| Business management is one of the much | | | | decisions is one of the toughest jobs. In a |
| appreciated jobs positions in the world. The | | | | small business, such as a sole trader, the |
| manager is required to have a keen eye so | | | | owner is the manager. This person will be |
| that he makes sure that all the business in | | | | taking risks with their own capital or |
| running smoothly and there are no stones on | | | | savings. These people are referred to as true |
| the way of success and no decrease in the | | | | entrepreneurs or risk takers. If the decision |
| amount of profit earned each year. | | | | goes wrong they could end up losing their own |
| | | | house and other assets. In a larger business |
| All organizations, including business has | | | | such as a public limited company, the manager |
| managers. They may not be called managers as | | | | taking the decision in not risking his or her |
| different titles can be used such as leaders, | | | | own capital but that of the shareholders. |
| directors, and head teachers and so on. A | | | | Although the manager is still taking risks, |
| good business manager should have abilities | | | | the cost of poor decisions will be felt |
| to plan, organize, co-ordinate, command and | | | | differently. The manager may lose his or her |
| control. In business management, the above | | | | job but it is the shareholders capital that |
| mentioned abilities are used a lot. Some | | | | is at stake. |
| examples of these decisions areo Should we | | | | |
| open a new factory in the north or south of a | | | | These risks cannot be eliminated but can be |
| country?o What price should we charge for the | | | | reduced by following some simple steps. These |
| new product?o Do we buy the new machine even | | | | steps are sometimes called the |
| though this will involve job losses for some | | | | decision-making process.o It is important to |
| of our workers?o Is expansion in another | | | | establish the objectives of the |
| country going to be profitable? | | | | organization.o Identify and analyze the |
| | | | problem to be solved.o Collect data on all |
| In business management all the decisions are | | | | possible alternative solutions.o The most |
| important so it is common to divide these | | | | important decision in business management is |
| decisions into three types | | | | to make the final decision and put it into |
| | | | effect.o Look back to see whether the right |
| Strategic decisions are very important which | | | | decision was made. This is called review and |
| can affect the overall success of the | | | | evaluation of the decision. |
| business. Tactical decisions are decisions | | | | |
| which are taken more frequently and which are | | | | Each department has its own manager. Like the |
| less important. Operational decisions are | | | | manager of the human resource project will be |
| day-to-day decisions, which will be taken by | | | | responsible foro Forecasting staff needso |
| a lower level of manager. | | | | Recruiting staffo Preparing job descriptionso |
| | | | Keeping staff records etc. |
| Taking decision is always a risk. Time, money | | | | |
| and other resources will be used as a result | | | | In business management it is the duty of the |
| of a decision. In business management, taking | | | | managers to look over the departments. |