An Introduction To Small Business Management And Its Importance In Achieving Success

An Introduction To Small Business Management And Its Importance In Achieving Success

Owning a small business does not necessarily have to be a headache as long as there are effective management plans in place. There is no denying that management decisions have everything to do with the success of a business, its growth, the health of its environment, satisfaction and customer value.

For a business to become successful, the role of organizational business management is inevitable. It helps an organization to bring its employees on a common platform and work towards a shared goal.

What is Organizational Management?

The purpose of organizational management is to plan, organize, direct and control business functions in the most effective manner to accomplish realistic objectives. Simply put, organizational management is all about achieving organizational goals through human and capital resources.

Management principles, hence, apply to all organizations, be it large, small, profit or non-profit. Without a fundamental idea of how businesses are supposed to be managed, there will be no realistic expectation of success. A crucial note to remember is that the most common reason small businesses fail is a failure on management.

In order to successfully operate your small business and achieve its goals, you should possess an understanding of different management levels and skills.

Management Hierarchy

As your small business grows, management hierarchy is what may concern you. It is nothing but the layers of levels of management, including top or executive, first-line or supervisory and middle management. In order to ensure organizational success, there should be coordination of all levels.

  • Top Management

This level is concerned with guiding and controlling the overall success of a business and includes positions of CEO or the president, the chief marketing and financial officer and executive vice presidents. Executive managers are devoted to developing the mission, long-term plans and strategy of an organization, thereby setting its direction.

  • First-line or Supervisory Management

First-line management works directly with the ones responsible for producing and selling the services of a business. This particular group implements strategies introduced by middle management. They also supervise the activities of operating employees, motivating them, answering queries and solving issues. Office managers, section chiefs, supervisors, team leaders belong to this group.

  • Middle Management

This group is the most significant section of management and includes a position as plant manager, regional manager, branch manager, division head, project director and marketing manager. They are solely committed to developing detailed strategies and plans.

Management Skills

Management skill is the art of undertaking the process of accomplishing organizational goals by working with resources and people. The success of a business solely depends on how good your management skills are. An effective manager is one who has mastered the four basic types of skills, including technical, interpersonal, conceptual and decision making.

  • Technical Skills

A manager’s technical skill determines his or her ability to understand and leverage the techniques, knowledge, tools and equipment of a specific unit. Therefore, technical skills are especially vital for first-line managers.

  • Interpersonal Skills

It includes the ability to motivate, lead and communicate with employees to finish a project. Ideally, middle managers are expected to have interpersonal skills.

  • Conceptual Skills

With conceptual skills, a manager is able to see an organization as a unified whole. They understand how various units of the overall organization interacts with each other. Top managers should possess this skill.

  • Decision-Making Skills

This management skill determines a person’s ability to make decisions after identifying a problem or opportunity. A good manager must have decision-making skills to come up with alternative solutions when there is an issue, implement a solution and evaluate its outcomes.

Making decisions is never easy; however, it determines the success of a small business. Decisions that are based on knowledge and reasoning skills can curve the path to success for an organization.

Final Thoughts

Establishing effective organizational management is necessary to pursue and achieve goals. Business leaders should be clear about organizational goals and take definitive measures to implement procedures that help businesses in attaining the goals. In order for organizations to become successful, you have to manage individuals to adapt to change. Whether it is an organizational redesign or performance management, bringing new systems is the recipe for success. However, adapting to change is not always easy. It takes the best change management practices to be adopted in order to get individuals to come to terms with the change.

At KW Productions, we believe that management is a secret weapon for your business. In order for your management practices to be successful, it is necessary that you measure them first. Assessing the effectiveness of management through tools is the only way to bring success to the table. So why not work with us if you are willing to use tools to evaluate the efficacy of your management skills?