Business management
We explain what business management is, its origin, functions and techniques. Also, why it's becoming more and more important.
What is business management? Business management is the discipline that studies the relationships between the administration business, the production processes and the elements of cost, quality, logistics and distribution among others. Its objective is to guarantee and continuously increase the effectiveness and competitiveness of a organization or a particular corporation.
In other words, it is about applying constant innovation, from every point of view, to the world of business administration, as defined by the leading Austro-American economist Joseph Schumpeter (1883-1950). In a strict sense, is a point-in-time branch of the administration of enterprises, often called nowadays Business Management.
Business management goes hand in hand with the ever-changing world of business. technology, and finds in dynamics such as automation, the computer science and new technologies a set of tools that can be used to update and improve business performance in its different facets and levels.
Origin of business management Although your background can be traced in one way or another to any form of organization or company throughout the history, this discipline took its first formal steps in the first half of the twentieth century (academically in 1933 in Madrid, Spain), especially in the public and military sectors.
Its application to the private field came immediately, especially from the hand of specialists in certain productive stages, such as the Japanese Kaoru Ishikawa (1915-1989), one of the main exponents of the scientific or systematic method of constant improvement of administrative processes. This process of continuous improvement in the quality sector is known by the Japanese name of Kaizen.
Importance of business management Business management is a very broad discipline, to which more and more attention has been paid in the contemporaneity. This is due to the growing demand from the business world for Professional able to (re)think the business world according to the changing needs of the time, which requires experience or, failing that, academic training.
Thus, as the business world demands more and better professionals to lead it and ensure its survival, business management is a fundamental discipline when it comes to updating or updating production processes.
Functions of business management Like other similar disciplines, business management focuses on the analysis of the organizational structure, attending to the different aspects that can be improved. To this end, it usually emphasizes the four basic points of any production process:
Planning
The prior provision of the Objectives to be achieved, of the methods and other characteristics of the business project. Organization. The right distribution of the enterprise resources, taking into account their similarities, differences, destinations and other exploitable factors. Communication. The exchange of data and information relevant between the different parts of the organization, and also facing the outside. Control. Strategic decision-making based on the dynamics of feedback (feedback) possible from the information emanating from the production process itself. Business management techniques Business management is put into practice through a set of techniques applied to the different administrative processes of the organization, with the purpose of ensuring the viability of long-term entrepreneurship. Some of these techniques are:
Strategic analysis. It consists of the review of the social, political and economic environment in which the company is inserted, to identify external scenarios that may affect its performance. Organizational management. Focused on the administrative process, consists of the revision of the structure business for the future, to plan in advance the dynamics that the organization will need to approach the goals set. Information technology management. It consists of the study of the strategies communication of the company, from the point of view of the new TIC or advanced communication platforms. Financial management. It consists of the review of the processes of obtaining, managing and investment of the company's capital, to achieve the greatest possibility of short-, medium- and long-term returns. Management of the human resources. It consists of the review of the strategies of obtaining and maintaining the personnel of the organization, from the point of view of the human and professional improvement of the company. Environmental management. It consists of the evaluation of the performance of the company in the face of environmental needs or the physical environment in which it is located: contamination, social responsibility, etc. Operations management. It consists of the study of the logistics, supply and distribution processes that are specific to the company, and that usually involve raw material, energy, supplies, routine services, etc.













