Business Management Concepts
Running a business is no easy task and requires effective management to bring resources together and coordinated efficient use for effective production (Mont, Palgan, Bradley, & Zvolska, 2020). This paper elaborates on management’s four major concepts, namely planning, organizing, leading, and controlling.
Planning
planning is undertaken to achieve a certain desired outcome, and therefore it has to be done well. It happens under good company vision and mission, strategy, and lastly, goals, and objectives (Abubakar, Elrehail, Alatailat & Elçi, 2019). A good design shows how to achieve the vision and mission while the goals and objectives direct the strategy’s formulation. Performance can be assessed either through management by objectives or using a balanced scorecard.
The visions speak of what the entity wishes to achieve in the long run while the mission spells out its reasons for existence and its intent to serve its stakeholders. The following are the three main phases of planning;
Strategic planning;
Done by the board of management or the owners of the organization and are between 3 to 10years. It includes establishing the vision, mission, and long-term goals.
Tactical planning;
Responsibility of the middle-level managers and are between 6months and 1year. A tactical plan outlines the measures and activities required to achieve the strategic plan’s objectives.
Operational planning;
Undertaken by employees in their line of duty. It outlines the daily tasks necessary to run a business. When developed correctly, an operational plan ensures that every manager and employee are aware of their particular responsibilities and how they should carry them out on a given schedule.
Organizing.
The organization is a management function involving the development of an organizational structure and human capital distribution to reach goals(Abubakar, Elrehail, Alatailat & Elçi, 2019). The framework of the company is the cornerstone of the company. It includes organizational design, staffing, and culture.
Organizational design;
A methodology step-by-step defines inefficient workflow processes, frameworks, and systems, updates them to fulfill current business objectives and establishes strategies for new improvements.
Staffing;
Managers have to bind people in practice and link them with appropriate information and technology for easy coordinate. The corporate structure defines and establishes the formal relationships between the entity. The organization is governed by rules, procedures, and policies by administrative processes.
Culture;
Corporate culture is the working environment formulated by employee contact in the workplace. Executive leaders play an important role through their behavior and leadership to establish a corporative culture, but all workers contribute to corporate culture (Abubakar, Elrehail, Alatailat & Elçi, 2019). Getting harmony between corporate culture and the company goals is a niche. However, it’s not easy to manipulate culture. Another area to maximize is social networks. They have developed a unique form of interdependence as they are sources of skills, crucial competitors’ information, and power.
Leading;
Managers give a sense of direction towards achieving the entity’s objectives. They lead by example and actualize transformational ideas (Mont, Palgan, Bradley, & Zvolska, 2020). It comes up with decisions and actions that challenge the status quo and outperform their competitors. Leaders, when it comes to making decisions, can either be autocratic, democratic laissez-faire, participative, or situational
Leaders lead, and their team follows. Workers or team members become motivated when information is appropriately passed across. A leader attends to different stakeholders and must know how to communicate to them in clarity, transparency, personalized manner, giving an ear and providing feedback
Productive leadership is constructive and offers workers positive motivation. Good leaders value others’ well-being and are sincerely concerned about them (Abubakar, Elrehail, Alatailat & Elçi, 2019). Leaders will find and encourage the staff and inspire them during rough times. Managers should find ways for workers to work together effectively and efficiently to produce optimal performance.
Control.
The enterprise or organizational control includes the processes and procedures that rule, direct, and protect an entity (Mont, Palgan, Bradley, & Zvolska, 2020). It makes sure that actual performance does not vary negatively from set standards. The following are the basic controlling steps;
Establishing standards.
Performance expectations often surpass actual performance, but managers would typically outline a range of indicators that can help forecast the future and analyze the past. These metrics can either be leading, pacing, or lagging indicators.
Contrasting actual over set standards
Your mission and vision’s aims and goals form the framework for an assessment of real versus desired results. They help managers note the areas they are doing well and those failing and need to be improved.
Corrective action.
Vision and mission only signal the need for a correction but don’t spell out the action to be taken. Now, whenever there is a negative variance from the intended outcome, there should be a call to action.
The strategic human resource looks into incorporating an entity’s labor force into its vision and mission. Companies employ, train, develop, compensate, and retain workers to build a good culture.
Planning, organizing, leading, and controlling work interdependently towards achieving the business goals and objectives holistically. They are like different parts of the body that are linked together by an entity’s vision and mission.
Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management, decision-making style, and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114.
Mont, O., Palgan, Y. V., Bradley, K., & Zvolska, L. (2020). A decade of the sharing economy: Concepts, users, business and governance perspectives. Journal of Cleaner Production, 122215.