The Key Components of Effective Business Management
The term 'business management' is a broad one - so broad that it has become a popular degree program, of which there is no shortage. Many people choose business management programs in college and get a business administration or business management degree in college, and for good reason.
5 MINUTE READ
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October 2, 2018

The term 'business management' is a broad one - so broad that it has become a popular degree program, of which there is no shortage. Many people choose business management programs in college and get a business administration or business management degree in college, and for good reason.

Earning (at least)  a bachelor's degree in business management gives professionals the foundation for a wide array of skills and career options applicable in the real world.  Those well versed in business management can work in human resources, business operations, international business, project management, healthcare management and more. Many choose to pursue a Master's degree to further their management career.

Today, we will uncover the key functions of business management as well as the tools and resources that managers must have to help their organisations drive business results and thrive.

Human Resources Management

An organisations' team members are the bedrock of the company and, without the right talent, little can be accomplished. People management - including recruiting, training, and development - is an aspect of business management that is key to developing and retaining an organisation’s talent, making the Human Resources (HR) department the key to the company’s long term success.

People managers help motivate team members and equip them to do their best work. Their skill set often includes:

  • Patience. People managers deal with a wide range of personalities and attitudes. They can stay calm in nearly any situation!
  • Effective communication skills. People managers are great at conveying ideas, opening associates up to new ideas, deciphering non-verbal communication and are strong written and verbal communicators.
  • Trustworthiness. People managers earn trust from others by being consistent and doing what they say they are going do to do. They also serve as an advocate for employees.
  • Problem-Solving Skills. People managers know how to defuse a tense situation and are skilled in conflict resolution.

Business Operations

Perhaps the best way to describe business operations is the 'behind the scenes' part of an organisation or project.  Operations managers must have good strategic planning skills because they direct the business processes and supervise the people involved in the project and make sure complex work gets time and on budget.

Operations managers have responsibilities such as:

  • capacity planning
  • analyzing the productivity of groups and teams
  • quality control and improvement, and
  • resource management.

Operations management professionals work in a wide array of industries like banking systems, hospitals, companies, working with suppliers, customers and production companies.  Every firm needs an operations department to keep the business humming along, although the function of operations may vary slightly from one industry to the next.

Strategic Management

Strategy managers analyse industry trends and competitors and use critical thinking skills to create business strategies that help organisations develop innovative ways to maintain a competitive advantage. Strategy managers are usually high level or 'C-suite' leaders such as CEO's that have critical decision-making responsibilities and strong leadership skills (link to management skills article).

They are usually responsible for:

  • Ongoing planning, usually at a high level
  • Goal setting, assessment, and analysis
  • Creating new strategies to accomplish goals based on progress, competitors and changes in the industry or market.

Strategy managers need to be quick on their feet and respond to changes in the business world rapidly.

They are innovators at heart. New technologies and client expectations drive these leaders to think critically and make strategic decisions quickly to stay ahead and drive desired results. The best leaders create a strategic management process that evaluates the current condition, brainstorm new plans and deploy them effectively.  

Finance Management

Finance management involves the decisions around:

  • Budgeting
  • Investments, and
  • capital purchases

These decisions are a key factor in creating the most organisational value as possible.  

Finance managers are the people who keep the books. They must have a keen eye for numbers and are often perfectionists.

The expansion and care of any organisation often necessitate investing in large purchases and new hires. In this scenario, the finance manager would determine how to value assets, decide on the best investments for the company and create business value. Smart financial managers keep detailed budgets and financial statements and can generate reports detailing past expenses and projections quickly.

Marketing Management

In today's digital world, marketing is no longer only about advertising your organisation's services or products. Marketing managers are responsible for:

  • Creating a unique and compelling brand identity
  • Identifying and cultivating a target audience and
  • Deploying marketing campaigns to effectively engage this audience

They must draw in and interact with customers, and continually detect their dynamic, ever-changing needs to create the most value for the customer -- more value than similar competitors.  

In the business world, marketing managers are responsible for social media marketing strategies, e-mail campaigns, brand management, website content development, internal communications, paid and organic advertising and product promotion. Marketing management also often involves partnering with industry thought leaders to help promote their brand or services.

The Qualities of Successful Business Leaders

Whether your work experience led your career path into a managerial position in business management or you studied business law and became a partner in a law firm, all successful professionals need organisational competencies, excellent leadership skills, a strategic vision and the ability to make business decisions.

Whether you are just beginning your journey in a business environment or you are an experienced CEO, hone your management skills by participating in ongoing education, seminars and professional development. Look for opportunities to enhance written and verbal communication, critical thinking, problem solving, resource management, ethics and leadership skills on a regular basis.

Streamlining Business Management with Software

There are a lot of moving parts in business management for every organisation, large and small. Ever since the invention of smartphones and applications and the remote workforce, companies have been busy creating tools that make business management functions easier.

Samewave is social performance management software that gives companies one place to create and track goals and targets and communicate about progress towards tasks while increasing individual accountability with Promise Based Management.

Our software features customised, automatic reporting, increases collaboration with file sharing and chat streams and allows team members to measure progress towards individual and team goals in real-time on desktop and mobile applications.

If you're ready to streamline your business processes, increase productivity and collaborate more, consider Samewave. Best of all, our software is free. Sign up and introduce the power of social performance management to your organisation today.

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