Business management: what it is, the challenges, types and impacts of people management on your business

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Business management is a strategy for conducting business to achieve better results through the organization of processes, financial control, administration of human and material resources and everything else that is essential for maintaining the company.

Even those who undertake alone, such as a company, need to know how to conduct actions aimed at the sustainable growth of the business . Therefore, business management is important both for small companies, which often have more tasks than they have hands to carry them out, and for large companies that want to evolve even further.

In this article, we will explain the types of business management, the challenges and impacts it can have on your business. Check it out!

Types of business management
First, let's define the types of business management that exist, showing the benefits of each of them for your business.

Value chain
This business management model was created in 1985 by Michael Porter and is a model that can be used by a company to understand its level of competitiveness in the market.

By being aware of the value of its operations, the cambodia phone number lead company can work to increase this figure, reduce costs and, thus, establish a competitive advantage.

Innovation cycle
Whenever a business researches, plans and implements a new process, service or product, it is innovating. And this type of business management focuses on the innovation procedures adopted by a company.

If you adopt this management model, you must follow these four steps:

Experimental phase: time when ideas emerge based on available technologies. There are still no major investments or a defined business model;
Disruptive phase: begins when the innovation cycle intensifies and some ideas begin to mature. Those that stand out continue on the cycle journey;
Combination phase: at this stage, investors are more attentive and open to risks, investing in projects in an attempt to find one that takes off;
Incremental phase: marked by the end of combination attempts and the beginning of the consolidation of an idea. After the entire cycle, the company has already matured its projects and is ready to innovate in the market.
PDCA Cycle
This is the acronym for Plan, Do, Check, Act and is a business management model focused on the continuous improvement of a product or service. It is the model we use here at 55 Lab and can be applied to any type of business, as its main objective is to become a more agile and efficient company.

The model is structured in four parts, corresponding to the letters of the acronym:

Planning: identifying problems and creating an action plan;
Develop: phase in which the plan is put into practice;
Check: the results achieved are checked using performance indicators;
Act: failures are corrected and managers work to standardize and implement successful actions.
Democratic management
Democratic management values the participation of the entire business team, including in decision-making, encouraging the exchange of knowledge and ensuring a more committed team. By automating processes, it becomes easier to adopt this type of management, since it is possible to integrate sectors, highlighting the role of each professional in a project.

Meritocratic management
This is a model based on a culture of merit, as professionals are recognized according to their performance. It is ideal for each employee to be familiar with the values and vision of the business, to know their role in the organization, what is expected of them and what goals they need to achieve to stand out.

Meritocratic management leaves no room for complacency, as only those who demonstrate a difference and add value to the company can reach higher positions.

Centralized management
This type of business management centralizes tasks and decisions in the highest positions in the company, with the advantage of greater control over business processes, uniformity of procedures and speed in urgent situations.

The downside is that this model can cause managers to not trust their team or recognize their talents. The workflow is not optimized, as everything is concentrated in the hands of a few people.

Impacts of people management on your business
The choice of business management model directly affects the company's employees and, consequently, decision-making, processes and other important aspects of the business.

In general, we cannot say that one model is better than another. You need to try and test different forms of business management before making your decision. It may even be that more than one model works for your business, in different areas or situations.

To make the right decision, you need to know your business, your team and the company's needs well, as well as test and experiment with different forms of management.