Too many cooks spoil the broth, goes the adage. But, what if these cooks worked as a team? The broth might turn out to be lip-smacking after all. Likewise, when it comes to business, there is no substitute for teamwork. A business is a multi-faceted venture demanding intensive research, planning, and careful execution, and all related activities need to be effectively managed. The strength of an organization and its potential to generate impressive revenues depends greatly on the quality of management which, in turn, has a significant impact on its brand value in the long term.
To many, this may sound like something they’ve heard time and again. However, business management entails a lot more than we think. Thriving in the challenging world of finance, marketing, and entrepreneurship requires true grit. So, without much ado, let’s dive deeper into the inner workings of business management.
What is Business Management?
In the simplest of terms, business management refers to the coordination and administration of business activities, tasks, and resources to achieve a set objective. This often involves supervision and training of staff, overseeing core operations, and designing company infrastructure to optimize for the future.
According to experts, the key to business management is striking a balance between managing work and talent. Technical expertise earns you the respect of your colleagues as a business manager, but it takes soft skills to sustain that respect. Furthermore, managerial success demands consistency, communication, empathy, and forming and nurturing of meaningful working relationships. Together, such attributes comprise an effective business management strategy.
Difference Between Business Administration and Management
Even to the most experienced professionals, business management and business administration may seem like interchangeable terms. Both, a business manager and an administrator, ensure the smooth operation of a company to achieve fiscal targets and add value. But there are subtle differences between the two job roles that entail different responsibilities and credentials.
Business administration is deeply involved in the more technical aspects of the business, such as operations, finances, sales, and marketing — the nitty-gritty of running a venture. Owing to this, business administrators often specialize in a particular field to obtain a set of core skills required specifically for that sector.
On the other hand, business management has a sharper focus on organizing and managing an organization’s resources, including talent. Put simply, it is more people-centric and relies heavily on one’s soft skills. Business managers are excellent communicators, open to innovation, and leaders who are responsible for ensuring employee productivity. Proficient at critical thinking and problem-solving, they establish the company’s vision and strive to offer their best in helping the company reach, as well as exceed expectations.
4 Skills Successful Business Managers Must Have
Owning a business is no mean feat. But what perhaps demands more proficiency is managing people, and that is precisely what a business manager’s role primarily necessitates. Not only must they ace basic skills, such as communication, critical thinking, and strategizing, but they should also possess something extra that sets them apart – a certain je ne sais quoi. Here’s what we think that is.
As Harper Lee famously put it, “You never really understand a person until you consider things from their point of view.” Business management is not simply about assembling and motivating a team; it requires you to get the best out of them. In this regard, it’s crucial to remember that each member differs in their educational and professional backgrounds, work ethic, communication styles, motivation, and innate personality. Without empathy, business managers may find it impossible to truly understand their employees and implement a successful managerial approach.
One of the most important duties of a business manager is to hold employees accountable for their mistakes and help them improve. Not only does this ensure the performance of the entire organization but is also proof that you care about the growth of your staff enough for them to develop their competence. Being consistent and taking feedback are helpful ways to lessen the discomfort that may accompany difficult conversations or situations regarding accountability.
3. Negotiation and Conflict Resolution
According to IMD Business School professor George Kohlrieser, “Conflicts are the lifeblood of high-performing organizations.” At some point in time, a team of intelligent workers is bound to face creative differences, be it in strategy or implementation. The job of a manager is to resolve such conflicts and facilitate collaboration, exchange, and networking, all with a sense of goodwill and respect for the shared goal. Establishing a managerial style goes a long way in such negotiations and is a step towards mutually beneficial decisions. Consider taking an online course to improve your negotiation skills.
4. Executive Presence
Often viewed as an innate, mystical trait, in reality, executive presence is a highly-prized skill that can be cultivated with diligent practice. Referring to one’s ability to inspire confidence, executive presence is critical across hierarchies and highlights one’s potential for achievement. For business managers, it is imperative as it cements one’s authority and thus commands respect, and also imbues the team with a strong sense of self-esteem. Attributes like eloquence, calm-headedness, and a keen perception are central to building an impeccable executive presence.
Responsibilities of a Business Manager
By now, it is clear that business management constitutes a variety of roles and skills that work together to ensure operational consistency. In view of this, the responsibilities of a business manager can be outlined as follows:
1. Establishing Expectations and Goals
Setting clear objectives is the first step. In addition, it is also important to convey the same to employees in a persuasive manner, one that will motivate them to go the extra mile and ensure excellence.
2. Organizing and Delegating Work
Having evaluated the tasks at hand, an efficient manager breaks them down into actionable chunks and delegates work to the respective departments or employees. Their job is to ensure cohesion among all departments of an organization and that tasks are carried out according to timelines. Competent management can help optimize businesses, reduce costs and time, and enhance the overall productivity of the company.
3. Motivating, Training, and Supervising Staff
Assembling and leading a team towards a common goal requires business managers to interact with various kinds of individuals and train them. They must also be competent supervisors and offer constructive criticism as needed. In addition, managers track their team’s performance over time; this helps them identify each member’s strengths and weaknesses and take measures towards future accomplishments.
Career Outlook for Business Management
Business management is one of the most high-paying jobs in the world. In May 2021 alone, the median annual wage for management roles was USD 102,450, the highest wage among all major occupations. Furthermore, the US Bureau of Labor Statistics predicts an employment growth rate of 9% in management positions between 2020 and 2030. Such high growth rates are driven by the constant emergence of new businesses and the expansion of ones that are already established.
Are you also eyeing a lucrative career in business management? Check out our selection of online business management courses today!
By Deyasini Chatterjee
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