Term
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Definition
*Involves pointing the way: creating and communicating the entrepreneur’s vision of the business.
*Varies in a business as it grows larger and more mature. |
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Term
| Leadership Qualities of Founders |
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Definition
*A tolerance for ambiguity (uncertainty)
*A capacity for adaptation |
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Term
| What Makes a Leader Effective? |
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Definition
*One who is focused intently on attaining the organisation’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 business operates (e.g., its ethics).
*One who makes the business attractive to new employees. |
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Term
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Definition
1. The visionary mobilizes people toward a shared vision.
2. The coach develops people by establishing a relationship and trust.
3. The team builder promotes emotional bonds and organizational harmony.
4. The populist builds consensus through participation.
5. The paragon sets challenging and exciting standards and expects excellence.
6. The general demands immediate compliance. |
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Term
| How leaders Shape the Culture of the Organisation |
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Definition
*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 business |
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Term
| Issues in the Management of Small Businesses |
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Definition
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Term
| Organisational stages of small business growth |
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Definition
Stage 1 : One person operation -Doing all of the work. Making contact with customers.
Stage 2 : Player coach operation -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 Organisation -Using plans and budgets; following policies and procedures. |
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Term
| Managerial responsibilities of entrepreneurs |
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Definition
*Planning activities – use of a business plan and becoming more systematic
*Long-range or strategic plan – overall plan for the future
*Short-range plans – governs a business’s operations for one year or a shorter period
*Budget – official, vertical channel of communication in an organization |
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Term
| Creating an Organisational Structure |
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Definition
*The Unplanned Structure
-Structure evolves as the business evolves.
-Growth creates the need for structural change.
*Chain of Command
-The official, vertical channel of communication in an organisation
-A channel for two-way communication
*Line Organisation
-A simple organisation in which each person reports to one supervisor
*Line and Staff Organisation
-An organisational structure that includes staff specialists who assist management
*Line activities
-Activities contributing directly to the primary objectives of the business
*Staff activities
-Activities that support line activities
*Span of Control
-The number of subordinates supervised by one manager |
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Term
| Line-and-Staff Organisation |
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Definition
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Term
| Factors Determining Optimum Span of Control |
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Definition
*Few Subordinates
-Complex work
-Inexperienced workers
-Superior with limited ability
*More Subordinates
-Moderately difficult work
-Moderately experienced workers
-Superior with moderate ability
*Many Subordinates
-Simple work
-Very experienced workers
-Superior with much ability |
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Term
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Definition
*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
*Suggestions to ease the transition:
-Accept the fact that you no longer make all the decisions
-Prepare yourself emotionally for the loss of control
-Manage process of finding, selecting, hiring and retaining employees who are trustworthy to handle responsibility
-Move forwards one step at a time by delegating functions you are most comfortable with
-Plan to invest time to coach those who are taking over new responsibilities (through writing job descriptions)
-Make delegation meaningful. Focus on results, give employees flexibility to carry out assignments |
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Term
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Definition
Planning and Goal Setting
Establishing standards
Measuring Performance
Taking Corrective Action |
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Term
| Stages of the Control Process |
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Definition
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Term
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Definition
*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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Term
| Source of Management Assistance |
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Definition
*Entrepreneurial Networks
*Small Business Development Centers (SBDCs)
*Management Consultants
*Other Business and Professional Services |
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Term
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Definition
*Benefits of mentorship
*The mentoring process
-Observation
-Participation -
-Conducting
*A willingness to learn
*Small Business Networks – from peers
*Business and Professional Services – from other business and professional groups (bankers, CAs, financial advisors, suppliers, trade associations, and chambers of commerce |
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