For every small business owners there must be a layout and
framework. We must have a clear bandwidth while setting up a
business unit, whether it is small or big The management must
be in such a way that it should generate enough return to satisfy
the expectations of investors. For every entity in order to
touch the highness of glory as well as strength must follow
some sound strategy.
There are certain management principles, which will give insight
as well as basic concepts for managing or running a small business
owners. The principles are listed below.
Specialization: - this refers to division of
work to individuals, in order to make then specialist in those
area. This will help to increase the productivity in relation
to the time deployment.
Authority: - this refers to the delegation
of appropriate authority to perform the responsibility assigned
by the management to the employees. There must be a balance
between transferred authority and assigned responsibility.
the over all environment must be well contained with discipline.
All employees must respect the command and follows the disciplinary
guidelines provided by the leaders. Management must be able
to deliver best leadership for the successful implementation
of discipline in the organization.
Unity of Command: -
there must be only one boss for one employee, or an employee
must be immediate only to one superior at a time. Otherwise
he will not be in a position to effectively exert his effort
in the job.
Unity of Direction: -
there must be only one goal for everyone who is engaged in the
same activities. This is an important principle to be followed
for bringing the unity and coordination in the organization.
Subordination of Individual interest: - this
refers to the surrender or sacrifice of individual preference
or likes or dislikes for the sake of common interest. Management
must give prime concern always to organizational goal.
Remuneration: - remuneration
must be given at par for everyone who are working effectively
and achieving their KRA in order to stimulate efficiency.
centralization or decentralization. Depending upon the nature
and condition of the business, activities must be centralized
or decentralized in order to achieve the quality of operation.
Line of Authority: - this
is also called scalar chain. A hierarchy must be maintained
for the effective flow of command. This will avoid bypassing
process in the organization and direction of command will come
from right point.
Order: - everything must be in its right place,
this will achieve the material order and thus can minimize lose
of time and inefficient usage of material. Social order is also
very important to be achieved and maintained through organization
and right selection.
Kindness & Justice: -
while running a small business owners capture of employees confidence
and commitment is prime. So must show kind and justice to them
while managing business operation.
Tenure of personnel: -
employees will be with organization if they get a feeling that
job is secured and career prospects are there. So business must
be managed in such a way so that less number of labor tenure
employee must be allowed to show their initiatives so that overall
organization strength can be achieved. Initiative taken by any
employee must be recognized and encouraged in such way so that
he must become role model for other employees.
Esprit De Corps: -
management must encourage the morale of employee. It is
very important to identify efficient talented workers and encourage
them through rewarding for their merits without jealous and
thus distribute harmonious relation inside the organization.
Elements of Business Management:-
Planning & Forecasting: -
Planning is the basic layout for any project or function. Without
which its impossible to built up a business empire because it
is the foundation. Forecasting of certain things under uncertain
condition has its own relevance in business management. Planning
and forecasting can be defined as the most important element
of business management.
all the operations must be well organized in such away so that
smoothness and rhythm of flow must be contained in the business.
proper command or instructions should be given at the right
time for the personnel to avoid waste of time and effort in
the business operation
Coordinating: - all
activities of every department should be coordinated in a better
way to achieve a sound management of small business owners activities.
It is very prime matter to analyze and control all the operations
of entire organization in order to make sure that everything
is taking place according to the instruction or command or rules
given by the management.
Business unit is an independent person having obligation towards
its investors or creditors to give enough return for their satisfaction
or interest. Business risk is a huge risk which every investor
or entrepreneur will understand and shoulder it for enjoying
the benefits of economic activities. Management must study the
nature of small business owners before they set up policies
for its operation.
So for every economic activity certain assumptions and concepts
1. small business assistance
THINGS TO CONSIDER WHILE BUYING A BUSINESSAn entrepreneur can start a business by starting a new business or by ...
2. small business network
SMALL BUSINESS AND ITS OPERATIONSSmall business enterprises are operating in all the countries across the world....
3. small business loan rate
SMALL BUSINESS ALSO REQUIRES FINANCEA person should not assume that the small business enterprises do not requir...