Business activities involve entrepreneurial work that is concerned with the economy. People working in this industry have one indisputable feature, which is always associated with enthusiasm, the desire to learn and improve organization structure and design, as well as introduce innovative technologies. People in business usually have a non-standard approach, perfect leadership style, and creative thinking. This paper aims at observing principles of management.
Business activities are always limited by the factors of environment within which a business operates. Moreover, this environment includes a number of its core components. The first component is technological constrains that determine what a company can produce and sell with the help of technologies available to them. The second component involves the actions of competitors. Therefore, it is necessary to learn and analyze all possible options in the market environment. Third, economic constraints show how much money the consumers are ready to spend. Furthermore, social requirements encourage entrepreneurs to consider ethical norms when conducting business dealings with all stakeholders. Finally, every business should know legal requirements. Many studies suggest that business should adhere to numerous factors in its closest environment (Alveson, 2013). For instance, social constraints identify the buying patterns of customers based on their tastes, such as healthy and organic food. Moreover, legal constrains aim at aligning business processes in accordance with healthy and safety laws.
Businesses should constantly adhere to their environments and be ready to change as the environment alters over time. In order to be ahead of competitors, entrepreneurs should adjust to the changes, i.e. change their organization structure and design (Tran & Tian, 2013). Business activity of any enterprise is conducted in an intense competition and unstable environment. Therefore, success in today’s globalized market requires considerable management skills. It is a very difficult task to achieve effective strategic management, which is why it is rather necessary to know the basic management technologies.
According to Frecknall-Hughes (2014), one of the most important principles of management is its originality and uniqueness. A unique strategy based on advanced technology, efficient management system, and development strategy can bring the company to a leading position in the market. Organization structure and design also play a leading role in the efficient management system. Therefore, the companies’ owners must be ready to redesign their businesses.
Diverse human resources involve ethnicity, race, and gender among others. Nevertheless, diversity is not limited only by these factors; it also means the differences of employees in skills, personal traits, work experience, culture, educational background, etc. These dimensions affect interactions between employees very often. Therefore, a manager should be well aware how to overcome or remove these barriers (Alveson, 2013).
The HR department intends to find strategies for managing diverse staff. The problem is that it is hard to choose an appropriate strategy and approach that can be effective in a certain working environment. Unfortunately, there are no absolutes, and managers try to find the comprehensive information that can help develop effective initiatives. HR managers work as facilitators in diverse working settings. Moreover, they provide consultations where the staff learns how to interact with different counterparts. Currently, it is one of the main problems in business.
When properly designed and administered, the organization culture is able to identify an organization’s climate, strengths, obstacles, and challenges. Managers are supposed to suggest possible ideas for the diversity initiative, identify legal issues, and help provide training needs. In addition, the organization design must include both quantitative (from surveys) and qualitative data (from interviews and focus groups) information (Tran & Tian, 2013). To manage the diverse staff, an organization must be ready for a change. It should be reflected in a well-developed business plan based on an overall strategic diversity.
In the age of constant change, being a leader in business is a necessary and additional task for managers. Therefore, leadership success depends on a combination of two qualities: management and leadership (Frecknall-Hughes, 2014). There is no doubt that leadership skills require development, although there are certain innate leadership personality traits. Alveson (2013) suggests that the managers’ task is not only to develop leadership qualities in themselves and spontaneously identify emerging leaders, but also to shape the leaders around them. A wise leader accepts and encourages a self-sufficient and independent behavior of leaders at different levels of the organization.
In practice, employees perform their function, trying to join their forces in order to achieve the company’s goal. The company’s leaders understand that the organization continues to exist only owing to organized group activities as a single entity. However, the patterns of behavior and attitudes of organization’s members usually are far away from a formal plan. As a rule, organizations conduct social control over their members. Therefore, they set certain rules that each member must comply with. However, employees often tend to resist change. Typically, a leader should help the group to achieve its objectives and maintain its existence.
The findings reveal that teams have established themselves as a method of management decisions intensification (Tran & Tian, 2013). In connection with the realities of modern market relations, where it is necessary to be flexible in order to adapt to rapidly changing environmental conditions, the question of the team formation becomes specifically acute. In particular, working in teams contributes to decision-making and helps respond quickly to new opportunities and risks. Besides, creation of the cross-functional teams improves the performance of organizations.
To summarize, people in business have a non-standard approach, perfect leadership style, and creative thinking. Principles of management involve different constraints that should adhere to the business environment. Managers should understand the value of leadership, the effectiveness of group activities, and teamwork. Moreover, these activities must be combined with a diverse working environment. Therefore, managing a business is a complex task that requires appropriate strategies, tools, as well as tactics.