While some view business leadership as a single industry or career, it is a diverse field that encompasses many industries. Whether you're pursuing a career in business management, starting your own business, or pursuing an advanced degree or certificate, this guide will help you differentiate between the different branches of this vast industry and understand each role in an organization. .
There are about two dozen branches of business administration. Here is an overview of the 22 industries in this broad area:
1. Financial management
Financial management is about finding a healthy balance between profit and risk so that the business is profitable in the long term, even in times of recession. This type of business management involves planning, directing and coordinating a company's accounting, investment, banking, insurance, security and financing activities.
The three main components of financial management are financial planning, financial control and financial decision making. Short-term financial management is called "working capital management" and refers to cash management, inventory management and receivables management. Both valuation and financial decision making techniques are included in this type of business management.
2. Marketing management
Marketing management focuses on the practical application of marketing strategies and the management of a firm's marketing assets and activities. The four main areas of marketing management are company analysis, employee analysis, competitor analysis and customer analysis. Marketing management includes brand management as well as marketing strategy and pricing.
To maximize your return on investment, it is important to develop branding opportunities and implement marketing strategies based on a detailed analysis of all aspects of your business. The marketing management scope of a business depends on its size and industry. Effective marketing management helps a company's resources grow its customer base, improve customer preferences and response, and increase the perceived value of the company.
3. Sales management
Sales management involves supervising and leading the sales team. As a sales manager, you encourage your sales reps to build strong relationships with prospects, convert them into customers, and guide them through the sales funnel. Sales management often works closely with marketing management.
4. Human resource management
Human resource management (HRM) focuses on the recruitment and management of employees in an organization. This includes pay, recruitment, safety and welfare, benefits and other aspects of personnel management.
A common misconception about HR management is that it is the responsibility of only one HR department or one person. In fact, all department heads must understand that effective human resource management is all about supporting employees effectively and productively in the direction and overall goals of the company. In the past, human resource management focused more on managing people, but a modern approach to human resource management uses people programs to positively impact the workforce and the company as a whole.
Did you already 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. Many other branches of corporate management are related to strategic management, as a company's success is often determined by its financial, marketing and operational strategies.
Strategic management focuses on the big picture of a business: where do you want to go and how do you want to get there? Strategic management includes adaptive and competitive strategies and maintains a relevant organization. The most important element of strategic management is the formulation of business objectives, taking into account external factors such as regulation, 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 both manufacturing and service industries. This type of activity involves the transformation of raw materials into a finished product or service, and for this reason the sector often refers to the "Four Mes": machines, processes, materials and finance.
One of the goals of manufacturing management is to ensure efficient production, including inventory control and employee training. Inventory control is the most important function of product managers and involves the monitoring of all components of production, such as: B. Required materials and finished products.
Another important focus of a company's manufacturing management team is research and development (R&D) of the manufacturing process and product. Companies that want to expand, reduce costs and develop new and better products need research and development as part of their product management. .
7. Program and project management
Project management is the planning, implementation and monitoring of projects. Project managers prioritize acquiring the tools or skills needed to meet both short-term and long-term project needs. Program management is similar: it involves the same work for many projects, not just one.
8. Knowledge management
Knowledge managers create, distribute and manage a company's knowledge. Project managers can turn to knowledge managers when they need information for their projects that is difficult to find elsewhere.
9. Management
Operations management is responsible for ensuring that all business operations departments are efficient. Managing the operations of a company means working with various departments, strategies and processes. Operations teams must consider acquiring, developing and using the resources their organization needs to deliver the products and services customers want.
10. Service Management
Service management varies greatly by industry and company. IT is sometimes synonymous with service management, but the two fields differ in some respects. First, service management involves automated systems and trained personnel, and often provides service development, even if it is not IT.
The purpose of service management is to manage and streamline workflows to automate or support human decision making. Service management enables a provider to understand its services from an organizational and consumer perspective and to ensure that the services deliver desired outcomes for customers. Regardless of the service, managed service providers must understand and manage the costs and risks associated with the value and importance of the service to their customers.
11. IT Management
IT management oversees and manages an organization's technology resources to meet its needs and priorities. IT managers and teams ensure that a company's technology is aligned with corporate strategies. The three main components of IT management are IT configuration, IT services and IT financial management.
IT management is concerned with achieving business goals by meeting customer expectations. IT managers must focus on individual components and end-to-end service delivery using best practices to reduce costs and increase employee efficiency. IT management involves the training and development of managers who can effectively plan, design, select, implement, use and manage emerging and transformative information and communication technologies.
12. Public Relations
In public relations management, you will interact with the public, especially journalists, who will be able to inform the public about your company's news, products and more. Public relations strategies may vary by industry, but they all have one common goal: a strong public image.
13. Supply chain management
Supply chain management is about controlling how raw materials get to your business from manufacturers, wholesalers or other sources. After all, your business uses these raw materials to manufacture its products.
14. Management of the collection
Like supply chain management, procurement management can involve purchasing products from other companies. It may also involve contracting for third-party services and is usually more about budget constraints and deadlines than the supply chain
15. Directorate of Research and Development
An R&D manager oversees the product R&D efforts of a team or an entire company. R&D managers can lead researchers and developers, perform R&D work themselves, or perform both.
16. Technical Management
Engineering management and R&D management are among the most overlapping types of management. Engineering management may involve more manufacturing, or turning research results into marketable products than R&D management, but often the two types of management involve similar responsibilities.
17. Project Management
Like R&D management, design management is the oversight of how the product develops from an idea to a tangible object. Although design managers may also focus on the appearance and functionality of an item, research and development managers often prioritize function over form.
18. Quality Management
Quality management is the oversight of all quality assurance work. This often involves product or service planning. After customers or clients use the product or service for the first time, a quality manager evaluates the improvements the users desire and leads the team to implement those changes.
19. Risk Management
Risk management involves evaluating business practices and identifying problem areas. After identifying potential vulnerabilities, risk managers consult with business leaders and other department heads to discuss ways to mitigate those risks.
20. Change Management
Change management is a broad type of management that deals with internal and external business changes. Change management may involve leading teams through policy changes or implementing new teams. This can be as comprehensive as corporate merger and acquisition support.
21. Innovation management
Innovation management is an oversight of many other types of management. Innovation managers can work to coordinate the work of R&D, strategy and change managers to streamline work toward overall organizational goals.
22. Facility Management
Like other types of management, resource allocation also plays an important role in facility management. However, facility management often involves an entire building, such as an office or data center.