical behavior and build trust through their actions and decisions.”

A Business Administration Degree: Ready to Take the Next Step?

Are you considering a business career? Purdue Global offers online business degree programs that can provide the knowledge and tools you need to succeed.

Reach out today to learn more about earning an online degree in business administration at Purdue Global.