5 M's of Business Management: Key Components An MBA Graduate Must Know

Business management is the process of establishing a foundation of roles, responsibilities, and set processes for the day-to-day activities of the organization. Business managers have a strong role to play in the process of business management as they are responsible for establishing and coordinating the business activities. Every organisation has access to a set of basic resources, and how well they are managed determines how successful they are. In the course curriculum of MBA in Business Management degrees, it is taught that "Management acts as the catalyst, organizing, planning, and directing all resources to accomplish the company's objective." It serves as the hub around which the production factors revolve. Business management is a long and tedious process, hence its structure is divided into five M’s that lay the foundation of business management; those are money, manpower, machines, materials, and method. 

1. Money

The foundation of the business management process starts with money. The basic need of any business is capital, without which the functioning of a business becomes difficult. A company needs money to produce goods or offer services. It is necessary for acquiring raw materials, hiring personnel, purchasing machinery, and incurring many other costs that a business faces. A business needs sufficient fixed and working capital. Lack of funding can make a firm less effective or, in the worst situations, cause it to fail completely. You can recruit the best workers, the highest-quality raw materials, and well-running machinery if you have enough money. As a result, you can be sure that your final product or service will be of high quality and cost-effective.

2. Manpower

The art of getting people to get things done is how management is sometimes described. Any organisation needs labour because, without it, all other resources would be rendered useless. This group includes both managers and non-managers who work for the organization. Any organization's business management success depends on having skilled and capable personnel. A manager must quickly resolve issues in order to make sure that his team is operating efficiently. Long-term retention of an employee's loyalty is facilitated by providing fair compensation, work-life balance, a sustainable working environment, and sufficient resources.

3. Material 

Another basic need of any business is the raw materials that are used to produce the final goods. The materials needed to create the ultimate product that the company sells can be raw or even semi-finished goods. Any production process's fundamental building blocks are its raw materials. The management must make sure that there is enough quantity and quality to satisfy the demand. They must also take into account the costs associated with the raw materials' conversion and transportation. Checks on raw materials' quality and quantity help the organization assess whether it has the quantity and quality it needs.

4. Machines

Raw materials are transformed into finished products by means of machines. Depending on the goods the company is selling, a variety of machines may be used in the production process.

Investing in contemporary machinery enhances the manufacturing process. The production process greatly benefits from the new technology in machines. Fast output is a result of well-running machinery, which can provide one with a competitive edge. Hence, this is another important M of business management. 

5. Methods

Methods are the usual and recommended ways of carrying out certain operations in accordance with established systems and business management procedures. The effective management of operations is aided by the use of the appropriate procedures. In a research done by one of the colleges that provides MBA in Business Management in Kolkata has found that 81.35% of businesses which follow a set pattern for its business processes are likely to be successful. 

A business cannot function properly without the above mentioned M’s of business management. These five management Ms are interconnected and interdependent. All five of the components must be used to their fullest extent for a firm to be successful. Although management has a set of ideas to support it as a science, the execution differs from person to person, making it also an art. Bengal Institute of Business Studies is one of the best MBA colleges in Kolkata, that has a dedicated course on business management. If you are looking to become a successful business manager and gain insightful knowledge with industry experience, you can pursue an MBA in Business Management at BIBS.