Managing a business effectively is the key to the establishment and growth of the business. The key to successful management is to examine the marketplace environment. Despite the importance of management, this area is often misunderstood and poorly implemented, primarily because people focus on the output rather than the process of management.
In large businesses, effective manage business skills requires planning. Planning is essential for developing a firm’s potential. However, many small businesses do not recognize the need for long-range plans, because the small number of people involved in operating the business implies equal responsibility in the planning and decision-making processes. Nevertheless, the need for planning is as important in a small business as it is in a large one.
Effective communications play a vital role in managing and operating any successful business. With the help of proper communications, changes and their effects on the organization are quickly shared. You can spare time and skills needed to respond to changes and take advantage of evolving opportunities. Management that is unable to respond immediately to changes in the market signals an inflexible unstable firm. In the rapidly changing business environment such management can mean eventual failure for your business.
Setting Duties Tasks and Responsibilities
An organization is characterized by the nature and determination of employees’ duties, tasks and responsibilities. While many organizations use different methods for determining these it is essential that they be clearly defined. You must have an accounting system which should also develop a human resource system where employee information and details should check for accuracy at least once each year.
The apex of an effective organization lies in developing the business team. Such a team involves delegating authority and increasing productivity. You must develop a team where the leader of the team is respected by the members and also the abilities of all team members are respected. There should be a team spirit and mistakes should result in corrective action not retribution. Each member must understand the importance of his or her contribution to the organization.
Another key to successful management lies in controlling conflict. Conflict cannot be eliminated from either the business or the interpersonal activities of the enterprise. A measure of the organization’s success is the degree to which conflict can be exposed and the energies associated with it channeled to develop the firm.
The essence of a successful organization can be more simply summarized than implemented and the effectiveness of a particular organizational form depends on a variety of internal and external events. To survive the market and get the best results you must have an idea about various aspects of the market such as activities and number of competitors and technology being used by them, customer characteristics, Supplier characteristics, Economic environment, Strategy to grow. Even though you may discover that certain events are affecting your business be careful not to change the organizational structure of your firm without discussing it with your management team. Because restructuring involves spending a lot of time learning new rules implementing a new organizational structure is costly.
The central element of organizational management is authority. Through authority your firm develops the structure necessary to achieve its objectives. A primary component of authority is the exercise of control within the organization. A thorough system of controls ensures the firm’s operation and provides a mechanism for imposing authority. Internal controls include the provision that authority be delegated and circumscribed
Delegation of Authority
Delegation is a key to the effective exercise of authority in your business. By delegating limited authority to accomplish specific tasks the talents of employees in the organization can be used to upgrade the skills and experience of the manager. You must organize a training and development program for subordinates to improve their skills.
You must coordinate and control work of subordinates effectively. To effectively delegate responsibility and authority in your organization you must Know the capabilities of subordinates and select specific responsibilities to be delegated. You must clearly define the extent and limits of delegation which is necessary that your subordinates accept the power of delegation. Ensure that specific training is available and provide periodic monitoring and interest which should be praised and criticized as per performance. The skills and abilities of each level of authority can be increased by effectively delegating authority throughout any organization.
Operating reports from the organizational is basis of your business. Such reports mirror the organization its structure and function. In order to run the organization smoothly you need to obtain certain report such as Case reports , sales report, Employment monthly report, Inventory stock in and out, Product quality, Weekly overdue accounts etc. Reporting must be kept current to allow for timely identification and correction of problems before serious damage to the organization occurs. To avoid inappropriate reporting review reporting policies annually to ensure that reports are appropriate and contain the information needed to make sound management decisions.