What is Business Management?
Business management involves the organization of a business’s resources for the achievement of certain goals, which are usually for achieving profit maximization. The kind of resources that are organized to achieve business goals include financial resources, technological resources, human resources and natural resources. It must also be noted that while most businesses use management techniques for profit seeking aims, businesses today are increasingly managing their businesses for outcomes beyond just profit, such as social goals and environmental goals as well.
The management of business is typically conducted by managers, but it can also be undertaken and usually is undertaken by entrepreneurs who start up the business too. Managers organize the business’s resources using methods such as planning, strategizing, leading, controlling, staffing and executing.
Levels of Management in a Business
For start up businesses and many small businesses, the levels of management may be very simple. Sometimes, it is merely the entrepreneur or just 1 or 2 other managers who are leading and directing the entire business.
Nonetheless, as businesses grow and expand, especially with increased staff members, the levels of management can become more complex. In medium to large businesses there are usually 3 levels of management:
Top Level Management
Managers at the Top Level are typically the Chief Operating Officers (CEOs) or Managing Directors. It also includes Vice Presidents of various divisions of a business, as well as the Board of Directors.
Top Level Managers have a broader view of the business as they oversee the operations of the entire business. As such, top level managers will implement more strategic thinking in developing plans and policies for the whole business. They are accountable to the shareholders, but also to the general public.
Mid Level Managers
Managers at the Mid Level include branch managers, managers of a department and general managers. Their role is to executive the plans and policies developed by top management within their designated branch, department or location.
Lower Level Managers
Lower Level Management incloudes supervisors, foremen and section leads, who help to guide employees and to act as role models in the everyday activities of staff members. Lower Level Managers typically report to Mid Level Management.
Developing Your Business Management Skills & Style
While the levels of management outlined above gives some idea of how business management is implemented in a company, the actual practise of management at the individual level will differ. Business managers will usually inject their own management style depending on their level of skill and personality.
Therefore, as effective management is imperative in any business, it is important for managers to develop their own skills in management and to understand their unique style in the achievement of the business’s goals.
The following are a range of skills that managers should develop within themselves so that they are effective. It must be noted that management skills may be learned, developed and acquired, but it requires a concerted effort and practice. Business Managers will need:
- Leadership Skills
- Interpersonal Skills
- Decision-Making Skills
- Strategic Skills
- Analysis Skills
There are a range of management courses that you can take to build your business management skills, such as an MBA (Masters of Business Administration) or Management degrees, but taking action in the real world is usually an even better testing ground for developing your skills.