The World of Management - Research Paper Example

?The World of Management Contents The World of Management Contents 2 Introduction 3 Historical Overview of Business Administration 3 Related Jobs in Business Administration 4 Future Job Prospects in the Field 5 Journals Related to Business Administration 5 Conclusion 6 References 8 Introduction In this era of globalization, an efficient management structure is essential for use the available resources optimally in an organization. The board of directors of a company needs to provide importance to all the areas of management so that they can take care of the interest of the stakeholders of the company. If the company management officers are performing their individual works at their best, then the company will be able to utilize the resources effectively and the company will achieve the objective of maximizing the shareholders value. At present, the demand of the management professionals are increasing gradually as an efficient manager is able to fulfill the objective of the company and increase the profit. In the globalized economy, when the economies of different country are connected to one another, the demand of a certified professional from an international organization is high. The professionals, who are certified from a professional organization, are able to handle the issues that arise in an organization in a proper manner. The areas of management include human resources, accounting, marketing, operations etc. Every department has some specific works to manage the company well overall. The managers of the operations department need to manage the resources available for them, for instance, labor and raw materials, and increase the profit of the company. The human resources mangers are responsible to manage the employees and make sure that they are motivated enough to do the job. Marketing managers have to make sure that the company is providing goods and services as per the customer requirement and the accounts department managers have to make sure that there is nothing false in the revelation of the financial information, which are used by the stakeholders of the company. The researcher has selected the area of business administration identify the history, job prospects and needed professional licenses in the field. Historical Overview of Business Administration Business administration means to manage the sources available to an organization effectively and optimally use the sources so that the organization can fulfill the objectives. During the 18th century, a Scottish philosopher Adam Smith has argued that in order to efficiently manage an organization, it needs to have specialized labor resources. He has also stated that some changes in the process can improve the productivity of the organization. If the specialized employees can be used in related places, they will get motivated, as well as the company would be benefited. During the 19th century, the classical economists provided the theoretical background about the processes of allocation of the resources, pricing and the production issues. In the 20th century, the organizations started to understand the importance of administration of business. They felt that an efficient leader could manage the subordinates very well. They can take out the best from the employees by motivating them. The universities have started the business schools where they provide the degree Master of Business Administration, also there were many personalities like Peter Drucker, who provided the theories of management. In this century, various processes invented by the researchers which can improve the efficiencies of the processes and increase the profit of the organizations like six sigma process, reengineering, various software development. During the period, business administration was divided into six different branches, namely management information systems, marketing management, strategic management, financial management, operations management and human resource management. During the current 21st century, the administration process became more effective; for increasing the efficiency, innovative processes were implemented by the companies, like the democracy for the workers increased in order to make them more motivated. Related Jobs in Business Administration The job of the business administrators is to manage the operations of the organizations and to utilize the resources available to them optimally. Thereby, the managers make it sure that they gain maximum profit by using available resources. The jobs related to business administration are related to management jobs. The managers of the departments, like the finance manager, operations manager, and human resource department manager, run their respective departments. The responsibility of the finance manager is to manage the funds available to the company and produce periodic reports about the expenses and gains of the company. The responsibility of the marketing manager is to know about the expectations of the customers, provide goods, and service as per their requirement. The responsibility of the operations manager is to manage the raw materials and the labors of the company efficiently so that the operating expenses can be minimal, and the profit can increase. The mangers of the strategic management department are responsible to design strategies, which the organization will follow in future. The mangers of all the departments have to report to the general manager or the managing director of the company, who is responsible for all the business operations. The employees who have the management degree are able to perform better in the designations, as they are well aware about the theories of management. Future Job Prospects in the Field The future job prospects in the field are well as the companies are mainly looking for increasing the efficiency of the business. The organizations need leaders who are able to motivate the employees and maintain good relation with the customers of the organization. The recent trend shows that the organizations used to employ the candidates with degree of Master of Business administration to manage a small chunk of customers, which improves the efficiency of the business. For getting a position of business administrator in an organization, a candidate needs to have the degrees like Bachelor of Business administration in the graduate level and Master of Business Administration in the postgraduate level. The candidates can also have the certification of some courses like Six Sigma, which can increase the demand of the candidate, as he is more efficient. As the organizations are recruiting the management degree holders in all levels of the organization, so the future job prospects in the field is good. Journals Related to Business Administration In a journal prepared by Bryer, the researcher has raised a question that the bankruptcy of Enron was because of the fraud practices done by the accountants or the wrong conceptual framework of accounting that the organization used to follow. Mostly the people said that the Accountants of Enron Corporation and the auditor of the company, Arthur Andersen performed fraud practices and aggressive accounting. It has been found that some of the practices done by company turned harmful latter for the stakeholders of the company. The revenue recognition principle of the company was not along with the practical scenario. The accountants of the company used to recognize the revenue when they made a deal, not when they get the cash, which means they used to perform accounting based on accrual style. The researcher has argued that the cause of the accounting debacle was the existing accounting practices. The company used to follow the accrual accounting process or the historical accounting process. By analyzing the case, the researcher has argued that the cause of accounting debacle by Enron was the existing conceptual framework of accounting, not the fraud done by the organization (Bryer, pp.1-63). The general manager of the organization has to look after all the operations of the company. He should make it sure that the processes in the organization are practical; the interests of the shareholders are maintained properly as they are the major stakeholders of the company. In a research paper, the researchers had argued that the differences between the shareholders of the company and the managers of the company arise because of the difference of the objectives. The shareholders want that the objective of the company should be maximizing the wealth of the shareholders, when the objective of the management is to maximizing the profit of the company. The researchers have argued that the legal approach is a better way to manage this conflict and ensuring good corporate governance. The role of the business administrator is to manage the conflict between the shareholders of the company, who are the source of the funds for the operations of the company, and they have to make sure that the long-term objective of the company is also maintained (Porta et. al, pp.13-21). In his research paper, R.S. Kaplan argues that the balanced scorecard system can be used for designing the strategies of the business for future. It means that the management will take feedback from the customers they serve and based on their feedback, they change their strategies so that they can attract or retain customers. The business administrator is responsible for conducting all the process as he has the responsibility to assure that all the processes are going well. The marketing department is responsible for collecting the feedback of the customers. Thereafter, the management team will do the analysis of the feedback of the customers. The department will formulate some changes, which can be implicated in the business and the goods or services. The proposals would reviewed by different departments of the company. Like the finance department would check that there are enough funds with the company so that they can make the changes in the processes (Kaplan and Norton, pp.76-84). Conclusion The long-term objective of a company is always maximization of the wealth of the shareholders. For maximizing the wealth of the shareholders, the company has to make it sure that the available resources are utilized efficiently. If a company has the objective of maximize the wealth of the shareholders, it would earn profit in the short-run, as well as attract investors for the long term goals. For managing the resources available to the company, the board needs to make it sure that the management persons are efficient enough to lead a department. There are various departments in a company, like finance, human resources, marketing, operations etc., and every department has some responsibilities to manage their own department and make it sure that all the resources available to them is used efficiently. Business Administration is an important area as the professional of this designation has to look after all the operations in the business. The managing director of an organization has to make it sure that every department is efficient at its highest level, and make the strategies if there is such a need. The managers have to lead their respective departments; overall, the managers of all departments work as a team and the team works for the objective of the company. From the report, the conclusion can be that every area of management is equally important for the efficient running of a business. References Bryer, R. (2004). Accounting lessons from Enron: fraud, aggressive accounting or the wrong conceptual framework? Retrieved March 21, 2012 from . Kaplan, S. & Norton, D. (1996). Using the Balanced Scorecard as a Strategic Management System. Retrieved March 21, 2012 from . Porta, R. et al. (1999). Investor Protection and Corporate Governance. Retrieved March 21, 2012 from . Read More