Its intent Is not to conduct a thorough review of studies analyzing the relationship between…
Managers require a range of skills to operate effectively now and Into the future. These skills include: interpersonal (people) communication strategic thinking vision problem solving and decision making flexibility and adaptability to change reconciling the conflicting Interests of stakeholders. Managers get their work done with and through other people; therefore, interpersonal (people) skills are extremely important. Such skills mean a manager can work and communicate with other people and understand their needs. People skills Include the ability to communicate, motivate, lead and Inspire.
Communication becomes more complex, however, particularly in a modern global business environment. It’s not just about what you say, it’s about how you say it and what medium you choose to get your message across. Managers who are effective communicators and who are able to share their thoughts and plans will find it easy to influence others. Strategic thinking allows a manager to see the business as a whole Strategic thinking therefore involves thinking about a business’s future direction and what future goals work and communicate with other people and to understand their needs.
Interpersonal skills include the ability to communicate, motivate, lead and inspire. Effective communication of business goals and the strategies to achieve them are crucial to achieving business success. Managers who are effective communicators and who are able to share their thoughts and plans will find it easy to influence others. Miscommunication is to be avoided because it can lead to serious harm to the business. It is important for managers to be aware of the power of nonverbal communication, especially body language.
Strategic management allows the manager to see the business as a whole and to take a broad, long-term view. Strategic thinking involves thinking about a business’s future direction and what future goals the business wants to achieve. Problem solving means finding and then implementing a course of action to correct an unworkable situation. Although managers have to deal with many problems in the course of a day, not all problems require such a systematic, formal process. One of the most important skills a manager can develop is the ability to decide which problem they should give their full attention.
Managers must be able to provide a vision as to where the business is headed and what it is trying to achieve. To share their vision with others and inspire them, managers will have to display effective leadership qualities. Leadership is the ability to influence people to set and achieve specific goals. Managers must be able to solve problems ? finding and then implementing a course of action to correct an unworkable situation. Managers must be able to make decisions ? identifying the options available and then choosing a specific course of action to solve the specific problem.
Managers must be flexible, adaptable and proactive rather than reactive. What are goals? People start a business because they want to achieve something: they have goals hey want to attain. A goal is a desired outcome (target) that an individual or business intends to achieve within a certain time frame. Success in achieving your goals is often determined by the amount of planning you undertake. Carefully prepared goals benefit managers by: serving as targets measuring sticks motivation commitment.
The best method of writing effective goals is by using the S. M. A. R. T. Technique. BUSINESS GOALS – FINANCIAL GOALS INCREASE MARKET SHARE Market share refers to the business’s share of the total industry sales for a particular product. In most industries, market share is usually a goal for only large businesses. Arrest, because small market gains often translate into large profits. One of the most successful strategies used to increase market share is promotion. MAXIMIZE GROWTH They can achieve growth internally (organically) or externally.
Internal growth could involve employing more people, increasing sales, introducing innovative products, purchasing new equipment or establishing more outlets. Merging with or acquiring other businesses achieves external growth. A merger occurs when two businesses join together to become one, e. G when the airline company Santa Joined with Jets Travel. Expansion can also take place through acquisition. Maximizing growth is not a goal that only large businesses can achieve. Many successful Seems have followed similar strategies and in the process expanded to become large businesses.
However, some small business owners are content to maintain the existing size of their business to: avoid the added pressures of expansion in a desire for a quiet life or a particular lifestyle keep control over the business’s operations maintain personal contact with the customers. SOCIAL GOALS All businesses operate within a community and, like individuals, have certain social responsibilities. Many businesses develop social goals and adopt strategies that will infinite the community, while achieving financial goals.
Community service: Business sponsorship of a wide range of community events, promotions and programs rapidly increased during the past decade. Many businesses financially support educational, cultural, sporting and welfare activities. ENVIRONMENTAL GOALS Raw materials used to produce the vast array of goods and services are shrinking at a frightening rate. The business’s water and power supplies are under increasing threat. There are four main financial goals a business attempts to achieve: maximize profits increase market share maximize growth increase share price.
Staff involvement means involving employees in the decision-making process and giving them the necessary skills and rewards. A work environment that maximizes Businesses should encourage an innovative business culture by recognizing and encouraging one of the most important sources of innovative ideas: employees. Motivation refers to the individual, internal process that directs, energies and sustains a person’s behavior. Individual employees respond differently to various motivational techniques. Good managers should also be good motivators, encouraging employees and using positive reinforcement to influence behavior.
Mentoring is the process of developing another individual by offering tutoring, coaching and modeling acceptable behavior. Teaching new employees what the business expects of them helps strengthen their dedication and commitment to the business. Employee training generally refers to the process of teaching staff how to perform their Job more efficiently and effectively by boosting their knowledge and skills. The goal of training is to improve employee productivity. Small to medium enterprises (Seems) are the ‘engine room’ of the Australian economy.
Although there is no single universally accepted definition of a SEEM, a number of quantitative measurements (those based on statistical calculation) and qualitative measurements (those based on personal observations and a description of the business) can be used to determine whether a business is small or medium sized: number of employees type of ownership sources of finance legal structure market share management structure. An economy must answer the three basic questions of: how to produce who will receive the goods and services produced. Small to medium enterprises fail for many reasons (see figure 10. 8).
Small to medium enterprise failure is not usually caused by one single factor but rather a combination of several factors: failure to plan lack of information leadership crisis inaccurate record keeping failure to delegate complacency incorrect marketing strategy poor location lack of financial planning negative cash flow new competitors illness supplier problems poor use of external support services economic downturn new taxes change in government policy insufficient capital partnership problems lack of management experience incorrect pricing policy failure to seek advice not enough sales staff difficulties being under-insured.