The Role of Management in Business - Article Example

Management and Business Management and Business are closely interrelated terms. Any one of them is related to the other in functionality. A business requires the management function to survive and excel. Management on the other hand has to be for a certain business only that the nature of the business to be managed differs. Management refers to bringing people together towards the achievement of a desired goal, through the effective and efficient application of the resources available (Boyns, 21). The act of management entails various functions such as planning, organizing, staffing, control, and organization of an entity or an organization (Beverly, 12). The act of management entails the organization and control of resources, which includes human resources, financial, and natural resources. Management as a function has various levels. The higher level of management is the top-level management, which entails the organization directors and CEOs, who develop the goals, the plans and the policies of the entire organization and oversees their execution (Thompson, 6).The middle management entails the general, branch, and departmental managers of an organization, where they are involved with decision making and directing the organization. This level is responsible for executing the plans of the organization and formulating the necessary policies requisite for the effective running of an organization (Reh, P1). The other level of management is the low-level management, consisting of the supervisors, who are involved in controlling and directing others. The responsibility of the low level managers is assigning tasks to the other workers in an organization, supervising, and monitoring how they perform such tasks (). They provide motivation to the employees, while giving the feedbacks to the top management on the activities of the organization and workers performance. Business on the other hand refers to an entity or enterprise that is involved in the trading of goods and services to consumers (Thompson, 8). The purpose of any business establishment is earning profits for its owners. There are various forms of business entities. These forms differ based on how they are formed and owned. These forms of businesses include the sole proprietorship, where the business is owned and controlled by a single individual. The owner gains the profits earned alone but can also suffer in case of a loss, all by himself. The other form of business ownership is partnership, which entails a joint ownership of a business by more than two individuals to a maximum of 20. The partners shares the profits earned by the business in prescribed ratios and shares the losses in case the business does not make any profits. Corporations are the other forms of businesses, where the ownership of such company is by many individuals who are its shareholders. The owners earn profits in forms of dividends paid to the shares held, but do not suffer the losses incurred by such companies (Beverly, 14). The last form of business is the cooperative, which can be organized in the form of for-profit or not-for- profit organization. The difference between a company and a cooperative is that while a company has shareholders, a cooperative have members, who are involved in decision-making. The relationship of management and business is of a functional nature, where the management functions determines the fate of a business. The management function is relevant in the running of a business. It is the type of management that a business has, which determines its success or failure. The management has the task of ensuring that a business runs its day-to-day operations in a successful way and sustains these operations over a long period, as it grows and expands (Boyns, 28). However, the management can interfere in the way a business runs and end up causing the failure of such a business. The basic of the management roles in a business include the conceptualization and initiation of a business. Under this role, the management is supposed to indentify the viable business ideas and evaluate them for their chances of success or failure, based on the market the business is meant to serve and the competition in such a market. After conceptualizing a viable idea, then the management is tasked with the responsibility of gathering the necessary resources and information necessary for kicking off the business. Under this function, the management is supposed to create a business plan underlining all the activities that the business should undertake and the financial commitments required under each activity, including forecasting and budgeting (Reh, P1). The management should also undertake the necessary legal procedures for starting a business and ensure the possession of the requisite authorization. The management then hires the labor necessary for undertaking the activities of a business and then commences the business, once everything has been put into place. Managing and ensuring growth is the other function of management in a business (Thompson, 9). A business passes through several stages before it matures and becomes a full-blown business that can stand on its own. There is the infancy stage of the business, where it is still adapting to the market and the environmental conditions such a competition. If the management fails to run the business effectively at this stage, then, the business has a higher chance of failing. This stage involves the management giving the business direction in its day-to-day operations, altering the already formulated business guidelines where necessary, based on the prevailing conditions in the environment the business operates (Boyns, 29). The management function at this stage involves a lot of decision making, where some may even seem unpopular, just in case they are relevant for the survival of the business. The growth stage is the other stage of the business, where the management involvement is highly desirable. At this stage, the business may have survived the forces of competition that would have made it fail at the introduction stages, but still needs to be managed carefully to see it push through to the maturity stage. While the business have thrived and expanded, then, the management needs to management the expansion of the business, since if just left to take any form, it might end up failing at this stage. The management is also responsible of seeing the business through the maturity stages and until the business has fully matured. Realizing that the market that such a business is operating or the products and services it is providing are no longer viable, then, the management should take the business through the decline stages as it seeks to indentify other viable and profitable ventures, in which the resources of the declining business should be committed to (Beverly, 15). It is the role of the management of a business to innovate and strategize on how the business they are in remains relevant to the market and overcomes the competition (Boyns, 24). The ability of the management to innovate determines how long the business remains relevant. Innovation calls for the introduction of new goods, services, or process by the business management to ensure that it can effectively compete with the other players in the market. It may entail the management devising new process or ways of doing business, that are more economical, thus allowing it to significantly reduce its operational costs and thus afford to offer low price commodities in the market that its competitors. Innovation may also involve the creation of new goods that are of a higher quality than the competitors’ products, thus allowing the consumers to prefer the products offered by the business at the expense of their competitors (Reh, P1). Therefore, at this function, the management seeks all the viable options that can be exploited to ensure that the business remains competitive and relevant in the market. Planning, controlling, and organizing the resources of a business is yet another vital role that the management plays in a business (Boyns, 30). How the management organizes its resources, distributes them, and cares for them determines how the business succeeds. The organization and distribution of the financial resources in a business determines how the business succeeds in its operations. The other most vital resource held by a business is its human resources. How the management treats its human resources greatly determines the heights the business can achieve. A highly motivated business team will give all their efforts towards the achievement of the set business goals and objective. Thus, the role of the management is to ensure that the workforce is motivated and given a good morale (Beverly, 16). Integrating the business mission and visions with the roles and tasks of the workforce is a vital role that the management of business should play. Forward thinking is another important role that should be played by the management to ensure that the future of the business is in its course (Boyns, 33). The management of a business is supposed to always keep in course and ensure that the business thrives in the market, grows, expands, and remains profitable. The management has the responsibility of keeping abreast with the new developments in the market and in the technological front and ensure that it incorporates such changes where necessary in the business operations. This serves to prevent the business from becoming redundant and obsolete. Works Cited Beverly, Humphrey. The role of management in business. Journal of Business Management. Springer, 2008. 12-16. Print. Boyns, Trevor. Business and Management History. Cardiff Business School, 2009. 20-35.print. Reh, John. Management 101. About.com Guide, 2011. P1.print. Thompson, Joe. Total Quality Management and Business Excellence. Routledge, 2011. 6-12. Print. Read More