1. 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.

2. Firm Growth and Management
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3. 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
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4. 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.
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5. 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.
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6. 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
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7. 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
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8. 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.
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9. 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
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10. 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
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11. Exercising Control Planning and Goal Setting Establishing standards
Measuring Performance
Taking Corrective Action
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