What Is Business Management And What Are Its Functions
Etymologically, the word management comes from the union of two concepts of Latin: gestus , which means concluded or realized fact , and the suffix -tio , applied to an action or effect.
Its origin does not differ too much with the current concept and, therefore, the definition of business management is related to the idea of assuming the administration, organization and operation of a business or company. Zoe Talent Solutions you will find the courses based on business management.
WHAT IS BUSINESS MANAGEMENT?
Unlike other concepts of the economic sector, in relation to what is business management there is a certain consensus , with slight nuances.
Management and Direction , in which they conceive business management as “the set of basic functions or processes (plan, organize, direct, coordinate and control) that, properly carried out, have a positive impact on the effectiveness and efficiency of the activity carried out in the organization “.
WHAT IS BUSINESS MANAGEMENT FOR?
Given the definition of business management, it seems clear that its functions are based on four pillars:
Planning : consisting of the setting and programming of the goals or objectives of the company at a strategic level, as well as the establishment of the human and technical resources necessary to carry out the planned mission in the most efficient way possible.
Organize : it deals with the assignment and coordination of the different tasks, defining who, how and when they will be executed.
Direct: related to the figure of leaders or executives, this function consists of motivating , encouraging and cohesive the different members of the organization so that they develop the assigned functions.
Control : it lies in the supervision of the work, analyzing the strengths and weaknesses of the company, with the aim of correcting the defects that may arise during the business management process.
The 4 Basic Points Of Business Management
More than 90% of business failures are due to incorrect management, mainly due to inopportune decision making. This percentage has grown with the rise of new technologies, which makes competitive advantages ephemeral. Against this background, companies are forced to innovate constantly, without losing the essence of their brand, to survive and not be eaten by the competition. In this context, business management of managers and owners takes on special relevance .
Business management is the set of measures and strategies that seek to improve the productivity and competitiveness of a company. This function is usually performed by consultants, directors and managers. The key to the success of a business depends largely on good management, which helps identify the factors that influence the best result of the company and also find problems in time to solve them.
Management, like many other functions within the company, is based on four main tools:
- Business plan: set of activities related to each other for the development of a company with the aim of achieving the planned goals. It is a guide that facilitates the creation or growth of it.
- Business structure: determines the responsibilities that correspond to each person within a company and the legal constitution of the company.
- Accounting: studies the financial movements of an entity during a certain period of time.
- Checklist: a guide used to prepare a complete business plan and to determine if the initial objective is likely to be met.