Pros and Cons of Business Management

Business management is the act of organizing people to accomplish the desired goals and objectives of the business. It comprises organizing, planning, leading, staffing, controlling and directing business activities.

Management is a goal-oriented, pervasive, multidimensional, continuous process, group activity, dynamic function, and composite process.

pros and cons of business management

Pros of Business Management

  1. Easy to establish

When there is management, it becomes easier for the business to be established as all sectors will be working towards a common goal.

  1. Creates employment

When there is management, a lot of people will be needed to perform specific tasks hence the firm will

  1. Work according to the interest

The people employed will be able to work in the areas that they are comfortable hence the production will be very high.

  1. Long term investment

The owner of the business will be able to sell the business at the end as it will have good structures hence an investment.

  1. Able to earn profit

When there is management, all the sectors will work efficiently and this will lead to the production of high-quality goods which will, in turn, fetch a high market that will result in profit-making.

  1. Easy to make decisions

The business that has good management structures will make decisions easily hence improving the working of the business.

  1. Security of the business

The owner can be in a position to be secured of the business as he or she will employ skilled people to work in specific areas hence the security of the business.

  1. New ideas

When people work in a firm they can come up with new ideas which are beneficial to the business hence improving on the production of the goods.

  1. More effective teamwork

There will be teamwork and the workers will be able to share ideas that improve the firm hence good to have management.

  1. Easy accountability

It is easier for accountability as the owner will know whom to go to in case there is a problem in a certain department.

  1. Competition

There will be healthy competition as the departments will be working very hard to become the best hence there will be efficient production.

Cons of Business Management

  1. Staffing challenges

There may be challenges with staffing and this may make the work not to be done well as others will be working towards sabotaging others.

  1. Strained relationships

The relationships in the company will be strained and this will make the members not work efficiently.

  1. High expectations

The manager may have high expectations in the business hence straining people to work which will make the workers not feel comfortable.

  1. No guarantee that there will be profit

The owner of the business may employ many people to get returns which may not turn out so.

  1. Liabilities

The liabilities that are incurred in the business may be a problem to be accountable for them hence the owner may end up running at a loss.

  1. Restrictions

The workers have to work under laws and rules and some of them may not feel comfortable hence not doing the required work well.

  1. It takes longer to get the results

When a business starts, it will take a long time for it to pick up hence the owner should not expect the returns immediately the business starts.

  1. Inconsistency

The business may not bring the same profit every time. The owner should be ready for the challenge as the workers will need to be paid the amount whether there is profit or not.


Business management is a good thing as it makes the employees be accountable for their departments hence making them responsible for any work they do in the company.

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