Breaking down the different types of business management can be tricky, but

determining the key characteristics of each is a great way...

Business management can't be boiled down to one department, one aspect,

or one person. Breaking down the different types of business management
can be tricky, but separating and determining the key characteristics of each
is a great place to start. While some fields of management overlap, There are
eight sectors of business management, each as equally important as the
others: financial management, marketing management, human resource
management, strategic management, production management, operations
management, service management and information technology management.

Financial management

Financial management, the most important part of business management, in

the corporate world is about finding a healthy balance between profit and risk
so that even with a setback, the business is profitable in the long-term. This
type of business management involves planning, directing, and coordination
between accounting, investing, banking, insurance, securities, and other
financial activities of a business. Financial planning, control and decision
making are the three key elements of financial management. Short-term
financial management is often referred to as "working capital management"
and relates to cash-, inventory- and debtors management. Both the
assessment and technique of financial decisions fall under this type of
business management.

Marketing Management

The business discipline focused on the practical application of marketing

techniques and the management of a company's marketing resources and
activities is referred to as marketing management. Whether you're talking
about brand management, strategy, or pricing, these are all a part of
marketing management. The four major areas of marketing management are
company analysis, collaborator analysis, competitor analysis and customer
analysis. Spending time analyzing the different aspects of a business is
necessary for developing the best branding opportunities and executing
marketing tactics for the best ROI possible. The scope of a business'
marketing management depends on the size of the business and the industry
it's a part of. Effective marketing management will use a company's resources
to increase its customer base, improve customer outlook and feedback, and
increase the company's perceived value.

Human Resource Management

Referred to as HRM, Human Resource Management focuses on the

recruitment of, management of, and provides direction for the people who
work in the organization. Compensation, hiring, safety and wellness, benefits,
and all that encompasses employee administration fall under HRM. A
common misconception about HRM is that it is the responsibility of a human
resources department or individual to execute HRM. However, the managers
of all departments should understand that effective HRM enables employees
to contribute effectively and productively to the overall company direction and
the accomplishment of the organization's goals and objectives. This is the
responsibility of an entire corporation, not just one department or one person.
In previous years, HRM was more focused on personnel administration. Now,
HRM needs to add value to the strategic utilization of employees and the
employee programs to positively impact the business.

Strategic Management

Strategic management is the application of strategic thinking to the job of

leading an organization. Many of the other branches of business management
revolve around strategic management because the success of a business is
often based on the strategies of finance, marketing, operations, etc. Strategic
management focuses on the "big picture" of a business -- where do we want
to be and how can we get there? Perhaps the most chameleon branch of
management, the most important element of strategic management is
formulation of the organization's future goals despite external factors such as
regulation, competition, and technology. Strategic management is adaptive,
incorporates competitive strategy, and keeps an organization relevant.

Production Management

The decision making that comes with the manufacturing of products or

services is production management. Production management techniques are
used in both manufacturing and service industries. Machines, methods,
materials and money are the "4 M's" of production management because this
type of business management is about converting the raw materials into a
finished product, or service. One of the main focuses of production
management is ensuring that production is efficient -- this includes inventory
control and employee training. Inventory control is by far the most important
responsibility of product managers and involves tracking all components of
production from required materials and finished goods to general supplies.
Another major focus of a business's production management team is research
and development (R&D) of both the production process and the product itself.
Businesses looking to expand, cut costs, and develop newer and better
products must conduct R&D as a part of their product management.

Operations Management

Operations management involves the responsibility of ensuring that business

operations are efficient, no matter the department. Managing the operations of
a business means dealing with a plethora of departments, strategies, and
processes. Operations teams need to consider the acquisition, development,
and utilization of resources that their business needs to deliver the goods and
services that clients want. Similar to other branches of business management,
operations management must work with other departments and branches.
Depending on the industry of a business, operations management can vary,
but the end goal is the same: make sure the company and all aspects of it are
running as efficiently as possible.

Service Management

Service management varies completely on the industry and the business, but
is essential to a company's success. Service management is sometimes
viewed synonymously with IT service management, but the two differ in a few
different areas. Service management usually incorporates automated systems
along with skilled labor and often provides service development, even if it is
not IT related. Managing and streamlining workflow for the automation or
support of human decision making is only one focus of service management.
Service management is what enables a provider to understand the services
that they are providing from both a consumer and provider perspective and
ensure that the services facilitate the outcomes that their clients want to
achieve. No matter the service, managed service providers need to
understand and manage the costs and risks involved, as well as the value and
importance of the services to their clients.

IT Management

Managing the technology resources of a business to meet its needs and

priorities is referred to as IT management. IT managers and teams are
focused on making sure the technology of a business is aligned with the
strategies set in place. IT configuration, service, and financial management
are the three key elements of IT management as a whole. IT management
means meeting business goals while fulfilling the expectations of customers.
Managing IT means focusing on individual components and the delivery of
end-to-end services using the best methods for reducing costs and improving
employee efficiency. IT management incorporates the education and
development of managers who can effectively manage the planning, design,
selection, implementation, use and administration of emerging and converging
information and communications technologies.