11th November 2021
Effective business management encompasses every aspect of your business, from conflict and change management to performance management and careful planning. Those companies and corporations that practice good business management understand that changes in individuals, managers and the work environment often evolve and that even the smallest things can have an impact to the success and profitability of the company. The difference between those with successful, profitable businesses and those who falter is being able to adapt to and manage these changes.
Today, good business management requires that executives and leaders understand the process of change and how it affects the workplace. It is essential that those in authority realize the importance of leadership in managing change, as well as how employees react to change. Business management is only effective when great leaders are able to communicate messages that decrease employee’s resistance to change, and assist in encouraging individuals to move through change in a positive manner, so that problems can be avoided.
In this video interview, Dr. Sanjay Jha, CEO of Motorola speaks about how he managed his largest challenge about taking $1.5 billion of cost out of the business while the company was making the transition from a voice centric company to smart phone company.
Dealing with conflict is another aspect of good business management that must be addressed. There are many types of conflict that may occur in the workplace; in business management, managers and leaders realize that conflict can arise in many areas, from difficult employees to hostile customers or resentment issues. Those in positions of authority understand when it’s in the best interest of the company to cooperate, how to communicate effectively, and how to manage conflict. They also know what steps to take to prevent conflict altogether in many cases.
Ineffective business management, resolving conflict takes skill and negotiating skills as well. Effective leaders know how to use positive language to change other peoples impressions, how to listen, and how to differentiate between good conflict and bad.
Performance is another area that falls under exceptional business management. Performance management covers several areas, from employee discipline and job evaluation to appraisal or review of job performance in regards to salary increases. Managers must be able to determine the cause of problems in performance, which can be difficult to diagnose.
Strategic business planning, leadership and customer service are also essentials of managing any business effectively. In order to stay competitive and profitable in today’s business world, it is necessary to know what direction the company wants to go, and how to reach that goal even amidst a constant change in the business environment. Continuity planning is another area that should be addressed in business management; it would be catastrophic for a natural disaster or other disruption to destroy a business that has been nurtured to a successful and profitable level.
This is just the tip of the iceberg regarding business management. Today, thriving, successful companies and corporations realize that the key to remaining profitable and competitive in the marketplace often boils down to effective business management in every aspect. Superior leaders, excellent communication, and the ability to adapt to change are all essential in good business management.