22 Branches Of Business Management
Although some people may think of business management as a single industry or profession, it is actually a diverse field that encompasses many areas. Whether you want to start a career in business management, start your own business, or earn an advanced degree or certification, this guide should help you distinguish between the many branches of this large industry and understand the role each plays. organisation. .
There are about twenty branches of business administration. Here is an overview of 22 industries in this broad field.
1. Financial management
Financial management deals with finding a healthy balance between profit and risk so that in the event of a setback, the business is profitable in the long run. This type of business management involves planning, directing, and coordinating the accounting, investment, banking, insurance, securities, and other financial activities of a company.
The three main elements of financial management are financial planning, financial control and financial decision making. Short-term financial management is often called "working capital management" and refers to cash management, inventory management and accounts receivable management. Decision making and financial evaluation techniques belong to this type of business management.
2. Commercial management
Marketing management focuses on the practical application of marketing techniques and the management of a company's assets and marketing activities. The four main areas of marketing management are business analysis, personnel analysis, competitor analysis, and customer analysis. Marketing management also includes brand management as well as marketing and pricing strategy.
To maximize your return on investment, it is important to develop branding opportunities and implement marketing tactics based on a thorough analysis of all aspects of your business. The scope of a company's marketing management depends on the size of the company and the industry. Effective marketing management uses company resources to grow customers, improve customer prospects and feedback, and increase the perceived value of the company.
3. Sales management
Sales management involves supervising and leading sales teams. As a Sales Executive, you lead salespeople to build strong relationships with leads, convert them into leads, and move them through the sales pipeline. The sales department often works hand in hand with the marketing department.
4. Human Resources Management
Human Resource Management (HRM) focuses on hiring and managing an organization's employees. This includes compensation, recruitment, safety and well-being, benefits and other aspects of employee management.
A common misconception about human resource management is that it is the responsibility of human resource management or the individual alone. In fact, all department heads must understand that effective human resource management enables employees to contribute effectively and efficiently to the overall direction and objectives of the business. In the past, human resource management focused more on managing people, but the modern approach to human resource management uses employee software to positively influence both employees and the business as a whole.
did you know HR software can help you manage all your HR needs so you can focus on growing your business.
5. Strategic management
Strategic management is the application of strategic thinking to the management of an organization. Most other branches of business administration revolve around strategic management, as business success is often determined by financial, marketing, and operational strategies.
Strategic management focuses on the big picture of the business. Where do you want to be and how do you get there? Strategic management is adaptive, involving competitive strategies and maintaining appropriate organization. An essential element of strategic management is the formulation of the organization's goals in light of external factors such as organization, competition, and technology.
6. Production management
Production management is the decision-making process involved in the production of goods or services. Production management techniques are used in the manufacturing and service industries. This type of business management deals with the transformation of raw materials into finished products or services, and as such, this industry is often referred to as the “Four Ladies”: machines, methods, materials, and money.
One of the main objectives of production management is to ensure efficient production, which includes stock control and employee training. Inventory control is the most important responsibility of product managers and involves monitoring all components of production such as ordered materials and finished goods.
Another important focus for the company's production management team is the research and development (R&D) of the production process and the product itself. Companies that want to grow, reduce costs, and develop new and better products must participate in research and development as part of managing their products.
7. Program and project management
Project management is the planning, implementation and control of projects. Project managers prioritize obtaining the tools or knowledge necessary to meet project requirements in the short and long term. Project management is similar. It covers the same activity in several projects, not just one.
8. Knowledge management
Knowledge managers create, distribute and manage organizational knowledge. Project managers can turn to knowledge managers when their projects require information that is difficult to find elsewhere.
9. Operations management
The operations department is responsible for ensuring the efficiency of all departments of business operations. Business process management means dealing with multiple departments, strategies, and processes. Operations teams must consider sourcing, developing, and deploying the resources their business needs to deliver the products and services customers need.
10. Service management
Service management varies widely by industry and company. It is sometimes synonymous with IT service management, but the two fields differ in several areas. First, service management typically involves both automated systems and a skilled workforce, and often provides service development even if it is not related to IT.
One of the goals of service management is to manage and streamline workflows to automate or support human decision-making. Service management is what enables a provider to understand its services from both a corporate and customer perspective and to ensure that the services contribute to the desired outcomes for its customers. Regardless of the service, managed service providers must understand and manage the costs and risks involved, as well as the value and importance of the services to their customers.
11. Information Technology Department
IT governance focuses on controlling and managing a company's technical resources to meet its needs and priorities. IT managers and teams ensure that business technology aligns with business strategies. The three main components of IT management are IT configuration, IT service, and IT financial management.
IT governance also involves achieving business goals while meeting customer expectations. IT managers must focus on individual components and provide the overall service using best practices to reduce costs and improve employee productivity. Information technology management involves the training and development of managers who are able to effectively manage the planning, design, selection, implementation, use and management of evolving and converging information and communication technologies.
12. Public Relations Department
In managing public relations, you interact with public figures, especially journalists, who can inform the public about the latest news, products, etc. to your company. Public relations strategies may vary by industry, but they have one consistent end goal: a strong public image.
13. Supply Chain Management
Supply chain management controls how raw materials move from manufacturers, wholesalers, or other entry points into your business. Your company ultimately uses these raw materials to create its products.
14. Purchasing Department
Like supply chain management, purchasing management can involve obtaining goods from another organization. They may also include agreements for services from third-party suppliers, and usually focus more on budget constraints and schedules than on the supply chain.
15. Research and Development Department
The R&D manager oversees the product research and development efforts of a team or an entire company. R&D managers may supervise researchers and developers, conduct research and development independently, or both.
16. Engineering Department
Engineering management and research and development management are among the most overlapping types of management. Engineering management may involve more production, turning research into selling items than research and development management, but the two types of management often have similar issues.
17. Project management
Like the research and development department, the design department oversees how products go from an idea to a tangible object. However, design directors may also focus on an item's appearance and functionality, while research and development managers often prioritize function over form.
18. Quality management
Quality management is the control of all quality assurance activities. This often involves planning products or services. After customers or customers use the product or service for the first time, the quality manager will evaluate the improvements requested by users and guide the team on how to implement these changes.
19. Risk management
Risk management involves assessing business practices and identifying problem areas. After identifying potential weaknesses, risk managers consult with business leaders and other department heads to discuss ways to reduce these risks.
20. Change management
Change management is a general type of management that deals with a variety of business transitions, both internal and external. Change management can involve leading teams through policy changes or introducing new teams. It can be as broad as helping companies with mergers and acquisitions.
21. Innovation Management
Innovation management is the control of many other types of management. Innovation managers can work to coordinate research and development tasks, strategy and change managers to streamline work toward common business goals.
22- Facilities Management
As with other types of management, resource allocation plays a major role in facility management. However, in facilities management, the asset involved is usually an entire building, such as an office or data center.
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