When we hear this word Business Management, the first thing that came to my mind is nothing, it was completely blank, all I could think about was some degree courses that my relatives had done and that was, right you guessed it, it was MBA and BBA.
But this has a broader meaning past our understanding and this had existed for centuries before democracy was established and kings had ministers to guide the economics in their kingdom.
From Chanakya who assisted the first Mauryan empire Chandragupta in his rise to power to Manmohan Singh who saved the Indian economy in 1991.
Nirmala Sitharaman who became India’s first full time finance minister there has been growing importance to Economy and business in our country.
Overview of Business Management
Having said all this what exactly is business management? It’s management of business. Alright then, what is management? We know its something about money.
Its administration of organisation whether its micro or macro business, non-profit organisation or government body. It includes the process of setting a strategy for organisation and channelizing the efforts of workforce through application of available resources such as financial, natural, technological, and human resources.
Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.
– Stephen Covey
Before getting deeper let’s understand 5 basic pillars of business management and each of these works.
5 Basic Pillars of Business Management
- Forecasting: It’s nothing but prediction about future based on past events and management insight. It is a decision-making instrument used by many businesses to help in preparing a financial plan for defined period of time(budgeting), planning and applying growth rate on revenue to estimate future earnings growth. You may think forecasting is predicting future and it has a chance of either succeeding or failing. But even though we cannot always predict the future of your business, but you can reduce risk by eliminating the guesswork. With accurate forecasting we can understand future performance step by step. This can make us better informed in decision making and stop us from unseen financial requirements. We must also be able to forecast employees need, supplies and future needs.
- Planning: We should be able to Plan for the forecasting done. That is, we should be able to do the bring together the resources to meet the forecasted future for example we should hire the people to do the works, how we bring in the materials to manufacture etc.
- Organization: Organization business mode explains the set of explanation and logical reason for how an organization creates, delivers and captures values in economic, social, cultural and other context. It is a term used for broad range of formal and informal description to represent core aspect of business, including purpose, business process, target customers, infrastructure offering, strategies, trading policies, operation processes and organization culture.
- Coordinating: here different departments of a company unify, integrate and synchronize to pursue their motives. It is the hidden force that stick together all other functions of management. Once an organization is divided into small units, and are regrouped into departments, goal is set for each department and all department achieve their objective. This department finally strive to collectively contribute to the management goals.
- Controlling: Important duties of a management where we attempt to final results that were planned before from managers, subordinates and all levels of organization. This helps a management in comparing their goals with the obtained result and study the deviations from organizational goals and these mistakes get corrected. By clear definition I would define controlling as a function of a management which helps to check error in order to take corrective goals. We must realize that management is one department. It has to be associated with leadership and decision-making body of a company.
When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.
When it comes to business there are many other departments has other duties to be fulfilled for successful running of a company, they are namely operation department, marketing department, finance and leadership department, HR and legal and sometimes an IT department.
Every department is important, but it all starts with business department. There are different types of organization which use business management, they can be Government bodies, private bodies, co-operative bodies, non-profit organization etc.
We may find lot of student who are interested in Business management studies. They study Business education there. Business education is teaching students with fundamentals, theories and processes in business. They study Business studies in Business school.
They are university level institutes granting degrees in business administration.
There are undergraduate level degrees like BBA, B.COM, BBs (Bachelor of business), Graduate level degrees like MBA, M.COM, Master of business, Master of Business management and lot more.
There are Doctoral level degrees like D.COM (Doctor of business administration), D.COM etc. There has been a lot of software application in business.
Application software focused on business is implementations IT department, use for IT departments use to enhance business productivity, these is to get better performance from their product which gives them competitive advantage over their rivals.
Business management tools are the calculations, methodologies used by organizations to cope with changing business environment and to improve their performance
Having said a lot of business management, researching in google, reading magazines I have saved a very important topic to the end and now it is a right time to introduce you guys to Ethics in business management.
We all are customer of some sort and we won’t be happy if we come to know that the product that we have been using is not meeting to its standard.
Imagine if the medicine we have been using has been adulterated. Food we are consuming has several added chemicals that has been used to preserve the food longer than expected and it can seriously affect our health.
Here is where Ethics enter Some might tell that there are several government agencies that are that are protecting consumers from overexploitation like Consumer court where a dissatisfied customer can file a complaint directly with the national commission within a month from date of order.
The court fees is 5000Rs and the demand draft should be in the name of The Registrar, National consumer disputes Redressal commission.
The consumer protection act came into force on April,1986 to protect the consumer exploitation and save the customers from adulterated and substandard goods and deficient services.
It is applicable to all Indian states except Jammu and Kashmir and some rechecks are necessary after Article 370 removal.
Imagine the effect it will have on us if the company which are manufacturing essential goods are just thinking about profit.
Interesting consumer cases on Business Management
- Dr. Aravind shah vs Kamblaben Kushwaha – The plaintiff alleged that his son died to administration of wrong treatment by doctors. The state Commission upholding the negligence provided compensation of 5 lakh rupees.
- Sehgal school of competition vs Dalbir Singh-The state tribunal, following the view of apex court and national commission, held that no educational institution shall collect lump sum fee for the duration of entire course and if it does, the extra fees should be returned in case the student drops out due to deficiency.
A handful of cases has been won like these and it becomes very difficult for an average citizen to fight against a company which have lot of money and resources. Here is where Ethics come in hand.
What if the young graduates and entrepreneurs are instilled with Ethics and sense of honesty is added in their mind.
What if an organization has a management that values loyalty towards customers same as that of profit, this will lead to a wonderful society, isn’t it?
I may sound cliché, but this is serious matter. Business management plays a very important part in our country’s economy and being transparent in it is not a choice it is a responsibility.