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Basic Business Management Skills
The ability of directed thinking to develop a business is a management skill. Another attribute possessed by a skilled manager is the willingness to strive to deploy effectiveness. The management guru Peter Drucker made a distinction between efficient and effective business skills. According to him, performing an activity swiftly and economically is ‘efficient’, while doing the right thing well is ‘effective’. Good business management skills lead you towards the right goals, but doing the wrong thing is the exercise of efficiency to no avail. Learn to prioritize your business activities. Understand what’s important for the business and differentiate it from what is urgent.

As a manager, you should be able to understand the weaknesses of the organization and try to improve in them. You must be able to concentrate on the threats to your business and fight them effectively. You should have the skill to endure every setback and learn from your mistakes. Successful business development strategies used by others, help you device your own. This is when your skill to ‘experiment’ comes in the scene. Experimentation has to be accompanied by skillful judgment of your actions and results.

Business management includes management of money and time. Being a manager, you have to time yourself and schedule tasks for your team, so that deadlines are met. Management of money is an integral part of running a business. The activities of buying, selling and pricing have to be done skillfully. Business management requires a large skill set. It is everything right from planning, supervising, right up to being the spokesperson for your business.

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Business Administration and Management
When it comes to administration and management, people are often confused. The general assumption of the people is that administration is a clerical job and management means that one holds a post of authority, good salary and cabin at work. The following are however, the two precise definitions of business administration and management.

Both the branches are equally important and also well paid (which is equal in most of the cases). There is however a tendency for every person to join at a deputy-management level after finishing his/her education and gradually evolve towards careers in business management. After about 15-20 years of service, when the person's hair starts graying, he/she is promoted to the administrative level. People from the administration, do not take decisions, they request the management to take a decision to get a result that they feel (of course by legitimate reasoning), is desirable and profitable.

Firstly, there is what has come to be known as the autocratic approach to management, which installs more trust in the leadership as opposed to the individual staff. This involves pulling rank and leaves employees in no doubt as to who the management is or what decisions are being made. Rather than engaging employees within the decision making process, this business management style typically concerns businesses that require direct, effective leadership to produce results, often under pressure of working in a tough environment. Upon hearing the term autocratic, many tend to visualize a dictatorial approach to management. While that is perhaps the case, it is seldom as strict as this and it is often a necessary management style, for example in the armed forces or in a high-paced trading environment, where there is no margin for deliberation and group consideration.

Alternatively, there is a business management style known as the democratic style, where employees are effectively engaged in consultation before decisions are made. While some consider this to be more motivating and more enjoyable to work under, it does nevertheless have its own disadvantages. Giving employees a say may undermine the authority of the management, and may ultimately cause inefficiencies in the decision making process. It is also time intensive, and perhaps not as effective in larger organizations with thousands of employees. While of course at a board room level this kind of decision making goes on everyday, it’s one that works most effectively in slower paced business where decisions can be fully deliberated and considered.

An alternative to those two business management styles, and the third main category is what’s known as the laissez fair management style. This is by definition a more hands-off approach to management, which puts the trust of running the business within the hands of employees themselves, and allows a greater degree of autonomy than would otherwise be the case. While this is strong in creative industries, some business people find that this style of management can lead to a fragmented approach to doing business that is less organized and ultimately less professional.

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