EXPLAIN THE BUSINESS MANAGEMENT AND ITS FUNCTIONS?

 

    Business Management is often included as a factor of production along with machines, materials and money. Business Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling and directing and organization’s resources in order to achieve the objectives of that policy.

FUNCTIONS OF BUSINESS MANAGEMENT

Business Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of managements are always at play, whether we manage our lives or business. Business Management is a set of principles relating to the functions of planning, organizing, directing and controlling and the applications of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals.                                                                     

THERE ARE BASICALLY FIVE BUSINESS MANAGERIAL FUNCTIONS

1. PLANNING                                                                                
2. ORGANIZING     
3. STAFFING                                                      
4. LEADING                             
5. CONTROLLING

PLANNING

    Planning is future oriented and determines an organization’s direction. It is a rational and systematic way of making decision today that will effect in the future of company. It is a kind of organized foresight as well as attempting to control the events. It involves the ability to force the effect of current actions in the long run in the future. 

Types Of Planning 

• Formal And Informal
• Short Term, Mid Term And Long Term 
• Administrative And Operational  
• Standing And Singular 

FORMAL AND INFORMAL; Planning in black and which is called formal planning. While the planning about which we think only in our mind is called informal planning.                       

SHORT TERM, MID TERM AND LONG TERM; If the duration of time is less than one year is called short term. If the is between 1 to 3 year is called mid term . While if the duration time is more than 3 year is called long term.                                                                     

ADMINISTRATIVE AND OPERATIONAL; The plan which are design by middle level management are called administrative plan. The plan which are design by front line business management are called operational planning.       

STANDING AND SINGULAR; If the plans are used again and again when they are needed are called standing planning. On the other hand if the plan is used temporary when they need are called singular or  planning.                  

2: ORGANIZING; Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged and coordinated so that each part relates to the other part in a united and coherent manners, so as to attain the prescribed objectives. 

3: STAFFING; Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating and evaluating employees and maintaining this work-force with proper incentives and motivations. Since the human element is the most vital factor is important to recruit the right personnel. 

4: LEADING; The leading is accomplished by communicating, motivating and encourages employees towards a higher level of productivity. 

5: CONTROLLING; Controlling is the final step of managerial function. In this step we determine the behavior or supervise the running process.

STEPS OF PLANNING;                                                                                                 

1. Develop objectives.
2. Develop task to meet those objectives.    
3. Determine resources needed to complete the task.
4. Create timelines.
5. Distribute to all involve in the process

STAFFING PROCESS

Following process of staffing are written below;                                                                           

1: ESTIMATING MANPOWER;

 Manpower planning involves two techniques.          

 (a) WORKLOAD ANALYSIS 

 (b)  WORKFORCE ANALYSIS

 (a) WORKLOAD ANALYSIS;

 Workload analysis would enable an assessment of the number of human resources                                                                                         

(b) WORKFORCE ANALYSIS;

 Workforce analysis would reveal  the number and type available fasts.              

2: RECRUITMENT;

Recruitment is the process of searching and motivating large number of prospective employee for particular job in an organization.

3: SELECTION; Under the process of selection, better applicants selectors out of a large number of them. 

4: PLACEMENT AND ORIENTATIONS; Placement involves putting the selected man at a right place. Orientations is introducing the newly selected employee to perform the specific job.

5: TRAINING; Training increases the skills and abilities of the employee to perform the specific job.                                                        

 6: PROMOTION; It is the process through which employee get better salary status and position.                             

7: COMPENSATION: The organization should have fair salary and wages structure to the employee.     

DEPARTMENTALIZATION:  Involves dividing an organization into different department which performs tasks according to the departments, specialization in the organizations.   

TYPES OF BASIC FOR DEPARTMENTALIZATION;  

1. Functional Departmentalization
2. Process Departmentalization
3. Product Departmentalization
4. Costumer Departmentalization
5. Time Departmentalization
6. Number Departmentalization

MEANING OF LEADERSHIP: The action of leading a group of people or an organization is called leadership. 

QUALITIES OF GOOD LEADERSHIP

• Honesty And Integrity            
• Inspire Others                       
• Commitment And Passion                          
• Good Communications           
• Decision Making - Capabilities                      
• Accountability                            
• Creativity And  Innovation                                                          
• Delegation Of Empowerment                     
• Empathy 
• Conclusion                

                                                                    

TRAIT THEORY OF LEADERSHIP; 

    Most early leadership studies concentrated on trying to determine the traits of a leader. The trait theory was the result of the first systematic effort of psychologists and other researchers to understand leadership. This theory held that leaders share certain inborn personality traits.                                                                                                                                                         

BEHAVIOURAL THEORY; 

    When it becomes evident that effective leaders did not seem to have a particular set of distinguishing traits, researchers tried to study the behavioral aspects of effective leaders, rather than try to figure out who effective leaders are, researchers tried to determine what effective leaders do-how delegate tasks, how they communicate with and try to motivate their followers are employees, how they carry out their tasks, and so on… 

 VARIOUS OBJECTIVES OF BUSINESS MANAGEMENT ARE;     

1. Optimum Utilization Of Resources                           
2. Growth And Development Of business management                                                                     
3. Better Quality Goods                                                        
4. Ensuring Regular Supply Of Goods                                                       
5. Discipline And Morale                                                       
6. Mobilizing Best Talent                                                     
7. Promotion Of Research And Development           
8. Minimize The Element Of Risk                                                          
9. Improving Performance                                                 
10. Planning For Future                                             

INVESTMENT ANALYSIS AND PORTFOLIO:-                       

 Softly Principal (Actual Amount)                             

• Liquidity (Conversion Into Cash)                                                  
• Profit / Return                                                                   
• Risk (Uncertain Condition)                                 
• Regular Income                                                                 
• Meet Objectives                                                                     
• Marketability

Investment Vs. Speculation

 Longer period of time /  Shorter period of time                                  

Slow and steady / Fast (gambling) 

Low return / High return 

Low risk / High risk                                                                                                                        

To earn average market return / Individuals        

PROCESS OF INVESTMENT; 

    All those steps / activities which are involved in selecting the assets to earn return.                 

1: SELECTION OF ASSETS

2: CREATE PORTFOLIO  

3: PLANING OF INVESTMENT

4: EXECUTION OF INVESTMENT

5: EVALUATION STAGE

RETAILER;

     Retailer is a one who purchased small quantities and sell them in still small quantities to the customers. He usually purchase  goods from the whole seller and sell them to the final consumers. A Retailer maintain personal contacts with consumers / customers.

FUNCTIONS:-  

BUYING AND ASSUMBLING; 

A retailer deals with the variety of goods. He buying the different goods in reasonable quantity from the whole seller. He displaced these goods to the shop for the selling.  Retailer depend upon his resources also store goods to the future demand of customers.             

SELLING; The goods are purchased assembled for sell to the profit of customers.                                        

GRADING AND PACKING; The retailer grades the up graded goods and packed them in small packets and sell.                            

ADVISE TO CUSTOMER; The efficient retailer give useful tips to the customers about the merit of the new product of his shop.                                                                                            

FINANCING; The retailer also sell goods to the depend on the customers weekly or monthly bases.                      

PROVISION OF INFORMATION; The retailer provide up-to date information about the selling position and the defects pointed out the customers. The manufactures are thus able the improved the quality of goods.