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What is Business Management definition/concept

Regardless of size or industry, every business needs an organizational system to achieve its goals. The way to implement this system is precisely business management . An adequate business management model allows you to compete efficiently with other companies in the sector. Business Management

There are five major areas related to business management: administration, commercial area, production , finance department and human resources . The person in charge of management must coordinate all these areas so that this company can be competitive and generate profit .

Business management indicators

A management indicator is a variable that quantitatively or qualitatively measures the results of a company. Some of the main indicators are the following: effectiveness, efficiency and productivity. With effectiveness, the degree of fulfillment of predetermined goals is measured.

Efficiency measures the relationship between the products and services generated in relation to the resources used. The productivity of a company is based on the idea of ​​producing as much as possible with the fewest resources.

The role of accounting in business management

The accounting of a company is responsible for evaluating and controlling the resources that the entity has. This control must be in line with established norms and laws.

In summary, it can be said that accounting fulfills three basic functions:

1) control of income and expenses in order to specify the price of products or services provided by the company, as well as all economic transactions;

2) the analysis of the various periods and the financial state of the entity;

3) the contribution with correct business decision-making for managers and administrators.

The question of leadership

In addition to management indicators, planning or the role of accounting, a company’s leadership is crucial to achieving adequate business management. A leader is that individual capable of positively influencing others.

In the field of running a business, the leader acts as a guide and advisor to an organization. Leadership experts believe that an individual is a good leader if he is able to correctly combine the parameters of management with a strategy based on emotional intelligence .

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