Business Management
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Business Management

The success of a business organization depends on proper management.

The success of a business organization depends on proper management. Management is responsible for properly allocating and using the resources of the organization like manpower, money, machines and materials. The efficient utilization of such resources results to an efficient economic performance of the business organization.

However, let us not measure the efficiency of a business organization in terms of profits only. What is more important is what the business organization has done to its employees, to its customers, and to the community. For it is no longer uncommon for many giant corporations to exploit their workers, and destroy their communities with chemical wastes.

A business organization that takes pride in making hundreds of millions of profits but has neglected the welfare of its workers and the community cannot be considered a successful business organization. Obviously, its only achievement are exploitation and destruction. Karl Marx said : "What the employer has to pay the worker is only enough to keep the worker alive. What he collects from the customer is the true value of the labor put into the article. The capitalist, in the process of accumulating wealth for himself, therefore robs and exploits the worker."

The Jobs of Management

Management, according to Peter Drucker, is primarily an economic organ. In all its decisions and actions, economic performance is the first consideration. Its existence is only justified by the economic results it produces. Even if management has rendered greawt non-economic benefits such as the happiness of the employees of the enterprise, or welfare of the community, stil management has failed if it has not given reasonable satisfaction to the consumers. Likewise, management has failed if it does not improve the productive resources of the enterprise.

Evidently, the role of economics in business management is very vital. Economics provides the tools of business planning and decisions making. For example, complete and accurate economic information is needed to formulate good business plans, and to make wise decisions. Economic analysis is needed in planning and operations of the business organization. Statistics and other quantitative tools are very helpful in making projections, or evaluating cost and revenue. Thus, management can pursue its objectives in the riht directions if it is well equipped with suitable economic tools.

Peter Drucker further stressed that the first job of management is managing a business. The two other jobs are managing managers, and managing worker and work. The three jobs of management are integrated, and are interdependent. Although economic or business performance comes first, the three jobs are equally important. Good business results are not really possible to attain if managers and workers are mismanaged. If one of these jobs of management is excluded or neglected, then there is no management at all.

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