Business Administration is a Vital Function for Successful Businesses
Businesses are set up to gain profits from the production and sale of goods or services. Every organization has to achieve certain objectives this requires a systematic effort. Business administration defines the process that every business needs to have in place to augment these efforts.
The primary objective of any business administration is to produce and supply the goods or services that any community needs. This objective can only be attained if there is a continuous supply of these goods and services that meet a particular need. Every business has four resources that it will use to achieve its objectives. These are the 4 Ms, men, material, money, and management.
Every manager has to use the available capital and human resources to convert its ideas into what it wants to achieve. When you have an adequate amount of money, the people with the right knowledge and experience, and the high quality of materials, it is the management that will ultimately have to use these resources to their optimum, so that the business can be profitable. It needs administrators to utilize the resources that they have in the best possible way, through proper planning, leadership, and adequate supervision.
The management in any firm has to be clear in the policies that it will follow, and the objectives it needs to attain. Business administration will help a firm to plan its operations, organize necessary finance and other resources, allocate duties to staff based on their qualifications and experience, issue directions on the jobs to be carried out, guide the work and coordinate between the various sections so that all the objectives of the company are met.
Most firms will have their operations broken down into areas like production, marketing, personnel, and finance. Large organizations may have separate staff for each of these functions, but in smaller ones or those that are just starting up, senior people may have to multitask and perform many functions. Larger companies may even have separate research and development activities that need to be managed and supervised.