Learn the meaning of business management including its main functions and the different levels of managerial teams, and code of ethics.
The Definition of Business Management
The main function is ensuring that the business creates value for customers in order for revenue to exceed the total cost. This is usually achieved through the manipulation and deployment of different levels of management for various resources such as human, material, financial, and intellectual or intangible resources. This type of management can also be defined as the action of measuring quantity and adjusting the initial plan accordingly in order to achieve the intended goal.
The main functions of management?
There are five major management functions, namely: business planning, leading, organizing, controlling, coordinating.
From this perspective, business managers should have sharp problem solving skills and abilities. They also should generally be required to have experience and knowledge in the seven major functional areas of business. These are accounting, production, marketing, information systems managements, human resources, finance, and product research and development. Besides coordinating these activities, such management also entails balancing the amount of time and resources spent on each in order to increase the value of the organization to other people. These include its stake holders, customers, employees, the surrounding community and the suppliers.
Team Levels of management
Although different businesses give their management teams varying amounts of authority, this can be divided into three main levels.
1. High level management teams
Managers at this level should have extensive knowledge of the management roles and skills. Since they are responsible for making and analyzing strategic decisions in the business development process, they need to be aware of the key external factors such as competitors and markets. Their decisions are long term in nature and they generally come up with strategic plans of what might be effective in future.
2. Middle level management teams
These teams have specialized knowledge and understanding of specific tasks. This is so because they are responsible for carrying out specific decisions made by high level management.
3. Low level management teams
These management teams simple ensure that the decisions and plans made by the middle and upper levels are carried out. They can also make short term decisions such as what the business or team will do in a day.
In order to answer the question; “What is business management?, it is vital to understand the three main levels of management and their specific roles in the business. Time management has proven to be a very precious skill for business managers. This is primarily because business managers need to give rough estimates of the time it will take for jobs to be done and what the pricing is based on.
The Meaning of Business Ethics
Business ethics is a general term used to describe the application of moral or ethical standards as it relates to any business, organization, or professional. Many standards found in business are upheld by federal or state law and can be prosecuted as such. Other moral principles however are guided with the standards of the community or the individuals within an organization. Following are details of ethical issues of importance, examples and code.
Importance of Ethics
Practicing proper ethics in business is highly important to all aspects of an organization. Good ethics protect the general public, employees, and the owners by ensuring a trustworthy and dependable reputation for the business. Social responsibility and ethical business practices can increase profits and sales by attracting the best investors, employees, and customers possible.
Honesty is a common ethical standard most businesses adhere to in order to build a trustworthy reputation. By deciding honesty is always the best policy, even when it hurts profits, it proves to investors and customers alike that they can depend on the business to be truthful about their practices. Accountability is also an ethical standard that is expected from every individual within a company. Every decision that is made and every action that is carried out must be taken seriously. The person(s) responsible for making these decisions will always be held accountable for their actions, whether the consequences are good or bad.
Code of Business Ethics
Every business should have a strict code of ethics which is designed specifically for that company. The most important part of this is that there are specific sanctions that are clearly stated which explain what happens if the code is not upheld by the employees and/or owners of that company. Termination is usually the worst case scenario if an ethical code is violated, but criminal charges are also possible if a crime was committed.
Business ethics are absolutely essential to the business analysis and development strategy for success. Practicing high standards will gain the confidence and trust a business needs from both its investors and customers. It also allows a business to operate within a specific set of guidelines so the necessary measures can be taken if any standard of ethics is not met.
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