Business managers rely on many related skills, including operational execution, analysis, leadership, and the ability to integrate multiple departments and levels of management. They strive to be motivational, interdisciplinary, team players, and excellent communicators. Organizational leaders are all that and more. They are big-picture thinkers. Organizational leaders have a vision and can disseminate their ideas, distribute goals, and provide direction and feedback. They are excellent listeners, and they show up for their team. They also must function well at the apex of other leaders in their business or organization. While both degrees are excellent pathways toward getting your career off the ground and increasing your salary potential and job opportunities, there are several key differences between a business management degree vs. an organizational leadership degree. If you closely examine your goals, specialization desires, and skills, you can make a well-informed choice that will positively influence your future.
First, let’s consider the fundamentals underpinning each degree option. Business management degree programs emerged around the turn of the century when theories of manufacturing productivity, ethics, global trade, and independent business laws were maturing. Business leaders had witnessed the change that the industrial revolution had on economies. The rise of efficient and mechanized means of mass production required streamlined management techniques and a better-educated hierarchy of leaders. Business management takes a metrics-oriented focus to achieve peak performance. Business management degrees do this by including the following topics in their curriculum:
- Finance
- Business law
- Accounting
- Ethics
- Basics of entrepreneurship
- Economics
- Statistics
- Business theory
- Informatics
- Marketing
Business management master’s degree graduates are well-suited for job titles such as accountant, consultant, business development manager, sales manager, investment banker, and human resource manager. According to U.S. News, the hottest jobs for MBA graduates today are:
- Financial manager
- Information technology manager
- Medical and health services manager
- Management consultant
- Operations research analyst
- Personal finance advisor
Business management is the administrative function of running and simplifying a business and meeting bottom-line goals within the margins of risk and goals set by the business or the organization’s leaders, whether they be the president of the company, a board of directors or trustees, or government officials. In summary, if you are interested in cash flows, investment advising, and increasing operational efficiency, a business management degree would be an excellent choice.
So, what does an organizational leadership degree qualify you for, and how is it different in scope from a business management degree? Organizational leaders might work in positions such as higher education administrator, non-profit organization director, health services manager, chief executive, human resource manager, city manager, college president, marketing director, and more. Think of an organizational leadership program as an education in transformation. These jobs require leaders who understand the dynamic intricacies of how an organization functions, regardless of whether the industry is private-sector, corporate, government, or non-profit. MSOL graduates leave prepared to tackle operational challenges in any environment with a curriculum like the following from Goodwin University’s MSOL:
- Organizational communications
- Data-driven decision-making for executives
- Leading organizational change
- Talent and performance management
- Negotiating and conflict response
- Engaging with senior executives
- Sustainability of innovation and strategic advantage
As you can probably gather from this list of courses, organizational leaders learn how to get into the minds of employees and fellow leaders. There is a major component of psychology and mediation training involved in organizational leadership roles. An organizational leadership education, compared to a business management education, emphasizes empathy, which Forbes found to be the most influential leadership skill of all. Research shows that empathetic leadership contributes to more innovative employee performance, employees who are more engaged and who stay at their jobs for longer, and more inclusive workplaces that offer better work-life balance for employees. You might be wondering, “Can empathy be taught?” After all, empathy is essentially a human emotion. A successful organizational leader will tell you that the biggest challenge relating to empathy is cultivating it in professional settings.
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Payscale’s top-ranking jobs for MSOL graduates included: human resources director, generalist, manager, executive director, project or operations manager, training and development manager, chief operating officer, or chief executive officer.
The salary potential for these careers is strong. General and operations managers in the U.S. make on average, $97,970 annually, while chief executives make on average, $179,520 annually. Top executive jobs such as those in the C-suite are among the highest-paying in the country, though statistics vary greatly with industry and location. Compensation is best in cities and corporations (as opposed to government, for example). It is also no wonder that the human resources title comes up in multi-faceted ways as a perfect fit for MSOL graduates. Communication is key to this career area and essential for HR professionals! Human resource managers in the U.S. make, on average, $126,230 annually, with the potential to make more in professional, scientific, and technical service and enterprise environments. These examples illustrate how an organizational leadership master’s degree has the potential to land graduates into the top tier of American earners.
While there are many more types of leadership master’s degrees to discover, you’ve now learned about the benefits of two of the most popular types: business management vs. organizational leadership. Consider your career goals and whether you want to sharpen your business acumen or your communication and operations skills. Additionally, remember to envision how you might adapt a degree program’s schedule and rigor to your life. Look for flexibility, affordability, and application requirements. For a fully online, competitively priced Master of Science in Organizational Leadership program, discover Goodwin University’s MSOL program! Call 800-889-3282 to speak with a representative today or request more information online.