Effective Management Definition: Manage a business effectively, manage employees effectively, is the key to establishing and growing the business. The key to successful management is to examine the market environment and create employment and profit opportunities that provide potential growth and financial viability of the business. Despite the importance of management, this field is often misunderstood and poorly implemented, mainly because people focus on the output rather than the management process.
Toward the end of the 1980s, business managers became absorbed in improving product quality, sometimes ignoring their role vis-a-vis personnel. The focus was on reducing costs and increasing output while ignoring the long-term benefits of motivating personnel. This shortsighted view tended to increase profits in the short term but created a dysfunctional long-term business environment.
Along with this increased concern about quality, entrepreneurship attracted business attention. A sudden wave of successful entrepreneurs previously seemed to obsolete management concepts. The popular press focused on new cult heroes Steve Jobs and Steve Wozniak (creators and developers of Apple Computer) while ignoring the marketing and organizing of the talents of Mike Markula, responsible for Apple’s business plan.
The story of two people who previously sold their Volkswagen bus to build Apple Computer was more romantic than organizational. The talent that enabled Apple to develop, market, and ship its products while rapidly becoming a major corporation. In large businesses, effectively manage business skills require planning. Planning is essential for developing a firm’s potential. However, many small businesses do not recognize the need for long-range plans.
Because the small number of people involved in operating the business implies equal responsibility in the planning and decision-making processes. Nevertheless, the need for planning is as important in a small business as it is in a large one. This guide focuses on the importance of good management practices. Specifically, it addresses the responsibilities of managing the external and internal environments.
Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»