Business Management - PODSCORBS

 Introduction

                             Business is the activity of making money by providing or buying and selling products, such as goods and services. in simple term business means "any activity or enterprises entered into for profit." A business is an organization where people work together. In a business, people work to make and sell products and services. The business is the person who hires people for work. A business can earn a profit for the products and services it offers. The word business comes from the word busy, and means doing things. It works on regular basis. 

                    Business owned by multiple individuals may form an incorporated company or jointly organized as a partnership. Countries have different laws that may ascribe different right to various business entities. Business can privately own, not for profit or state owned. Business an economic activity with the object of earning an income i.e. profit and thereby accumulate wealth. The economic activity must be regular and continuous. 

Definition

                             According to well known professors William - Pride, Robert Hughes, and Jack Kapoor, business is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs. A business then, is an organization which seeks to make a profit through individuals working towards common goals. The goals of the business will vary based on the type of business and the business strategy being used. Regardless of the preferred strategy, business must provide a service, product or goods that meets a need of society in some way. 

Types Of Business

                                Business organization is the single most important choice we will make regarding our company. What form our business adopts will affect a multitude of factors, many of which will decide our company's future. There are major 4 types of an business will be formed, and they are explained below-

1) Sole Proprietorship Business

                       The simplest and most common form of business ownership, sole proprietorship is a business owned and run by someone for their own benefit. The business existence is entirely dependent on the owner's decisions, so when the owner dies, so does the business. To start the sole proprietorship, there will be very few documentations are required. Owner have total flexibility when running the business. 

2) Partnership Business

                                 The partnership business is come in two types : General And Limited. 

                    In General partnership, both owners invest their money, property, labor etc. to the business and are both 100% liable for business debts. General Partnerships do not require a formal agreement. Partnerships can be verbal or even implied between the two business owners.   

                    In Limited Partnership business required a formal agreement between the partners. They must also file a certificate of partnership with the state. Limited Partnership allow partners to limit their own liability for business debts according to their portion of ownership or investment. 

3) Corporation Business

                        A corporation business is a legal entity that is separate and distinct form its owners. Under the law, corporations possess many of the same rights and responsibilities an individuals. They can enter contracts, loan and borrow money, sue and be used, hire employees, own assets, and pay taxes. An important element of a corporation is limited liability, which means that its shareholders are not personally responsible for the company's debts. In short, corporation, specific legal form of organization of persons and materials resources, chartered by the state, for the purpose of conducting business. 

4) Limited Liability Company (Business) (LLC)

                                      An Limited Liability Company is a business entity with all the protection of a corporation plus the ability to pass through any business profits and losses to our personal income tax return. An LLC is a hybrid type of business structure where the owners of the LLC are called "members" and all enjoy the advantages that an LLC has to offer. LLC members can be individual business owner, several partners, or other business.  

                    Business management definition is managing the coordination and organization of business activities. this typically include the production of materials, money and machines, and involves both innovation and marketing. Management is in charge of planning, organizing, directing and controlling the business's resources so they can meet the objectives of the policy. 

                      Business management involves the supervision organization and coordination of business resources and operations to achieve specific objectives. A business manager has a wide range of responsibilities and daily duties that need to be performed to ensure the overall health of the business and its projects, cash flow and team members. In this, we explore the introduction to business management in full. Elements of business managements are as follows.

(A) Planning

                                  Planning is the most basic of all managerial functions which involves establishing goals, setting out objectives and defining the methods by which theses goals and objectives are to be attained. It is therefore, a rational approach to achieving pre-selected objectives. Planning involves selecting goals and objectives and the actions to achieve them. An important aspects of planning is decision making - that is choosing the right alternatives for the future course of action. 

 (B) Organizing

                         Organizing can be defined as a process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results. It is a process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives. Organizing the managerial function and this function of organizing is known as process organization. 

             By Koontz O' Donnel, " Organizing involves the establishment of an international structure of roles through determination and enumeration of the activities required to achieve the goals of an enterprise and each part of it; the grouping of these activities, the assignment of such groups of activities to the manager, the delegation of authority to carry them out and provision for co-ordination of authority and informational relationship, horizontally and vertically, in the organization structure."

                         Once the general and specific objectives determined and to achieve them a plan is prescribed, the next step is to organize the activities of the enterprise with a view to work the plan and to fulfill the organization objectives. A manager with required qualification, intelligence and capability is given authority and made incharge of each department; so an enable him to work his subordinates to reach the organizational objectives. Proper organization will assist the most effective use of all the resources of the business. 

(C) Directing

                                    Directing refers to a process of instructing, guiding, inspiring, counselling, overseeing and leading people towards the accomplishment of organizational goals. It is a continuous managerial process that goes on throughout the life of of the organization. Directing is the heart of management functions. All other functions of management such as planning, organizing, and staffing have no importance without directing. Leadership, motivation, supervision, communication are various aspects of directing.

               Directing is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs functions of directing and it takes place accordingly wherever superior-subordinates relations exist. Directing is very difficult task of management compared to all other managerial functions, because it is concerned with the human aspect of management. When all other preparations have been completed, the management has to begin the working of the concern. Directing helps to create team work the members of the organization. It makes planning, organizing and staffing meaningful. Directing provides the connecting link between these functions and controlling. It is a vital phase in the ongoing process of management. Thus directing is a complex and practice based function. It can be perfected only through long experience.   

D) Staffing

                              In management, staffing is an operation of recruiting the employees by evaluating their skills and knowledge. A staffing model is a data set that measures work activities, how many labor hours are needed, and how employee time is spent. Staffing refers to the managerial function of determining and meeting the manpower requirements of an organization and of providing opportunities for the continuous development of its manpower talent. It is a key managerial function which gives life and meaning to other managerial functions. It consists a number of sub-functions. Such as man-power planning, recruitment, selection, placement, training, promotion, remuneration, performance appraisal, etc. These sub functions are interlinked and serve as some of the determinants of organizational effectiveness.   

                      The main purpose of staffing is to establish and maintain sound personal relations at all levels in the organization so as to make effective use of personnel to attain the organizational objectives and care for their personal and social satisfaction which they always want. Staffing concentrates on both present and future organizational needs and tries to determine the number and kinds of managers needed. For this purpose the organization makes use of external and internal factors for performing various functions of staffing rights from recruitment to retirement. Staffing gives life to the organization and influences leading and controlling. 

E) Co-Ordination

                                Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management. A modern enterprise consists of a number of departments. In olden days, the enterprise was divided into departments such as - purchase, production, sales, finance, and accounts. But, now a days, the enterprise is divided into the following departments - Purchase, production, sales, finance, accounts, personnel, research and development, public relations, stores & dispatch, logistics and the like. The classification of departments is very large at present. So the importance of co-ordination has subsequently increased. 

                       According to the George Terry, "Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. It is accomplished by means of planning, organizing, actuating and controlling." 

                        The aim of co-ordination is to achieve better results and this may be done in different ways. Different managerial functions are also used to attain organizational goals. Coordination avoid duplication of work and efforts, interpersonal conflicts, controversies, misunderstandings, delay, wastages and confusions. It harmonizes, unifies and blends all activities and thus, ensures that achievement of predetermined objectives. Although for the success of any organization co-ordination must exist between different departments, groups and activities. 

F) Communication

                                        Communication is a process of creating and sharing ideas, information, views, facts, feelings from one place, person or group to another. Communication is the key to the directing function of management. Communication is fundamental to the existence and survival of humans as well as to an organization. A manager may be highly qualified and skilled but if he does not possess good communication skills, all his ability becomes becomes irrelevant. A manager must communicate his directions effectively to the subordinates to get the work done from them properly. 

                  Communication is a continuous process that mainly involves three elements i.e. Sender, Message and Receiver. There are mainly 3-types of communications :- 

1) Formal Communication -      Formal communications are the one that flows through the official channels designed in the organizational chart. It may take place between a superior and a subordinate, a subordinate and a superior or among the same cadre employees or managers. These communication can be oral or in writing and are generally recorded and filed in the office. 

2) Informal Communication -  Any communication that takes place without following the formal channels of communication is said to be informal communication. Informal communication spreads rapidly, often gets distorted and it is very difficult to delete the the source of such communication. It also leads to rumours which are not true. People's behaviour is often affected by rumours and informal discussion which sometimes may hamper the work environment. 

3) Unofficial Communication - Unofficial Communication refers to employee communication outside of the work place on matters unrelated to work. Friendly meetings, dinner outings, and social gatherings among employees are examples of unofficial communication channels. 

G) Budgeting

                                   Budgeting is creating a plan to spend our money. Good budgeting is spending less than we are earning as we plan for our financial goals. Budgeting is the fundamental step in achieving financial literacy and by extension, reaching financial security and freedom. A budget is defined as the formal expression of plans, goals, and objectives of management that cover all aspects of operations for a designated time period. The budget is a tool providing targets and directions. Budget provide control over the immediate environment, help to master the financial aspects of the job and department, and solve problems before they occur. Budgets focus on the importance of evaluating alternative actions before discussions actually are implemented. 

                   A budget is a financial plan to control future operations and results. It is expressed in numbers, such as rupees, dollars, units, ponds, hours, manpower,  and so on. Budgeting allocates funds to achieve desired outcomes. A budget may span any period of time. It may be short term (one year or less), intermediate term (2 to 3 years) or long term ( 3 or more). Short term budgets provide greater details & specific. Intermediate budgets examine the projects the company currently is undertaking and start the programs necessary to achieve long objectives. Long term budget plans are very broad and may be translated into short term plans. The budget period varies according to their objectives. 

I) Reporting 

                         The reporting to management is a process of providing information to various levels of management so as to enable in judging the effectiveness of their responsibility centers and become a base for taking corrective measures if necessary. Reporting to management can be defined as organized method of providing each manager with all the data and only those data which he needs for his decisions, when he needs them and in a form which helps his undertaking and stimulates his action. 

                      Methods of reporting can be presented in 3-forms, that are - 

1) Written Reporting - These are formally presented in writing. This is the most common mode of reporting. It may be in form of letter, circular or manuals. It facilitates for easy reference and act as an evidence for managerial decisions. e.g. balance sheet, sales report, performance appraisal reports, purchase orders, budgetary reports, cash flow statements.     

 2) Oral Reporting - This type of reporting generally presented in a discussion form. Such presentation of information is more informative and can clarify many aspects through the person who is presenting the report. e.g. group discussion, conference calls, interviews. 

3) Graphic Reporting - The reports may be presented in the form of charts, diagrams and pictures. These reports have the advantages of quick grasp of trends of information presented. A look at the chart may enable the reader to have an idea about the information. In the modern times graphs and charts are becoming more popular mode of presenting any kind of information. This is the most effective medium of reporting removes dullness and confusions which we usually find in other forms of reporting. e.g. bar charts, pie charts, break-even points, flow charts, progress charts, control charts. 

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Conclusion 

                                Business is the activity of making money by providing or buying and selling products, such as goods and services. A business is an organization where people work together to achieve a organizations specific goals. Business management definition is managing the coordination and organization of business activities. This typically include the production of materials, money & machines and involves both innovation and marketing.           

                  Business management involves the supervision organization and coordination of business resources and operations to achieve specific objectives. The main elements of business management activities are: - Planning, Organizing, Directing, Staffing, Co-Ordination, Communication, Budgeting & Reporting.