the business management essay

the business management essay

The Key Principles of Effective Business Management

1. Introduction to Business Management

The business manager’s job is not only to communicate his or her organization’s progress and successes. A key business manager’s responsibility is also to develop the talents that will help the team and the organization achieve better results. Sometimes this can be a challenging task because of the strong desire to assign great importance to business management. There is a heartfelt wish that good results and proper recognition will be diminished owing to the manager’s interest in attributes that are not only seen as essential to the business manager’s role but are key attributes for great business managers. You may have asked these or similar questions about your abilities or improvement plans and challenges, or about those of direct reports. This book has been built upon a closely related set of questions, in searching out the key principles that are common to all great business managers regardless of the organizations they direct.

When people think of the business manager, they generally think of the negotiation possibilities. They probably think about some of what a great business manager can do for the company. They may understand that a business manager can get results, and that every business organization requires a business manager. They may understand that the business manager must work with others in a firm to earn the right to lead the company or the other organizations. They may also understand that the position of the business manager is forward looking, developing, and driven by a vision. But, how many advantages would result from a more widespread awareness of the principles of effective business management itself? How many advances in productivity, progress in the function of the company, and success with the corporate strategy would result, too? How many reorganizations could be avoided and hand-wringing over restructurings diminished if those key principles that lead to greatness, from the business manager’s matchups of passion and commitment, were appreciated and understood?

2. Key Concepts and Theories in Business Management

The main general aims of the company are called the priorities in the chart. The specific aims can be called divisional, departmental, or individual objectives if appropriate. In a private company, the specific aims would be the company policy or product areas to be pursued. In a public company, these would be the main areas of expenditure and interest. For a governmental organization, there would be different types of activity. These could include: a) The Plenary Assembly – it sets overall aims and objectives. b) The Government – it may have special responsibilities and delegated authority for specific departments of revenue consumers, employees, and opinion-formers. They have the facility to improve or review the performance information.

The chart is a matrix type of flow structure which shows the sources of an organization’s overall aims, the principal aims or targets of the given part of the organization, the areas of accountability at each level, and the key performance indicators. Performance indicators are statements of what you will look at to ensure how an area of the organization’s activity is performing. They are used as the basis of the necessary performance system. Performance indicators are constructed to identify the location, level, trend, percentage, or standard to be achieved within a given time period, using resources, with specified constraints.

3. Strategies for Successful Business Management

The final, sixth principle of business satisfaction and fulfillment informs the principles of determining success, maintaining a fit-for-purpose organization, and empowering people. The organization reveals Kodak’s transition from a product-centric, seller-driven enterprise to a customer-driven organization, where the customer dictates the organization’s name. The essence of these guiding principles is that whatever the manager in a position of authority decides, industry and commerce require customers, clients, consumers, end-users, passengers, guests, or members to be recognized as a value. The granting of respect requires genuine empathy, understanding, and recognition of what motivates humanity to unlock his or her potential.

When developing successful business strategies, the first five principles of effective management, in particular, should be considered. The essence of these guiding forces is that whatever the manager decides, organizations require customers to survive. Organizational success involves more than just satisfying customers. The organization reveals Kodak’s transition from a product-centric, seller-driven enterprise to a customer-driven organization, where the customer dictates the organization’s design strategy. The offering of culturally diverse products also introduces novelty into society, which advances the overall quality and quantity of the collective experience. What is important from this standpoint of the stakeholder is that the customer determines what is valuable.

4. Challenges and Solutions in Business Management

The problems of delegation can best be solved by consulting subordinates and encouraging them to establish their own goals. Once these are set, subordinates will go all out toward accomplishing their own goals. Enabling them to share in planning for themselves and for the department gives them a personal interest in the work that might not otherwise exist. They will feel a sense of pride mingled with a feeling of responsibility, and with this positive approach to getting men and women, a leader can go far.

The basic difficulty in managing an organization is due to control. Most people are willing to let others make decisions for them in areas where they are personally involved. But few, if any, are willing to delegate control because opportunities for gain and advancement would be drastically reduced. So out of this conflict, management must bring order and progress.

5. The Future of Business Management

Management and its constituent disciplines have undergone major reorientations and re-evaluation in the last 40 years. For example, the growth and relevance of management have been expanded by the knowledge work profession and the development of knowledge-worker-centered organizations. The belief that the fundamental focus of management should be improved performance is a powerful one that can produce superior business results. Few organizations have actually achieved the transformational potential of management, but those that have stand out. Small and medium-sized ‘elite’ enterprises are often led by individuals of high management ability. The new era of emerging business titans will be the visionaries, those who think and act differently. The legendary business leaders of the past had a strong technical and market focus. Since they did not have business schools, they learned from their mistakes. Today’s business leaders have absorbed academic textbooks that often produce a blinkered vision of management and little understanding of the debates about management quality and management capability. Hosting a conference on ‘The Future of Business Management’ is a step in the right direction. We still hope this future will provide more distinctive, meaningful, and human performing management for the twenty-first century.

The future of business management is focused on advancement and ever-progressing knowledge creation. This acknowledges that management and performance are crucially important, and the self-awareness and knowledge of management as a body of knowledge and competences are crucial to future effective management. Management is output and results-oriented. It is effective and efficient to the extent that it achieves its predetermined objectives. Excellence and improvement in management practices are the cornerstone of future business performance, profitability, and success in the 21st century. Business leaders have a crucial role in many aspects of management. They should understand and commit to management improvement and the management continuous improvement process.