Managing People In Small Business: 7 Issues The Books And Training Courses Ignore

Posted by Writer at 4:18 AM

Introduction. A small business manager has limited resources, major time pressures and a vast number of "balls to keep in the air". It's far more difficult managing a small-medium business with 20-30 employees than managing the same number in a large business. Small-medium business managers may need to follow the same principles. But the practice is quite different.

1. Exposure. As a small business manager, you're far more exposed than your big business counterpart. Your behaviour is readily observable. If you don't "do what you say" almost everyone knows. Be composed and positive no matter how worried you feel.

2. Staff Reliance. No matter how good you are as a manager you're totally dependent on your employees. If your staff miss deadlines, upset customers or simply do shoddy work, you're often left to "sort it out" and "carry the can". Try to anticipate problems before they occur and teach your staff to do the same. Resolve staff differences very quickly. Have plans in place so that unexpected staff absences aren't too disruptive.

3. Management Co-operation. The small business management team must co-operate very closely. Small-medium business is no place for "turf wars". When staff observe friction between small business managers morale plummets quickly. The top management team must agree on business focus and systems and present a united front to staff.

4. Staff Versatility Small business can't afford many staff who are narrow specialists. Tradespeople must become skilled salespeople. Accountants must be competent in customer service. Drivers must be schedulers. Look for staff who are willing to help outside their specialist areas and who enjoy variety in their work.

5. Instructions and Systems Managers in a small-medium business have lots of demands on their time. To get maximum value for effort you must give very clear and accurate instructions. Develop and implement systems that staff can use effectively to enable them to succeed with minimum management help.

6. Informality You may be a Vice President or a Director. But you can't expect much formal recognition of your status in small business. Flexibility and adaptability are features of successful small business. There's no time for acknowledging status or "standing on ceremony".

7. Livelihood Employees in your business depend for their livelihood on the success of the business. If the business fails, they're out of a job. They can't be "absorbed" into other areas. They can't "transfer to another department" as in big business. And because the business is small, it's more vulnerable to market forces. Let staff know that you acknowledge these concerns and ensure they understand what you're doing and why.

Conclusion. As a manager in a small-medium business you already know that good people management is essential. But because of the size of your business, your staff can "make or break it" more readily than in large business. Keep them well informed, establish good and workable systems, give them genuinely rewarding work and responsibility and they'll respond positively. But don't expect to learn about how to do it in the formal courses and books.