In this article, you will get detail information about business management. Detail of management policies and its elements. Requirement of business management points.

1. Business Management - PODSCORBS
Introduction
Business is the activity of making money by
providing or buying and selling products, such as goods and
services. in simple term business means "any activity or
enterprises entered into for profit." A business is an organization
where people work together. In a business, people work to make
and sell products and services. The business is the person who
hires people for work. A business can earn a profit for the
products and services it offers. The word business comes from
the word busy, and means doing things. It works on regular
basis.
Business owned by multiple individuals may form
an incorporated company or jointly organized as a partnership.
Countries have different laws that may ascribe different right to
various business entities. Business can privately own, not for
profit or state owned. Business an economic activity with the
object of earning an income i.e. profit and thereby accumulate
wealth. The economic activity must be regular and continuous.

2. Definition
According to well known professors William - Pride,
Robert Hughes, and Jack Kapoor, business is the organized effort
of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs. A business then, is an
organization which seeks to make a profit through individuals
working towards common goals. The goals of the business will
vary based on the type of business and the business strategy
being used. Regardless of the preferred strategy, business must
provide a service, product or goods that meets a need of society
in some way.

3. Types Of Business
Business organization is the single most
important choice we will make regarding our company. What form
our business adopts will affect a multitude of factors, many of
which will decide our company's future. There are major 4 types
of an business will be formed, and they are explained below-

4. 1) Sole Proprietorship Business
The simplest and most common form of business
ownership, sole proprietorship is a business owned and run by
someone for their own benefit. The business existence is entirely
dependent on the owner's decisions, so when the owner dies, so
does the business. To start the sole proprietorship, there will be
very few documentations are required. Owner have total flexibility
when running the business.
2) Partnership Business
The partnership business is come in two types :
General And Limited.
In General partnership, both owners invest their
money, property, labor etc. to the business and are both 100%
liable for business debts. General Partnerships do not require a
formal agreement. Partnerships can be verbal or even implied
between the two business owners.
In Limited Partnership business required a formal
agreement between the partners. They must also file a certificate

5. of partnership with the state. Limited Partnership allow partners
to limit their own liability for business debts according to their
portion of ownership or investment.
3) Corporation Business
A corporation business is a legal entity that is
separate and distinct form its owners. Under the law, corporations
possess many of the same rights and responsibilities an
individuals. They can enter contracts, loan and borrow money,
sue and be used, hire employees, own assets, and pay taxes. An
important element of a corporation is limited liability, which
means that its shareholders are not personally responsible for the
company's debts. In short, corporation, specific legal form of
organization of persons and materials resources, chartered by the
state, for the purpose of conducting business.
4) Limited Liability Company (Business) (LLC)
An Limited Liability Company is a business
entity with all the protection of a corporation plus the ability to
pass through any business profits and losses to our personal
income tax return. An LLC is a hybrid type of business structure

6. where the owners of the LLC are called "members" and all enjoy
the advantages that an LLC has to offer. LLC members can be
individual business owner, several partners, or other business.
Business management definition is
managing the coordination and organization
of business activities. this typically include
the production of materials, money and
machines, and involves both innovation and
marketing. Management is in charge of
planning, organizing, directing and
controlling the business's resources so they
can meet the objectives of the policy.
Business management involves the supervision
organization and coordination of business resources and
operations to achieve specific objectives. A business manager has
a wide range of responsibilities and daily duties that need to be
performed to ensure the overall health of the business and its
projects, cash flow and team members. In this, we explore the

7. introduction to business management in full. Elements of
business managements are as follows.
(A) Planning
Planning is the most basic of all managerial
functions which involves establishing goals, setting out objectives
and defining the methods by which theses goals and objectives
are to be attained. It is therefore, a rational approach to
achieving pre-selected objectives. Planning involves selecting
goals and objectives and the actions to achieve them. An

8. important aspects of planning is decision making - that is
choosing the right alternatives for the future course of action.
(B) Organizing
Organizing can be defined as a process that initiates
implementation of plans by clarifying jobs, working relationships
and effectively deploying resources for attainment of identified
and desired results. It is a process which coordinates human
efforts, assembles resources and integrates both into a unified

9. whole to be utilized for achieving specified objectives. Organizing
the managerial function and this function of organizing is known
as process organization.
By Koontz O' Donnel, " Organizing involves the
establishment of an international structure of roles through
determination and enumeration of the activities required to
achieve the goals of an enterprise and each part of it; the
grouping of these activities, the assignment of such groups of
activities to the manager, the delegation of authority to carry
them out and provision for co-ordination of authority and
informational relationship, horizontally and vertically, in the
organization structure."
Once the general and specific objectives
determined and to achieve them a plan is prescribed, the next
step is to organize the activities of the enterprise with a view to
work the plan and to fulfill the organization objectives. A manager
with required qualification, intelligence and capability is given
authority and made incharge of each department; so an enable
him to work his subordinates to reach the organizational
objectives. Proper organization will assist the most effective use
of all the resources of the business.

10. (C) Directing
Directing refers to a process of instructing,
guiding, inspiring, counselling, overseeing and leading people
towards the accomplishment of organizational goals. It is a
continuous managerial process that goes on throughout the life of
of the organization. Directing is the heart of management
functions. All other functions of management such as planning,
organizing, and staffing have no importance without directing.

11. Leadership, motivation, supervision, communication are various
aspects of directing.
Directing is a key managerial function to be performed
by the manager along with planning, organizing, staffing and
controlling. From top executive to supervisor performs functions
of directing and it takes place accordingly wherever
superior-subordinates relations exist. Directing is very difficult
task of management compared to all other managerial functions,
because it is concerned with the human aspect of management.
When all other preparations have been completed, the
management has to begin the working of the concern. Directing
helps to create team work the members of the organization. It
makes planning, organizing and staffing meaningful. Directing
provides the connecting link between these functions and
controlling. It is a vital phase in the ongoing process of
management. Thus directing is a complex and practice based
function. It can be perfected only through long experience.
D) Staffing

12. In management, staffing is an operation of
recruiting the employees by evaluating their skills and knowledge.
A staffing model is a data set that measures work activities, how
many labor hours are needed, and how employee time is spent.
Staffing refers to the managerial function of determining and
meeting the manpower requirements of an organization and of
providing opportunities for the continuous development of its
manpower talent. It is a key managerial function which gives life
and meaning to other managerial functions. It consists a number
of sub-functions. Such as man-power planning, recruitment,
selection, placement, training, promotion, remuneration,
performance appraisal, etc. These sub functions are interlinked

13. and serve as some of the determinants of organizational
effectiveness.
The main purpose of staffing is to establish and
maintain sound personal relations at all levels in the organization
so as to make effective use of personnel to attain the
organizational objectives and care for their personal and social
satisfaction which they always want. Staffing concentrates on
both present and future organizational needs and tries to
determine the number and kinds of managers needed. For this
purpose the organization makes use of external and internal
factors for performing various functions of staffing rights from
recruitment to retirement. Staffing gives life to the organization
and influences leading and controlling.
E) Co-Ordination

14. Co-ordination is the unification, integration,
synchronization of the efforts of group members so as to provide
unity of action in the pursuit of common goals. It is a hidden
force which binds all the other functions of management. A
modern enterprise consists of a number of departments. In olden
days, the enterprise was divided into departments such as -
purchase, production, sales, finance, and accounts. But, now a
days, the enterprise is divided into the following departments -
Purchase, production, sales, finance, accounts, personnel,
research and development, public relations, stores & dispatch,
logistics and the like. The classification of departments is very
large at present. So the importance of co-ordination has
subsequently increased.

15. According to the George Terry, "Co-ordination
deals with the task of blending efforts in order to ensure
successful attainment of an objective. It is accomplished by
means of planning, organizing, actuating and controlling."
The aim of co-ordination is to achieve better
results and this may be done in different ways. Different
managerial functions are also used to attain organizational goals.
Coordination avoid duplication of work and efforts, interpersonal
conflicts, controversies, misunderstandings, delay, wastages and
confusions. It harmonizes, unifies and blends all activities and
thus, ensures that achievement of predetermined objectives.
Although for the success of any organization co-ordination must
exist between different departments, groups and activities.
F) Communication

16. Communication is a process of creating and
sharing ideas, information, views, facts, feelings from one place,
person or group to another. Communication is the key to the
directing function of management. Communication is fundamental
to the existence and survival of humans as well as to an
organization. A manager may be highly qualified and skilled but if
he does not possess good communication skills, all his ability
becomes becomes irrelevant. A manager must communicate his
directions effectively to the subordinates to get the work done
from them properly.

17. Communication is a continuous process that mainly
involves three elements i.e. Sender, Message and Receiver. There
are mainly 3-types of communications :-
1) Formal Communication - Formal communications
are the one that flows through the official channels designed in
the organizational chart. It may take place between a superior
and a subordinate, a subordinate and a superior or among the
same cadre employees or managers. These communication can
be oral or in writing and are generally recorded and filed in the
office.
2) Informal Communication - Any communication that
takes place without following the formal channels of
communication is said to be informal communication. Informal
communication spreads rapidly, often gets distorted and it is very
difficult to delete the the source of such communication. It also
leads to rumours which are not true. People's behaviour is often
affected by rumours and informal discussion which sometimes
may hamper the work environment.
3) Unofficial Communication - Unofficial Communication
refers to employee communication outside of the work place on

18. matters unrelated to work. Friendly meetings, dinner outings, and
social gatherings among employees are examples of unofficial
communication channels.
G) Budgeting
Budgeting is creating a plan to
spend our money. Good budgeting is spending less
than we are earning as we plan for our financial
goals. Budgeting is the fundamental step in

19. achieving financial literacy and by extension,
reaching financial security and freedom. A budget
is defined as the formal expression of plans, goals,
and objectives of management that cover all
aspects of operations for a designated time period.
The budget is a tool providing targets and
directions. Budget provide control over the
immediate environment, help to master the
financial aspects of the job and department, and
solve problems before they occur. Budgets focus on
the importance of evaluating alternative actions
before discussions actually are implemented.
A budget is a financial plan to control future
operations and results. It is expressed in numbers, such as
rupees, dollars, units, ponds, hours, manpower, and so on.
Budgeting allocates funds to achieve desired outcomes. A budget
may span any period of time. It may be short term (one year or
less), intermediate term (2 to 3 years) or long term ( 3 or more).
Short term budgets provide greater details & specific.

20. Intermediate budgets examine the projects the company
currently is undertaking and start the programs necessary to
achieve long objectives. Long term budget plans are very broad
and may be translated into short term plans. The budget period
varies according to their objectives.
I) Reporting

21. The reporting to management is a process of
providing information to various levels of management so as to
enable in judging the effectiveness of their responsibility centers
and become a base for taking corrective measures if necessary.
Reporting to management can be defined as organized method of
providing each manager with all the data and only those data
which he needs for his decisions, when he needs them and in a
form which helps his undertaking and stimulates his action.
Methods of reporting can be presented in 3-forms,
that are -
1) Written Reporting - These are formally presented in
writing. This is the most common mode of reporting. It may be in
form of letter, circular or manuals. It facilitates for easy reference
and act as an evidence for managerial decisions. e.g. balance
sheet, sales report, performance appraisal reports, purchase
orders, budgetary reports, cash flow statements.
2) Oral Reporting - This type of reporting generally
presented in a discussion form. Such presentation of information
is more informative and can clarify many aspects through the

22. person who is presenting the report. e.g. group discussion,
conference calls, interviews.
3) Graphic Reporting - The reports may be presented in
the form of charts, diagrams and pictures. These reports have the
advantages of quick grasp of trends of information presented. A
look at the chart may enable the reader to have an idea about the
information. In the modern times graphs and charts are becoming
more popular mode of presenting any kind of information. This is
the most effective medium of reporting removes dullness and
confusions which we usually find in other forms of reporting. e.g.
bar charts, pie charts, break-even points, flow charts, progress
charts, control charts.
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Conclusion
Business is the activity of making money by
providing or buying and selling products, such as goods and

23. services. A business is an organization where people work
together to achieve a organizations specific goals. Business
management definition is managing the coordination and
organization of business activities. This typically include the
production of materials, money & machines and involves both
innovation and marketing.
Business management involves the supervision
organization and coordination of business resources and
operations to achieve specific objectives. The main elements of
business management activities are: - Planning, Organizing,
Directing, Staffing, Co-Ordination, Communication, Budgeting &
Reporting.