Definition of Business Management is a process carried out to manage both labor, time and money to get maximum profit or satisfaction.
Because the business process for each field is unique and different in complexity, it requires adequate management to run smoothly.
As George R. Terry argues that management is an action – an action taken regarding planning, organizing and monitoring that works together and is carried out to determine and achieve predetermined goals through the use of human resources and other resources.
Seeing the above understanding, it can be said that management is an art that is done to regulate both humans and other devices so that they can run and work in accordance with the provisions and the ultimate goal of the company, namely profit, as stated by George Terry.
Thus, Business Management is the management of human resources, sources of capital and money that are done together. Arrangement of a system to organize a good management requires careful planning. Internal and external factors should be taken into consideration in determining the final decision. Determine targets or achievements that must be achieved and adjust them to company capacity.
In carrying out business management, all existing instruments, whether human resources, capital and money, must support each other and be done professionally in order to produce the desired business goals. Business management is needed in order to achieve the goals of a business venture both in terms of profit and other goals as desired by the business manager.
An effort is not carried out carelessly but is capable of planning, organizing and controlling the tools used in the business to achieve the desired targets and can anticipate various possible business risks.
Business management consists of several components that will determine the speed of your business and meet the targets set. Then what components are in business management
- FINANCIAL MANAGEMENT
Good financial management is needed in a business management. This is because it relates to the flow of money in and out of the business. In financial management, this means that financial circulation is well managed, for example by carrying out planning, budgeting, checking, controlling, searching and storing funds. Through this financial management, the business budget can be managed and used as needed. Without financial management, budget data will be nil. So that it will have an impact on the obscurity of financial data which will affect the running of the business. Your business will lose its way because it is not known the pros and cons.
- PRODUCTION MANAGEMENT
Furthermore, it turns to production management which plays a role in regulating the availability of raw materials, the processing stage until it becomes ready for sale. Correct time prediction can make the process run smoothly. All elements must be active and support each other to create this condition. The supply of raw materials must be in the right amount, not less or more. Storage for a long time can reduce the quality of the material.
Products that are ready for sale are the results obtained through production. The final design of a product is determined by production management.
- MARKETING MANAGEMENT
Marketing management must be able to read the market situation. Increase production when demand increases. Seeing the market situation where the demand is increasing, the production must be increased, if overtime is needed, overtime will be carried out and the goods are from the same country.
A marketing manager carries out the task of determining production targets and market share.
- DISTRIBUTION MANAGEMENT
Business management in the distribution sector plays a supporting role in marketing management. Distribution management will experience obstacles which will also have an impact on marketing disruption, even though marketing has been going well. The process of distributing manufactured goods can reach consumers immediately through the hard work of distribution management.
- HR MANAGEMENT
Human resource management is associated with the availability and performance appraisal of employees. This HR management will assist you in determining the skills or experience standards of employees required, setting employee wages, and providing clarity on employee rights and obligations.
Every business, whether small or medium scale, certainly needs good business management. The components above must be carefully prepared to ensure that all processes can run smoothly. Faults in one component will affect other components.
This thinking cannot be done instantaneously because good business management requires planning, trial and error. A series of activities to increase company revenue on an ongoing basis.
In practice, this management is very important to improve company performance, especially in the field of production to avoid the danger of loss. With good management, it is hoped that the benefits will be even greater. Many business people who have been successful by running business management can inspire you.
Why do you need to run business management?
Here are some reasons for the importance of running business management, namely:
- Avoid the risk of loss
Companies must always develop towards technological advancement. In addition, the development of the company must be in accordance with the growing market demand. This cannot be achieved without good management. Companies that do not develop and appear to be running in place, will not survive in the midst of intense economic competition so that the risk of loss will be obtained. Therefore, you need to anticipate it with good corporate management.
- Follow employee demands
The needs for food, clothing and shelter will be more complex in the future. Especially with prices that are increasing so that it requires you to meet their needs. If employees’ needs are not properly met, they can sue or even leave the company to work elsewhere with higher salaries. In this case, management is needed to increase company profits and the employee’s welfare is always guaranteed.
- Winning business competition
When we start a business, we have a desire to win the competition with other business people. This can only be obtained if you do management well. If you win the business competition on the same line, the opportunity to penetrate the international market will be wider because your product is the best in your own country.
Business development can be achieved by implementing sound and healthy business management. If from the beginning you apply good business management, you will be one step ahead of competitors. Running management will also add to your insight so that you are more open. Companies that apply business management and understand new technology. will be one step ahead in facing the challenges of the times.