Business Management: Definition, Function, and Component

Business Management– Being a businessman should not be arbitrary, at least you must know what business management is. Because without good management, it is certain that the business being carried out will not be successful. It is undeniable that novice businessmen fail due to ignorance about the importance of management in the business they are building so that the business they run is modest.

Understanding Business Management

Business management is the activity of planning, working on, and supervising a business or business. The purpose of these activities is to achieve business goals. Business management can also be interpreted as all efforts carried out according to the plan solely to achieve sales targets.

If you don’t have well-planned and qualified management, create it immediately, or better stop the business. Management in an effort to allocate all needs thoroughly for various things. A bad business that has the potential to go out of business is a business that is run without quality management.

Business Management Function

After knowing the meaning of business management, the following will explain the function of management in your business. This will be the reason why business management needs to be studied by business owners or those of you who are just planning to build a business.

This is the business administration function in question. Please understand if it is necessary to note that when you open a business, you just need to open it and study it.

1. Planning (Planning)

The first function is planning or planning. To build a business, of course, you need some kind of planning, such as a marketing plan, what kind of products will you sell, what kind of promotions will you offer, bookkeeping, or others. and must record all this planning. Because this will be the benchmark for future business movements.

2. Organizing (grouping)

Organizing or grouping can be related to labor. The point is, if there is a plan, then you must create a working group. Make sure they have the same share of work in their respective fields. Such as the marketing team, administration team, warehouse team, and so on.

If it doesn’t match specifications, the team can move it to a more appropriate position. On the other hand, if the team does not work well, the leadership can take the initiative to replace it.

3. Staffing

Staffing is related to existing resources in the company such as product raw materials, production machines, supporting facilities, and so on. This must also be regular in order to be able to make the business even more advanced. Therefore, the proper arrangement of resources must be in accordance with business needs. And can do this if there is good management in the company. If it doesn’t exist, resources will be used for things that are not prioritized, which results in swelling capital.

This sometimes makes the company’s finances collapse while the results of the work are not at all effective and efficient. The risk is that if you don’t get a capital injection, the business will soon go out of business. Of course, this condition is not desirable. Therefore, it is necessary to do business management as soon as possible. So that there is a good arrangement of the function of the use of resources.

4. Directing

The fourth business management function is the directing function. The point is the action of the leader who continues to encourage his team to work according to the plan agreed upon at the beginning. In this management function, the leader must go directly to see the progress of his team’s work. But avoid making reprimands that are not in accordance with the plan.

5. Controlling

Supervision is only an observation of whether the work system that is running is in accordance with the work or not. With this supervision, important points that will be used as evaluations must be recorded.

This control does not have to be carried out by the leader but at least by the group leader. Because they know better what is going on in their group. Leaders just ask for the group leader’s accountability report during the evaluation. From this report, the leadership can determine policies for the next business period.

Components of Business Management

The business management component is the element that must go with the management system. They all have different functions. Here are the components of business management in question:

  1. Financial Management
    Financial management is management that regulates the budget settings in the company. With this management, it is hoped that the money that has been spent can be used effectively and efficiently.
  2. Marketing Management
    Marketing management is a component of business management in the form of planning, action, and supervision activities related to product marketing. While the goal is to promote products that customers really like.
  3. Production Management
    Production management is the regulation of the production process in the company. This is related to the functioning of production machines, production operators, and the compounding of raw materials used.
  4. Distribution Management
    Distribution management is a management activity to ensure the proper distribution of products. This means that the goods that reach the hands of the product are not defective and can arrive quickly.
  5. HR Management
    Human resource management means management activities that regulate employees. Including the discipline and arrangement of their field of work.