What Is Business Administration? How It Affects Companies

By Dr. Matthew Loux and Bryce Loux  |  09/11/2025

In today’s economy, having effective business administration has become a necessity. Companies are facing rapid shifts in technology, global competition, and changing consumers.

Every thriving business, whether it’s a multinational technology corporation or a small local business, relies on strong business administration. In the job market, there is a demand for business professionals who can:

• Competently organize and integrate numerous processes
• Manage people
• Lead teams
• Oversee business operations, finance, marketing, human resources, and corporate strategy

What Is Business Administration?

Business administration involves the systematic and tactical administration of a business’s resources, operations, and personnel to achieve its objectives. Business administrators commonly plan, coordinate, find resources, and monitor various aspects of an organization’s daily activities. They must ensure all business units work optimally to achieve business goals.

Primary Areas of Business Administration

Business administrative professionals ensure that an organization runs smoothly based on several key areas:

• Management
• Finance and accounting
• Marketing
• Human resources and employee relations
• Operations
• Strategic planning

Management

Business administrators are responsible for business functions such as team and departmental leadership. They also require solid leadership skills to evaluate staff performance and help underperforming employees to get the assistance they need.

Finance and Accounting

Administrators tasked with financial activities set budgets and make financial plans. They are also responsible for managing revenue, tracking expenditures, and preparing financial reports as needed.

In addition, they must develop pricing and distribution strategies and ensure compliance with financial regulations. Other areas include reviewing financial statements and maintaining strict adherence to tax laws and regulations.

Marketing

Business administrators work to understand customers and their needs. They also conduct market research and ensure that products and services receive the proper promotion through various channels. Other responsibilities include ensuring customized advertising and tracking market trends.

Human Resources and Employee Relations

Some business administrators perform human resources (HR) work, either as a startup leader or within the HR department of an organization. This work involves:

• Hiring and training employees
• Managing benefits and compensation
• Handling conflict resolution
• Ensuring compliance with labor laws
• Motivating and retaining employees
• Cultivating a positive, company-wide culture 
• Monitoring organizational behavior

Operations

Business administration professionals ensure that an organization has a clear structure. The administrator structures departments, delegates tasks, and distributes monetary and physical resources. In addition, a business administrator may monitor the technical and operational aspects of project management.

Business administrators also supervise the daily activities of various teams. They are responsible for enhancing productivity and efficiency by creating effective solutions to problems and improving processes. They also work with supply chain and logistics management personnel for quality assurance.

Strategic Planning 

Strategic planning in business administration involves defining the long-term objectives of the company and assessing industry developments. By developing the best possible plans and using critical thinking, business administrators can contribute high-impact value to business decision making and help a business achieve organizational goals.

An administrator also keeps track of business data, analyzes it for insights, and compares it to previous benchmarks to examine progress. That data can also be used to track adherence to policies, laws, and scope for adjustments to be made.

Business administration matters because it helps an organization operate effectively, accomplish objectives, and maintain a competitive edge in the market. It applies to all businesses, regardless of size or industry.

Career Paths in Business Administration

Business administration offers access to a variety of career opportunities in different industry sectors, such as:

• Healthcare
• Education
• Government
• Finance
• Manufacturing

Some of the more common job titles used by professionals with a degree in business administration include:

• Operations manager
• Healthcare administrator
• Financial analyst
• HR coordinator
• Human resources manager
• Marketing manager
• Project administrator
• Department head

Education and Skills Needed in Business Administration

Most business administration professionals start with an undergraduate business administration degree at the associate or bachelor's level. Work experience – gained from internships or cooperative education – can also enhance a candidate’s practical skills and improve employability for entry-level positions.

For higher-paying job opportunities and leadership roles, other qualifications may be needed, such as:

• A more advanced degree such as a master of business administration (MBA)
• Specialized certifications, like a Certified Public Accountant (CPA) or a Society for Human Resource Management (SHRM) Professional

Ideally, administrators should have various hard and soft skills, including:

• Critical thinking skills
• Analytical skills
• Leadership
• Communications
• Good time management

The Role of Technology in Business Administration

Administrators are required to understand how modern technology aids in analyzing data, decision-making, and automation. New technologies continue to influence how businesses organize and compete in the marketplace. Business functions have benefitted from digital tools such as:

• Cloud services
• Automation
• Data analytics
• Artificial intelligence (AI)

As with any technology, there are risks and challenges to using it. Business administrators must be careful to:

• Select the right technology for company needs
• Oversee its implementation to ensure effective operations
• Ensure employees are properly trained

Business administrators must now possess digital literacy, cybersecurity skills, and agility to provide innovation to their organizations.

The Future of Business Administration

The relentless changes in our economy, technology, and society is a critical aspect of the future of business administration. Some of these changes involve:

• Remote and hybrid workforces – Business administrators will have to manage employees located in different parts of the world. They will also need to oversee team productivity and maintain the company’s culture in remote or hybrid settings.
• Sustainability and environmental, social and governance (ESG) reporting – ESG metrics and their reporting are becoming a bigger part of the business strategy. They will need to be integrated into reports and the organization’s environmental initiatives.
• AI and automation – Administrators should implement artificial intelligence and automated tools for repetitive activities and utilize artificial intelligence for decision-making processes.
• Lifelong learning – Shifting business landscapes necessitate advanced business administration education for administrators to remain relevant in the industry. Aspiring business administrators should not only seek continuous learning opportunities but should also attend conferences and develop a professional network.

Innovation and technology are critical to business success and efficient business operations. As our economy develops, the need for skilled administrators will increase. Staying up to date, embracing change, and demonstrating ethical leadership will make business administration professionals a desirable resource to organizations.

The Bachelor of Business Administration Degree at AMU

For adult learners interested in gaining the knowledge to pursue a career in business administration, American Military University (AMU) provides an online Bachelor of Business Administration. For this degree program, students can take core courses in different topics such as the basics of business, leading in the technology age, and operations research. Other courses include the principles of supervision, statistics, and the fundamentals of marketing.

This business administration degree has multiple concentrations, so that students may tailor their education depending upon their career goals. For instance, students may choose to take elective courses for a business administration concentration, such as:

• Business analytics
• Digital retailing
• DoD project management
• General
• Information technology management
• International business management
• Leading the digital workplace
• Marketing
• Operational crisis management
• Real estate construction and portfolio development
• Real estate marketing management

This business administration degree program has been awarded specialty accreditation from the Accreditation Council for Business Schools and Programs (ACBSP®). This accreditation ensures that this BBA program is held to high academic standards by higher education professionals.

For more information about this program, visit AMU’s business administration and management degree program page.

ACBSP is a registered trademark of the Accreditation Council for Business Schools and Programs.