MODERN METHODS OF BUSINESS MANAGEMENT

2009-01-02T17:21:00.000-08:00

Introduction

Effective business management in this modern age requires a lot of tactics, which encapsulates both physical and psychological stress. Difficulties arise in tracing the history of management. Some see it (by definition) as a late modern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such as stewards). Others, however, detect management-like-thought back to Sumerian traders and to the builders of the pyramids of ancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issue of management systematically. However, innovations such as the spread of Arabic numerals (5th to 15th centuries) and the codification of double-entry book-keeping (1494) provided tools for management assessment, planning and controlling.

Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial evolution, it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. Butt with growing size and complexity of organizations, in our present modern time, the split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common. Hence, the need for a sophisticated and modern management system.

Definition of Related Terms

Adequate understanding of this topic can not be vividly made without explaining the key words that entail the topic. Hence,

Method

Method in a simple sense means the way or style of carrying out a task.

Management

Etymologically, the verb manage comes from Italian word – maneggiare (to handle), which in turn derives from the Latin – manus (hand). The French word mesnagement (later menagement) influenced the development in meaning of the English word management in the 17th and 18th centuries. Management therefore, according to Marry Parker Follett, is defined as “the art of getting things done through paper”. It is also define as the person or people who perform the act(s) of management. Functionally, management is defined as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the action taken to reach one’s intended goal. This applies even in situations where planning does not take place. From this perspective, Frenchman Henri Fayol considers management to consist of seven functions:

1. planning

2. organizing

3. leading

4. co-ordinating

5. controlling

6. staffing

7. motivating

Business

Business however is referred to as any particular occupation or employment engage in for livelihood or gain, as in agriculture, trade or a profession (brainyquote.com). Business, according to Encarter (2006), is define as complex economic operations concerning those functions that govern the production, distribution and sales of good and services for the benefit of the buyer and the profit of the seller.

Business Management

Business Management can therefore be defined as a systematic way of planning, controlling, guiding, motivating, organizing and leading human and material resources for human financial and economic livelihood or gain. More so, management in business and human organization activities is defined as the art of getting people together to accomplish desire goal. It can therefore, finally be refer to as the art of deploying and manipulating of human and financial resources to achieve one’s desired goal(s).

Basic Functions of Management

Management operates through various functions, often classified as planning, leading /motivating, and controlling.

Ø Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.

Ø Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.

Ø Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs.

Ø Leading/Motivating: Exhibiting leadership and motivational skills in order to encourage others to play an effective part in achieving plans and ensure willing participation in the organization on the parts of workers.

Ø Controlling: Monitoring, checking progress against plans, which may need modification based on feedback.

Ø Motivating: the process of stimulating an individual to take action that will accomplish a desired goal.

Formation of the Business Policy

Ø The mission of the business is its most obvious purpose – which may be, for example, to make soap.

Ø The vision of the business reflects its aspirations and specifies its intended direction or future destination.

Ø The objectives of the business refer to the ends or activity at which a certain task is aimed.

Ø The business’s policy is a guide that stipulates rules, regulations and objectives, and may be used in the manager’s decision-making. It must be flexible and easily interpreted and understood by all employees,

Ø The business’s strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business’s advantage. Initially, it could help the managers decide on what type of business they want to form.

How to Implement Policies and Strategies

Ø All policies and strategies must be discussed with all managerial personnel and staff.

Ø Managements must understand where and how they can implement their policies and strategies.

Ø A plan of action must be devised for each department.

Ø Policies and strategies must be reviewed regularly.

Ø Contingency plans must be devised in case the environment changes.

Ø Assessments of progress ought to be carried out regularly by top-level managers.

Ø A good environment is required within the business.

The Development of Policies and Strategies

Ø The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the business’s mission.

Ø The forecasting method develop reliable picture of the business’s future environment.

Ø A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.

Ø Contingency plans must be developed, just in case.

All policies must be discussed with all managerial personnel and staff that is required in the execution of any departmental policy.

Where Policies and Strategies Fit Into the Planning Process

Ø They give mid – and lower-level managers a good idea of the future plans for each department.

Ø A framework is created whereby plans and decisions are made.

Ø Mid- and lower-level management may add their own plans to the business’s strategic ones.

Managerial Levels and Hierarchy

The management of a large organization may have three levels:

1. Senior management (or “top management” or “upper management”)

2. Middle management

3. Low-level management, such as supervisors or team-leaders

4. Foreman

5. Rank and File

Top-level management

Ø Required an extensive knowledge of management roles and skills.

Ø They have to be very aware of external factors such as markets.

Ø Their decisions are generally of a long-term nature.

Ø Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes.

Ø They are responsible for strategic decisions.

Ø They have to chalk out the plan and see that plan may be effective in the future.

Ø They are executive in nature.

Middle management

Ø Mid-level managers have a specialized understanding of certain managerial tasks.

Ø They are responsible for carrying out the decisions made by top-level management.

Lower management

Ø This level of management ensures that the decisions and plans taken by the other two are carried out.

Ø Lower-level manager’s decisions are generally short-term ones.

Foreman / lead hand

Ø They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.

Rank and File

Ø The responsibilities of the persons belonging to this group are even more restricted and more specific than those of the foreman.

Other Areas and categories and implementations of management

Ø Accounting management

Ø Association management

Ø Commercial operations management

Ø Communication management

Ø Cost management

Ø Crisis management

Ø Human resources management

Ø InfoTech management

Ø Knowledge management

Ø Scale management etc.

Conclusion

One can only be successful in the business of today if only he/she considers the need(s) of this modern age. And among the cogent needs are the managerial entailment given earlier. However, to be a good manager, you must follow this 5-Ps: Progress, Prize, Punctuality, Perseverance, and Patience. Therefore, learn to use modern instrument to solve modern problem(s) so that you can get modern and standard solution.

References

Introduction to the Educational Management. A publication of the Department of Education and Management Faculty of Education, University of Ilorin, Ilorin Kwara State.

Other Consulted websites

http://en.wikipedia.com/management

Encartar 2006 (CD)

Oxford Advance Learner Dictionary

AS-SABAAB COMPUTER ACADEMY AND VOCATIONAL TRAINING CENTRE

MODERN METHODS OF BUSINESS MANAGEMENT