What is business management? A comprehensive guide

Introduction

Managing a business is no cakewalk for any entrepreneur. Not everyone has a natural talent to understand the various responsibilities that come under the ambit of business management.

Don’t worry! This guide to What is Business Management will help you understand what it takes to help an organization grow and prosper.

First, let’s get clear with the basics.

What is business management?

Business management is the practice of overseeing and coordinating various activities within an organization to achieve goals efficiently, including planning, organizing, leading, and controlling resources and processes.

What types of business management are there?

Although, there are many types of business management; given below are some of the major ones.

1. Financial management

Financial management strives to create a balance between profit and risk to ensure profit for the business.

It requires business managers to plan, direct, and coordinate with investing, banking, insurance, and other financial aspects of the business. There are three key elements of financial management – planning, control, and decision-making.

2. HR management

HR (Human Resource) management deals with a business’s hiring, training, and retention of an employee.

It is not the sole responsibility of the HR department to hire, retain and recruit new employees. The managers of every department are equally responsible for these as it impacts the future growth of an organization.

3. Operations management

Operations management requires business managers to ensure that all departments of an organization are functioning efficiently.

For this, they have to deal with numerous departments and formulate the best business strategies and processes.

The operations teams have to ensure proper acquisition, development, and utilization of resources the business needs.

4. Marketing management

Marketing management takes into consideration the practical application of a business’s marketing resources. There are four core areas of marketing management – Company, Collaborator, Customer, and Competitor analysis.

Brand management, Marketing strategy, and pricing are also three core components of effective marketing management.

5. Strategic management

The success of every business depends on its marketing, financial, and operational strategies. This is where strategic marketing comes into the picture. Strategic management refers to the application of strategic thinking to leading an organization.

This type of business management relies on questions like – Where does a business want to reach and how can it reach there?

To succeed in any type of business management described above, business managers have to be aware of a few practices.

What are some of the best business management tactics?

Given below are 5 of the best business management tactics every business manager should use to help an organization grow.

1. Engage the workforce

No business has ever reached its goal without active and hardworking team members. Business managers have to engage with team members from every department.

A motivated and enthusiastic team member is more likely to help the organization achieve its business goal as opposed to an alienated worker who is more interested in a paycheck.

2. Reward the winners

Some business managers feel that connecting or praising team members on a personal level undermines their authority, but this is not so.

Nothing can replace the motivation an employee feels after being praised for a job well done. Rewarding employees who help a business grow has a positive impact on others.

3. Be vulnerable

Many business managers believe that getting to know the employees makes them look weak, which is wrong.

Without the ability to be open and share their ideas regarding how a business should go, some business managers lose the trust of the team. This hurts the project’s and company’s future, not to forget it also impacts employee morale.

4. Embrace technology

Business managers need to be quick when it comes to adapting to the latest technology. It sends a positive message to the customers as well as company employees.

For example, in today’s world, it is vital for every business to not only have a website with smooth navigation and valuable content. Business managers need to ensure that customers can connect with them from anywhere and at any time.

In the long run, if a business wants to stay ahead of the competition then managers have to take up the mantle of adapting to the latest technology in their industry.

5. Have clarity

Many businesses are not able to meet their goals due to a lack of clarity amongst managers who either don’t understand the organization’s vision or are confused about how to achieve it.

To counter this issue, organizations should help them understand a few key concepts;

• Why do we exist?
• What do we do?
• What is most important at the moment?
• Who must do what?

Answering these questions gives business managers a clear idea about the company’s vision, mission, and values.

There are different ways through which a business manager can help an organization grow and achieve its goal.

Let us now take a look at the different management styles.

Different business management styles

Whether a business manager leads a department, team, or entire organization, it is vital to get familiar with the different management styles.

Knowing about these is an important part of understanding what is business management at its core.

That said, given below are 8 business management types a business manager can adapt to.

1. Democratic management style

The democratic management style helps create a bond of trust and mutual understanding between an organization’s employees and the upper management.

The leaders usually seek input from the employees before making a business decision. Business managers who follow this management style are open to experimenting with new ideas.

2. Laissez-faire management style

Business managers who adopt the laissez-faire management style do not believe in micromanaging employees.

Employees have complete freedom when working on a given task. It is the best management style when it comes to managing a team of highly experienced professionals.

3. Autocratic management style

Autocratic business managers believe in focusing on results and efficiency. They micromanage the workforce to ensure that everyone follows the organization’s policy.

This management style comes in handy when there are inexperienced employees who need clear and strict instructions regarding a task.

4. Collaborative management style

The collaborative management style requires coordination between managers, supervisors, and employees to attain a common objective.

In this management style, all the employees from different departments work together to ensure the organization achieves its business objectives.

5. Coach management style

Business managers who possess the qualities of a sports team coach can adapt to the coach management style. They have to focus on an employee’s development and know what motivates every team member.

Coach management style helps managers identify the strengths and weaknesses of every team member. It helps push an employee to perform beyond their limitations and improve their chances of growth.

6. Transformational management style

A transformational management style is an approach that business managers use to help an organization move in the right direction.

A transformational business manager not only supervises the various changes taking place in an organization. They also help in managing employee morale which might go low during such times.

7. Bureaucratic management style

The bureaucratic management style requires business managers to assign tasks to employees within a well-defined hierarchy.

This management style requires a focus on rules and procedures rather than collaboration. It is quite successful in heavily regulated industries but not so much in creative industries.

8. Transactional management style

Managers following a transactional management style believe in improving employee performance through bonuses and incentives.

They act as mentors and provide explicit instructions to increase performance and help employees meet the business’ expectations.

It has become easier for business managers to handle small as well as large teams within an organization with the help of various Business Management Systems available.

Who is a business manager?

The end goal of every business is to generate profit. The person who has to ensure this happens to be none other than a business manager.

The business manager is a professional who oversees an organization’s employees and day-to-day operations. Their primary responsibility is ensuring that all business activities remain streamlined at all times.

Business Managers ensure this by executing relevant operational strategies, conducting employee performance reviews, and keeping a tab on everyday activities. They also have to search for opportunities to grow the business and achieve its objective.

Apart from this, Business managers keep an eye on all ongoing projects to determine any area of improvement and identify potential roadblocks.

Still, there is a certain set of skills that all business managers need to possess. Let us see what these are.

Skills every business manager should possess

A business manager has to supervise different teams to help them achieve the desired business goal.

Therefore, anyone looking to get into one of the many business management jobs should possess the skills mentioned below;

1. Communication skills

A business manager has to communicate with project team managers, stakeholders, and higher management. Business managers have to form a positive and trustable relationship with the employees, management, and business owners.

They need to remain connected with the organization’s employees and stakeholders through phone, email & chat. But, for this to happen, they must possess excellent command over verbal and written communication.

2. Financial skills

A business manager has to set a budget for a project and ensure it gets completed within that budget. They have to ensure the project teams work according to the allocated budget. Many business management tools can help them perform this task with ease.

Being able to manage the project budget ensures the team completes it within the deadline and it is delivered to the client on time.

3. Leadership skills

A big responsibility on the shoulders of every business manager is boosting the morale of the workforce in the organization. A motivated employee will always give their best in comparison to undervalued employees.

Business managers can do this by interacting with every team socially, providing opportunities for career advancement, and recognizing high-performance team members.

4. Interpersonal skills

Business managers have to communicate regularly with different departments in an organization. Sometimes, they have to be the mediator between two departments that don’t see eye to eye on a project.

The departments must have trust in the business manager. For this, business managers should organize team-building activities and social events. This helps them know the employees on a personal level.

5. Planning skills

Business managers play a vital role in handling day-to-day tasks for a business. However, at the same time, they also need to focus on the bigger picture.

They need to ensure that every task completed by a team helps bring the organization closer to its business goal.

A business manager must have a vision of how the decisions made today would impact the business’s future in the coming years.

6. Organizational skills

Business managers have to don many different hats at the same time. For this, they have to effectively organize and prioritize time to ensure every task is completed on time.

A capable business manager must be able to delegate tasks to different team members with ease. It requires them to know the individual skills of every team member before assigning tasks.

7. Problem-solving skills

Business managers have to make decisions that have a huge impact on an organization’s future.

This includes making quick decisions regarding a project or completing a task without spending too much time on it. They have to think quickly about the pros and cons of a decision.

For this, business managers need to develop a keen eye regarding what is happening in the company. This helps them detect any problems and take corrective measures before it is too late.

These are the essential skills that a business manager should have to excel at what they do. But, there is one more that can help them cover a long journey with the organization.

Business manager vs. business administrator

Still, there are business owners who think that business management is just a single industry. That is not so.

So, knowing about its various types will help you understand what is business management especially if you are just starting as a business manager.

What is a business management system?

Whether you own a small online store or multiple ventures, there is a lot you need to do to handle both. It is here that having a well-defined business management system can help manage difficult tasks easily.

By definition, a Business Management System refers to a set of tools for planning and implementing the various policies, guidelines, and procedures of an organization to execute its business plan.

Having a Business Management system lays down a solid foundation for the successful implementation of strategic and tactical business decisions to meet its objectives.

“In 2020, 54% of enterprises agreed that cloud-based Business Intelligence was vital to their current and future initiatives”. – Forbes

One of the best and most exceptional business management systems that are utilized by leading businesses is ProofHub. It helps business managers handle project tasks, and ensure task deadlines are met by every team in the organization.

How ProofHub can help manage businesses

ProofHub is a cloud-based business management system that helps businesses keep everything organized in one place.

It is one of the best tools for business managers to streamline daily business operations and assign tasks effortlessly.

That is not all! Given below is how ProofHub can help manage businesses with ease.

1. Task management

ProofHub lets project and business managers create, manage, and track assigned tasks with ease. The Kanban boards and Gantt charts help plan and lay down every task in a visually appealing manner.

It lets you set task deadlines, get instant notifications regarding a task, and check out the overall project workflow.

2. Project collaboration

ProofHub keeps every project team member on the same page with its effortless collaboration capabilities.

It also offers Live Chat and Discussions to let project managers connect with team members round-the-clock.

Notes in ProofHub lets managers jot down vital information in one place and share it with the team members.

3. Time management

ProofHub timer tool lets managers keep track of the time spent by a team member on a particular task.

The time logging, monitoring, and reporting feature helps increase employee accountability. The Timesheets in ProofHub help display time logged in by a project team member.

ProofHub comes with many advanced features likeTime Trackingto help you keep track of every task in a project.

4. File management

ProofHub comes with smart file storage, versioning, and sorting capabilities. Its file management system offers 100 GB of file storage space for all projects.

This business management tool lets managers upload files, and divide them into separate folders. ProofHub also provides the option of attaching files in team chat and discussions.

5. Progress tracking

The Project Reports featurein ProofHub lets managers know if a project is completed on time or lagging.

It gives them enough time to take the appropriate action before things go out of hand.

ProofHub’s Activity Tracker makes it easier to keep track of any modifications or changes done to a project file.

Conclusion

To be a business manager requires an entrepreneur to develop many skills apart from being a business owner.  With the right business management system by your side, handling day-to-day business operations is way easier than imagined.

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