Good business management is the key to success of any business house. It is a creative force which helps in the optimum utilisation of resources of an organisation. The process of managing a business comprises several intertwined elements by which the goals and objectives of the organisation are achieved. These elements or functions include, promoting and marketing the product produced by the firm; making the product available to prospective consumers through proper distribution channels; managing the accounts and finances of the firm; protecting its intellectual property, etc. It also involves creating harmony among the working of various departments and divisions of the firm. Managing human resources and managing relationship with the customer's are the most important elements in the whole process of business management.
An entrepreneur with good managerial skills can convert the disorganised resources of men, money, material and machinery into a productive business enterprise. In a modern business, different types of skills are required in order to effectively manage an organisation in a dynamic environment. These skills include:-
- Technical skills:- refer to the ability and knowledge in using equipment, techniques and procedures involved in performing specific tasks. An entrepreneur must know the skills which should be employed in his enterprise and must understand both the role of each skill employed and the inter-relationship between skills.
- Human skills:- consist of the ability to work effectively with other people both as individuals and as members of a group. Such skills are required by an entrepreneur in order to win co-operation of others and to build a base for a successful work team.
- Conceptual skills:- comprise the ability to see the whole organisation and the inter-relations between its parts. Such skills help the entrepreneur to conceptualise the environment and to take a broad and farsighted view of the organisation. These skills include the competence to understand a problem facing the organisation in all its aspects and solving the problem. It is necessary for rational decision making
Managing is a dynamic and an on-going process which continues to operate so long as there is an organised action for the achievement of group goals.