What is a Business Management? Scope, Process & Its Significance
Introduction – What is a Business Management?
Business management is the coordination and organization of business activities. It helps organization to reach its operational and also financial objectives. In this article lets see What is a Business Management? Scope, Process & Its Significance.
What is a Business Management?
- “Management is the art of getting things done through and with the people in formally organized groups”.
- Business management is the process of planning, organising, leading and controlling the efforts of organisation members and also using all other organisational resources to achieve stated organisational goals.
- Business Management is the process of designing and also maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Hence it is required to efficiently manage and run a Business.
- Management is the art of maximizing efficiency, as a social process, a method of getting things done through others a plan of action and its direction by a co-operative group moving towards a common goal. Effective utilization of available resources to achieve same objective is management.
Business Management Types
- Financial Management
- Marketing Management
- Human Resource Management
- Information And Technology Management
- Sales Management
Levels of Business management
- Top-Level Management
- Middle-Level Management
- Operational-Level Management
Scope of Business Management:
- Managing is essential in all organized co-operation, as well as at all levels of organization in an enterprise.
- It is the function performed not only by corporation President and the army general but also of the shop supervisors and also the company commander.
- Managing is equally important in business as well as non business organizations. During the last few decades, Management as a discipline has attracted the attention of academicians and practitioners to a very great extent.
- The basic reason behind this phenomenon is the growing importance of management in day to day life of the people.
What is a Business Management Process?
Business Management involves the following process.
- Planning: setting organisational objectives and the methods of achieving them.
- Organising: establishing the structure of tasks to be performed to realise the set goals and also objectives.
- Commanding: giving instructions to the subordinates to undertake tasks.
- Coordinating: harmonising the activities of individuals and groups within the organisation in order to help an organisation to perfect and also achieve its objectives.
- Controlling: monitoring which is continuous during implementation and evaluation (which is an audit) of the activities in order to correct activities and ensure that work is done according to plans.
Significance of Business Management:
Management plays a unique role modern society. Peter F.Drucker has summarised the essence of management as “ under developed countries are under managed, it denotes the multidimensional significance of management. The significance of management can be broadly classified into the groups.
- To the Organization.
- To the Society.
Advantages to the Organization:
- Determination of Objectives: The success of various operations of an organisation mainly depends on the identification of its objectives. Objectives are identified and laid down by the management. They should be the writing and communicated to all others in the management.
- Achieving of objectives: It is the management which directs the group effort towards the achievement of various objectives. It brings the human and also non- human resources together.
- Meeting challenges: All the policy decisions of an enterprise are taken by the management. It keeps in touch with the current environment and predicts what is going to happen in future. Through better planning and control, management steers a concern to meet the demands of the changing environment.
- Provides innovation: Management infuses an enterprise with new ideals, imaginations and also vision.
- Smooth running of business: It helps in smooth running of business through better planning and control.
Advantages to the Society:
- Optimum utilization of Resources: It is the management which makes optimum utilisation of various resources such as land, labour, capital and enterprise. “ No ideology, no ism, no political theory can win greater output with less efforts, only sound management”, says Urwick and Brech.
- Social Benefits: Management raises the standared of living of the people by providing good quality products at the lowest prices. It also promotes peace and prosperity in the society through optimum use of scarce resources.
- Role in national economic development : “Management is the crucial factor in economic and also social development”, says Peter F.Druker. The development of a nation mainly depends on the quality of management of its resources. It is all the more true in a developing country like India, where productivity is low and the resources are limited.
- Employment : The expansion and diversification activities of the managers in organizations create more employment to the society. This is very essential for our country.
Importance of Business Management:
- Management is overall the most important factor because no business runs on itself, even no momentum. Every business needs repeated stimulus which can only be provided by management.
- Thus, management is dynamic, life giving element without which the “factors of production“ will remain as were factors not become “Production“.
The following points bring out the importance of management.
- Accomplishment of group goals.
- Efficient operations of business.
- Sound organization structure
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