Definition of business management – In running a business, strong enthusiasm is needed to achieve success.
But it turns out that enthusiasm isn’t enough because you have to have expertise in business to manage your business so that it can last a long time.
Some of the skills that business people must understand include business planning, financial strategies, and marketing.
If in your business you hire employees then you must understand the skills of communication, leadership, and ways to motivate and respect.
In addition, you must also have a clear strategic vision for your business and also the ability to make the right business decisions.
In short, starting and running a business requires a lot of knowledge and business skills (business management).
Definition of business management
The word business management comes from two words, namely management and business.
The meaning of management and business according to Wikipedia
- Management: the art of completing work through other people
- Business: organizations that sell goods or services to consumers or other businesses.
The definition of business management can be defined as a way of managing, directing, planning and controlling the course of business that aims to seek profits continuously.
Business management function
The main objective of business management is the effective use of various resources within the company so that they can achieve business goals.
As a means to achieve these business objectives, business management has 5 (five) functions, namely:
The planning function is the starting point for you to make a business plan and also how you achieve it.
But this planning stage is not as easy as imagined because you have to make a realistic plan about business goals.
And you also have to map business strategies in detail and also make alternative plans B if plan A fails.
Thus you can run a business effectively to achieve your goals or objectives.
The next business management function is organizing that follows the planning that has been made.
In organizing, you must manage all the resources that are owned in the business and then combine and synchronize correctly.
With the organizing function, you can define the work area, company hierarchy, and coordination among available resources.
Staffing functions or staffing are related to obtaining, maximizing and maintaining a skilled workforce to achieve business goals.
The goal of staffing is to make a positive impact on business effectiveness and staffing so you will get the right person in the right position to do the job right.
The most popular term for staffing or assigning these staff is task delegation.
The most important function in the business management process is leading or leadership.
Leading is your way of aligning employees’ tasks with the overall goals of the company.
A leader must be smart to motivate, influence and inspire employees and make their performance good at work.
With a motivated workforce, it will be easier for you to achieve your business or business goals.
Motivated employees will also provide their best performance and participate voluntarily to achieve company growth or development.
Control in business management is a process of active and constant monitoring of employees, processes and other resources within the company.
This is done to track the entire performance of existing resources and ensure everything is running on the right track.
By accurately controlling existing resources, you can evaluate whether these resources have been optimally used for business development.
In addition, you can make corrections at any time in case of errors or irregularities.
The type of management needed in business
To achieve business goals or objectives, 4 (four) types of management are needed, namely:
1. Financial management
The function of financial management is to account for all the company’s finances so that cash flow can run optimally so that the company’s finances are in good condition.
This financial management will make all components of the company’s finances will be recorded neatly and make it easier for you to do an analysis in decision making.
2. Human Resources Management
One of the most important things in running a business is quality human resources.
This is because humans are the main actors to run the business and all planned corporate strategies.
Because the HR function is vital, special arrangements and management are needed with a system that is often called HR management.
With HR management, all HR will be able to work together effectively and efficiently to achieve company goals or objectives.
3. Operational Management
Operational management is the maximum management of existing resources such as labor, business equipment, machinery, raw materials, etc.
The function of operational management is to carry out and carry out all management functions, namely planning, organizing, staffing, leadership, and control.
Operational management is very important for businesses because this type of management will ensure that all your business output is of good quality.
4. Marketing management
The goal of marketing management in business is to ensure that the products offered are in the interest of consumers.
Therefore the company must be able to promote so that your target market knows about your product.
Here is the importance of marketing management to set marketing goals for companies by considering available resources and market opportunities.
Such is the discussion about Understanding Business Management and Its Functions.