business management essay sample

business management essay sample

The Importance of Effective Business Management: A Comprehensive Analysis

1. Introduction to Business Management

The essence of organization is to bring heads together to make good and factual decisions towards focused and established goals of the company. Good and effective management nurtures confidence among workers and ensures the effective and efficient usage of both the physical and human resources of the company. Organizations are classified into four groups, which include manufacturers, trading businesses, service organizations, and non-profit making organizations. Effective management ensures customer satisfaction and appeals to the psyche of the customer, employee welfare from their performance, appealing remuneration policies of the enterprises, and national development. The height of performance in any organization depends mainly on the quality of management. To achieve such performance, it becomes quite essential for the management of organizations to be taken into account. It is the business management that people follow in business activities. The individuals at the decision-making level of management are accountable for accepting the objectives of particular companies, making strategies and policies, specific policy decisions, and acting as the foundation for policy instruments of the enterprise.

Business management is a series of techniques involved in achieving the objectives of an organization. Efficient business management includes goal setting, planning, monitoring, organizing, staffing, leading, and controlling. The management is followed at every step so that the management established is well-sustained, understandable, and acceptable. Management gives way to endeavor human beings with an understanding of purpose so that they can give their best. Management denotes the use or relevance of business operations, making use of available knowledge and talents efficiently, determining job responsibilities, leading personnel, and controlling performance. Basically, business management is a doctrine and a field of management processes that interact between various facts and provide a meaningful foundation for literal applications performed in operations. It is the linking link between the established purpose of the organization and the manpower performing the task to achieve the establishment’s goals. Organizations are viewed as designed in a pyramidal order.

2. Key Principles and Theories in Business Management

Elements for the success of a strategic planning system involve the establishment of a procedure to establish the strategy, the production of long-term developments in implementing common objectives, and a method of assessing the result established of the strategies. The organization must not forget to schedule it in the execution phase after getting a job done, both for the company as a whole and for the subordinate components. This will help ascertain that modifications render the project possible and will indicate any requirement for improvement. Then decision-making plays a central part in business management. The business management is actually the decision-making function or aspect and this cycle of decision-making is crucial to the company’s operational success. Companies are usually faced with big and small choices of a fiscal, technical, and employee type.

One of the most significant principles in managing a company is planning. Planning involves setting clear objectives and developing strategies or approaches to attain these objectives. Strategic planning contributes to the goal of deciding and developing a beneficial strategy. Furthermore, emergency planning ensures the organization’s flexibility to adjust to unforeseen events. However, objectives must be clear. There should be unity of objectives throughout the business. The nature of financial, the age and degree of control, the ability to worry about subordinates should be clear and agreed to by every group related to the company.

3. Challenges and Strategies in Business Management

This leads to the question: What is business management? Business management is the science about how to manage a business by operating an effective system. Business management is based upon scientific knowledge about laws of nature and human relationships. Being based upon a body of scientific principles, it also seeks consensus for applying these principles in view of the interests of stakeholders and on the basis of scientific experimentation. The objectives of business management are to contribute to the effectiveness of the enterprise within the framework of its external environment, taking into account ethical and social responsibility concerns. The subject domain of business management includes individual and group decision-making, acting on knowledge and commitment of employment about key issues involving business performance that is the origins of satisfaction of all stakeholders in the firm. As a science, business management studies interactions of physical, economical, and cultural activities by a systematic process of observation, description, listing, measuring, comparison, modeling, simulating, controlling, decision-making, and predicting. Also, business management is a social science. Its focus is on human behavior in organizations. It is interdisciplinary in nature and uses concepts, methods, and insights from other disciplines.

Business management is a vast discipline. From the employment context, it can be said to include all employed individuals in the private, public, and non-profit institutions – the managers and non-managers at all levels from the CEO to the secretarial staff – who contribute to the goals and effectiveness of the institution, as well as profit or non-profit. Yet, not all benefit from the science of business management. Some, who are employers, seem to benefit more from it. Employees have much to gain from understanding the facts, principles, and concepts that form the basis for many practices and decisions in business management. Such insights can help employees become more effective in their current jobs, better candidates for promotion, and more astute consumers of the economic and social benefits that the workplace and market can offer. Finally, an understanding of different needs and interests might make employees better citizens and voters as well. Business management is more than mere problem solving. It aims to contribute to society in general.

4. The Role of Technology in Modern Business Management

Each advanced political or merchant state, developed in the past, was closely interrelated with modern political or public domestic and foreign technologies. Politicians and merchants finally were the over-roof regulators, designers, and organizers. After them, there always came bankers, lawyers, accountants, bookkeepers, warriors, and tax collectors, military commanders, and judges. Their aggregate activity let them achieve different goals, generating success – both of the whole state and of each of its citizens.

Computer business technologies are not inventive, theoretical, or ideological. Basically, they only formalize the most effective methods of business management, which have already been known for ages and were first worked out by the first merchants, manufacturers, and people dealing with finance. They were used in trade and in the field of military and political technologies in commerce, management, and in the area of finance. The history of humankind can be compared to a stop list upwind to recharge before a jump to the next stage, which people strive to do their best, counting first of all on profit and economic benefit. At any cost.

Complex business and its management require well-developed and reliable tools and technologies. In the 21st century, simple methods cannot help to compete, win respect, and be recognized as ‘heavyweight’. Failure to use modern management technologies makes the whole business obsolete and leads to its liquidation, bankruptcy, and other undesirable consequences. Therefore, a company has two basic paths: to advance or go bankrupt. The absence of the middle is explained by the fact that unaligned companies simply are unable to survive if facing critical crises. Downshifting – large-scale dismissal of employees leads to bankruptcy, is marked.