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Management Principles

• Management principles are important to all small businesses. • Management decisions will impact the success of a business,

the health of its work environment, its growth if growth is an objective, and customer value and satisfaction.

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• Management is about achieving organizational objectives through people.

• The most common reason attributed to small business failure is failure on the part of management.

• On any given day, a typical small business owner or manager will be engaged in some mix of planning, organizing, staffing, directing, and controlling.

• Different situations call for different leadership styles. The three major styles are autocratic, democratic, and laissez-faire. Bad leaders typically stick with one style.

• The management hierarchy is typically composed of three levels: top or executive, middle, and first-line or supervisory. If a small business is large enough to have these three levels, it is important that there be a clear distinction between them.

• Management skills are required for success. Technical, conceptual, interpersonal, and decision-making skills will be of differing importance depending on the management level.

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