BUSINESS MANAGEMENT

1. Prepared by
BINDU .M.K. ASSISTANT PROFESSOR
INTRODUCTION TO
BUSINESS SYSTEM

2. Business systems are a set of repetitive
processes that aim to achieve a specific
objective. Benefits of business systems
include greater efficiency, productivity,
clarity, consistency

3. Objectives of Business System:
1. To meet the user and customer needs.
2. To cut down the operating costs and
increase savings.
3. To smooth the flow data through various
levels of the organization.
4. To handle data efficiently and provide
timely information to the management.
5. To speed up the execution of results with
the reliable data available in a system.

4. OVER VIEW OF
BUSINESS SYSTEM

5. BUSINESS ENVIRONMENTAL
FACTORS

6. THE COMBINATION OF INTERNAL AND
EXTERNAL FACTORS THAT INFLUENCE A
COMPANY’S OPERATING SITUATION.

7. External Factors.
Every business has a number of
external factors that either directly or
indirectly affect it. These factors can
range from individuals, government
regulations, environmental concerns, to
other organizations and businesses.

8. Internal Environment Factors:
The forces present within a business
organization define its characteristics.
These include the work culture, the
level of machinery used, the
management process, etc.

10. INPUTS ARE ANY RESOURCES USED TO CREATE
GOODS AND SERVICES.
EXAMPLES OF INPUTS INCLUDE LABOR
(WORKERS’ TIME), FUEL, MATERIALS, BUILDINGS,
AND EQUIPMENT. LABOR INPUT IS THE TIME
PEOPLE SPEND WORKING TO PRODUCE GOODS
AND SERVICES.

11. TRANSFORMATIONAL PROCESS
AND OUTPUT

12. THE TRANSFORMATION PROCESS
IN OPERATIONS MANAGEMENT IS
ALL ABOUT CONVERTING INPUTS
INTO OUTPUTS.

13. OBJECTIVES OF BUSINESS
SYSTEM

14. 1. To meet the user and customer needs.
2. To cut down the operating costs and
increase savings.
3. To smooth the flow data through various
levels of the organization.
4. To speed up the execution of results with the
reliable data available in a system.
5. To provide timely information to the
management

15. SYSTEM MODEL OF
BUSINESS MANAGEMENT

16. THE SYSTEM INCLUDES GUIDELINES
AND PROCESSES FOR DEVELOPING
BUSINESS MANAGEMENT PLANS.

17. Business Management System is a
multilevel hierarchy of business solutions
that represent how a profit-oriented
organization will carry out different
functions (like Sales, Purchasing,
Marketing, Staffing) to accomplish a task
and achieve a goal successfully

19. MANAGEMENT

20. MANAGEMENT IS THE
PROCESS OF GETTING
THINGS DONE THROUGH
OTHER PEOPLE

21. WHAT IS THE SYSTEM MODEL?
IN THE SYSTEM MODEL, THE
ORGANIZATION LOOKS AT THE
OVERALL STRUCTURE AND TEAM
ENVIRONMENT, AND CONSIDERS
THAT INDIVIDUALS HAVE DIFFERENT
GOALS, TALENTS AND POTENTIAL.

22. THE “SYSTEM”
THE WORD “SYSTEM” COMES FROM
THIS VIEW THAT THE MANAGER IS
RESPONSIBLE TO HOLD TOGETHER
THE TEAM –
JUST LIKE ONE SYSTEM – CONNECTED
WITH EACH OTHER THROUGH THE
FEELINGS OF MUTUAL RESPECT AND
FROM BEING AN INTEGRATED
OVERALL PROCESS.

23. BUSINESS
MANAGEMENT

24. Business management is how a
business manages itself and its
operations to achieve its goals.
For example, business management
includes the management of inventory,
production of goods, planning business
activities, managing human resources, and
so on.

25. FUNCTION OF MANAGEMENT

26. Henry Fayol, the father of principles
of management, has classified
managerial functions as follows:
(a) Planning, (b) Organizing, (c)
staffing, (d) Directing, and (e)
Controlling.

28. Planning
involves tasks that must be performed to
attain organizational goals, outlining how the tasks
must be performed, and indicating when they
should be performed.

29. Determining organizational goals and
means to reach them
Managers plan for three reasons
1. Establish an overall direction for the
organization’s future
2. Identify and commit resources to achieving
goals
3. Decide which tasks must be done to reach
those goals

30. Organizing means assigning the planned tasks to
various individuals or groups within the
organization and cresting a mechanism to put plans
into action.
Process of deciding where decisions will be made,
who
will perform what jobs and tasks, and who will report
to whom in the company
Includes creating departments and job descriptions

31. Directing: It is considered life-spark of the enterprise which
sets it in motion the action of people
because planning, organizing and staffing are the mere
preparations for doing the work. Direction is that
inert-personnel aspect of management which deals directly
with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of
organizational goals.
Supervision overseeing the work of
subordinates by their superiors. It is the act of watching &
directing work & workers.

32. Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in size
of business, complexity of human behavior etc. The main
purpose of staffing is to put right man on right job i.e.
square pegs in square holes and round pegs in round
holes.
Staffing involves:
Manpower Planning (estimating man power in terms of
searching, choose the person and giving
the right place).
Recruitment, selection & placement. Training &
development. Remuneration. Performance
appraisal. Promotions & transfer.

33. Controlling is the measurement & correction of
performance activities of subordinates in
order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished‖.
Therefore controlling has following steps:
(i)Establishment of standard performance. Measurement
of actual performance.
(ii) Comparison of actual performance with the standards
and finding out deviation if any.
Corrective action.