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Management Functions


Planning “is the process of anticipating future events and conditions and determining courses of

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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 “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.



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”.





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