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What is Business Management – Everything You Need to Know
Project Management
Sandeep Kashyap
Business Management
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.
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What is business management?
For any type of business to prosper, it is essential to streamline all its operations effectively to achieve the desired result.
So, you want to know what is business management? Here’s the answer.
Business Management comprises a set of different activities that help in the effective planning, organizing, and smooth running of a business.
However, you need a professional who can handle day-to-day business operations with ease – A business manager.
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.
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Skills every business manager should possess
Business Manager Skills
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 definitely 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.
Stat Fact: 71% of employees feel productive when they are well-connected to their colleagues – The Connected Culture Report
#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. There are many business management tools that 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. 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.
It is essential the departments 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 late.
These are the essential skills that a business manager should have to excel at what they do. But, there is one more which can help them cover a long journey with the organization.
Business manager vs business administrator
Business Administrator Business Manager
Definition A business Administrator is responsible for running a business’s day-to-day operations. The business manager focuses more on overall leadership to help an organization grow.
Skills Analytical, Strategic planner, detail-oriented, Organized A motivator, Creative and innovative thinker, Ability to see the bigger picture, Able to delegate tasks
Career Options Staff accountant, Business analyst, Marketing specialist, and HR administrator Operations manager, Financial reporting manager, and management analyst
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 out as a business manager.
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What types of business management are there?
Types of Business Management
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.
