Business Management Organizations

There is a correlation between the development of management and the evolution of the civilization. Initially, management was stipulated to family and group based. The concept of management spread over all spheres of life with the progression of civilization. The concept of management got huge popularity from the business operating method of the businessmen. Generally, Management is the process of making others to do necessary jobs to achieve a certain objective. In this chapter, we shall learn about the concept of management, activities and various elements of management in an organization.

Business Management Organizations

After reading this chapter, we shall be able to –

    * Explain the management concept & activities.

    * Describe the concept and necessity of planning.

    * Explain the concept and importance of organizing.

    * Describe the concept of leadership and its types.

    * Identify the quality of a good leader.

Business Management Concepts

Mr. John has been operating a business of fabrics for five years. All kinds of fabrics and readymade garments are available in his shop. He has been operating the business alone. He started to think about appointing a staff with the expansion of the business. Recently, he has recruited a staff. As a result, he was relieved a little bit from the work load. But, after some days, the customers of the shop brought charges against the staff for opening the shop late and for his misbehavior. Mr. John listened to his customers attentively and advised the staff to protect the goodwill of the business. The staff realized his fault. He got motivated to work more attentively in future.

In the above mentioned story, thinking of appointing staff, recruitment of the staff, giving attention to the customer’s objection against the staff and taking measures accordingly, all these activities of Mr. John is the part of his business management.

Management is the efficiency and strategy of doing things by utilizing others potential. According to Henry Fayol who known as the father of the modern management “Management is the combination of forecasting and planning, organizing, commanding, coordinating and controlling.” Some features of management are:

1. Management is a systematic process of some tasks.

2. Management is operated to achieve a predefined goal.

3. Management is a process based on team

4. Management is a continuous process. It is necessary to take new strategy of management with the passage of time.

Functions of Business Management

All the activities performed to achieve a predefined goal are known as management. Many activities have to be performed under management to achieve the defined target through operating the human resources and other elements of business. The functions of business management are descried below:

1. Planning: Planning is the guideline for future work process. Planning is the process to specify that what jobs to be done, who will do, when and how it is to be done in future to accomplish the predefined goal of the business organization. Planning is the first job of management.

2. Organizing: Organizing is known as the process of accumulation of human resources and other elements of the business and distribution of power and responsibilities among the workers and building interpersonal relationship among them.

3. Staffing: Major element of an organization is its work force. It is termed as the human resources of the company. Staffing includes collection of worker, selection, recruitment and training, promotion, transfer and lay off.

4. Directing: Direction is called to commanding the workers to implement the plan. The manager gives order to the worker about when, what and how to do a job. Workers can show most efficiency if the direction is appropriate. That is why many has compared direction with leadership.

5. Motivation: Motivation is the process of making the worker attracted and encouraged towards the job of the organization. Because of motivation, the workers become responsible and perform with quality.

6. Coordinating: Coordination means effective communication between the workers of the organization, various divisions and departments. Through coordination all the workers forms a team which helps to perform with unity.

7. Controlling: Controlling refers to the activities related to looking after whether the works are done according to the plan, finding variances if any, and taking corrective measures if necessary. Controlling makes the implementation of planning easier.

Planning in Business Management

The teacher of Business Entrepreneurship, Mr. William entered the class and exchanged greetings. The students also welcomed him spontaneously. He wanted to know about the experience of visiting a factory before starting the discussion of classification of industry.

He found that most of the students do not have any practical experience of visiting a factory. All the students become overwhelmed in joy when they heard about his intention of visiting the BSCIC industrial area of the district. He made everybody to calm down and said that they need to take permission from the Principal. Besides, some more things to be ensured:

* When to go.

* How to go.

* How many teachers and students shall accompany.

* How to contact the authority of the visiting company.

At last he asked the students: What it can be called to forecast or thinking to visit the factory. The students replied in chorus: Planning. He thanked everybody. He told them that the prior thinking or forecasting before starting a job is called planning. More vividly to say that Business planning is the advance decision making process of what to do, when to do, where to do and within how much time it is to do about implementing a particular job. Correct planning helps to achieve target easily. With the help of planning, proper utilization of assets and elements of the organization is ensured. Duties and responsibilities can be distributed among the workers appropriately. As a result, they become responsible and efficient.

Concept and Importance of Organizing

Mr. Vicky, the owner of the ‘Refresh Fruit General Store’ has been doing business in his locality with reputation for long. He has accumulated various products like readymade garments, cosmetics, baby foods and toys from Dhaka and Chittagong. But, the most lucrative things in his business is the pickle made by himself. Every year he buys Mango, Hog Plum, Jujube and Olive from the local market to make the pickle. For this reason, seasonally he appoints some women to help him to make and bottling the pickle. His pickle gets reputed day by day. He decided to open a separate division to make and sell the pickle. He permanently appointed the women who were temporarily helping him to make pickle. A person was appointed as manager. He distributed the responsibility of collecting raw materials, making and preserving the pickle all the year round.

All the jobs done by Mr. Vicky are the part of management of the business. These works are called organizing.

As per planning Mr. Vicky has accumulated and coordinated the human resources and other elements of the business for proper utilization and has distributed jobs among the workers with duties and responsibilities. Organizing helps a company to achieve the objectives in an easy way. Proper utilization of the assets of the company is ensured. Controlling and operating the workers and employees working in the organization becomes easier. The velocity of work increases with the help of strong interpersonal relationship.

Leadership Concepts

Mrs. Mary started his business Wood-Nymph Furniture with a small amount of capital. But, his hard work, honesty, efficiency to direct the workers and eagerness to be successful in business has made him a special person in the society. Now, five branches of his business are running with reputation. He listens to the workers demand and complains attentively and tries his best to solve their request. On the other hand, the workers are also working in the organization with sense of belongingness, always trying to increase the goodwill of the business by fulfilling the demand of the customers.

From the above story we find the following qualities of Mrs. Mary:

1. He is hard working He is honest

2. He is efficient to direct the workers

3. He has strong inclination for the development of the business.

4. He is cordial to listen to workers demand and objections and positive to solve the problems.

All the above mentioned qualities of Mrs. Mary can be called the quality of leadership. In case of business, leadership means the quality and strategy to encourage workers to perform jobs to achieve some particular goal.

Leadership Characteristics

Democratic Leadership

1. Leader consults with the subordinates.

2. Take advice from the subordinates.

3. Collects information from the workers.

4. Gives the workers opportunity to ask question.

5. Answer them.

6. Expects accountability.

7. Accountable to the worker.

8. Workers feel them to be a part of the organization.

Autocratic Leadership

1. The leader only makes order, there is no accountability.

2. Relies solely on his own power and capability.

3. Cannot rely on the ability of the workers.

4. Never takes the opinion or advice of the workers.

5. Keeps negative mentality about the workers.

6. Keeps workers always under pressure.

7. Workers never take ownership responsibility of the business.

Laissez Faire Leadership

1. Leader remains tension less after assigning responsibilities to the subordinates.

2. Leader does not like to work by himself.

3. Do not give particular order to the workers.

4. Workers do not have the accountability.

5. Workers can work of their own will.

6. Takes more time in decision making.

7. The success of the organization depends upon the good interpersonal relationship and team work.

Bureaucratic Leadership

1. Leader orders the worker to make the work done.

2. Workers give priority to the ideology than the leader and are bound to follow them.

3. All the times have to follow the rules.

4. Order of the leader than the leader himself and discipline than personal relationship is more important.

Leadership Skills and Abilities

He who leads is the leader. The task of the leader is to encourage and motivate the workers of the organization to achieve the defined goal of the business. A leader must have some qualities or characteristics to perform the serious task of a leader. Because, the good quality of a competent leader can make the success of the company easier, and the similar way their incompetency can fail the organization. The leadership skills and abilities are analyzed below:

1. Physical capacity and soundness: A leader has to take physical and mental pressure and perform physical labor. For this reason, his physical capability is important as well as his mental and physical soundness. Besides, his physical structure should also be attractive.

2. Keen Personality: The leader should be calm quiet in nature. The subordinates honor the leader having decent attitude and attractiveness.

3. Education and Experience: Formal education helps to achieve many positive knowledge, efficiency and view. Besides, experience makes them enriched. So it is expected that a leader should be educated and experienced.

4. Courage & Honesty: Leader has to always lead from the front. He has to perform a lot of challenging and risky job. He has to be courageous and honest.

5. Hard working and flexibility: Hard work is the main of performing any job. A leader has to work hard to carry out his responsibility. If, the leader is lazy, does not do work and becomes tired at less, then it becomes difficult to direct the subordinates. Besides, if he does not have flexibility, it will be difficult for him to lead.

6. Responsibility and Cooperation: Leaders sense of responsibility works as the motivating factor for the workers. On the other hand, cooperative mentality to all makes it easier to achieve the goal of the company easily.

7. Organizing Efficiency: A leader must have efficiency in all aspects of the organization so that he can find the right people for the right job.

8. Realizing human resources relation: A successful leader must have the quality to realize the expectations, qualification, personality, taste, point of view of the subordinates. Effective and long run results cannot expect if leading is not done considering the mentality of the subordinates.

9. Power to take decision: Success of the organization depends upon taking the right decision at right times. Leader has to take decision on the basis of his wisdom and far sight ability. Decision taken by the leader increases the reliability and mental strength.

10. Gender Awareness: A leader is always compassionate and showing honor to the subordinates whether they are men or women. He must be neutral. He has to lead considering the different mentality of men and women and their social status.

More topics about Business Entrepreneurship…

End