SMALLBUSINESS MANAGEMENT
Professional Control in the Business Company
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Looking AHEAD
1. Talk about the entrepreneur’s management part.
2. Explain the unique popular features of small company control.
3. Identify the managing projects of business owners.
4. Describe the problem of time stress and recommend alternatives.
5. Explain the various types of outside control support.
After you have read this chapter, you should be able to:
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Entrepreneurial Leadership• What is Leadership?
Includes directing the way: developing and interacting the entrepreneur’s perspective of the firm
Varies in a profitable business as it develops bigger and old.
Leadership Qualities of Founders A tolerance for ambiguity A capacity for adaptation
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Entrepreneurial Leadership (cont’d)• What Makes an Effective Leader?
One who directly effects employees’ understanding of how the organization features (e.g., its ethics).
One who makes the organization eye-catching to new employees.
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Entrepreneurial Leadership (cont’d)• Leadership Styles
1. Coercive management demand immediate conformity.
2. Authoritative management muster individuals toward a vision.
3. Affiliative management create emotional ties.
4. Democratic management build agreement.
5. Pacesetting management set high requirements and expect quality.
6. Coaching management develop individuals.
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Entrepreneurial Leadership (cont’d)• Leadership That Builds Enthusiasm
Empowerment Giving employees power to make choices or take
activities on their own Work teams:- Groups of self-managed employees with the
opportunity to operate without close supervision Benefits Workers are happier with their workplace. Productivity and efficiency are improved.
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Steps to a Positive Attitude18-1
1.Identify achievements at the end of each day.
2.At the near of business, devote serious amounts of set objectives for the next day.
3.Take proper care of yourself. 4.Spend time with buddies who are high
energy. 5.Imagine your way to achievements. 6.Use ideas of failing as an indication to
make your interest back to accomplishment.
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Unique Features of Small Company Management
Professional-Level
Management
Managerial WeaknessManagement
of Small Firms
Resource Constraints
Firm Growth and Managerial
Practices
Founders asManagers
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Business Levels of Little Business Growth18-2
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Procedures in Company Growth and Management
Growth Stage Entrepreneur’s WorkloadStage 1. One-Person Operation
Doing all of the work. Making contact with customers.
Stage 2. Player-Coach Continuing to do some of the basic work, although learning to hire and supervise.
Stage 3. Intermediate Supervision
Rising above hands-on management; working through intermediate managers.
Stage 4. Formal Organization
Using plans and budgets; following policies and procedures.
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Handling Compared to Doing
STAGE 1 STAGE 2 STAGE 3 STAGE 4One-PersonOperation
Player-Coach IntermediateSupervision
FormalOrganization
Time spent managing Time spent doing
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Managing Projects of Entrepreneurs
Creating an Organizational
Structure
ControllingOperations
Planning Activities
Leading and Delegating
Entrepreneurial Management
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Preparing Activities• The Advantages of Official Planning• Improved productivity• Better concentrate on objective attainment• Increased reliability with stakeholders• Planning Time• “Tyranny of the urgent”• Planning needs discipline• Planning should not be postponed• Employee Participation• Employees are an outstanding preparing resource
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Planning Activities: Types of Plans
Type of Plan PurposeLong-range plan(strategic plan)
A firm’s overall plan for the future
Short-range plan A plan that governs a firm’s operations for one year or less
Budget A document that expresses future plans in monetary terms
Business policies Basic statements that provide guidance for managerial decision making
Procedures Specific work methods to be followed in business activities
Standard operating procedures
An established method of conducting a business activity
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Developing an Business Structure• The Amazing Structure• Structure improvements as the company
improvements.• Growth produces the need for architectural modify.• Chain of Command• The formal, straight direction of relationships in an
organization• A direction for two-way communication• Span of Control• The number of employees monitored by one
manager
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Creating Organizational Structure (cont’d)• Range Organization• A easy company in which each individual reviews
to one supervisor• Line and Employees Organization• An business framework that contains staff
professionals who support management• Line activities• Activities adding straight to the main goals of the
firm• Staff activities• Activities that assistance line activities
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Line-and-Staff Organization18-3
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Factors Identifying The best possible Period of Control
Many SubordinatesSimple workVery experienced workersSuperior with much ability
Few SubordinatesComplex workInexperienced workersSuperior with limited ability
More SubordinatesModerately difficult workModerately experienced workersSuperior with moderate ability
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Creating Organizational Structure (cont’d)• Knowing Casual Groups
Have an casual management structure. Are valuable if team objectives are arranged with
business goals.
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Delegating Authority• Delegation of Authority
Allowing to a subordinate the right to act or create decisions
Benefits of delegationLiberates up excellent to execute a bigger factor tasksDevelops subordinate’s skillsImproves two-way communications
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Measuring Performance
Controlling Operations
Establishing standards
Planning and Goal Setting
Taking Corrective
Action
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Stages of the Control Process18-4
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Communicating• Exciting Two-Way Communication• Perform regular efficiency review classes to get
worker reviews.Use forums to keep workers informed.Use recommendation containers to obtain employees’
ideas.Hold staff conferences to talk about issues and
problems.Hold casual conferences with
employees to interact socially and talk.
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Negotiating• Negotiation
Two-way interaction used to eliminate variations in needs, objectives, or ideas.
Win-lose negotiationsOne celebration must win and the other celebration
must reduce.Win-win negotiationsBoth events take action that meets both parties’ basic
passions.End result of discussions encourages
long-term ongoing connections.
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Presentation Tips18-5
1. Do your preparation.2. Know your material “spot on.”3. Be entertaining.4. Make stunning mental relationships in the thoughts
of audience.5. Emphasize importance.6. Be powerful, but be yourself.7. Use PowerPoint with care.8. Dress properly.9. Avoid refreshments that create speaking difficult for
you.10. Practice, exercise, exercise.
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Personal Time Management• The Issue of Time Pressure• Many owner-managers perform 60-80 time weekly.• Effect of overwork is ineffective perform performance.• Time Savers for Busy Managers
Effective use of time (time management)Evaluate how time is normally spentEliminate methods that spend timeCarefully strategy available timeUse a everyday adviser to focus on activitiesDon’t prevent distressing or challenging tasksLimit conference and conference times
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Outside Management Assistance• The Need for Outside Assistance
To supplement entrepreneur’s personal expertise and data.
To provide opportunities to share concepts with colleagues.
To reduce feelings of solitude and working in solitude.
To have access to outsiders’ separated, objective opinions, ideas and concepts.
To gain fresh information of methods, approaches, and solutions beyond the information about the business owner.
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Outside Management Assistance
Business Incubators
Student Consulting
Teams
Service Corps of Retired Executives (SCORE)
Small Business
Development Centers (SBDCs)
Management Consultants
Entrepreneurial Networks
Other Business and Professional
ServicesSource of Outside
Management Assistance
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Services Provided by Business Incubators to New Firms18-6
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Key TERMS• empowerment• work teams• professional manager• long-range plan
(strategic plan)• short-range plan• budget• chain of command• line organization• line-and-staff organization
• period of control• delegation of authority• negotiation• Service Corps of
Outdated Professionals (SCORE)
• small company growth facilities (SBDCs)
• networking