Management Functions
Planning
Planning “is the process of anticipating future events and conditions and determining courses of
action for achieving organizational objectives.” [3] It is the one step in running a small business
that is most commonly skipped, but it is the one thing that can keep a business on track and
keep it there. [4]Planning helps a business realize its vision, get things done, show when things
cannot get done and why they may not have been done right, avoid costly mistakes, and
determine the resources that will be needed to get things done. [5] Business planning for the
small business “The Business Plan”, and marketing planning is “The Marketing Plan”.
Organizing
Organizing “consists of grouping people and assigning activities so that job tasks and the
mission can be properly carried out.” [6] Establishing a management hierarchy is the foundation
for carrying out the organizing function.
Contrary to what some people may believe, the principle of organizing is not dead. Rather, it is
clearly important “to both the organization and its workers because both the effectiveness of
organizations and worker satisfaction require that there be clear and decisive direction from
leadership; clarity of responsibilities, authorities, and accountabilities; authority that is
commensurate with responsibility and accountability; unified command (each employee has one
boss); a clear approval process; and, rules governing acceptable employee behavior.” [7] Except
for a small business run solely by its owner, every small business needs a management
hierarchy—no matter how small. Each person in the business should know who is responsible
for what, have the authority to carry out his or her responsibilities, and not get conflicting
instructions from different bosses. The absence of these things can have debilitating
consequences for the employees in particular and the business in general. [8]
The organizational design and structure of a small business are important parts of organizing,
which are discussed in Section 12.2 “Organizational Design”. Video Link 12.1
Glassblowing Business Thrives
Lesson learned: Everyone should know his or her role in the business.
www.cnn.com/video/#/video/living/2010/10/15/mxp.sbs.glass.business.hln?iref=videosearch
Staffing
The staffing function involves selecting, placing, training, developing, compensating, and
evaluating (the performance appraisal) employees. [9]Small businesses need to be staffed with
competent people who can do the work that is necessary to make the business a success. It
would also be extremely helpful if these people could be retained. Many of the issues associated
with staffing in a small business are discussed in Section 12.4 “People”.
