The National Better Business Management Standards
MANAGEMENT is the process of using organizational resources effectively and efficiently to achieve organizational goals through planning, organizing, leading/directing, and evaluating/controlling. Management Standards helps business owners understand and analyze various management theories and apply them to the workplace. Management Standards also helps business owners understand basic management functions, their interrelationships, and the organization’s competitive niche.
Successful managers are able to maximize the utilization of human resources. They are leaders who understand the benefits of teamwork and consensus building inside and outside an organization’s operations. They recognize the importance of technology and information management in the decision-making process and the value of ethics and social responsibility in building and maintaining business relationships. And like entrepreneurs, successful managers know that the ability to discern and respond quickly to changing economic conditions and new business opportunities is crucial to remaining viable in the marketplace.
These revised standards therefore reflect:
an increased emphasis on the higher-level thinking skills required to successfully manage people and businesses,
a recognition of the role change management plays in today’s organizations,
an appreciation for the importance of ethical and corporate responsibility, and
the necessity of incorporating global perspectives in business today.
The standards outlined in this section provide a solid framework for helping businesses build a strong knowledge base and execute effective management skills. Mastery of these standards will help business owners lay the groundwork for managerial competence in the global marketplace.
I. Management Functions
Achievement Standard: Analyze the management functions and their implementation and integration within the business environment.
II. Management Theories
Achievement Standard: Analyze management theories and their application within the business environment.
III. Business Organization
Achievement Standard: Analyze the organization of a business.
IV. Personal Management Skills
Achievement Standard: Develop personal management skills to function effectively and efficiently in a business environment.
V. Ethics And Social Responsibility
Achievement Standard: Examine the role of ethics and social responsibility in decision making.
VI. Human Resource Management
Achievement Standard: Describe human resource functions and their importance to an organization’s successful operation.
VII. Organized Labor
Achievement Standard: Describe the role of organized labor and its influence on government and business.
VIII. Technology and Information Management
Achievement Standard: Utilize information and technology tools to conduct business effectively and efficiently.
IX. Industry Analysis
Achievement Standard: Analyze a business organization’s competitive position within the industry.
X. Financial Decision Making
Achievement Standard: Analyze financial data influenced by internal and external factors in order to make short-term and long-term decisions.
XI. Operations Management
Achievement Standard: Apply operations management principles and procedures to the design of an operations plan.
XII. Global Perspective
Achievement Standard: Examine the issues of corporate culture and managing in the global environment.
The National Better Business Association Accounting Standards
ACCOUNTING is the language of business and an integral aspect of all business activities. Mastery of fundamental accounting concepts, skills, and competencies is essential to making informed business decisions. Accounting principles prepares business owners to be educated business professionals and informed consumers.
The accounting standards reflect the importance of being able to understand, interpret, and use accounting information to make financial decisions. In particular, the standards focus on the ability to:
- read, interpret, and analyze financial information;
- apply generally accepted accounting principles;
- understand how the accounting system provides business information;
- recognize the various users of accounting information; and
- understand the dynamic nature of the business environment in which accounting information is used.
The accounting standards also focus on the skills and competencies to reach outstanding accounting ability. These skills include:
- strategic and critical thinking;
- risk analysis;
- problem solving and decision making;
- team work and leadership;
- the ability to employ and use technology; and
- an awareness of the legal and regulatory environment, with an emphasis on ethical responsibility.
The accounting standards identify the knowledge and skills appropriate for business owners to conduct outstanding business practice and are outlined below:
I. The Accounting Profession
Achievement Standard: Understand the role that accountants play in business and society.
Achievement Standard: Describe career opportunities in the accounting profession.
Achievement Standard: Demonstrate the skills and competencies required to be successful in the accounting profession and/or in an accounting-related career.
II. Financial Reports
Achievement Standard: Develop an understanding and working knowledge of an annual report and financial statements.
III. Financial Analysis
Achievement Standard: Assess the financial condition and operating results of a company and analyze and interpret financial statements and information to make informed business decisions.
IV. Accounting Applications
Achievement Standard: Identify and describe generally accepted accounting principles (GAAP), explain how the application of GAAP impacts the recording of financial transactions, and the preparation of financial statements.
V. Accounting Process
Achievement Standard: Complete the steps in the accounting cycle in order to prepare the financial statements.
VI. Interpretation and Use of Data
Achievement Standard: Use planning and control principles to evaluate the performance of an organization and apply differential analysis and present-value concepts to make decision.
Achievement Standard: Develop a working knowledge of individual income tax procedures and requirements to comply with tax laws and regulations.
National Better Business Association Marketing Standards
MARKETING is the processes and functions involved in providing products or services that meet consumers’ wants and needs. As a major business function, marketing impacts both the domestic and International economies.
Marketing exists within a dynamic environment of rapidly evolving technology and constant change, emerging interdependent nations and their economies, and increasing demands for ethical and social responsibility. These themes are fully developed and integrated within the major elements of marketing presented in these standards.
The development of new marketing technologies (for example, fingerprint authentication and loyalty cards) is having a profound effect on how marketing is conducted and on how marketing plans are created. Internet technologies in particular have allowed companies to use one-on-one advertising and promotion to customers who register with their Web sites. The global economy (and the influence of the emerging economies) is also changing marketers’ perceptions about the role culture plays in marketing products. Despite these changes, there are at least two major principles related to marketing that all business owners and companies should understand:
- General marketing concepts are important to everyone, because they impact individuals, business, and society.
- Even though marketing practices continue to change, the conceptual framework, which is built upon a consumer orientation, should not be noticeably altered.
I. Foundations of Marketing
Achievement Standard: Recognize the customer-oriented nature of marketing and analyze the impact of marketing activities on the individual, business, and society.
II. Consumers and Their Behavior
Achievement Standard: Analyze the characteristics, motivations, and behaviors of consumers.
III. External Factors
Achievement Standard: Analyze the influence of external factors on marketing.
IV. The Marketing Mix
Achievement Standard: Analyze the elements of the marketing mix, their interrelationships, and how they are used in the marketing process.
V. Marketing Research
Achievement Standard: Analyze the role of marketing research in decision making.
VI. The Marketing Plan
Achievement Standard: Describe the elements, design, and purposes of a marketing plan.
The National Better Business Association Communication Standards
THE AMERICAN ECONOMY is based on a private enterprise system in which the millions of individual choices made by consumers, workers, and citizens, in sum, affect the decisions made by business owners and government officials.
The preservation and effectiveness of such a system depends on the ability of individuals to make wise economic decisions related to their personal financial affairs, the successful operation of organizations, and the economic activities of the country. To make these informed decisions, individuals must understand how the system operates as well as their own role in the system.
The concepts contained in these standards are important for the successful management of personal financial and business activities. They link to basic economic concepts that all adults should master, such as the following:
- Scarcity, choice, and opportunity costs
- Supply and demand
- Economic systems, institutions, and incentives
- Exchange, money, and interdependence
- Markets, prices, and competition
- Supply and demand
- The roles of consumers, governments, and citizens
The growing emphasis on financial literacy has highlighted the need for adults to learn how to navigate the financial decisions they must make, and how to make informed decisions related to managing finances and budgeting, saving and investing, living independently, earning and reporting income, buying goods and services, using credit, banking, and protecting against risk. The standards have been updated to reflect this emphasis.
Knowing and understanding these concepts offers the necessary analytical tools for addressing economic issues, both personal and societal. Understanding economic principles and developing sound financial literacy skills provide the basis for responsible citizenship, financial solvency, and career success.
I. Foundations of Communication
Achievement Standard: Communicate in a clear, complete, concise, correct, and courteous manner on personal and professional levels.
II. Societal Communication
Achievement Standard: Apply basic social communication skills in personal and professional situations.
III. Workplace Communication
Achievement Standard: Incorporate appropriate leadership and supervision techniques, customer service strategies, and personal ethics standards to communicate effectively with various business constituencies.
IV. Technological Communication
Achievement Standard: Use technology to enhance the effectiveness of communication.