Meaning of Business Management
Business Management is a term related to management of overall activities of business for attaining the established goals. It is a branch of management which specializes in organizing and coordinating all business operations. Business managers are individuals possessing better knowledge of management principles which enables them in efficiently managing the overall functioning of organization. They are the one who formulate all effective business strategies, implement them and continuously monitor the performance of workers to avoid any deviations.
Business management is a continuous activity which is practiced as the long as organization continues its operations. It covers a wide range of activities of organization like finance, marketing, operations, accounting, people-management and strategies. Business management essentially focuses on efficient utilization of all resources that leads to maximize the profits and timely attainment of desired goals.
Functions of Business Management
Planning is a primary and initial function performed by business managers. It involves deciding what to do, deciding the missions and objectives to be accomplished by organization. Managers acquire all crucial information related to business that assist them in decision making both for short term and long term. In simple terms, this function is concerned with deciding targets and choosing most appropriate action to attain them.
Business managers after setting the goals and objectives properly organizes every activity to be performed by organization. Activities are grouped and divided into smaller tasks, authority-responsibility relationship is determined and degree of centralization within the organization is decided. Tasks are assigned to personnel’s along with their degree of authority and responsibility and all the activities are properly coordinated from time to time.
Directing function involves guiding workforce what to be done and ensuring that whether they are working within the best of their capability. Business managers provide complete instructions and guide the employees regarding procedures to be followed. Manager motivates their subordinates to provide their best results towards organization goals with less supervision. Also, an efficient communication channel is established that offers a two-way information flow leading to proper understanding.
Business managers also perform a crucial task of acquiring and retaining a qualified workforce at both managerial and non-managerial roles for the organization. They perform a complete analysis of human resource requirements and make efforts to fill them with competent taskforce. Staffing function aims at placing a right person at right job for deriving out maximum results. Various decision related to recruitment, selection, training, compensation, transfer, promotion and demotion are taken by managers under the directing function.
Controlling function is one that monitors each and every ongoing activity of business to ensure that there are no deviations. Business managers establish a set of standards with which the actual performance is measured for recognizing the deviations. Once deviations are identified, all possible corrective actions are taken by them to overcome them. These functions are circular in nature as they are performed repeatedly till the achievement of goals.
Importance of Business Management
Effective decision making
Business management leads to effective decision making within the organization. Manager formulates all strategies after analyzing distinct aspects of business and properly implement them. Proper planning is done regarding what is to be done both for short and long-term that leads to better results.
Achievement of established goals
Proper management of business operations facilitates the achievement of established targets by organization. Good management structure provides complete details for attaining goals. It comes up with complete proposal and strategies that guides on how to achieve the missions.
Reduction of wastage
Business management ensure that all resources within the organization are efficiently utilized with minimum wastage. All resources including human and non-human are efficiently deployed that yields maximum results at low cost. Individuals are assigned roles as per their qualification which leads to best use of talent and specialization.
Simplifies the organization structure
It plays an important role in simplifying the organization structure by organizing each and every activity. Business manager develops a proper formal structure where authority-responsibility relationship is clearly defined. Every member of team knows what they are required to do and responsible for that lead to combined efforts towards one common goal.
Keeps organization moving
Proper management of business affairs facilitates its uninterrupted operation. Business managers ensure that an organization always get what they require, in right form and at right form. They keep every activity of organization properly organized and under supervision that avoids any disputes or problems within its internal functioning.
Monitor all progress
Business management plays a crucial task of controlling all activities of business enterprise. It ensures whether the progress is going in desired direction or not. Performance of business is measured and compared with standards for detecting any deviations. These deviations are removed by taking possible corrective measures that helps in keeping all activities on track always.