Many people interpret the concept of business management as an activity of buying and selling of goods only and perceive its objective as to increasing profits. Yes the interpretation is appropriate but to some extent, the word business management is not confined to buying, selling and profit making only.
There is another significant meaning to the word business management too. And it has got another important objective too. The word business implies: Any dilemma faced by people in any aspect of life and finding a solution to it is called business or in other words dealing with any issue is a business. And the word management implies using the best way of avoiding, solving and resolving that dilemma in a rational and calculated manner.
Some people wonder, why should someone study Business Management, since illiterate people own good businesses without even having any proper knowledge about it?
I would say that it is very simple to distinguish in between the functions and activities of an illiterate and a literate person. Here we are not merely talking about running a small, limited and inefficient business which is of course possible to be ran by any background of person but here we are rather talking about a well managed, administered, growing organizations, NGOs, Government bodies, companies, firms and industries, which in return generate a lot of employment to both professional and unprofessional people, increase the standard of living, tackle various local, national and international concerns of the people and society as a whole and also generate revenues (huge amount of taxes) to the government.
One will face numerous dilemmas and obstacles while operating in the above mentioned bodies hence solving of the dilemmas becomes a great concern and a serious business to the person in-charge, which really needs to be managed in order to stabilize and harmonize the environment.
The various problems and dilemmas may include: implementation of various developmental projects (communication, transportation, roads and rail networks, hospitals, irrigation system etc), poverty, gender discrimination, corruption, serious and epidemic diseases, illiteracy, unemployment, crimes, political and social unrest, economy slowdown, environmental issues etc.
So finding solutions to the above mentioned problems is not an easy task. And further more this giant system is not possible to be ran perfectly by an illiterate either hence business management becomes a vital element and a serious need of the hour.
Though every field has its own experts to tackle problems related to that field but beyond those expertise and experts there is still the need for a good administrator who can plan, organize, lead, control and implement the decision of the experts. Things go wrong if any entity is headed by an inefficient and indifferent administrator. So an efficient and effective administration does make a big difference and yields the desired outputs.
Even, when we have the objective of maximum profits making in certain circumstances, we do not merely mean to have huge amounts of profits with having less or no concern about the input (resources) at all, but what we mean by the objective of maximum profit is: optimal usage of resources and getting the best output from it (reducing waste as much as possible).
A small and limited business run by an illiterate businessman may make profits and may sustain for a longer period, no doubt at this, but it will never grow and expand its branches to the other parts of the country and international markets which is the ultimate goal of an intellectual businessman.
Someone might question me that there are many illiterate businessmen having worldwide investments and have giant businesses! How do they do it? I would still assert it. Yes they own the giant businesses but the fact still remains the same that they are run by professional and qualified personnel not by the illiterate themselves.
They still need intellectual executives and managers to provide conceptual, human and technical skills. They still need professional finance managers to manage their balance sheets, profit and loss accounts, ratio analysis and Cash flow statements. They still need professional HR managers to help them in their businesses growth by choosing the right, qualified and talented personnel, recruit, remunerate and retain the employees by using various human resources’ professional techniques, a few to mention. Without the help of the professionals the businesses will be extinct.
Further more a professional businessman is not concerned abut the profit only but also is concerned about the society and its people too. The aim isn’t huge amount of profit making only but is rather contributing something useful to the society too.
The various products developed by various talented people around the world that facilitated the life of all millions of human beings are the results of professionalism and education.
For better understanding of what business Administration courses impart to the undergraduates, I have summarized the main and sub-branches of a Business Administration degree bellow:
Management has four wide areas:
- Human Resources:
This field deals with managing of various dilemmas related to human beings. This field includes study of: Psychology, sociology, Human Resources Management, Individual and Society, Organizational Behavior, labor law, industrial law, international law, ethics, soft skills (behavioral and attitudinal), effective communication, case Analysis and etc.
This field deals with managing of various financial and economic transactions. This field includes study of: Microeconomic, Macroeconomic, managerial economic, Accounting, financial Management, Cost accounting, Management Accounting, taxation, capital market, entrepreneur project and etc.
This field deals mainly with the production of various products in a business. With the help of this knowledge managers can decide how to produce the various products required? How to reduce waste while producing? And many more things like that. This field includes the study of various subjects such as Mathematics, Logic, Quantitative method, statistic, Operation management, management information system etc.
This is the field wherein mangers need to find out the right customers for their products as well as forecast the future demand and many more activities that are related to market. This field includes study of: Business research method, Advertisement, sales and promotional management, retail management, strategic management, business law, business ethics etc.