Blog

Discover the 9 Different Types of Management in Business

Business management (BM) is the act of controlling the goings-on of a business to meet its objectives using the available resources.

BM focuses on different company components, such as finance, operations, customers, marketing, IT strategies, etc.

Different types of business management techniques focus on the various aspects of an organization.

All businesses run well if the resources that matter are available within the organization or have been outsourced to help meet a specific objective.

Business management resources include:

• Financial resource – This is funding obtained from lenders, individual accounts, and credits from people and institutions involved in running a business.
• Human resource – This is the labor force in an organization. It involves the hiring of skilled, semi-skilled, and professionals to achieve a business’s goals.
• Physical resource – This has to do with the space you need and other useful equipment like machines, vehicles, and tools.

That being said, let’s focus on the critical role of business management.

Functions of business management

Business management plays a great role in the success of small and large businesses; for instance: it ensures an organization’s goals and objectives come to pass.

These procedures also promote the maximum utilization of the resources in an organization to drive profitability.

Business management brings market balance by ensuring the demand and supply of goods and services are equal hence stable prices.

It also drives prosperity to a community by improving living standards through employment in various sectors of the firm.

Proper management enables leaders to plan, direct, and control all the business activities within a company.

Leaders can use different types of business management techniques to run a firm or company to meet various goals.

 The Different Types of Business Management

Below are the various types of management used in businesses to help generate profit and drive growth within an organization.

1.  Strategic

This involves the formulation and implementation of major organization goals and the various initiatives implemented by managers.

Strategic management dictates the overall direction in which a firm operates by outlining the set objectives, identifying the necessary resources, and planning accordingly.

This kind of preparation ensures projects are executed rationally and formulates better plans for future tasks.

Strategic management enables a company to maintain market supremacy by gaining a competitive advantage over other firms.

It also gives room for the company to survive any internal or external changes in the business environment, such as a change in consumer taste and change in policies.

These business management techniques focus on achieving the organization’s mission, vision, and objectives while assessing the business environment.

Strategic planning is the basis of the key decisions concerning a business. This approach allows a business enterprise to be proactive through market analysis.

2.  Operational

This type of management deals with the control and manufacturing processes ensuring continuous service delivery.

Operational management cuts across every sector in the industries, which makes it essential for businesses’ proper running.

It ensures the processing of raw materials into finished products using the available resources.

Operational management can take many forms, such as:

• Batch production – involves the production of similar products in stages, such as making bread in a bakery.
• Job production – In this type of production, products are made individually, and one has to finish before the next begins, for example, making designer dresses.
• Flow production – Production of identical standard items, such as the making of cars, involves a series of steps, e.g., wheel fitting.

Different companies use the above techniques to complete various tasks.

3.  Risk Management

Risk management focuses on identifying the possible risks that are likely to slow down an organization and develop the appropriate corrective measures.

The best way to deal with risks in a firm is to develop a strategic plan to handle risks before they occur. Some examples of risks in a company include unexpected fire outbreaks, robbery, and floods.

When risks occur, they pose great dangers to the business, such as immediate closure due to massive losses and deaths.

The process plays a major role in ensuring proper planning for the would-be dangers in the workplace.

4.  Sales

Sales management dwells in profit generation. It deals with the selling of goods and services.

By so doing, it focuses on customer or client relations, attendance, and sale schedules within an organization.

This type of management ensures a firm achieves the set objectives through mixed approaches, such as hiring and training new salespersons and motivating employees to increase productiveness.

They also aim at business success by planning, setting goals, and analyzing past data to make the firm better.

This type of management will also ensure the sales department works together with other departments to grow the client base.

5.  Marketing management

These types of business management techniques focus on planning, organizing, and incorporating marketing ideas like product promotion via advertisements and campaigns.

It focuses on how to meet the customer demand for the goods and services and generate profit for the firm.

Marketing managers find a market, explore and maintain it by ensuring new and old customer needs are catered for.

It is through marketing management that the business comes with healthy ways to fight increased market competition.

This can be achieved by improving the various distribution methods at a reduced cost or creating strategic product advertisements.

6.  Human Resource Management (HRM)

HRM’s major role is to search, assess, hire, and manage the firm’s workers.

Human resource management also plays a major role in interviewing, recruiting, and placement. The managers ensure employees enjoy the various benefits and enjoy a conducive working environment.

They also handle payroll, training, and streamline relationship issues to ensure teamwork, hence the firm’s thriving.

7.  Quality

Quality management looks deeply into matters that must be accomplished by an organization to ensure the best performance.

This type of management maintains a firm’s excellence via quality control, adherence to policy, and quality planning.

To ensure maximum production, quality management provides efficient equipment, resources, and technology to enhance work.

Project management software or online management tools can help ease the running of programs in firms and ensure quality.

This planning tool aids in ensuring efficient communication between workers and managers.

This type of management is very important because what customers pay for is dictated by the quality of goods or services.

Quality management, therefore, ensures the new and existing customers are catered for through consistency in supply.

Remember, policies exist to protect consumer rights. A client can easily file a report or petition to question the quality of your goods.

Quality control managers can get the best from their employees by encouraging teamwork and mitigating risks.

8.  Procurement management

These types of business management techniques ensure that everything needed from outside the organization is available before a project can proceed. It involves identifying and planning what products you’ll need to source from elsewhere

Procurement management controls internal transactions for the goods and services ordered or received. This team also reaches out to potential suppliers who can provide the resources that matter to your organization.

This team also creates and manages the relationship with the contacted sellers. This should involve continuous communications before and after supply.

9.  Finance management

Finance management takes charge of all the funds in an organization emphasizing profitability, cash, credit, and other expenses.

These procedures help an organization run its activities or operations effectively.

Financial management focuses on the company’s short term projects and manages the business’ assets and liabilities.

It also focuses on the day-to-day management of the available funds and maintaining a firm’s cash flow.

This type of management deals with the payment of daily expenses and bills like electricity, water, wages, and rent.

Finance management also drafts the budget and comes up with an estimate of funds required for a short term project.

This team determines the organization’s capital structure, which shows how all the operations are funded. 

Conclusion

The success of a firm often relies on the smooth running of the different types of business management.

Therefore, the departments should work closely by seeking relevant information from various consultants to perfect their job.

Ensuring teamwork and hiring self-driven staff who can work without work to give the best without supervision is an added advantage.

The various types of management are essential for small and large businesses as each works to ensure a successful business process.

They also ensure proper planning, project execution, and better resource distribution for quality results.