Business the purpose of Management
Management is concerned with the group of people who collectively works together to make the company successful. This group of people further forms an organization to achieve the goals for which it has been created.
- This organization get together and manages the business.
- A business is a form of an organization or an economic system where goods or services are exchanged for one another or for money.
- Businesses run by some kind of investment and handful customers to whom its output can be sold on a profit basis.
- Business main motive stays to add value to the goods and services.
- Organizations deploy resources and use them for producing goods and resources.
- A business provides work and funding.
- Through employment, business improves the region’s development.
- Business is not just a profit-making activity, it’s more like an economic development agency.
- The changing nature of a business due to environmental factors puts an impact on the management’s stability. The direct and indirect management leaves an effect on the management complexity and risk and uncertainty got highlighted in the management.
Privatization: It is a process of transferring an enterprise, industry or a service from the public sector to the private sector.
Liberalization: The term refers to the removal or loosening of control or restrictions on something to empower economic or political system.
Globalization: Globalization is a process used by businesses or many other organizations for developing international impact of their product or service or to kick-start operation on an international scale.
Liquidity: A process of converting an asset into cash without any loss.
Entrepreneur businessman: A person who is a pioneer in its business is known as an Entrepreneur.
Ownership interest: The term defines the level of an interest an individual show in the business operations.
Need for Managing Organization of Business
A manager’s key role is to manage all the task or activities but it is not a rule in any organization that manger can only give a command, in fact, he can also be in an individual contributor role.
It is manager’s art of getting on a common platform to make them work towards a common predetermined goal.
A manager is responsible for giving direction to the team so that the team remains well aware of their roles and responsibilities and also update them with what they have to do in an organization.
Entrepreneur: This is used for those who set up a business in terms of offering product or services and takes financial risk in anticipation of profit.
Manager: A manager is responsible person in an organization who looks after all the organization functions.
Board of Directors: The term is referred to a group of people who together look after the organization's activities which can be either for business an organization or a government agency.
Stakeholder: Stakeholder is a term used for people who show an interest in a business and makes a wager deposits of money and buys a stake in the company.
Bureaucracy: Bureaucracy is a term refers to a specialized system and processes designed to maintain uniformity and controls within an organization.
Co-operative establishment: Group of people collectively conducting the business activity with each other’s cooperation.
Contingent Approach: Contingency approach also termed as a situational approach which defies anyone universal acceptable Management Principles (rules) and holds that the management technique should be depended on the circumstances faced by an organization.
Fads: Fancy terms used in the organization. For example, Business Development is commonly used for people engaged in the sales business.
Anatomy of a System: A way of describing the system, showcasing inter-dependencies and linkages between the different function of a system.
Work Ethics: A moral belief of what is right and what is wrong at work. This involves respect, behavior, attitude, integrity, communication, and interaction and one’s behavior with others. People with strong work ethics embody certain principles that guide their work behavior.
Management of Standard Function
- As per the principle of division of work, an organization is split into a number of functions and it is also known for creating specialized functions.
- These are the most common functions of an organization which are developed under different management functions like marketing human resource management, finance, operations and many more. These functions are further subdivided.
- Every function is distinguished in sections depending upon the kind of knowledge required to run each section.
- Every specialization holds a variety of activities and knowledge to an extent for a sorted future.
- Along with this, processes also play a vital role as they are important to look after customer satisfaction along with reducing the cost of handling by the department.
- Wastage in handling is avoided by these processes.
Functional specialization: The term refers to all the specialization areas in every organization.
Process Orientation: With the idea of providing the best customer service, process orientation refers to focusing on every set process.
Execution: Implementation of actions or ideas is known as execution.
Conversion: The changing process of something from one form to another is known as conversion.
Quality Assurance: The idea of maintaining things or product in the desired quality by paying attention to each stage of the delivery and production of the service or product.
- Planning is a process of making plans for coming future.
- Plans interconnect present with future.
- For a better tomorrow, we need to act today with a proper planning.
- Planning is a process that requires a lot of data collection and forecasting of the future environment within which the plan needs to be executed.
- From planning to implementation of a business it goes under a lot of plans and plots with the aim of giving the kick start to the business as early as possible.
- The strategy is new term added to planning. As plans are not just enough, it has to be planned strategically taking the competition into consideration.
- Plans can be failed due to various reasons but the fact of preparing them draws some valuable conclusions for business.
- For a good control, planning plays an important role which cannot be neglected.
Result Oriented: A term used for the result or target oriented people.
Vision: Looking forward to the upcoming organization’s plans.
Mission: The idea of an organization of achieving for the customers is known as the mission.
- Decision taking is no less than an art. Decision making is based on choosing an alternative depending upon values, preferences, and benefits of the decision maker. If a person is incapable of taking a decision, time tames its decision for them irrespective of consequences.
- Every decision demands risk-taking capacity from the decision maker.
- More problems are required for cultivating more alternatives before taking any decision.
- While making a decision, it’s a manager’s responsibility to take a decision keeping in mind values and cultures and the stages involved at the time of execution.
- There are few steps involved in decision making. Like Goal identification, Collecting information, arranging feedback and reviewing them, Decision Evaluation, Be ready for consequences.
- A good decision is that which is taken keeping in mind the current situation.
- Decision making can be dominated by human judgment.
- A manager should be pro in its techniques and strategies so that he can make a wise decision.
Risk Taking: The capability of taking a risk in hope of gaining the desired result.
Change Management: Change management is a term referred to the change and development of an organization or a company.
Premising: An argument or a theory on some particular topic before taking a final decision is known as premising.
Proactive: Handling a particular situation before it gets out of control.
Reactive: Decisions taken in responding to the situation is known as reactive.
Prescriptive: Prescriptive is a term related to the imposition and enforcement of a rule and method.
Evolution of Management Thought
- The idea of division of labor and level of authority was present since the day humans started families as an organization.
- Things like an army, church, state administration, followed by an industrial establishment all of them are clear examples that all they were managed for a purpose.
- Management awareness is not too wide.
- People’s interest mostly lies in creation rather than understanding how it has been created.
- Future can be visualized in the form of small-scale operations that results in organizations based on alliances, lifelong services concept vanishes, stress-free businesses, more than managing, to lead is important. Coordination gets more focused than control, management education becomes more business and skill oriented.
Leadership: The ability to lead an organization or a group of people and influence them towards a particular goal.
Controlling: Controlling refers to the act of observing the behavior or running of activities in an organization and rectifying if required.
Coordination: The term refers to the organization of the group in terms of maintaining unity to achieve a common goal.
Management: The process of managing or controlling things or people is known as management.
Administration: Administration is a process in which a particular organization runs or work.
Organization: A planned or an organized group of people working together for a common goal.
Brainstorming: A group activity in which every participant contributes and shares their ideas on the same topic and tries to find a conclusion.
Scalar Chain: It is a technique wherein communication in an organization pass through a proper chain of command.
Esprit de Corps: It’s a French term that means the union of strength. A feeling of pride and loyalty amongst the group members.
Innovations: Innovation refers to the effort of an organization or people to develop a new idea, product or a method.