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Home Companies Key Management Concepts Used by Business Administration Professionals

Key Management Concepts Used by Business Administration Professionals

by gbaf mag

Management concepts is basically an assessment of the inter-related set of organizational skills, systems, processes and practices which are required to give control, direction, management, and guide the accomplishment of organizational objectives. It directs them towards their actual realization and sets up the correct vision of the activities of an organization. There are various concepts and fields of study, like Concepts in Management, Organizational Theory and Concepts in Business. The advantage of this system is that it renders itself as a dynamic entity, taking into account changing needs and situations as they arise and form the basis of its analysis. This helps the business managers to adapt to prevailing conditions.

The management concepts are based on the business environment. The five basic functions are called strategic perspectives. Strategic perspectives refer to the overall approach to the business, the way it is organized, the human resources functioning and the relationships among all these. Strategic perspectives also include the business development strategies, the internal policies and procedures, the allocation of resources, the creation of business opportunities, the utilization of these opportunities and the final results.

The elements of strategic management involve financial, marketing, production, technological, managerial, accounting and other relevant business aspects. It is very important for a manager to lay down the strategic business plan before plunging into any business activity. Financial aspect of a business plan includes the financial position and the resource requirement. The production aspect of a business plan refers to the total production capacity, the scope of production, the future production and the working capital requirements.

The managers have to take care that the key performance indicators reflect the key priorities of the organization. It is essential for them to set standards that are fair to all the employees, customers, suppliers, and business partners. In strategic management, the public administration plays a major role in ensuring that the business objectives are attained. There are some principles of strategic management that are applicable to all kinds of business activities.

The first principle is that managers should not take decisions rashly or in a haphazard manner. They have to take the steps slowly so that the implementation process will be smooth and less affected by various external factors. For example, sudden decisions by chief executive officers can often cause chaos in the company and provide direction to the company in the wrong way. The second principle is that the managers should provide genuine care and attention to the projects undertaken by the employees and the projects managed by the professionals.

The third principle is that the top management should select the employees best suited for carrying out their responsibilities. The selection process should be based on aptitude and ability, as well as performance. The fourth principle is that the middle management should communicate effectively with the lower-level managers, so that there is a smooth flow of information. Communication is very important between the top management and the middle management. Fifthly, the top management should involve the lower-level managers more actively in planning, since they too play a vital role in the success of the organization.

Some other management concepts are used in the business administration context. One such concept is the value engineering. The value engineering concept states that a firm must maximize the returns from its resources. The management should therefore look into every aspect of production and try to derive the maximum possible value from these resources. Another important management concept is that managers have to be sensitive to the needs and aspirations of workers and other stakeholder groups.

Additional management concepts used in the context of business operations include the balanced scorecard concept, wherein the prime responsibility of the top-level managers is to ensure that the financial matters of the company are in good hands. It also demands that managers give due weight to the results of strategic initiatives. Finally, there is the customer appreciation concept, which states that the company should concentrate on building long-term relationships with its customers. These concepts are important elements of strategic management.