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5 Components Should Have in Business Management

Business Management  

Management is a process of a series of activities including planning, direction, organization and control / supervision with a view to achieving goals effectively and efficiently. In case of business management, the basics of management are very important to understand for someone who is developing a business.

Business is the activity of selling goods or services that can provide benefits for the owner. Since business processes for each field are unique and different in complexity, adequate management is required in order to run smoothly. Business management must be carefully calculated to minimize risk.

The goal is that the business can run in accordance with the management that has been planned. The basics of management in business include several things to understand, including human resource management, production management, marketing management, financial management and information.

What is business management?

Business management is a business planning, management and operational activity. This business management involves setting up all the lines in the business process to achieve what the business objectives are.

Small and medium sized businesses also require business management. Business management consists of several components that will determine the rate of your business wheel and meet the specified target.

5 Basic Business Management Must Be Fulfilled

All of the basic management must be met in detail and well in an organization or business. Here are 5 basic business management that must exist within a company:

1 # Human Resource Management

The first and most basic business management foundation in business planning is human resources. In addition to capital in the form of material, human capital capital is also no less important as the foundation of the development of a business.

Human resources need to be planned and managed well. Not only must meet the quantity, but also consider the quality of human resources. In business or company, there are three components that contribute to managing human resources, namely the personnel, human resource development (HRD) and human resource management (HRM).

Personnel focuses on something that is administrative (employer and employee relations), HRD plays a strategic planner of labor and HRM plays the role of planner, organizer and HR controller as an important asset.

2 # Production Management

The basis of production management is equally important. Product is the output / output of a company or business that involves customer satisfaction, both in the form of goods and services.

Businesses established without knowledge of the value of production can result in large material losses. If the resulting output turns out to have no sales value, this would result in an earlier business collapse as it has been happening in our society.

Production management is planned, managed and controlled on the basis of the point of view of consumer desires and satisfaction. In this case, it is necessary to have a preliminary survey by distributing questionnaires to see the attractiveness of the community.

3 # Marketing Management

Marketing is defined as an activity that creates economic value for goods and services. Marketing management means a method for planning how a product or service can be received in society.

This basic management role in introducing the company or business to the community. The success of a business can not be separated from how important the business is needed by others. The more enthusiasts the higher the business grows.

Some of the components included in the marketing management basics include; extracting potential and actual market information, designing a marketing program and evaluating a company's marketing program.

4 # Financial Management

In short, financial management is how to obtain and how to use company money. Financial management deals with the process of good cash inflows and investments, production funds and other sources of funding.

Newly developed businesses must have good financial management, because if corporate funds are not managed in accordance with the objectives it can result in inflation within the firm, where the rate of expenditure is higher than income.

The financial management department at least studies in detail how a fund can be earned, used and returned.

5 # Information Management

Information management in this case is an activity to ensure that the business being developed can be run and can still survive in the long term. Information management is very crucial when business is experiencing difficult times at the beginning of development and in the midst of growing computer capabilities.

If a business lacks a source of information it can result in an inability to control resources so that it affects decision making for both short and long term.

Good information management is able to provide a source of information that supports the business to grow, such as information related to competitors or competitors.

As conclusion, every business, whether small or medium-sized, definitely requires good business management. The above components must be prepared carefully to ensure all existing processes run smoothly. Interference on one component will affect the other components.