Although some may view business management as a singular career or industry, it actually encompasses many different sectors. You can pursue a certification or advanced degree in business management or start your own business. This guide will help to distinguish between the various branches of this large industry and explain the roles each plays within an organization.
What is business management?
Business management is the way a company operates and achieves its goals. The business manager is responsible for determining the resources needed, coordinating all activities, and making decisions to steer the ship in the right direction. Business management is more about the big picture than the details. There’s a lot of emphasis on communication and organization.
Empathy and strong conflict resolution are two of the most important qualities that make business managers successful. People-focused business management is common. Personal development is key to success. Business managers must ensure that the right people are placed in every role and on each project in order for them to reach their potential and leverage their unique skills.
Business management involves overseeing the company’s road map, creating plans, training and delegating, and leading leaders to achieve goals. By setting clear expectations and creating unity, this aspect of business management ensures consistency among all employees. This field includes critical thinking, problem-solving, strategizing, and critical thinking. Business managers must have a wider vision to help them manage the company’s challenges and make the right decisions that will allow it to grow and remain stable.
Also read: Top 10 Enterprise Service Management Systems
Different types of business management
There are many branches of business management. Here’s a list of eight areas in this broad field.
1. Financial management
Financial management is a complicated sector that covers budgeting and cash flow management. However, it also includes the oversight of all financial processes such as data distribution and invoice processing. This type of business management includes planning, directing, and coordinating the financial, investment, banking, securities, and other activities of a company.
Financial planning, financial control, and financial decision-making are the three main elements of financial management. The term “working capital management” is used to refer to short-term financial management. It includes cash management, inventory management, and debtor management. This type of management includes both the technique and assessment of financial decisions. Financial management is about finding the right balance between risk and profit so that the business can be profitable long-term, even if it suffers setbacks. Understanding your business’s value can help you understand its potential financial growth.
2. Marketing management
Marketing management is the application of marketing techniques to the management of a company’s marketing resources and activities. Marketing management focuses on four main areas: competitor analysis, company analysis, competitor analysis, and customer analysis. Marketing management covers brand management, pricing, marketing strategy, and brand management.
It is essential to identify branding opportunities and implement marketing strategies that are based on a thorough analysis of every aspect of your business to maximize return on investment. The size of a company’s marketing department will determine its scope. Marketing management is the use of a company’s resources in order to grow its customer base, improve customers’ outlooks and feedback and increase its perceived value.
3. Sales management
The role of a sales manager is to manage and lead sales teams. You are responsible for driving your sales team to build strong relationships with prospects, convert them into leads, and then move them through the pipeline. Marketing management and sales management often work together. Sales managers establish the tone and keep everyone on the right track. They set goals and coach each member of the sales team. Leadership, training, and recruitment are key to building a strong sales team.
Sales management includes determining metrics for success and assessing key performance indicators to provide reports on company performance. Salesforce provides powerful tools for sales management that can help you track, report and customer relationships management (CRM) in your business.
4. Human resource management
Human resources management (HRM), focuses on the recruitment and management of employees in an organization. This includes total compensation, hiring, safety and benefits, wellness, and other aspects related to employee administration.
One common misconception about HRM states that it is only the responsibility of human resources (HR) departments or individuals. All department managers need to understand that HRM is a way for employees to contribute productively and effectively to the company’s overall direction and goals. The focus of HRM used to be on personnel administration. However, modern HRM uses employee programs to have a positive effect on the entire business and staff.
Also read: Top 6 HR Software for Your Small Business
5. Strategic management
Strategic management refers to applying strategic thinking to the task of leading an organization. Because success in business is often determined by its financial, marketing, and operational strategies, strategic management is a key component of many other branches of business management.
Strategic management is about the bigger picture. Strategic management allows for flexibility, combines a competitive strategy, and keeps organizations relevant. Strategic management begins with the definition of the organization’s goals. This must be done by taking into consideration external factors like regulation, competition, and technology.
The five stages of strategic management are goal formulation, SWOT analysis strategy development, implementation, and evaluation. The organization decides how resources will be allocated, how success will measure, and who will take responsibility for each task. Strategy management is an ongoing process. You should evaluate and adapt strategies as necessary.
6. Production management
Production management refers to the process of making decisions about the production of products and services. Both the manufacturing and service industries use production management techniques. This type of business management focuses on converting raw materials to a finished product, or service. As such, it often refers to the four M’s machines, methods materials, money, and money.
Production management’s main focus is to ensure that production runs efficiently. This includes employee training and inventory control. Product managers have the greatest responsibility for inventory control. This involves tracking all production components, including finished goods and required materials.
Research and development (R&D), which includes both the production process as well as the product, is another major goal of a production management team. R&D is an integral part of product management. It helps businesses grow, reduce costs, and create better products.
7. Service management
Service management can vary depending on the industry and business. It is sometimes mistaken for IT service management. However, there are some differences between the two. Service management includes both skilled labor and automated systems. It also often offers service development even though it is not IT-related.
Service management has one focus: streamlining and managing workflows to automate or support human decision-making. The service management process allows a provider to see its services from both the company’s and consumer’s perspectives and ensures that they deliver the desired results for their clients. Managed-service providers must understand and manage all aspects of the service and the risks associated with it. They also need to recognize the importance and value of the services for their clients.
8. IT management
IT management is the responsibility of overseeing and managing technology resources for a company to meet its priorities and needs. IT teams and managers ensure that a company’s technology aligns with its strategies. IT configuration, IT financial management, and IT service are the three main elements of IT management.
IT management includes meeting business goals and satisfying customer expectations. IT managers need to focus on the individual components of the service delivery and how they can be reduced or improved employee efficiency. IT management is the training and development of managers capable of effectively managing the planning, design, selection, implementation use, and administration of emerging and converging information and communications technologies.