Functions of a business manager and the importance of managerial

economics

1. What is a business manager

2. 5 functions of a business manager

3. Planning

4. Decision making

5. Organising

6. Leading

7. Controlling

8. Importance of managerial economics

9. Useful in Business organization

10. Helpful in chalking out business policies

11. Cost control

12. Useful in demand forecasting

13. Helpful in profit Planning and Control

14. Useful in understanding the mechanism of the economic system

15. Price determination

What is a Business Manager

· A business manager is a supervisor who controls and directs the activities of an
organization or a department.

· By adopting operational plans, carrying out performance evaluations, and supervising all
 daily activities, they strive to keep the business productive, efficient and organized at all
times.

· Business managers invest time in finding any new chances that could aid in the
company’s expansion and competitiveness in the market, and they also set goals and
targets to get there.

· They collaborate closely with staff members every day to monitor all the projects they
perform and identify any potential areas for improvement.

5 Functions of a business manager

16. Planning

17. Decision making

18. Organizing

19. Leading

20. Controlling

Planning: A program of action

· Planning means determining an organization’s goals and deciding how best to achieve
 them.

· Decision-making, a part of the planning process, involves choosing or selecting a course

of action from a set of alternatives.

· Planning and decision-making maintain managerial effectiveness by serving as guides for

future activities.

· Knowing where they want the organization to be at a given time in the future, the
manager next develops a strategy for getting there.

· This development process is called strategic planning. Once the strategic plans are
developed, the next step is to implement them to put the plans into effect.

Decision-Making: Determining Courses of Action

· Decision-making is choosing from alternative courses of action.

· After planning is done, it is the manager's job to choose a path to proceed with it and
the way it will be done.

· It's done to determine the best option or course of action to meet their needs.

· In a business context, it is a set of steps taken by managers in an enterprise to determine

the planned path for business initiatives and to set specific actions in motion.

Organizing: Coordinating activities and resources

· Organizing and directing an enterprise requires that managers establish patterns of
relationships (structures, hierarchies) among people and other resources that work to
produce an output or accomplish a common goal or objective.

· Organizing and directing relate to the flow of work through the organization under
someone’s guidance.

· Once a manager has developed a workable plan, the next phase of the management
process is to organize the people and other resources necessary to carry out the plan

· Organising is concerned with coordinating various activities and resources at the

disposal of management.

Leading: Motivating and Managing Employees

 · Leadership is required if organizational goals are to be achieved.

· Once the organisation process is complete, all management has to do is assign different
people to their respective roles.

· It is at this point that managers must engage in what people in the organization consider
the hardest part of the management process — leading.

· Leading is the set of processes used to get members of the organization to work
together to further the interests of the organization.

Controlling: Correcting Deviations from the plan

· As the organization moves toward its goals, management must maintain its progress. It
must make sure that the organization is performing in such a way as to arrive at its
‘destination’ at the specified time.

· Monitoring a firm’s operations and correcting deviations from established goals

constitute the controlling function.

· Controlling involves taking appropriate actions to ensure that organizational goals and
objectives are planned and carried out so that the firm achieves maximum effectiveness.

· In short, controlling helps ensure the effectiveness and efficiency needed for successful
management.

Importance of managerial economics

21. Useful in Business organization

22. Helpful in chalking out business policies

23. Cost control

24. Useful in demand forecasting

25. Helpful in profit Planning and Control

26. Useful in understanding the mechanism of the economic system

27. Price determination

Useful in business organization
· In any institute or firm. How should any production be done and for whom should it be
produced? The answer to all these questions remains only with the managerial economy
because it plays the most important role in these tasks.

· so we can say that managerial economics plays a very big role and significance in the
important decisions of the business.

· So this is a very important role in choosing the right decisions for any business.

Helpful in chalking out business policies

· The art is only in business economics to maximize the profit of any institution and
minimize cost and whatever policies are made from this.

· it is very important for any business or firm so that every one of them can get the
maximum benefit from it.

· then we can say that there is a huge contribution of managerial economics to profit
maximization and determining policies.

Cost control
· Managerial economics decides whether the business is going towards profit or loss. It
also decides which way is good for the business.

· It is only possible when managerial economics plays a very big and important role in cost
control decisions.

· Thus, the Role and importance of managerial economics in choosing the right decisions
are very powerful.

Useful in demand forecasting

· Managerial economics provides useful tools for economics managers in demand
forecasts and is useful in demanding production planning.

· The managerial economy deals with future losses easily. So that any business can be
protected against future losses.
Helpful in profit planning and control
· Managerial economics helps managers to decide on the planning and control of the
benefits.

· Managerial Economics is synchronized between the planning and control of any

institution or firm and hence its importance increases.

· Thus, it plays a huge role in business decisions. So the role and importance of managerial
economics in taking the right decisions.

Useful in understanding the mechanism of the economic system

· Managerial economics is useful in understanding the complex cause of the entire
economy. From which business decisions get help.

· The entire economy is very complex but business economics solves it with ease. It is
helpful to understand that in this way.

Price determination
· Managerial economics provides the necessary guidance in managing the pricing of its
business. This proves this in order to raise the required data in pricing and get the
maximum benefit.

· So that is the major role of managerial economics in the business decision critical.
Without this, no business can progress.