To win over your audience and close an ever greater and better number of deals, your company needs to be aware of market changes and also have a management efficient. If you have doubts about how this is done, don't worry, because in this article we show you what are the types of business management model.
Contrary to what many think, the management form does not vary according to the type of business, as companies from different niches may opt for the same system, while firms in the same area of activity end up adhering to totally different formats.
To understand these distinctions and how to choose the right model for you, read on!
What is a business management model?
Being the owner or manager of a company added to other proven experiences in the market are not enough to make an efficient administration. So that all members of the organization follow the same path that leads to the success, it is necessary to follow a management model.
The company's management model is seen as a way in which the manager manages to manage his employees, in addition to defining a set of essential strategies for the business to generate results.
It is composed of several points that support the way the company is conducted, such as:
- business objective;
- values and ideals shared among all;
- goals to be achieved by each department;
- profile of professionals;
- organizational culture;
- internal policies;
- market knowledge;
- competitor monitoring.
For this reason, before choosing the most appropriate model for your company (as we will show later in this post), it is essential to know your business well to know which management format should be adopted.
For those who are setting up their first company, it is highly recommended to do business planning that involves objectives, mission, vision and values so that they form the basis of the management model to be done.
On the other hand, those who already own or manage a company, but have no idea of the forms of management that are applied, the recommendation is to analyze the organizational processes in order to understand them well and define the most appropriate type.
What are the types of business management model?
Now that you know what a management model is within an organization, let's see what are the main types that exist in all types of business.
Democratic management
Democratic management has this name precisely because is a type whose decision-making relies on the participation of employees.
Therefore, this model offers the advantage of increasing engagement among employees, who start to feel more valued knowing that their ideas will be taken into account in the management of the business.
However, this requires care from managers who will have to use their experience and skills in people management to deal with frictions that may occur through disagreements between members of the firm.
In addition, everyone's suggestions need to pass through a filter that considers the goals the company wants to achieve and whether they make sense for the business at the moment.
meritocratic management
This model is based on meritocracy regarding the work provided by employees. In short, those who present better performances and results in their respective departments are chosen.
The benefit of adopting this type is that everyone knows they can earn this recognition if they perform as expected, which can make them more engaged.
On the other hand, the work environment will be more competitive and this can cause problems for some employees who cannot handle competition at work very well.
Therefore, when choosing this model, one of the challenges is to make all people – even those who are less competitive – feel motivated too.
Management focused on results
All companies – regardless of whether they are little, medium or large – which are based on the offer of products or services, certainly keeps the focus on obtaining ever greater results.
This model is ideal for startup companies that need short-term results or for those who need to scale the business and reach breakeven within a certain time, a very common scenario in startups.
Thus, the methods adopted to achieve the goals are in the background, as the most important thing is that the result arrives at the end of the month. Of course, over time, it is recommended that patterns of customer service are strictly followed in this regard as well.
Management with a focus on processes
Unlike projects, processes they have no beginning, middle and end, as they must be performed constantly for the sake of increasing work optimization. Therefore, management focused on processes follows the same path.
By the way, the good side of adopting this type is precisely the fact that such focus will be present frequently at work.
In this way, the company manager needs to have a macro view of the business itself in order to observe the progress of the processes of each department and make sure that they continue to be carried out as expected.
authoritative management
Unlike some models presented here that rely on the collaboration of employees, in this one the proposal is contrary, because the focus of management is on the manager himself.
Companies that have very young members and with little market experience may see this model as the most appropriate for everyone to have a solid working guideline coming from those with more knowledge about the firm and its niche of activity.
However, it is worth remembering that empathy and care for those who are led are fundamental points for them to respect you and follow your decisions.
value chain management
Based on the term created by Michael Porter in the book “Competitive advantage“, the model that follows the value chain requires that the work meets the needs of customers with excellence, in addition to following market trends.
Therefore, you and your team should focus on how to generate value for the public that will consume your offer. This dedication needs to be present in all sectors of the company: marketing, service, commercial, etc.
The market analysis performed in this form of administration is directly linked to the competitive advantage that needs to be evident in the product or service and in the company itself so that people choose to do business with it.
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What is the importance of the business management model?
When we talk about business management, the most important point to be considered is not the product or service that the business has to offer, but rather the company’s main asset: the people who are part of it.
If the administration of all departments is doing well, it is certainly because their members are efficiently executing their tasks. tasks. Those who are unable to do so should seek out their leaders and ask for help.
For this reason, even if you have a person or team in charge of HR, be aware of what happens within the company and how the level of satisfaction of your employees is, as it is directly related to the effectiveness of the work that will lead the company to your objective.
If this is not what is happening, it is necessary to review the management model and apply one that is really efficient for your particular business.
How to choose the most appropriate business management model?
As you can see throughout this article, the management models bring different strategies that you can fit into your processes administrative. With so many options, the question often arises: which to choose?
It is worth saying that the system adopted by a company, considering it to be the best, will not necessarily be the most suitable for you. That's why we started this post talking about the importance of knowing your own business.
By having this knowledge, you will know what are the biggest bottlenecks in your management and what type of management will be able to solve these problems. Shall we see an example?
Let's imagine that a company is at risk of closing if there is no increase in its turnover in the short or medium term. For this, it is necessary to increase the number of new customers, which requires a great commitment from the commercial team.
Therefore, there are two models that can be chosen. One of them is meritocracy to congratulate salespeople who are able to bring in more customers. However, as the company is in danger of closing its activities, the most appropriate is the management model focused on results, since channeling all efforts to new consumers must come first.
So, when making an in-depth analysis of the firm's needs and weaknesses, check out the list of business management models that we present here to identify what fits best.
We take the opportunity to remind you that, in order to have a good management, it is necessary to have the best administration software. An ERP, for example, is able to unite all sectors in one place. To learn more about how it works, check out the article we wrote about it!
