Consider the topic of management as it relates to the business environment, which encompasses all aspects of overseeing and supervising business operations. Management is the act of allocating resources (such as finances, staff, and raw materials) to accomplish desired goals and objectives efficiently and effectively. Activities related to business management include analysis of business needs, strengths, and challenges; establishment of the business goals; creation of a business plan; and oversight of the execution of that plan.
Depending on its size, a company’s management may be divided among several people. Larger companies often have multiple layers of management. At the highest level, senior, or upper, management is responsible for crafting the company’s vision, forecasting and planning, developing strategies based on knowledge of the industry, and designing a plan to implement those strategies. Middle management is also tasked with leading, controlling, and motivating but generally within a division, department, or team rather than the entire company. Below them, department heads or supervisors are responsible for ensuring that the people they manage are following company policies and procedures; this level of management typically conducts employee interviews, and handles training, scheduling, and discipline. Each level reports on progress to the level above.
For small businesses, one person or just a few individuals may handle all facets of management, though they may choose to outsource some functions, such as accounting.