Managing And Administrating Your Business
Many of us misinterpret the meaning of the term “management” and “administration”. Although these two terms sound similar, there is a slight difference between these terms. Management is the art or the skill of getting the work done. A manager is considered to be the leader who is responsible for getting the job done by others. In the case of administration, it refers to the overall process of administrating or directing the entire organization or the business. The word management is narrow in scope while the administration is broader in scope which includes setting up of guidelines, policies, the procedures to govern and control the overall organization towards the goal.
Both, the management and administration are considered to be an eye for business. Management is considered to be an executive function while the administration is a decision-making function. A successful businessman must be a good manager and an administrator. The Administration is a top-level function as they think about the overall perspective of a business.
How to become an effective manager?
Execution of a work is the key role for a manager. This may be in any level; top, medium or a lower level. To be an effective manager, one must formulate proper planning and regulate the business with adequate control. Managing is nothing but forecasting the future and planning the same. A manager has to execute the following functions to become an effective manager
- a) Planning: Planning forms the primary function of management. It deals with sketching future course of action and deciding the most appropriate course of action to be executed to attain the goal. Planning is the execution of specific action at a specific time. Every manager has to formulate a proper plan and get them executed by his/her people.
- b) Organizing: Organizing refers to bringing together the required equipment, sources, tools, activities, people, and other necessary objects/items to achieve the predetermined goal. By organizing, a manager ensures whether the surroundings are proper in place to reach the goal without any hassles.
- c) Staffing: Staffing refers to an effective selection of the right staff for execution of the appropriate action in the business and providing them with proper guidance, instructions to work effectively and efficiently. A manager has to appoint the right staff for the right job.
- d) Directing: Here comes the crucial role for the manager. Directing is the way of communicating the work to be done by the subordinates. The word direction is imbibed with four elements namely supervision, motivation, leadership and control. A manager has to execute all these four elements to get the work done.
Management is a tool that needs to be implemented by all of us. Being an effective manager comes over from years of experience. Effective management is crucial in business, especially in trading. Refer to this trading software if you wish to learn management in trading.