Question

How an effective management provide a better business environment that benefits all parties, including employees, employers, and customers?

How does this compare to situations in which self-employed individuals conduct business on their own without management policies?

Answer 1

Effective management is the key to success for any business be it of any type or size. Management is the art of sytematically and strategically handling the activities of all included in the organization and making plans and procedures to implement and make others follow for this purpose. Effective business can help benefitting all parties in different ways as follows:

Employees- It gives a direction to the employees to work in the organization. What duties should be performed by them, how they will perform them and how they can imporve their perforamance at every stage is clear to them through management procedures. This clarity will help employees to show efficiency in work and increase productivity and growth.

Employers- At the same time the employers have set goals and procedures to achieve trhose goals if the management system is systematic and transparent.They can manage different departments working for the organization in a predefined way and yield results as required from each of them. They have a path to identify the quality of work being given by the employees and it also helps them to answer other stakeholders about the company growth and progress.

Customers- It is so understood by the above points that effective management helps the employees and employers to work effieciently in the workplace. This can give desirable outcomes easily and make the customers feel satisfied about the same. They can trust the performance given by the organization be it in the product line or services. It helps to understand the mindset of the customers and work on getting results accordingly.

Conducting business on own without any management policies will make the process complex and confusing. No set goals and no set guidelines will leave the employers and employees in a difficult position to deal with. If the business owners wont have management policies to folllow then no one in the organization will work on any set profile or be responsible for any target to be achieved. Failures in achieving goals and no one to take the responsibility of the failure is what will be seen often in the work environment. This will create chaos in the work atmosphere forcing the business to shut down eventually.