Business Management | Concept | Classification | Objectives

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CONCEPT OF BUSINESS MANAGEMENT 

Business management refers to the different interests which has to do with the way people manage and use resources in an organization.

Meaning of Business: Business has been given different meanings and definitions depending on the perception of the definers. For the purpose of this study we may define business as any occupation or activity in which profit making is the major aim and in which there is basis for loss. Business is a single activity in this world in which nearly anyone is actively engaged or directly or indirectly dependent on. The most important issues involved in business no matter the type, whether private or state owned are profit and loss. Even state-owned business ventures are today being privatized with a view to rendering sufficient services and thereby making profits. Profits is the main aim of establishing a business especially private firms, of which if (his aim is not realized, the business may fold up.

Business Management

 

BUSINESS RESOURCES

Business resources mean a number of things and can be classified as human, money, material and effective utilization of the advantages of business opportunities. These areas into which business resource are classified will be discussed one after another.

CLASSIFICATION OF BUSINESS RESOURCES

  1. Human Resources: this term refers to personnel or manpower needed for planning, running and management of a business venture. Business resources include all forms of labour-unskilled, semi-skilled and skilled and the entrepreneurship. It is the human resources that organize all other business resources for any result to be achieved. The human resources may also be called human factor of production.
  2. Money or Financial Resources: These resources mean money used in the business and the chances raising money through loans or borrowing. The importance of money in a business can never be over emphasized. For a business to function successfully, there must sufficient money to run such business. All the resources used in a business including labour are acquired and hired with money.
  3. Material Resources: These resources include; raw materials, tools, machines and other equipment needed for the running of the business. These material resources are very important and therefore needed for the running of the business.

OBJECTIVES OF BUSINESS

The objectives of establishing many business ventures are as follows:

  • To produce goods and services in order to meet up with the demands of members of the public.
  • To make profits. r To provide employment

opportunities to members of the public.

  • To concentrate sales effort in weeding out unprofitable outlets.
  • To protect the interest and well being of the employees.
  • To improve the interest relations between workers and labour unions.
  • To find uses for utilized products.

 MANAGEMENT OF BUSINESS

What is Management? As a result of the different interests which different people and discipline have in the field of management, it is difficult to arrive at an acceptable definition of management. However for the purpose of this st udy, we may define management as preparing, directing, planning and organizing people and materials in order to attain business objectives. Those whose responsibilities are to head those that carry out these management duties are known as the managers.

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DUTIES OF A MANAGER

  1. A manager is a departmental head.
  2. He is responsible lor planning and executing work in his department.
  3. It is the duty of a manager to recommend those to be recruited and trained that will work in his department.
  4. As the head of a department, the manager takes the blame for any lapses in his department.
  5. The manager is responsible for delegation of duties to his subordinates and ensuring that sure duties are properly and efficiently executed.
  6. He ensures that resources allocated to his department arc properly used in the achievement of the goals they arc meant for.
  7. The manager ensures that the relationship between his department and other departments is cordial.
  8. The manager negotiates and transacts business with outsiders on behalf of the firm.
  9. The manager takes order and is responsible to the general manager or the managing director.
  10. He maintains good communication with his subordinates by listening to their problems and this restores cordial relationship between him and his workers.

FUNCTIONS AND IMPORTANCE OF MANAGEMENT

The functions and importance of management that occupies a position of strategic importance in business may be grouped into the following categories.

  • Planning: This function is concerned with such basic aspects of business of setting out goals and objectives and determining the procedures and methods of achieving those goals and objectives. In a sole proprietorship and partnership, the owners or partners perform the function of planning while the board of directors is responsible for planning in a public limited liability company.
  • Organizing: Organizing is concerned with bringing together people and materials required for the achievement of the goals and objectives set out at planning stage. The activities suitable for the procedures and methods for attaining these goals and objectives are determined at the organization stage.
  • Controlling: For the organization to carry out its original plans there must be elements of direction and that is what the function of controlling entails. Controlling therefore aims at making what was planned to happen. 
  • Staffing: Staffing is mainly concerned in putting the needed people in the right positions in order to achieve the set goals and objectives.
  • Supervising: To achieve effective result, members of staff put in different right positions need to be motivated so that they can gel their best by being efficient. This is exactly the function and importance of supervision, which is primarily operative management and it does in the form of instructing, communicating, counseling, disciplining, etc.
  • Directing or Influencing: To get things done, the subordinates must be given some guidance and shown how to do those things. Directing also performs the function of making the subordinates to be aware of the goals and objectives of the organization.
  • Feedback and Communication: These involve giving information to the managers by the subordinates on the happening in the organization. The information involved includes whether the planned procedures and -methods of achieving the organization’s goals and objectives were actually followed, whether members of staff carried out the jobs assigned to them, etc.
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BUSINESS AND ITS ENVIRONMENT

When we talk of business and its environment, we mean activities, agencies, organizations, etc, outside the business firm, which hinder or facilitate the achievement of the objectives of such a business venture. The environment of business is dynamic not static and therefore it changes. It is therefore necessary for the management of a business to be anticipatory of such changes in order to interact with it effectively. We can classify business environment into the following groups:

  1. Economic Environment: A lot of factors are involved in the economic environment of a business. These include the type of economic systems, the income distribution in the society, the nature of natural resources available, etc.
  2. Political and Legal Environment: This environment comprises government policies and actions like the price control law, income determination, import monopoly, indigenization decree, industrial policies and other policies of government which have significant influence on the business firms that operates in the country.
  3. Socio-Cultural Environment: This borders on the total way of life of the people of the society in which the business firms operates. This environment determines the people’s eating, dressing and living pattern
  4. and all these go a long way in influencing their demand for goods and services.
  5. Demographic Environment: This refers to the size, structure and geographical distribution of the population of the society. This demographic factor determines what is to be produced, the quantity and the general level of demand.
  6. Ecological Environment: This refers to water, air, and general pollution of the atmosphere all of which have a lot inlluence on business.
  7. Infrastructural Environment: Infrastructural facilities such as electricity, roads, railways, air and seaports, etc, play crucial role in the success or failure of a business firm. The inadequacy of these infrastructural facilities will hinder the smooth running of a business firm.
  8. Technological Environment: The level of technological improvement determines what can be produced, the quantity and quality of what can be produced and the cost of what is produced. Therefore, the success or failure of a business firm hinges on this technological sector.
  9. Industrial Environment: This refers to the activities of competitors in the same industrial sector. In a competitive market consumers have much choice when they demand for a product. Therefore, a business firm must put into consideration the type, quality and prices of the products of their competitors when manufacturing any product.
  10. International Environment: Since no nation is an island unto itself, what happens in other countries affects business activities in a country. Countries of the world form one economic unit. For instance, developing countries import machineries, raw materials and even technology from technologically advanced nations. The inflationary rate, sin business activities in our country and these border on what is known as international business environment.
  11. Pressure Groups Environment: The activities of interest and pressure group,mass media and other institutions and social groups have a lot of influence on business activities in a country. Institutions like commercial banks, stock exchange ,merchant banks, and mass media such as radio, television, and newspaper etc, aid business activities.
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SOCIAL RESPONSIBILITIES OF BUSINESS

By social responsibilities of business, we mean the voluntary roles, which business firms play in the society. These social responsibilities can be discussed under the following headings as classified by the British Institute of Management.

  1. Responsibilities to the Government: This is also known as the legal responsibilities and are made up of accepting and complying with all legislations relating to the conduct of business activities in the country, accepting the intervention and role of government in business affairs in the country, etc.
  2. Responsibilities to Customers: Business responsibilities to customer include; production and distribution of high quality goods and services, advertising correct not defective goods and services, advertising, labeling goods clearly and correctly, offering and explaining credit facilities, adopting after sales services, etc.
  3. Responsibilities to the Community: Business firms carry out these responsibilities to the community by providing social amenities such as electricity, pipe borne water, good roads and bridges, etc, provision of recreational facilities, donation of large amounts to community development funds, award of scholarships, sponsoring educative programmes on radio and television, paying adequate compensation to those they acquired their land, maintaining peaceful and cordial relationship with the community where they operate, etc.
  4. Responsibilities to their Employees: These responsibilities include; ensuring job satisfaction, prompt payment of salaries, non-discriminatory recruitment and promotion, adopting a policy of consultation between the management and the employees, ensuring good working conditions, keeping workers informed about the happenings in the business, etc,
  5. Responsibilities to Shareholders: The responsibilities a business firm owes to its shareholders include declaring all its relevant interests, keeping them sufficiently informed especially about the annual general meetings etc.
  6. Environmental Responsibilities: Business firms owe a lot of responsibilities to the environment in which they operates like proper disposal of their waste products, reducing the dangers of air and water pollution, re-use of by- products, etc.

 

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