Both the people and process determine the overall management of the business. The office conveys the image as the central point of leadership for the business and ultimately the success or failure of every small business.
As the office plays the defector leader for small business it is tasked with managing all affairs. Often one or two people are responsible for this position. In almost all cases the owners default into this role. After all, the owners have the most at risk in the success of the business. As businesses grow and prosper the owners hire staff to assist and take on higher levels of responsibilities. All of this is referred to as management.
It is the job of management to set goals for the company. To achieve these goals management has to go further and create a plan. Once the plan is developed, management must organize the business to efficiently and effectively carry out the plan. To achieve organization, management must control all the resources available both physical and financial. All of this is realizable with good leadership.
Management leads the business in achieving goals. This is accomplished by planning, organizing and controlling the business resources (physical, human and financial).
Leadership is defined as motivating people to achieve a goal. This is accomplished with proper communication and with an enthusiastic demeanor. Employee spirit is a direct result of the cultural atmosphere at the company. Good leadership requires decision and resolute posture. Everyone in the company needs to know the goals for the day, week, month and year. Adamant reassurance from management provides the needed spirit necessary to achieve the goals.
Once the goals are set, management must plan out the course of action to achieve those goals.
Planning is a sub process of management requiring a step by step procedure to achieve the goal(s). Think of planning as similar to writing a recipe to bake a cake. You determine the ingredients (resources) needed and the respective steps in order to prepare the batter and ultimately bake the cake.
Once the plan is developed, management will need to organize the process to maximize efficiency and stay effective with the result.
Organizing is simply the allocation of resources. This includes human resources. Often the process from planning has never been done before. So organizing includes researching the sources for the raw materials and tooling needed to achieve success. Flowcharts are used to determine which steps come first and how much raw material is needed at each stage of production.
With this knowledge tasks are assigned to the respective departments and allocation of resources are implemented. To ensure that organization is working management uses controlling techniques.
I compare controlling to the old stereo tuners with the analog meter. As you moved the tuner dial closer to the frequency of the station, the power output meter would move towards the maximum point. Go past the frequency point and the power meter’s needle would begin to shift away from the maximum power. The tuner dial acts as the controller for maximum efficiency.
In business, controlling is the same concept as the tuner. Management creates a feedback loop of important process points to determine maximum efficiency and effectiveness. It is a tool to monitor employee performance and production. Based on the information feedback management can determine if the process is working well and if not, make appropriate adjustments.
Summary – Office Management
The office is considered the de facto center of leadership. The office is more than just a physical spot, it is the center of management. This is where all the planning, organizing and controlling is initiated. Management defines the goals of the company and with good leadership achieves those goals. The office acts as the central point of leadership in the small business environment. ACT ON KNOWLEDGE.
If you have any comments or questions, e-mail me at dave (insert the usual ‘at’ symbol) businessecon.org. I would love to hear from you. If interested in my help as an accountant or consultant, contact me through the ‘My Services’ page in the footer.