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The management of a small business is really the same as the management of a large one. Discuss with examples.

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Introduction

The management of a small business is really the same as the management of a large one. Discuss with examples. Management is extremely important in any type of an organisation whether small, medium or large. By achieving good and effective management it is therefore possible for an organisation to meet its objectives and become well established. In order to differentiate between the management of a small business and the management of a large business many issues need to be taken in to consideration such as the role of a manager, leadership skill, communication flow, different styles of managements, organisation's structure, cultures and so on. This essay will explore the factors, which affect a manager illustrating whether or not the management of a small business is really the same as the management of a large one. The success of a business will rely largely on the managerial skills of the owner or management. Management consists of five main factors; planning, organizing, staffing, directing and controlling.1 Firstly a manager must set goals, sub goals and strategies for the business irrespective of the size. Secondly one must organize, this may include deciding on tasks, delegating tasks to employees and purchasing products etc. Managers need to employ, train, promote, demote and deploy his/her employees; therefore one must also consider individual differences. ...read more.

Middle

Blake and Mouton have stated that managers may switch from different styles of management or a combination of styles.7 However it was also found that managers have one dominant style which is used more than the other styles unless in any particular situation their styles doesn't work they switch to their backup style. Team management is the ideal style for a small and large business organisation, these managers have great concern for both the people and production, motivating employees to reach their highest level of performance and understanding the need for change, however this may be the ideal management style it is quite hard to achieve all this in a large business. In practice this type of management works better in small businesses as it has been proven that smaller businesses are more effective than larger companies by about 25 percent by training8. Authority and obedience management is a style which is more likely to be seen in large business organisations, managers are greatly concerned with production and not so much with the people desiring tight control to get tasks done efficiently and at high level of performance. There are many issues, which can influence the type of management styles, for example a manager may be inexperienced and therefore adopting either a very lenient or rigid style. ...read more.

Conclusion

Many of the larger organisations tend to be more formal such as, IBM however it is quite rare but there are a few informal organisations such as Apple Mackintosh, where the employees do not need to dress in suit and there is a more laissez-faire approach. This structure is very different to the structure of most small businesses in which there is a flatter chain of command. The less people there are in the business the more effective the management can be although the workload and pressure will increase. The styles of management differ in a small and large company. Team management seems to be a style adopted by small organisations whereas the larger organisation tends to follow the authority and obedience style. This is can also be illustrated by managements planning. Small companies do not see the need to plan for the long term for example in 5 years time because they might not be in business by then, therefore their approach is more focused on day to day operations. However the managers of a large business organisation find it extremely important to plan, and are very focused on strategic planning. Managers in both small and large businesses need to have leadership skill, the need to direct employees in the right direction therefore the tasks are performed at very high standards. It can therefore be concluded that the management of a small business is not really the same as the management of a large business. ...read more.

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