Invention by experience

SMALL BUSINESS:Any independently owned and operated business that is not dominant in its competitive área.

SHARING ECONOMY

• An economic model involving the sharing of underutilized resources 

•  Entrepreneurs earn income by renting out an underutilized resource such as lodging or vehicles 

•  Uber is an example 

•  Referred to as the “gig economy” 

• Are workers independent contractors or employees? 

EQUITY FINANCING:Referred to as equity financing because the owner uses real personal assets rather than borrowing funds from outside sources to get started in a new business.

Can also obtain equity financing by finding investors for their operations and selling stock in the business to family members, friends, employees or other investors.

VENTURE CAPITALISTS: Venture capitalists hope to purchase the stock of a small business at a low price and then sell the stock for a profit after the business has grown successful. 

DEBT FINANCING:

• • Banks are the main suppliers of external financing.

• Federal level: the Small Business Administration (SBA) offers financial assistance to qualifying business.

• Look to family and friends as sources for long-term loans or other assets for an ownership interest in the business.

MANAGEMENT FUNCTIONS

• Planning 

Planning activities to achieve the organization’s objectives 

• Organizing 

Organizing resources and activities to achieve the organization’s objectives 

• Directing 

Directing employees’ activities toward achievement of objectives 

• Controlling 

Controlling the organization’s activities to keep it on course 

MANAGEMENT OBJETIVES: SMART 

TIPE OF PLANES: Srategic, tactical, operational, contingency.

SKILLS OF MANAGERS:

Technical Expertise

Conceptual Skills

 Analytical Skills

 Human Relation Skills 

DECISION MAKING:

JOB ANALYSIS

Determines, through observation and study, pertinent information about a job including specific tasks and necessary abilities, knowledge and skills 

JOB DESCRIPTION

A formal, written explanation of a specific job, usually including job title, tasks, relationship with other jobs, physical and mental skills required, duties, responsibilities and working conditions. 

JOB ESPECIFICATION

A description of the qualifications necessary for a specific job, in terms of education, experience, and personal and physical characteristics.

RECRUITING 

• Forming a pool of qualified applicants from which management can select employees 

• Internal sources include current employees 

• External sources include everything else 

• LinkedIn, internships, websites posting job openings 

•  Some companies use agencies or executive search firms, sometimes called headhunters 

• SELECTION PROCESS

• Includes application, interviewing, testing and reference checking.

• Process can be lengthy and expensive but necessary in order to find applicants who can do the work and fit into the firm’s structure and culture.

• Careful hiring saves future hiring expenses.

 DOWNSIZING 

• In recent years, many companies are choosing to downsize by eliminating jobs 

•  Reasons might be due to financial constraints or the need to become more productive and competitive 

COMPENSATING IN WORK PLACE

PIECE WAGES

COMISSION 

SALARIES

PROFIT SHARING

ESOPs 

LABOR TACTICS

Sometimes, management and labor simply cannot agree 

Picketing 

A public protest against management practices that involves union members marching and carrying anti- management signs at the employer’s plant or work site 

Strikes 

Employee walkouts; one of the most effective weapons of labor unions 

Boycott 

An attempt to keep people from purchasing the products of a company