Business Management Process SystemBusiness Management Process is complex subject and involves a myriad of components which are highlighted below. Before we start, some "housekeeping". We work with two Assumptions: 1. We are managing a company with the goal of becoming profitable. (As opposed to non-profit organization.) 2. "Company", "business", and "organization" are used interchangeably. The following are the major components you will find in management process. Each component feeds the next component which affects the way the company behaves. I. Information Component. This component covers integration of external and internal information into the company's business model. It should include one or more of the following buckets: a. Social Information (such as cultural and/or demographic), b. Political what can affect the company from a political or legislative standpoint, c, Economic (which economic indicators out there affect the company), d. Technological (what technology is available and how it fits within the company). e. Competitive (what is the competition doing, how much competition the company faces). f. Internal such as financial information and non financial information. II. The Manager Component. Our manager's job is to receives the information, understand the meaning, and then to take action based on what is best for the company's goal of becoming profitable. This is done through planning, organizing, creating action blueprint, and controlling. The manager must make the following decisions: what to do, when to do it, where to do it, how to do it, and who will do it. Also, take a look at who can and who will do the job.
III. Input Component. Our manager has to blend the input factors to maximize the objective output: a. Manpower. That’s the who. Who will do the work, how many people are available. b. Money. How much money is available at his disposal. c. Related Resources. Such as which machines to use, what methodology to use, and raw materials. IV. Output Component. Our manager's responsibility is to produce the desired output. The output has to be measured with four aspects commonly known as QQCT. --Quantity-- How much was produced, --Quality-- The quality of what was produced, --Cost-- The cost involved in production, --Time-- How long it took to produce. V. Objectives. The objectives are survival, profits, and growth. Management must keep an eye on its objectives. Learn more about setting business objectives here.
----------------------------------------------------------------- These components constantly vibrate energy, information, and feedback. Management continually adjusts its plans based on the above components.
Application. I’ve given you a quick rundown on management process. Here’s how you can do utilize it: - Apply it to your own company, business, machine shop, retail business, home business, you name it. - Apply it to your own personal environment, To get the most out of understanding this process, drill into these concepts, learn more, and improve your company's chances of succeeding, survising, and growing.
I would like to take a moment and recognize an excellent site that looks at the management process from Finance/Accounting view. Please check The Accountant Next Door. ------ Here are excellent resources for Management:
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