Small Business Discussion Board 11

Small Business Discussion Board 11

Please read Chapters 19 & 20 – Professional Management & the Small Business and Managing Human Resources and complete the following discussion assignment.

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Both of the chapters assigned for this week contain content essential for the success of a small business. Using terms and concepts from the assigned reading, please review the concepts of good leadership from Chapter 19 as they relate to the selection, development, and retention of good employees discussed in Chapter 20.

Please also discuss the traits of a good leader, and provide examples from your own experience or examples you find through research of good leadership.

Small Business Management, 18e

Longenecker/Petty/Palich/Hoy

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Professional Management and

the Small Business

Chapter 19

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Learning Goals:

 Understand the entrepreneur’s leadership

role.

 Explain the small business management

process and its unique features.

 Identify the managerial tasks of

entrepreneurs.

 Describe the problem of time pressure and

suggest solutions.

 Outline the various types of outside

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Small Business Leadership

 What is Leadership?

Involves pointing the way: creating and

communicating the entrepreneur’s vision of

the firm.

Varies in a business as it grows larger and

more mature.

 Leadership Qualities of Founders

A tolerance for ambiguity

A capacity for adaptation

19–4

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Small Business Leadership

(cont.)  What Makes a Leader Effective?

One who is focused intently on attaining the

firm’s business goals.

One who creates a significant personal

relationship with employees based on loyalty

and respect.

One who directly influences employees’

understanding of how the firm operates (e.g.,

its ethics).

One who makes the firm attractive to new

employees. 19–5© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed

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Small Business Leadership (cont’d)

 Leaders Shape the Culture of the Organization

Empowerment

Giving employees authority to make decisions and take

actions on their own

Self-Managed Work teams

Groups of employees with the freedom to function

without close supervision

Working environment

Workers are affected by their surroundings

Good Hiring

Employees who fit the personality of the firm 19–6

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The Small Firm Management Process

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Professional-Level

Management

Managerial

Weakness Issues in the

Management

of Small Firms

Resource

Constraints

Firm Growth and

Managerial

Practices

Founders as

Managers

 

 

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Organizational Stages of Small Business Growth19.1

 

 

Stages in Firm Growth and Management

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Growth Stage Entrepreneur’s Workload

Stage 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.

 

 

Managing Versus Doing

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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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Creating an Organizational Structure

 The Unplanned Structure

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

A channel for two-way communication

 Span of Control

The number of subordinates supervised by one

manager 19–11

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Creating Structure (cont.)

 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

19–12

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Creating Structure (cont.)

 Line and Staff Organization (cont.)

Line activities

Activities contributing directly to the primary

objectives of the firm

Staff activities

Activities that support line activities

19–13

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Line-and-Staff Organization19.2

 

 

Factors Determining Optimum Span of Control

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Many Subordinates Simple work

Very experienced workers

Superior with much ability

Few Subordinates Complex work

Inexperienced workers

Superior with limited ability

More Subordinates Moderately difficult work

Moderately experienced workers

Superior with moderate ability

 

 

Creating Structure (cont.)

 Understanding Informal Groups

Have something in common.

Have an informal leadership hierarchy.

Are beneficial if group goals are aligned with

organizational goals.

19–16

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Delegating Authority

 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

19–17

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part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

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Controlling Operations

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Measuring

Performance

Establishing

standards

Planning and

Goal Setting

Taking Corrective

Action

 

 

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Stages of the Control Process19.3

 

 

Communicating

 Stimulating Two-Way Communication

 Periodic performance review sessions for

feedback.

 Bulletin boards to keep employees informed.

 Blogs, microblogs and wikis for internal

communication

 Suggestion boxes to solicit employees’ ideas.

 Staff meetings to discuss issues and problems.

 Informal meetings with employees

to socialize and talk.

19–20

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part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

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Presentation Tips

1. Do your homework.

2. Know your material.

3. Be interactive.

4. Make vivid mental connections in the minds of listeners.

5. Emphasize relevance.

6. Be dynamic, but be yourself.

7. Use PowerPoint with care.

8. Dress appropriately.

9. Avoid food and drink that make speaking difficult for you.

10. Practice, practice, practice.

19.4

 

 

Negotiating

 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.

19–22

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part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

 

 

Personal Time Management

 The Problem of Time Pressure

Many owner-managers work 40-80 hours per

week.

Effect of overwork is inefficient work

performance.

19–23

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part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

 

 

Personal Time Management

(cont.)

 Time Savers for Busy Managers

Effective use of time (time management)

Analyze how time is normally spent

Eliminate practices that waste time

Carefully plan available time

Use a daily planner to prioritize activities

Don’t avoid unpleasant or difficult tasks

Limit conference and meeting times

19–24

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part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

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Outside Management Assistance

 The Need for Outside Assistance

To supplement entrepreneur’s personal knowledge

and experience.

To provide opportunities to share ideas with peers.

To reduce feelings of loneliness and working in

isolation.

To have access to outsiders’ detached, objective

viewpoints, insights and ideas.

To gain fresh knowledge of methods, approaches,

and solutions beyond the experience of the

entrepreneur. 19–25

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Sources of Management Assistance

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Business

Incubators

Student

Consulting

Teams

Service Corps of

Retired Executives

(SCORE)

Small Business

Development

Centers (SBDCs)

Management

Consultants

Entrepreneurial

Networks

Other Business

and Professional

Services

Source of

Outside

Management

Assistance

 

 

Key Terms

budget

chain of command

delegation of authority

empowerment

line-and-staff organization

line organization

long-range plan (strategic

plan)

negotiation

networking

professional manager

self-managed work teams

Service Corps of Retired

Executives (SCORE)

short-range plan

small business development

centers (SBDCs)

span of control

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