It is to empower employees to satisfy customer. Business Management means to plan such techniques through which you can maintain a healthy work environment. You have to handle the whole organization as its a part of your responsibility. There are four functions, Planning, Leading, Organizing and Controlling, are heart of management.
Planning Function of Business Management
PLANNING:
It is the first managerial function, involves setting the organizational vision, goals and objectives. Executives rate planning as the most valuable tool in their workbench. 80% of respondents to a managerial survey said they used it. It involves the creation of a vision for the organization. Usually employee work with managers to design a mission statement, which is an outline for organizational purposes. A meaningful statement should address:
The organization’s self concept.
Company philosophy and goals.
Long term survival.
Customer’s needs.
Social responsibility.
Planning involves following things:
1. Setting organizational goals.
2. Developing strategies to reach those goals.
3. Determining resources needed.
4. Setting precise standards.
LEADING:
The second step is leading towards your goals, what are the tactics that can help you to lead., means creating a vision for organization and communicating, guiding, training, coaching and motivating others to do work effectively.It is necessary to keep employees focused on the right task at the right time. One key to success is for workers to trust the decision making skills of their boss.
It involves:
1. Guiding and motivating employees to work effectively to accomplish organizational goals and objectives.
2. Giving assignments.
3. Explaining routines.
4. Clarifying policies.
5. Providing feedback.
CONTROLLING:
Establishing clear standards to determine whether an organization is progressing towards it’s goals and objectives, rewarding prole for doing a good job, and taking corrective actions if the aren’t. It means measuring whether what actually occurs meets the organization’s goals. It involves:
1. Measuring results against corporate objectives.
2. Monitoring performance relative to standards.
3. Rewarding outstanding performance.
4. Taking corrective actions.
ORGANIZING:
1. Allocating resources, assigning tasks, establishing procedures.
2. Preparing a structure showing lines of authority and responsibility.
3. Recruiting, selecting, training and developing employees.
4. Placing employees where they’ll be more effective.
- Analyse the external environment
- Analyse the internal environment
- Define the business and mission
- Set corporate objectives
- Formulate strategies
- Make tactical plans
- Build in procedures for monitoring and controlling
- Vision: the non-specific directional and motivational guidance for the entire business. What will the business be like in five years time?
- Mission: A statement of the business’s reason for being. The mission statement is concerned with the scope of the business and what distinguishes it from similar businesses.
- Objectives: Smart objectives set out what the business aims to achieve.
- Goals: specific statements of anticipated results.
Conclusion:
- PEST / PESTLE analysis: identify and analyse trends in the environment
- Competitor analysis: understand and, if possible, predict the behavior of competitors
- Audit of internal resources
- SWOT analysis: build on strengths; resolve weaknesses; exploit opportunities; confront threats.