What is business?

INTRODUCTION:-

 

 

In present-day society, human needs are largely satisfied through the economic activities of the organized group and associations. Because of biological and other limitations, no individual or group can be self-sufficient and yet attain a high level of prosperity, so several types of formal groups achieve their goals effectively. Just as in mind, management coordinates and regulates the activities of various members of an organization.

 

 

Important definition

the modern approach: management may be defined as creating the internal environment of an enterprise where individuals working together in a group can perform efficiently and effectively towards attaining group goals.

Traditional approach: definition is given by C. S. George. "Management consists of getting things done through others; a manager accomplishes objective by directing the effort of others."

 

 

concept of management: A business enterprise uses several inputs and resources to produce and sell goods and services known as 'five Ms of management.' These are explained below:

1. Money:- A business enterprises need money to acquire or hire other resources in the form of fixed and working capital. It sustains not only business but the non-business organization too.

2. Manpower:- It refers to the managerial and non-managerial personnel employed in the organization. Human resources mobilize, allocate, and utilities the physical and financial resources of the organization.

3. Material:- it represents the physical raw material and intermediate product which are converted or assembled into finished product with the help of certain processes and technology.  The quality and cost of the finished goods entirely depend upon the quality and cost of raw material consumed.

4. Machinery:- These are the equipment aise to process the material into finished and semi-finished products. Modern machinery becomes an important ingredient in the efficient management of the organization to reduce the cost and improve the quality of output. 

 

 

5. Methods:- It refers to the normal and prescribed ways of doing various operations. The use of the right method helps to increase the efficiency of operation and contributes to effective management.

    The effective use of various factors depends upon the skill and nature of the management.

Objectives of management

i. Achieving maximum results with minimum effort.

ii. Attaining growth and expansion of the enterprise.

iii. Maximum prosperity for employers and employees.

iv. Improving the goodwill of the enterprise.

 

 

v. Human welfare and social justice.

vi. Honest and prompt payment of taxes to the government.

Impotence of management

(A) Importance of management can be judged more clearly from the following benefits:

a. Management help in achieving the group goals.

b. It helps in optimum utilization of resources.

c. It minimizes cost.

d. Establishes a sound organization structure.

e. Maintain equilibrium.

f. Generation of employment.

g. Essential for the prosperity and development of society and nation as a whole.

 

 

Importance of management in the modern era 

Management importance in the midden era is increase due to the under specified reasons:

1. Growing size and complexity of the business.

2. Increasing healthy competition in the market.

3. Growing specialization of work due to new techniques.

4. Development of trade union.

5. Increasing government interference in business.

6. Scarcity of resources like power and materials.

7. Increasing social responsibility of business toward society as a whole.

 

 

 Decisional activities

      A manager being both an Administrative and Executive head, has to take any important decisions like initiating new projects, allocating resources, and bargaining with outsiders.

For example. The factory manager decides the quality and quantity of products to be manufactured, which serves as the basis for his subordinates.

 

 

I hope you understand.

Thanks for reading my article; thank you.

Thank you once again