It is a power point about how can a small business managed

1. Managing Small
Business

2. Different Stages of Small
Business
 First Stage:
 Second Stage:
 Third Stage:
Owner-Manager-Worker
Owner-Manager
Owner -Workers
Owner-Manager
Workers
Owner
Manager
Workers

3. Management Function and
Their Applicability
Planning Organizing
Staffing Directing
Controlling

4. Cause of failure as a small business
manager
Personal characteristics
 . Exhibits exaggerated opinion of business
competency based on knowledge of some skill .
 .Orientated to past, ignores future.
 . Limited formal education.
 . Inflexible to change and not innovative.
 . Uses own personal taste and opinion as standard to
follow.
 . Dose little reading in literature associated with
business.
 . Resists advice from qualified sources but ,
paradoxically, accepts it from the least qualified.

5. Managerial deficiencies
 Cannot identify target market or target
customers.
 Cannot delineate trading area.
 Dose not plan.
 Cannot delegate.
 Believes advertising is an expense not an
investment.
 Only rudimentary knowledge of pricing policy
and strategy.
 Immature understanding of distribution
channels.
 Believes problems not his marking and a loan
would solve everything.

6. Finding Right Man for the
Right Position
 Job analysis
 Job description
 Job specification
Stages of finding right person:
1. Define the duties and responsibilities of the
position to be filled in and the skills,
knowledge, and experience required for meet
them.
2. Finding and attracting those people who
have the set qualifications for the position.
3. Screening the candidates to identify the most
promising and then hiring them

7.  Involve other key employee in the hiring process such as employee
who have a stake in the success or failure of the job.
 Never interview a candidate without first preparing a written job
description. The good interviewees will want to know exactly what
the job entails.
 The interviewing process is an extended meeting over an extended
period of time.
 The candidate will be both talking and listening during the course of
the interview.
 Look for a match in such issues as ethics, principled, and values,
especially when hiring staff employees.
 Listen carefully, then dissect the applicant’s questions.
 Be cautions of ex-government or ex-fortune employees. They are
accustomed to working in an environment light years from that of
small businesses.
 Look close to home first, and when in doubt, hire the insider.
Insiders require less training.
 Remember, the job you are offering isn’t the only opportunity in
town. If the candidate is a potential superstar, he or she will have
other options in addition to yours.

8.  The stronger the candidate, the more difficult he or she
will be to accept the job offer & sign.
 Don’t trust the candidate’s references, they are usually
friends. Take notes during the course of the interview and
look for clues to these non-resume references.
 Employees are the most expensive item and a great deal
of time and consideration should be given to selecting,
training, and supervising them.
 Promote employees as much as possible, but keep the
policy be flexible.
 Although employees need more than wages to be
contented, money is most important.
 To work well, any wage plan must be easy to understand
and must be fair both employer and employee.
 In addition to wages, Employees might receive bonuses,
discounts on purchases/sales, vacations, and sick leave
with pay.
 Installed pension schemes that have proved useful in
reducing employee turnover and building store morale.

9. Management Style- X,Y,Z
Theories
Theory X Theory Y Theory Z
1.Employees dislike work and
will try to avoid it.
1.Employees view work as a
natural part of life.
1.Employee involvement is
the key to increased
productivity.
2. Employees prefer to be
controlled and directed.
2. Employees prefer
limited control and
direction.
2. Employee control is
implied and informal.
3. Employees seek
security, not responsibility
3. Employees will seek
responsibility under proper
work condition.
3. Employees prefer to share
responsibility and decision
making.
4. Employees must be
intimidated by managers to
perform.
4. Employees perform better
in work environments that are
non-intimidating.
4. Employees perform better
in environments that foster
trust and cooperation.
5. Employees are
motivated by financial
rewards.
5. Employees are
motivated by many
different needs.
5. Employees need
guaranteed employment and
accept slow evaluations and
promotions.
6, Employee have little
ambition.
6. Employees crave
responsibility.
6. Employees desire
moderate responsibility.

10. Maslow’s Hierarchy of Needs
for Motivation
Self-actualization
Esteem
Belongingness and Love
Safety and Security
Physiological

11. Enter the entrepreneur-turned-
motivator
 The organization chart: Employees need to know where
they stand today and where they can potentially stand
tomorrow if they chose to expend the effort.
 Job descriptions: Employees need to know what is
expected of them.
 Compensation plans: Employees need to be
compensated. Compensation plans should be designed to
motivate as well as to reward.
 Accountability: Employees must be held accountable to
achieve those goals.
 Performance review: Employees need feedback on their
ongoing performance.
 Goal Setting: Employees need defined goals to pursue.
 Negative reinforcement: Sometimes the bleeding must
stop. Think about it, if our machinery squeaks, we oil it.