Business Systems

by Hettie Woehler
(last updated April 3, 2014)

According to many dictionaries the definition of a business management system is both simple and complex at the same time. The most common definition is that a business system is a set of policies, practices, procedures, and processes used in developing and deploying strategies, their execution, and all associated management activity. But what does this really mean? By having an organized answer to what a successful, and realistic, business system is you will easily find yourself in a situation where you can create your own.

  • Function of a business organization system. An organizations management system monitors, controls, is concerned with decision making and administrative activities of middle level managers. It monitors the functioning of the business, controls the direction the business is going, is concerned with decision making and administrative activities of middle level managers and heads of departments. Any system is as strong as its weakest point. The weakest point can drown the company. Management should beware of the productivity of each department, each individual staff member. All personnel should be aware of the overall impact of their contribution to the overall functioning of the company.
  • Benchmarking systems. Benchmarking systems are becoming more popular amongst manager's to determine whether the company is functioning efficiently, and if not, which processes need improvement.
  • Ethical decision-making process. Every company must have an ethical decision-making policy set in motion by the awareness of an ethical catch-22 possibility. Some individuals are likely to be more sensitive to potential ethical problems than others. Be specific on what the company's ethical policy allows and forbid. All personnel, from the managing director to the cleaners, must adhere to this policy to ensure consistency in the functioning there of.
  • Continued training and team building. More and more companies become aware of the importance of ongoing training and team building activities. A knowledgeable and strong team work forms one of the building blocks of a successful business.

Know that you know what the basics of a business system entail, you should have little problem in creating one that works for your own proposed business. Keep in mind that all businesses are pretty much living things, and as such there will be some growing pains involved. Often this will entail that you, or your business, will need to reevaluate and reformulate the business system that you use. If you don't you can easily find your business stagnating and no longer growing.

Author Bio

Hettie Woehler

Hettie lives in Mokopane, South Africa. She writes articles for a country-wide monthly newspaper, The Vessel. She self-published a devotional book in 1993 and writes a regular column, Hettie's Chatterbox, for the S.A. Neuromuscular Foundation. ...


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