Chapter 19: Professional Management and the Small Business Flashcards
Leadership involves
Pointing the way and getting others to follow willingly
What is the first task of the small business owner?
To create and communicate a vision for the company
An entrepreneur is a _______ who enlists others to work with him or her in a creative endeavor
Trailblazer
What is one of the most important traits of an entrepreneur?
Tolerance for ambiguity
Entrepreneurs must be
adaptable
What makes a leader effective?
Having the ability to take charge and inspire others to follow one’s lead
Effective leadership is based on this
A focus on reaching business goals
Effective leaders shift fluid between these leadership styles
Visionary
Coaching
Affiliative
Democratic
Effective leaders make very limited but skillful use of these leadership styles
Pacesetting
Commanding
This leadership style mobilizes people toward a shared vision
Visionary leaders
This leadership style develops people by establishing a relationship and trust
Coaching Leaders
This leadership style promotes emotional bonds and organizational harmony
Affiliative leaders
This leadership style builds a consensus through participitation
Democratic leaders
This leadership style sets challenging and exciting standards and expect excellence
Pacesetting Leaders
This leadership style demands immediate compliance
Commanding leaders
The authorization of employees to make decisions or take actions on their own is known as
Empowerment
Groups of employees with freedom to function without direct supervision but with responsibility for results is known as
Self-Managed Work Teams
New employees should be hired based on
their attitude, style, and fir with the personality of the company
The most important thing is that there’s
A culture you believe in and are willing to hire and fire based upon
Every leader should strive to incorporate this into the organizational culture
A positive, can do attitude
A manager who uses systematic, analytical methods of management is known as a
Professional manager
Entrepreneurs who rely heavily on past experience, rules of thumb, and personal whims in giving direction to their business
Less Developed end of skilled entrepreneurs
Analytical and systematic in dealing with management problems and issues; emphasizes getting the facts and working out logical solutions; methodical in nature
More sophisticated approach
The challenge for small firm leaders
To develop a professional approach while still retaining the entrepreneurial spirit of the enterprise
Small enterprises seem particularly vulnerable to this weakness
Poor management
What are small business owners constrained by?
Small bank accounts and limited staff
As a firm grows, what will need to be adjusted?
The organizational structure and pattern
Stage 1 of organizational growth is
Simply a one person operation
Stage 2 of organizational growth is
the entrepreneur becomes a player-coach
Implies continuing active participation in business operations
Stage 3 of organizational growth is
An intermediate level of supervision is added
The entrepreneur must now rise above direct hands on management and work through an intervening level of management
Stage 4 of organizational growth is
A formalized level of management
A firm’s overall plan for the future is the
Long Range plan
A plan that governs a firms operations for one year or less
Short-Range plan
A document that expresses future plans in monetary terms
Budget
How is planning beneficial?
Helps develop a plan to deal with issues confronting a company
Provides focus for a firm
Evidence increases credibility with bankers, suppliers, and other outsiders
In very small companies, how does the organizational structure tend to develop?
With little conscious planning
The official vertical channel of communication in an organization
Chain of command
This is not advisible
Strict adherence to the chain of command
This could be considered undermining to the position of the bypassed manager
Frequent and flagrant disregard for the chain of command
A simple organizational structure in which each person reports to one supervisor is known as
Line organization
An organizational structure that includes staff specialists who assist management is known as
Line-And-Staff Organization
The number of employees who are supervised by a manager is known as the
Span of Control
The optimal span of control is a variable that depends on
Nature of the work
Manager’s knowledge, energy, personality, and abilities
Granting a subordinate the right to act or make decisions on their own is known as
Delegation of authority
The control process begins with the establishment of
standards
Planners translate goals into
norms
Correction action is required when performance deviates significantly from the standard in
an unfavorable direction
This is key to a healthy organization
Effective communication
This is crucial to small business success
Effective Staff communication
This is the primary tool for establishing good human relations
Positive feedback to employees
This contributes greatly to good communication
An atmosphere of trust and respect
What are some ways to stimulate two-way communication in your enterprise?
Performance review sessions Bulletin boards Blogs Microblogging tools Suggestions boxes Wikis Formal Staff meetings Breakfast or lunch with employees
The process of developing workable solutions through discussions or interactions is known as
Negotiation
3 C’s of service of the U.S. Small Business Administration
Capital
Contracts
Counseling
An ABS sponsored group of retired executives who give free advice to small business owners
Service Corps of Retired Executives
University affiliated centers offering consulting, education, and other support to small business owners
Small Business Development Centers
Teams of upper class and graduate students who, under the direction of a faculty member, work with owners of small ventures in analyzing their business problems and propose appropriate solutions to them
Educational Institutions
The process of developing and engaging in mutually beneficial informal relationships
Networking
