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What is Business Management? – Origin, Importance, and More

What is Business Management?

Business management is the discipline that studies the relationships between business administration, production processes and the elements of cost, quality, logistics and distribution, among others. And also, its objective is to guarantee and continuously increase the effectiveness and competitiveness of a given organization or corporation.

In other words, it is about applying constant innovation from every point of view to the world of business administration, as defined by the prominent Austro-American economist Joseph Schumpeter (1883-1950).

And also, in a strict sense, it is a specific branch of business administration, often called Business Management today.

Business management goes hand in hand with the ever-changing world of technology and finds dynamics such as automation, computing and new technologies a set of usable tools for updating and improving business performance in its different facets and levels.

Origin of Business Management

  • Although its antecedents can be traced in one way or another to any form of organization or company throughout history, this discipline took its first formal steps in the first half of the 20th century (academically in 1933 in Madrid, Spain), especially in the public sector and the military.
  • Its application to the private field came immediately, especially from the hand of specialists in certain productive stages, such as the Japanese Kaoru Ishikawa (1915-1989).
  • One of the main exponents of the scientific or systematic method of constant improvement of administrative processes.
  • And also, the Japanese name knows this process of continuous improvement in the quality sector of Kaizen.

Importance of Business Management

business management

  1. Business management is a very broad discipline, to which more and more attention has been paid today.
  2. This is due to the growing demand in the business world for professionals capable of (re) thinking the business world according to the changing needs of the time, which requires experience or, failing that, academic training.
  3. Thus, the business world demands more and better professionals to direct it and guarantee its survival.
  4. And also, business management is a fundamental discipline for updating or updating production processes.

Functions of Business Management

Like other similar disciplines, business management focuses on analysing the organizational structure, attending to the different aspects that can improve upon. To do this, it usually emphasizes the four basic points of any production process:

Planning: The prior provision of the objectives to be achieved, the methods and other business project characteristics.

Organization: The company’s resources’ ideal distribution, taking into account their similarities, differences, destinations, and other usable factors.

Communication: The exchange of data relevant information between the different parts of the organization and the outside.

Control: Making strategic decisions based on the dynamics of feedback ( feedback ) possible from the information that emanated the same production process.

Business Management Techniques

business management

Business management is put into practice through techniques applied to the organisation’s different administrative processes. And also, some of these techniques are:

Strategic Analysis

  • And also, it consists of reviewing the social, political and economic environment in which the company is inserted to identify external scenarios that may affect its performance.

Organizational Management

  • The administrative process focuses on reviewing the business structure to plan the organisation’s dynamics to approach the goals set.

Information Technology Management

  • It consists of studying the company’s communicational strategies from the point of view of the new ICT or advanced communication platforms.

Financial Management

  • It consists of reviewing the processes for obtaining, managing, and investing the company’s capital to achieve the greatest possible performance in the short, medium and long term.

Management of Human Resources

  • It consists of reviewing the strategies for obtaining and maintaining the organization’s personnel from its human and professional improvement point of view.

Environmental Management

  • And also, it consists of evaluating the company’s performance in the face of environmental needs. Or the physical environment in which it is located: pollution, social responsibility, etc.

Operations Management

  • It consists of studying the logistics, supply, and distribution processes specific to the company. And usually involve raw materials, energy, supplies, routine services, etc.

What are the Basics of Business Management?

In this infographic, we summarize the information you must handle:

Planning

  • And also, be clear about what to do, how to do it and where to do it. Don’t leave any work tasks to chance.

Organization

  • Bring together all the company’s resources and make the best use of them to achieve efficient working.

Communication

  • And also connect cordially with employees to create a good work environment.

Control

  • Check that the objectives set in the strategies are being met and monitor the behaviour of the workers.

Conclusion

As a business manager, you have the major responsibility of managing administrative tasks for a business. A company may expect you to assist with its marketing program. And also, a company may want you to perform a budget analysis to determine how the company can cut costs.

And also, you should have an astute understanding of the accounting, marketing, and administrative procedures required to run a business.

The competition for business management positions can be fierce. And also, you should obtain a degree in business administration, accounting or marketing if you eventually want to get a business management position.

Also Read: What is Trade? – Concept, Origin, History, and More

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