BAEB510 Chapter 6: Manage a Small Business

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BAEB510 Chapter 6: Manage a Small Business

  1. 1. BAEB501 : ENTREPRENEURSHIPCHAPTER 6:Management a Small Business © 2010 Cosmopoint
  2. 2. Chapter 6: Management a Small BusinessTopic Outlines 6.1 Introduction 6.2 Definition 6.3 Characteristics of a Small Business 6.4 Management Functions 6.5 Business Input 6.6 Business Vision, Mission, Goals & Objective 6.7 Planning 6.8 Organizing 6.9 Leading 6.10 Controlling 6.11 Organization 6.12 Organizational Principles 6.13 Organizational Structure 6.14 Personnel Planning 6.15 Recruitment Process 6.16 Retaining Employees © 2010 Cosmopoint Slide 2 of [11]
  3. 3. Chapter 6: Management a Small BusinessLearning Outcomes  After completing this chapter, student should be able to:  Explain the elements to manage a small business  Understand the elements in managing a small business.  Manage your own business. © 2010 Cosmopoint Slide 3 of [11] Topics
  4. 4. Chapter 6: Management a Small Business6.1 Introduction  The importance of small and medium-sized businesses in helping the economic development of our nation cannot be refuted.  Creating a job opportunities  SMEs play a crucial role in contributing to the prosperity of big and multinational corporations. © 2010 Cosmopoint Slide 4 of [11] Topics
  5. 5. Chapter 6: Management a Small Business6.2 Definition  A small sized business is: “A business establishment with an annual sales turnover of not more than RM10 million and which employs not more than 50 full time workers”. © 2010 Cosmopoint Slide 5 of [11] Topics
  6. 6. Chapter 6: Management a Small Business6.3 Characteristics of a Small Business  Ownership – Privately owned by individual or partners, typically registered as a sole proprietorship, partnership or private limited company.  Management – The business is managed ad operated by the owner (s).  Resources - A small business often has limited resources.  Organizational Structure – For a small business, the structure is often flat and informal.  Flexibility of Change – more flexibility to adapt to changes, vulnerable to development in the business environment. © 2010 Cosmopoint Slide 6 of [11] Topics
  7. 7. Chapter 6: Management a Small Business6.4 Management Functions  Management functions refer to the activities of planning , organizing, leading and controlling of business input.  What is business input?  Business input refers to the resources required to operate a business activity. These include capital, manpower, technology, and raw materials. © 2010 Cosmopoint Slide 7 of [11] Topics
  8. 8. Chapter 6: Management a Small Business6.5 Business Input © 2010 Cosmopoint Slide 8 of [11] Topics
  9. 9. Chapter 6: Management a Small Business6.6 Business Vision, Mission, Goals & Objective  Business Vision. The vision is the long term goal of the business. It is often stated in terms of a value statement announcing where the business wants to go or what it aspires to be.  Business Mission. A mission is a statement of purpose or the reason for existence. It establishes the identity of the business and what it does. It defines long-term goals of the company but in a specified time frame.  Business Goals/Objectives. Business goals or objectives support the achievement of a business mission and vision. They are more specific, stated in a shorter term and have a definite time frame. A good business objective should be specific, measurable, achievable, realistic and have a time frame. © 2010 Cosmopoint Slide 9 of [11] Topics
  10. 10. Chapter 6: Management a Small Business6.7 Planning  Planning covers the activity of formulating company’s policy and procedure to ensure the attainment of business mission and objectives through the most effective and efficient means.  To determine his business mission and objectives and device a workable strategy to achieve them . © 2010 Cosmopoint Slide 10 of [11] Topics
  11. 11. Chapter 6: Management a Small Business6.8 Organizing  The word organize means “to properly arrange”.  Refers to the activities of designing and organizational structure, dividing and assigning jobs and tasks among departments, sections, or units besides handling the infrastructure and operation methods. © 2010 Cosmopoint Slide 11 of [11] Topics
  12. 12. Chapter 6: Management a Small Business6.9 Leading  The act of getting the job done through other people is referred to in managerial functions as leading.  Leading involves:  Assigning of jobs and responsibilities  Motivating employees  Providing and receiving feedback © 2010 Cosmopoint Slide 12 of [11] Topics
  13. 13. Chapter 6: Management a Small Business6.10 Controlling  Controlling is monitoring function to ensure that activities carried out are on the right track in achieving the goals set out by the business.  Should not be viewed as restricting personnel activities, initiative or creativity.  Ongoing function that should not be put off towards the end of the project. © 2010 Cosmopoint Slide 13 of [11] Topics
  14. 14. Chapter 6: Management a Small Business6.11 Organization  What is organization?  An organization is a social unit which comprises people performing different tasks in a coordinated manner in order to achieve organizational goals. © 2010 Cosmopoint Slide 14 of [11] Topics
  15. 15. Chapter 6: Management a Small Business6.12 Organizational Principles  Organizational principles consists of the following:  Division of Work  Authority and Responsibility  Unity of Command  Span of Control  Delegation of Authority and Responsibility © 2010 Cosmopoint Slide 15 of [11] Topics
  16. 16. Chapter 6: Management a Small Business6.13 Organizational Structure  An organizational structure is essential so that every individual in an organization can be assigned a specific task and responsibility.  Most effective and commonly used organizational structure in a small business is the line structure. © 2010 Cosmopoint Slide 16 of [11] Topics
  17. 17. Chapter 6: Management a Small Business6.13 Organizational Structure © 2010 Cosmopoint Slide 17 of [11] Topics
  18. 18. Chapter 6: Management a Small Business6.13 Organizational Structure © 2010 Cosmopoint Slide 18 of [11] Topics
  19. 19. Chapter 6: Management a Small Business6.14 Personnel Planning  There are 3 basics things prepared by a manager:  Job Analysis  A systematic process to identify tasks and determine skills and knowledge required to perform a job.  Job Description  A written statement outlining a given job  Job Specification  Detailed in the form of job description © 2010 Cosmopoint Slide 19 of [11] Topics
  20. 20. Chapter 6: Management a Small Business6.15 Recruitment Process  There are 3 tasks involve in selection process:  Job Application Form  Job Interview  Selection Tests © 2010 Cosmopoint Slide 20 of [11] Topics
  21. 21. Chapter 6: Management a Small Business6.16 Retaining Employees  How to retain your employees?  There are several ways to retain your employees:  Compensation  Salary  Wages  Sales Commission  Contribution to the Employees Provident Fund (EPF)  Contribution to the Social Security Organization (SOCSO)  Allowances © 2010 Cosmopoint Slide 21 of [11] Topics

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