What is management?
Business management is a broad field that deals with a number of topics in business but primarily focuses on object based planning and organizing. The purpose of managers is to increase the output of a work unit through the application of proven business strategies and techniques. There is a high element of planning and management skills will depend heavily on the specific field the skills are applied to.
What are important skills in business management?
The most important elements of business management involve planning and organization. As there are a host of strategies and skills applicable to business management, effective planning and organization will determine the appropriate approach to a problem. This will involve assessing input from workers, assessing the resources available to solve the issue and using quantitative reasoning to determine the approach that will cost the least amount of resources, usually time, human capital and wealth. Without proper planning, tasks assigned will be less effective and decisions will be made with inadequate information. You will also have to determine if there are appropriate resources available to gain the full utility of the option you are using to work towards the goal.
The other important role of a manager is ensuring that assigned tasks are completed in the most effective manner. This will require supervisory skills are working on the plan or toward the goals in the most effective way possible. The goal in business management is to achieve the goals as quickly as possible, under budget and within time constraints, but also delivering quality work. The effective functioning of the unit in that particular business entity will require informed management and a manager that is invested in all parts of production in the unit, even if the unit is processing invoices or involved in sales.
What are the key tenants in business management?
Objective based management is key in business management and the objective must be made clear to all under the supervision of the manager. The manager is usually clear on the objectives of the organization if he or she does not set those objectives on their own initiative and will organize his unit to meet those objectives.
What are branches of business management?
There are six branches of business management, each related to a specific function of business. Each branch will require specialized skills and expertise to function effectively.
Human resource management
Human resources deals with the employees of the business, ensuring they are paid, provided with their entitled benefits and are satisfied with their work environment. This is important in the business setting to ensure that works feel that they are respected by the employer and will be paid fairly for their work. They will also not have personal issues, either at home or in the workplace affect the quality and nature of their work.
Operations management or production management
This management deals with the operation of the business ensure that conditions are optimal for achieving the maximum output for the inputs of labor and capital. Productions management in the business setting works with strategic management to ensure that resource arrive on time to reach optimal production capacity and that the product meets projections set by the marketing department to deliver the product to consumers.
This management uses business funds to acquire resources and assets that increase a business’s market share. They develop and execute plans to ensure the long term growth of the business. Strategic management will work in conjunction with financial management to develop long term plans that are feasible and will work for the benefit of the business.
This is the management of distributing products produced or sold by the business to the consumer, as well as maintaining a public image for the business. Marketing is important for increasing the market share of the business. Marketing will develop projections with the operations department to facilitate the ultimate sale of the product to the consumer.
This is the management of funds and the capital resources of the business. These managers will assess the risk and liabilities of existing investments or investments to be made. Financial management is important to the business to maintain the liquidity and cash flow within the business. With the greater liquidity afforded by financial management, businesses are better able to invest in assets such as new technology, acquire competitors and respond to financial shocks. They may also be able to increase hiring with the liquidity afforded by financial management.
Information technology management
This newer field of management organizes experts in information technology to manage technological resources of the firm including software systems and internet presence. Information technology is a critical component for businesses and will work in conjunction with the marketing management to create an attractive and user friendly web presence. This will increase the potential customer base and awareness of the business. Information technology management will require technical knowledge of the necessary equipment as well as theoretical knowledge on management skills.