Name : Muhammad Sirajudin Abbas

NIM : 205030207111052

Class : Business-K

1. INTRODUCTION

Business degrees are some of the most popular, according to the National Center for
Education Statistics (NCES), and for good reason. Business expertise is in demand.
According to the Bureau of Labor Statistics (BLS), business and financial occupations are
projected to grow 7% from 2018 to 2028, faster than the average for all occupations.

Many people use the terms “business administration” and “business management”
interchangeably, especially when referring to higher education degree programs.
Although the two programs are different, they share a similar core curriculum with
courses covering a broad range of business-related topics. This core curriculum provides
students with a well-rounded education and a wide range of skills, regardless of the
student’s intended area of specialization.

There are intensive debates among the scholars about this issue. In one hand, some
scholars state that there are no fundamental issues differ business administration and
management neither in theoretical concept nor in application level. On the other hand,
other scholars argue that fundamental differences between business administration and
management are existing. However, Both degrees will teach students how to plan
business activities, organize departments and employees, run departments and
generally manage an organization. Students also learn about the various important
elements of running a business, such as logistics, business communications and
leadership skills.

2. EXPLANATION

CHAPTER I – PRESPECTIVE OF ADMINISTRATION IN BUSINESS

 Administration is the function of industry concerned with the determination of
corporate policy, co-ordination of production, finance and distribution, the
settlement of the compass of the organization and the ultimate control of the
executive… Management is the function of industry concerned with the carrying out
of policy within the limits set up by administration and the employment of the
organization for particular objects set before it (Sheldon, 1924; Urwick, 1929, 115-
116; Dunsire, 1973, 43).

The business administration includes the performance or management of business

operations and decision-making, making efficient organization consists of people and
other resources to direct them towards common goals and objectives. (Wikipedia)

The perspective of administrative in business refers to a perspective based on an

understanding of administrative as a universal process for organizing people and
resources efficiently, so as to direct all organizational activities towards the goals and
objectives of business organizations. The classic viewpoint in managing organizations
among the public causes a more outward looking perspective of administrative science
to be unpopular and on the other hand, management that sees business from an
internal perspective is functionally more popular. Administration also can refer to the
bureaucratic or operational performance of routine office tasks, usually internally
oriented and reactive rather than proactive. Administrators, broadly speaking, engage in
a common set of functions to meet an organization's goals.

Here it can be seen that the primary function of administration in business are making
and implementing a big decision for the organization.

CHAPTER II – PRESPECTIVE OF MANAGEMENT FUNCTION IN BUSINESS

Management is the function of industry concerned with the carrying out of policy
within the limits set up by administration and the employment of the organization
for particular objects set before it (Sheldon, 1924; Urwick, 1929, 115-116; Dunsire,
1973, 43).

In some organizational analyses, management is viewed as a subset of

administration, specifically associated with the technical and mundane elements
 within an organization's operation. It stands distinct from executive or strategic
work. (Wikipedia)

The perspective or functional management in the business refers to a viewpoint based

on the understanding of the concept of functional strategy in management studies
which refers to a functional approach to achieving company goals. It is also relevant for
identifying activities that need to be carried out to produce a product. The identification
of these activities is often called the company's value supply chain. This concept
originates from the perspective of the company from various aspects such as: the
process of transforming inputs into outputs, and utilization of resources. According to
Porter (1985), these activities can be divided into primary activities and supporting
activities.

Just like what I have explained in chapter 1, administration includes the conduct of
business operations, that is making and implementing major decisions for the
organization. then on the contrary, management can be seen as a part (subset) or an
extension of the administration, especially with regard to the elements technical and
day-to-day operations in the organization. Management stands apart from executive
and strategic duties which are the main tasks of administration.

In profitable organizations, management's primary function is the satisfaction of a range

of stakeholders. This typically involves making a profit (for the shareholders), creating
valued products at a reasonable cost (for customers), and providing great employment
opportunities for employees. In nonprofit management, add the importance of keeping
the faith of donors. In most models of management and governance, shareholders vote
for the board of directors, and the board then hires senior management. Some
organizations have experimented with other methods (such as employee-voting models)
of selecting or reviewing managers, but this is rare.

CHAPTER III – BUSINESS MODELING APPROACH

Lately there has been a trend where people are showing their interest in the business
world. Evidenced by the increasing number of new comers as UMKM and start-ups
(which are engaged in IT). In response to this, a business administrator needs the ability
to think creatively, innovatively, and be able to map out business Model.
Business Modeling, formally, is defined as any modeling technique used to describe a
business. Business Modeling can be used to review, improve and create a business. By
doing business modeling it is expected that can gain a great understanding in
organizational structure and dynamics, great solving problems while reaching
organizational targets and discover the potential for organizational progress. Business
modeling can also convince the customers, and developers have a correct understanding
of the organization. It is Business Model Canvas (BMC) that consists of nine part, there
are: Consumer segments, value propositions, channels, customer relationships, cost
structures, revenue streams, key resources, key partners, and key activities.

The first part is consumer segments. To build an effective business model, a company
must be able to identify the needs of the consumers to be served. The second part is the
value proposition, products or services offered by producers to fulfill the needs of
customers. And value proposition can differentiate a producer each other. The third part
is a channel, which describes how the company delivers its value proposition to
consumers. Relationships with consumers are reflected in the business model in the
form of customer relationship types, namely personal assistance, dedicated personal
assistance, self-service, automated services, communities, and co-creation.

For the financial aspects of business, it is described in terms of the cost structure and
revenue streams. The cost structure describes what costs are incurred, the revenue
streams explain how the company gets revenue from the business activities it creates.
Resources, namely the input in the company's production process. This input will be
processed adding value called key activities. Which involves third parties who can
strategically help the company or what are known as key partners

CHAPTER IV – THE DIFFERENCE BETWEEN MANAGER AND ADMINISTRATOR

In corporate organizations, the section of administration is in the governance section or

while management is in the functional section. Administration is concerned with aspects
of policy and strategy formulation at the upper level, whereas management is seen as a
function that implements policies or tactics that have been made by the upper level.

Generally, the role of a managerial is structural because it is limited by the structure that
connects the functional departments in the organization. Meanwhile, the administrator
role is indicated by the circle that is above the structural because of its function to
oversee the structural duties under it.

CHAPTER V – ETHIMOLOGICAL AND POINT OF VIEW ABOUT ADMINISTRATION

The development of Administration Science, especially in Indonesia, is faced with

cultural constraints stemming from the Dutch cultural heritage, namely that it considers
administration as a Clerical Work. Administration is considered as a skill related to
typing, correspondence, and other administrative activities so there is no need for an in-
depth study of administration. The definition of administration as a technical skill
develops among the general public so that the general public sees administration as a
trained-skill

Etymologically, Administration has an infinitive form "to administer". The word "to
administer" which means to manage or to direct. Whereas in Dutch, the word
administration comes from the word “Administrative” which means administration and
management of resources, such as finance, personnel, and warehouses. Administration
means "The Activities of all branches of government in managing the affairs of state;
commonly, the activities of sovereign, president, or the like, in directing the government
of a state and applying the laws".

So it can be concluded that the administration has 2 meanings in narrow and in broad. In
a narrow sense, administrative activities include administrative work which has the
character of note everything that happens in the organization which is used to become
information for the upper. Therefore, administrative activities are defined as activities to
process data and information in an organization. Activities undertaken include
correspondence, expedition, and filling.

Whereas in a broad sense, administration is a process of cooperation within an

organization which includes individual activities in the organization whose task is
organizing, promoting and providing business facilities for the cooperation of a group of
individuals to realize the specified goals. Cooperation carried out by a group of people,
this cooperation is based on a structured division of labor, which is then aimed at
achieving a goal through the use of resources.
3. Conclusion

Administration can be meant by 2 meaning there are a job related with administrative
activities such as process data, correspondence, expedition, filling. And the other
meaning is a process to corporate with others in organization. The role of business
administration science is to develop concepts and scientific basic, such that it is not only
operational activities the company runs smoothly and efficiently, but also gets direction
and the right strategy and triggered by a courageous spirit of business leadership take
risks, be able to read opportunities, and continue to generate creative and innovative
ideas. One of the way to train it by making a business model (BMC) and implement to
your business.

4. Refrences

Budiyanto, Hermawan. Administrasi bisnis dan manajemen

Dunsire, A (1973), Administration: The Word and the Science, Oxford: Martin Robertson.

Kusdi Raharjom. Reposisi Pendidikan Administrasi Bisnis : Sebuah tawaran alternatif disain
pendidikan bisnis

Mawardi, Muhammad Kholid, 2019, Bisnis dalam prespektif ilmu administrasi.

https://www.floridatechonline.com/blog/business/business-administration-vs-business-
management/.

https://online.maryville.edu/online-bachelors-degrees/business-administration/bsba-vs-
management/

https://www.simulasikredit.com/perbedaan-managemen-bisnis-vs-administrasi-bisnis/

https://en.wikipedia.org/wiki/Management

https://en.wikipedia.org/wiki/Business_administration