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Business management is the discipline of education that disseminates knowledge and training in relation to planning, reviewing, executing and analysing the business entities. Business management also deals with the establishment of an organisation or company and various functions, including financial, production, human resources, sales & marketing and administrative activities.
A business manager is responsible for carrying forward the administrative tasks of a company, including delegation, assigning each position to qualified people who are fit for the position, monitoring business operations, train or monitor the employees, planning the events of a company, enhance the efficiency of employees, reviewing contracts, conducting a budget analysis to cut the expenses of a company, allocating resources to achieve the desired goal, minimising the stress and problems of an organisation and assisting the organisation with its marketing program. A business manager must have an adequate understanding of marketing, accounting and administrative activities that are required to operate a business.
Great business knowledge and experience with the six functional areas of business is required to start and manage a business effectively.
Human resources management: Human resources are the greatest asset of any company, and how they are motivated and inspired can play a great role in the success of the company. To become a successful leader, strong organisational communication and leadership skills are very vital.
Operations: Every business entity must follow several key aspects of business activities including strategizing, productivity, analysis, and quality assurance to make sure that production is able to meet the quality standards with tight deadlines and to manage the supply chain, which are vital to the success of a business.
Accounting: Managing all the everyday finance and accounting activities of an organisation in an adequate manner and understanding how to read, examine and construct the financial statements is very vital for the smooth running of a business.
Strategy: To make a competitive advantage, adapt to the changes of the business environment, identify opportunities and stand out in front of other external forces such as changing the demands of customers and new competition, one must be able to view the businesses from a high and strategic manner.
Finance: Carrying forward significant purchases, mergers, acquisitions, and investments are essential for the growth and maintenance of an organisation. The decision-making and financial planning must be carried forward smartly to create value and ensure the growth of a business.
Marketing & PR: Marketing is not only advertising a product, but it is much more than that. Marketing also includes identifying the customers, interacting with them, understanding, and aligning with the changing needs and delivering strong value.
Change: Change refers to the transformations made in an organisation in accordance with the needs. This need might be internal or might arise due to some external events such as disruption in the market. This concept aims to enhance the performance and efficiency of a business entity through deliberate actions.
Need: Need refers to the opportunity or problem that is addressed by a business manager. Needs brings out changes in an organisation by motivating the actions of stakeholders. Changes might lead to need by enhancing or eroding the value that is delivered by prevalent solutions or developing the demand for new solutions.
Solution: Solution refers to the unique way of satisfying the needs. A need is satisfied by a solution by providing resolution to any problem faced by stakeholders or by facilitating the stakeholders to acquire advantage of the opportunity.
Stakeholder: A group of individuals who are related to the change, the solution or the need are referred to as stakeholders. They are grouped according to their relationship with the changes, the needs and the solutions.
Value: Value refers to the importance, usefulness or worth something presents to the stakeholders. It might be tangible, including potential returns, improvements or gains or intangible with significant motivational factors such as the reputation of the company or the morale of the employees.
Context: Context refers to the circumstances that are influenced or influence and avail the proper understanding to change. A context is an extensive term that includes everything from the mission, culture and demographics of an organisation to the competitors, policies, sales and products of the government. For the change to be implemented in a successful manner, the context for which the change is to be implemented must be defined and analysed carefully by the business manager.
Preparation: This business management function is employed by employees at all levels as it avails them with confidence and enhances their efficiency. Preparation is future-oriented and determines the direction of an organisation. It facilitates the decision-making process by making it more systematic and rational. It minimises the panic that might occur due to last-minute decisions, so the manager must take all the decisions and list their activities beforehand. It also enables them to handle all the changes.
Leadership: Leadership potential is the quality that makes a business manager rise high in a company management structure. Leadership cannot be learned without potential but can be developed through exercise and practice if one has the potential. A good leader leads the entire team towards success and also handles failure much effectively.
Organisation: Organisation skills are vital for managers since they are required to take charge of people and processes. It is not just putting things together but organising the teams in such a manner that each employee is able to give their best. Organisation refers to arranging the authority in a formal structure and then further directing and flowing this authority to define, arrange and coordinate the work subdivisions. The organisations objectives are also met by relating one part of the organisation to another part in a coherent and united manner.
Controlling or monitoring: Controlling includes all those activities that are taken in order to ensure that the events align with the pre-arranged plans. These activities establish the work performance standards, measure the performance, compare these activities to the defined standards, and then adopt corrective measures to correct any deviations.
Staffing: Staffing refers to hiring and retaining an adequate workforce for the organisation both at managerial and non-managerial levels. It includes hiring, training, developing, evaluating, and compensating the employees with proper motivations and incentives.
Optimum utilization of resources: The most important objective of management is the economical use of all the physical resources of a business entity, including Men, machines, money, and materials, in order to gain adequate profits to meet various needs and interests.
Growth and progress of business: Management leads to growth and progress of the business by carrying forward proper planning, regulation and direction. It also enhances the sense of security among employees with a profitable expansion of the entity.
Maximising the quality and regular supply of goods: Producing better quality goods with the least investment is the ultimate goal of management, which is generally done by eliminating all the types of wastes in the organisation. It also monitors the scarcity of products in the market while maintaining the cost to ensure a regular supply of the products.
Maintaining discipline and morale: Management employs the principles of delegation and decentralisation of authority to enhance the morale of the employees and to maintain the discipline. Employees are motivated by availing them with incentives which also creates a better work culture.
Obtaining maximum results while minimising the efforts: Being concerned with utilising financial, human and material resources in an optimum manner, management tends to maximise the outputs while reducing the resources and efforts.
Enhancing the efficiency of production factors: The efficiency of production factors can be increased by utilising the various production factors inadequate manner and minimising wastages, breakage and spoilage to all resources, which will save money, time and effort.
Maximising the prosperity for employees and employer: Smooth and coordinated functioning of the organisation is ensured by the management by availing the employees with maximum benefits such as better working conditions, higher profits and a proper wage system.
Social justice and human betterment: Management enhances the standard of living of the society by increasing employment and productivity. Management also formulates uniform policies to provide the employees with justice.
Promotion of research: To surpass the competitors and attain the uncertainties of future, research and development method is undertaken by management which avails the organisation with all the latest technologies, methods and skills.
Minimising risks: Management tends to minimise the element of risk by forecasting the future and focusing on all the changes.
Future planning: Preparing a prospective plan for the future is another important objective of business management. They make plans for what will be done next to meet the goals of the organisation and for adequate progress.
For a business manager to excel in their career and to perform all the responsibilities as per the expectation, the manager must be equipped with strong analytical, accounting skills and the ability to work in a team and provide leadership, motivation and inspiration to other employees, so that they can progress in their work. Strong analytical skills will enable them to identify the future demands of the organisation, and accounting skills will enable them to conduct the budget analysis of the activities of an organisation.
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