Business Management: What It Is, Why It Matters, and More

Business management helps ensure that organizations both large and small achieve their goals.  At a glance, here's what you need to know about this important business profession:

• Business management job openings are growing. According to the US Bureau of Labor Statistics (BLS), business management positions will see an average of 1.1 million job openings on average every year between 2024 and 2034 [1].

• From implementing company-wide business strategies to managing teams of people, business managers perform a wide range of tasks to make sure it all goes off without a hitch. Common career titles include business manager, business operations manager, and human resource (HR) analyst, among others.

• If you enjoy responsibility, strategy, and working with others, you might consider pursuing a career as a business manager. 

In this article, you’ll learn more about business management, why it’s important, and jobs in the field. You’ll also learn how to get started in business management and explore suggested, cost-effective courses that can help you gain job-relevant skills.  Afterward, if you want to learn more about business, consider enrolling in the University of Pennsylvania's Business Foundations Specialization.

What is business management? 

Business management refers to the practice of managing the operations of a business. It involves coordinating and organizing both general and specific business activities to help an organization achieve its goals. To do this, business managers often apply strategic and financial planning for production and resource management to benefit the business. 

Business management is used in a wide range of industries, including health care, finance, manufacturing, and retail. The organizational techniques used in the field mean that it can also be applied to other organizations, such as non-profits, charities, and even government agencies. 

Why is business management important? 

Business management encompasses a wide range of activities within an organization. As a result, professionals working in the field do everything from ensuring operational efficiency and analyzing markets to implementing organizational procedures and overseeing quality management. But, regardless of the area of focus, all business management professionals are focused on ensuring that an organization achieves its objectives in the most cost-effective and efficient manner possible. 

In the work world, consequently, business management is important because it helps organizations to make the kinds of strategic decisions needed to reach their goals. Through effectively managing resources and making strategic business decisions, professionals in the field are able to ensure that an organization runs efficiently as it delivers on its mission. 

Business management responsibilities

A business manager’s exact duties and responsibilities will vary from one role to another. While some might spend most of their days planning, organizing, and then implementing management strategies, others might focus primarily on hiring, training, and overseeing employees. All of these tasks play an important role in business management but the degree to which you’ll focus on them will depend on the scope of your work.

Despite these differences, some common responsibilities and duties you can expect to perform as a business manager include:   

• Developing management goals and objectives that align with the overall business strategy

• Designing project plans to achieve management and business goals 

• Obtaining resources to achieve business objectives, such as by hiring employees or acquiring equipment

• Training employees

• Supervising employees and overseeing their work

• Analyzing data to compose reports

• Holding and presenting team meetings

Business management jobs 

The US Bureau of Labor Statistics (BLS) includes the field of business management under the broader category of management. According to the BLS, approximately 1.1 million job openings in management are projected each year between 2024 and 2034 due to a mix of employment growth and the need to replace retired professionals [1]. 

There are many different jobs that fall under the umbrella of business management. While these roles might have different titles and responsibilities, they each involve some component of developing and implementing management strategies to help a business achieve its goals. Some common jobs in the field include: 

• Business manager 

• Business operations manager

• Supply chain manager 

• Change management analyst 

• Administrative assistant 

• Human resources (HR) analyst

• Project manager 

What is the highest-paying job in business management?

If you want to make it all the way to the top and work in the highest-paying job in business management, you’ll want to aim for executive-level positions like chief executive officer, chief operating officer, chief financial officer, or chief information security officer. Explore the median total pay for these roles: 

- Chief executive officer: $331,000 [2]

- Chief operating officer: $319,000 [3]

- Chief financial officer: $315,000 [4]

- Chief information security officer: $319,000 [5]

How to become a business manager

To become a business manager, you’ll need to obtain the right credentials, skills, and experience. Here’s some of what you can expect to do as you embark this exciting and impactful career path. 

1. Consider obtaining a degree. 

Typically, you must possess a college degree to be considered for a business management position. According to Zippia, 65 percent of business managers have a bachelor’s degree in a related field like business administration, management, finance, accounting, or marketing. Fourteen percent have an  associate degree and 12 percent hold a master’s degree such as a master’s in business administration (MBA) [2].

Read more: What Is a Business Management Degree and What Can You Do With One?

Business administration vs. business management

When searching for a management degree program, you’ll likely find two degrees that sound very similar to one another: business administration degrees and business management degrees. While both programs cover common business topics like accounting, marketing, and finance, they also have some important differences that you should know about. 

Business administration degrees often focus more on the theoretical aspects of running a business, such as developing business strategies and overseeing general operations. Business management degrees, meanwhile, place a greater emphasis on the organizational aspects of a business, such as managing workers and overseeing teams. Both degrees can help prepare you for a career in the field. 

2. Explore certifications. 

You may choose to earn a certificate to break into the field or support your degree. In particular, if you’re interested in pursuing a career in a specific industry, such as health care or logistics, a certificate related to it might improve your chances of landing a job later on. 

At some schools, the courses you take to earn a certificate are the same as those you might take to earn a degree. You can typically complete a certificate program in less time than a degree, and some schools even accept students who haven't earned a college degree themselves. The University of Minnesota’s Analysis for Business Systems Specialization, for example, can give you a broad introduction to the profession.

3. Hone your business management skills.

As a business manager, you’ll be tasked with using a wide range of both technical and human-centered skills every day. To ensure that you’re doing the best possible job, you should focus on honing the following skills: 

• Accounting

• Strategy

• Adaptability

• Customer service

• Communication skills

• Leadership

• Negotiation

• Problem-solving

• Time management 

• Teamwork

Read more: What Are Job Skills and Why Do They Matter?

Get started with Coursera

Business managers are integral to ensuring that businesses operate in the most efficient and productive way possible. Learn more about business management with these resources from Coursera:

• Watch on YouTube: Skills Every Professional Needs

• Explore roles: Business careers

• Subscribe on LinkedIn: Coursera's Career Chat Newsletter

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