Business management is defined as a social process that incorporates planning and controlling the operations of a business enterprise towards the achievement of specified goals and objectives. The process of business management is multi-faceted because of the various sectors, activities, and operative functions. In addition to planning and controlling operations towards realizing certain objectives, business management also entails motivating employees and solving problems creatively. Given the multi-faceted nature of business management, there are five functions of management. These functions are planning, staffing, organizing, controlling, and directing or coordinating. These functions play an important process in business management through separating processes from other business functions (Roberts, n.d.). The fundamental functions of management are separate from business processes like finance, information technology management, marketing, and accounting.
Each of the essential functions of management is important for effective business management for various reasons. Planning is important because it entails coordinating the organization’s management levels and leadership practices. As a result, planning helps in ensuring the organization operates smoothly relative to desired goals and objectives. During this process, the organization’s resources and objectives are taken into consideration. On the other hand, organizing is important for effective management because it ensures that the existing company structure promotes successful daily operations. In this case, the organizational culture is developed in a manner that ensures smooth daily operations.
The significance of staffing for effective business management relates to ensuring the company recruits and retains a . This function addresses all human resource management aspects, particularly recruitment and personnel issues. Through this function, the organization ensures it has the right people for the right job in order to accomplish business goals. Controlling, on the other hand, helps in ensuring that all organizational functions are established and functioning effectively. This entails setting performance standards and making sure that employees’ contributions to organizational processes meet those standards. Performance standards are established through identifying problems or situations that should be addressed. Directing or coordinating is significant for effective business management since it ensures the other fundamental functions work smoothly. This function ensures all business activities function seamlessly for the good of the business enterprise.
Management Skills, Principles and Strategies
Having worked in a small business enterprise in the past, I’ve learned some management skills, principles, and strategies that contribute to success and profitability vis-a-vis business goals and objectives. Based on my experience in the small business enterprise, managers need to have conceptual, technical, and human skills despite the type of organization they are working for and goals that must be accomplished. Conceptual skills enable managers to understand how every organizational function works seamlessly with other business functions. In addition, these skills enable them to understand how the enterprise relates to its environment and impact of potential organizational changes. Human skills are crucial for effective relationships with other organizational stakeholders in relation to effective communication and employee motivation (Barnat, 2014). In contrast, technical skills are important in order to understand how business processes like accounting help in realization of specified activities and objectives. Moreover, I realized that minimizing workplace conflict, promoting competition, ensuring accountability, and leading by example is important for a manager to are achieved. These should be carried out while prioritizing business needs accordingly and mitigating risks.
Barnat, R. (2014). Management Skills. Retrieved October 17, 2016, from http://www.introduction-to-management.24xls.com/en121
Roberts, C. (n.d.). Five Functions of Management and Leading. Retrieved October 17, 2016, from http://smallbusiness.chron..html