THE 5 MOST OUTSTANDING ELEMENTS OF BUSINESS MANAGEMENT - CULTURE VOCABULARY - 2024

The basic elements of business management are planning, organization, human resource management, employee management, and control.

These five elements are considered the traditional five points of the formal study of business management.

However, some consider other components of leadership to be equally important, such as the ability to motivate employees.

Nonetheless, it can be said that the five basic elements comprise most of the tasks required for effective business management.

The success of a company is not based only on the investment of money, the purchase of facilities, or having a good product, but requires daily effort on the part of those in charge of the business functions.

The 5 basic elements of business management

1- Planning

As in many practical fields, from computer programming to engineering, the first step is planning. This is the most important step.

You need to know the direction of the company, determine how many resources are needed and how to obtain them, and what realistic chances the business has of being a profitable success.

Before taking any action, the course of actions must be planned as precisely as possible.

2- The organization

The organization is aimed at combining the components of a business in a harmonious way.

Companies have various components, such as the people who work on the premises, the machinery that is used to do the jobs, the computer systems, and external relations, among others.

Organization is necessary for all these elements to work together.

3- Human resource management

Many experts say that human resources are the most important element of any business.

A business manager must decide how many people to employ, what kind of employees to seek, and how much to pay them.

After the right employees have been found and selected, it is necessary to train, qualify and develop human resources continuously during their time with the company.

4- Leadership

Business management involves the day-to-day management of employees. It is necessary to guide the activities of the workers and ensure that they are directed towards the benefit of the company.

For this, it is necessary to have an adequate leadership style, treating employees well and knowing how to change the style depending on the circumstances.

Management can be carried out through communication, valuing employee performance and, on occasions, correcting inappropriate behavior.

The goals of the company can only be achieved together and with a good leader.

5- Control

No matter how effective day-to-day management is, there can always be situations that need to be resolved.

Through the control it is possible to determine the adherence of the processes to the original determined plan of the company, and the measures that are taken when any component of the system goes outside of those norms.

6- Strategy

The business strategy is decided by management and is key to the success of the company. A good strategy will lead to better long-term results and increase the company's chances of survival.

References

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3. CRM Learning. (October 15, 2015). 5 Key Elements of Successful Management. Recovered from crmlearning.com
4. Business Management Ideas. (2017). Top 5 Elements of Management Process. Recovered from businessmanagementideas.com
5. Graziano, M. (October 24, 2011). The 5 Elements of Performance Management Success. Recovered from keenalignment.com