Business management
Business Management is a complex and extensive study that seeks to improve the relationship between productivity, quality, costs, administration, distribution, and logistics, as well as production time, the relationship between workers, and trustworthy workers to continuously and efficiently improve the competitiveness of a company or a business.
Its purpose is to achieve certain goals in constant optimal time frames to increase productivity and competitiveness.
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| What is Business management in 2024? |
Another comparative element is the passage of time and its effect on the entire organization. In a car, the mechanical parts will wear out over time, but as they are standardized they can be replaced by others, according to a maintenance program that will allow the vehicle to continue operating. In the case of people, over time they will change their perception, experience, and motivation.
The aging process will affect your attitude and behavior. In addition, groups of people within the organization act differently depending on where they are in life. Any change imposed on the group (for example, a change in personnel) will alter its nature, including its expectations. This example determines the importance that the development of human resources has in the general management of the company.
Therefore, it is essential that the person responsible for this function knows the essential aspects of the organization and does not consider it a mere mechanical system, otherwise it will undoubtedly fail in its objectives.
History
We are all looking for the same goal. Starting from the administration, it spread in the 20th century, to the public and military sectors. His beginnings in a professional career date back to 1933 in Madrid, Spain.
The development of business management begins when several branches of innovation are derived from the administration, thanks to the great influence it has had.
The administration has been based, from the ancient Egyptians to the Sumerian merchants, on organizational methods according to the church and the ancient militias.
Companies were guided based on these methods no matter how big or small, but they did not feel compelled to systematically deal with management applications.
Thus, little by little, the innovations of the administration were creating base extensions, such as the Arabic numerals and the appearance of accounting. These already mentioned areas provided a better approach and control of the organization quantitatively.
It was not until the 19th century that the first management publications were created, but in a scientific way. In addition, the industrial revolution took place.
Another trend in business management that addresses processes is known as continuous improvement ( Kaizen, in its Japanese version). This is another tool from which processes are worked on and are subject to continuous improvement.
Japan's experience in its teamwork methods and the involvement of all its staff in business improvements popularized the benefits gained from continually reviewing and challenging business processes.
The systematic or scientific method model of process improvement has been spread throughout the world by Kaoru Ishikawa. This author is based on the course of a series of steps or stages, from the detection of a problem or a possibility of improvement (the engine can be a series of detected defects, or a new technological or organizational possibility), to a study in search of its causes, possible improvements or solutions, the choice of the solution or set of solutions that seem suitable, until reaching its implementation and the extent of the improvements achieved.
Stages raised by Ishikawa for the implementation of continuous improvement
| Identification, the definition of the actual process | - Detect what customers want and need. - Describe the process with the necessary level of detail. - Include the appropriate measures. |
| Process measurement and analysis | - Study the results of the measurements. - Detect potential areas for improvement. - Choose the most promising improvements. |
| Identification of improvement opportunities | - Design and apply changes for improvement. - Measure the results to verify that the changes are positive. |
| process stabilization plan | |
| Plan for continuous review and improvement | - Design follow-up measures within the process. - Carry out the measurements. - Analyze the results. - Take actions to improve results. |
Classification of business management according to its different techniques
Business management encompasses a set of techniques that are applied to the administration of a company, and the difficulty of managing the entrepreneur or producer will depend on the size of the company. The fundamental objective of the entrepreneur's management is to improve productivity, sustainability, and competitiveness, ensuring the viability of the company in the long term.
Business management techniques
- Strategic analysis: Diagnose the scenario, identify the most likely political, economic, and social scenarios, as well as international and national ones, and analyze business agents exogenous to the company.
- Organizational management or administrative process: Planning the anticipation of future tasks of the company and setting the strategy and the goals or objectives that the company must meet; organize and determine the functions and structure necessary to achieve the objective, establishing the authority and assigning responsibility to the people who will be in charge of these functions.
- Information technology management: Apply intra- and extra-company information and communication systems to all areas of the company, to make appropriate decisions together regarding the use of the Internet.
- Financial management: Obtain money and credit at the lowest possible cost, as well as allocate, control, and evaluate the use of the company's financial resources, to achieve maximum returns, keeping an adequate accounting record.
- Human resource management: Use the workforce in the most efficient way possible, taking care of the process of obtaining, maintaining, and developing personnel.
- Operations management, supply, and distribution logistics: Supply the goods and services that will satisfy the needs of consumers, transforming a set of raw materials, labor, energy, supplies, and information. among other factors, in properly distributed final products.
- Environmental management: Contribute to creating awareness about the need to apply environmental defense policies in the company.
Field covering management
The technological changes that have occurred in society have expanded the field of management. In the early stages of economic development, companies were characterized by performing repetitive tasks that were easy to define. Whether on the shop floor or in the office, the staff knew exactly what their mission was and would remain.
The managing director's job was to monitor the progress of work in progress in an iterative process. The result was measured according to what was produced, and it was operated under strong discipline and rigorous control. You had to meet the expectations of the owners to earn money and that was the main motivation. This simple interpretation of the management that existed then still stands, like an echo of the past.
Some entrepreneurs continue to behave as if nothing has changed. But it is the blows of reality that have made businessmen take into account many other factors because the markets no longer grow based on supply, and we have to fight in very competitive markets that are sometimes not very recessive internally, without counting on competition problems of foreign companies.
Automation, information technology, new information technologies, and the growing expectations of society have exposed many shortcomings of Spanish managers. The nature of management has become more complex to act according to a series of priorities, such as achieving constant profits, above all of them. and it is necessary to fight in very competitive markets and sometimes not very recessive internally, without taking into account the competition problems of foreign companies. Automation, information technology, new information technologies, and the growing expectations of society have exposed many shortcomings of Spanish managers. The nature of management has become more complex to act according to a series of priorities, such as achieving constant profits, above all of them. and it is necessary to fight in very competitive markets and sometimes not very recessive internally, without taking into account the competition problems of foreign companies. Automation, information technology, new information technologies, and the growing expectations of society have exposed many shortcomings of Spanish managers. The nature of management has become more complex to act according to a series of priorities, such as achieving constant profits, above all of them.
Qualities and knowledge of a good manager
The manager has a special responsibility towards his subordinates, but if he applies this responsibility solely in terms of control and supervision, he will not be fulfilling it. He has to establish a system of interrelation. Staff should be clear about what is expected of them. Staff should be directly involved in setting their work goals. This will promote the clarity and effectiveness of the task to be developed and will make the subordinate feel more committed and willing to collaborate.
Staff should feel supported with the physical and human resources necessary to achieve their goals. Staff will contribute and be able to develop their own personal resources to act more effectively. For its part, the company will help you achieve this through permanent advice and advice, and, Even with additional training. Staff should receive consistent feedback or critical feedback on their performance.
Although his performance will have to be criticized at times, this will serve as an incentive and not a coercive threat that can damage his self-esteem. Achieving these objectives through personal relationships and with the unlimited support of management is more rewarding than mere financial incentives.
The activity of a business nature that aims to improve the competitiveness and productivity of a company
For given management to be optimal and, therefore, to give good results, not only must it do things better, but it must also improve those issues that directly influence success and this will be possible through the meeting of experts who help identify problems, provide solutions and propose new strategies, among other issues.
Management of this type must consider several factors, including financial, production, and logistics, to name the most important. Professionals, individuals who are dedicated to business management, must, yes or yes, master all these conditions to succeed in the field and for the company, they direct to be successful.
Formal preparation and experience
Due to the relevance of this activity within companies, today careers that train professionals in this specific matter have proliferated. Normally it is the faculties of economic and business sciences that dictate this type of professional training. However, not all the factors that intervene in business management are learned in the formal university framework; accompanying education must be present the experience that is held in the field, and the latter is fundamental.
Theoretical knowledge is very important, but business management also concerns many other aspects that are associated with planning and decision-making that are rather linked to the practice in this field,
Features
There are four fundamental functions that the company's administration must fulfill to achieve efficient management that produces good results:
- Planning, from which resources will be combined to produce new projects that may be profitable for the company.
- The organization, is vital when it comes to grouping all those resources with which the company has to, after having an idea, promote them to work together and online to obtain better use of them and thus just wait for good results.
- Communication, or rather, a good level of communication between managers and employees; This turns out to be essential if you want to have a good working environment and thus increase efficiency.
- Management control applied to administration, because only then will it be possible to quantify the progress that, for example, the staff has observed concerning those objectives that were set at the beginning of a strategy or plan. And at this stage of events, we cannot ignore that the current scenario implies constant changes in the markets, added also to the constant movements and developments that occur in areas such as technology and communication, so closely linked to business management, for example, the context is becoming more complex and so it is necessary to implement new, more dynamic management models that precisely adapt to these current changes and thus be able to compete successfully in the markets in which they intervene.
