Professional Management in the Growing Firm part 6 Small Business Management 18 Professional Management in the Growing Firm PowerPoint Presentation by Charlie Cook 12e Copyright © 2003 South-Western College Publishing. All rights reserved.
Firm Growth and Management Copyright © by South-Western College Publishing. All rights reserved.
Intermediate Supervision Managing Versus Doing STAGE 1 STAGE 2 STAGE 3 STAGE 4 One-Person Operation Player-Coach Intermediate Supervision Formal Organization Time spent managing Time spent doing Copyright © by South-Western College Publishing. All rights reserved.
The Manager as Negotiator Negotiation Two-way communication used to resolve differences in needs, goals, or ideas. Win-lose negotiations One party must win and the other party must lose. Win-win negotiations Both parties find a solution that satisfies both parties’ basic interests. End result of negotiations promotes long-term continuing relationships. Copyright © by South-Western College Publishing. All rights reserved.
Leading and Motivation Personal Involvement of the Entrepreneur Creates a significant personal relationship with employees based on loyalty and respect. Directly influences employees’ understanding of how the firm operates (e.g., its ethics). Makes the firm attractive to new employees. Copyright © by South-Western College Publishing. All rights reserved.
Leading and Motivation (cont’d) Leadership That Builds Enthusiasm Empowerment Giving employees authority to make decisions or take actions on their own Work teams Groups of self-managed employees with the freedom to function without close supervision Benefits Workers are more satisfied with their working environment Productivity and profitability are enhanced Copyright © by South-Western College Publishing. All rights reserved.
Effective Communication Stimulating Two-Way Communication Conduct periodic performance review sessions to get employee feedback Use bulletin boards to keep employees informed about developments affecting them Make suggestion boxes available to solicit employees’ ideas Hold staff meetings to discuss current issues and problems Copyright © by South-Western College Publishing. All rights reserved.
Creating Organizational Structure Structure of the Firm Structure evolves as the firm evolves. Growth creates the need for structural change Chain of Command The official, vertical channel of communication in an organization. Unity of Command A situation in which each employee’s instructions come directly from only one immediate supervisor Entrepreneurs’ personal relationships with employees creates problems in complying with the chain and the unity of command in their firms. Copyright © by South-Western College Publishing. All rights reserved.
Creating Organizational Structure Line organization A simple organization in which each person reports to one supervisor. Line and staff organization An organizational structure that includes staff specialists who assist management. Line activities Activities contributing directly to the primary objectives of the firm. Staff activities Activities that support line activities Copyright © by South-Western College Publishing. All rights reserved.
Delegation of Authority Granting to a subordinate the right to act or make decisions Benefits of delegation Frees up superior to perform more important tasks Develops subordinate’s skills Improves two-way communications Copyright © by South-Western College Publishing. All rights reserved.
Exercising Control Planning and Goal Setting Establishing standards Measuring Performance Taking Corrective Action Copyright © by South-Western College Publishing. All rights reserved.