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The word entrepreneur is derived from the French verb enterprendre. It means to undertake. The term entrepreneur was applied to business initially by the French economist, Cantillon, in the 18 th century, to designate a dealer who purchases the means of production for combining them into marketable products An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. OR An Entrepreneur is the person who bears risk, unites various factors of production and carries out innovations. An Entrepreneur can therefore be defined as an individual or group of individual who tries to create something new who organizes production and undertakes risks involved in the establishment and operation of a business enterprise.
E: xamine needs, wants, and problems to see how they can improve the way needs and wants are met and problems overcome. N: arrow the possible opportunities to one specific "best" opportunity. T: hink of innovative ideas and narrow them to the "best" idea. R: esearch the opportunity and idea thoroughly. E: nlist the best sources of advice and assistance that they can find. P: lan their ventures and look for possible problems that might arise. R: ank the risks and the possible rewards. E: valuate the risks and possible rewards and make their decision to act or not to act. N: ever hang on to an idea, no matter how much they may love it, if research shows it won't work. E: mploy the resources necessary for the venture to succeed. U: nderstand that they will have to work long and hard to make their venture succeed. R: ealize a sense of accomplishment from their successful ventures and learn from their failures to help them achieve success in the future
respond to it and exploits it as an opportunity . Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or services.
E.E. HAGGEN: An entrepreneur is an economic man who tries to maximize
his profits by innovations. Innovations involve problem- solving and the entrepreneurs gets satisfaction from using his capabilities in attacking problems.
F.H. KNIGHT: a person who bears uncertainty (risk which cannot be insured
TYPES OF AN ENTREPRENEUR
On the basis Of Ownership Clarence Danhof Classification Arthur H. Cole Classification
TYPES OF ENTREPRENEURS Following are the classification of entrepreneurs on the basis of common characteristics Entrepreneur I II III IV A. Clarence Danhof B. Arthur H. Cole C. On the basis D. On the basis Classification Classification of ownership of scale of enterprise 1. Aggressive/Innovative 1. Empirical 1. Private 1. Small Scale 2. Imitative/ Adoptive 2. Rational 2. Public 2. Large Scale 3. Fabian 3. Cognitive 4. Drone
INNOVATING ENTREPRENEUR:
Aggressive in experimentation and clever in putting attractive possibilities into practice. He is the one who introduces a new product or a new method of production or opens a new market or explore new source of supply of raw material or carry out a new type of organization. as per the Schumpeter innovative entrepreneur are real entrepreneur.
They are those who imitate the successful entrepreneurs in techniques innovated by others Imitative entrepreneurs are revolutionary and important.
FABIAN ENTREPRENEURS: Fabian entrepreneurs are characterized by very great caution and scepticism to experiment any change in their enterprises. They usually do not take any new challenge. They imitate only when it becomes perfectly clear that failure to do not so would result in a loss of the relative position in the enterprise. DRONE ENTREPRENEURS: They are characterized by a refusal to adopt any change even at cost of severely reduction of profit. FORCED ENTREPRENEURS:
Industrial Entrepreneur
i. Large ii. Medium iii. Small
Business Entrepreneur
Corporate Entrepreneur
Trading Entrepreneur
Industrial Entrepreneur: He is essentially a manufacturer who identifies the potential needs of customer and tailors product or service to meet the marketing needs. He is a product oriented man who starts an industrial unit because of the possibility of making some new product.
Trading Entrepreneur: Such an entrepreneur undertakes trading activities and is not concerned with the manufacturing work. He identifies potential market, stimulates demand for his product line and creates a desire and interest among buyers to go in for his product. Business Entrepreneur: Business entrepreneurs are individuals who conceives an idea for a new product or service and then create a business to materialize their idea into reality. They take both production and marketing resources in their search to develop a new business opportunity.
QUALITIES OF AN ENTREPRENEUR
1. DETERMINATION
Running an online business is certainly more difficult than most people understand. Many believe they can get online and start making money instantly. While there are some opportunities that give you the chance to make a few bucks here and there instantly, it takes a great deal of effort and determination to actually start a career online. You have to be willing to devote your time and energy toward the business.
2. FOCUS
One of the most difficult things to get used to as an Internet newbie is the endless amount of freedom you are given. You have no one to tell you what to do, when to do it by or how to do it. It is up to you to remain focused and put aside the countless distractions you will face from working at home.
3. EXCITEMENT
Next on the list for qualities of a good entrepreneur is excitement. The wonderful thing about the Internet is you get to do something you have an interest in and enjoy. Therefore, show it in how you run your business. People are much more willing to listen to you and pursue your business if they see how excited you really are to be running it.
4. EAGERNESS 5. PATIENCE
When first starting out, there is nothing more difficult than investing a great deal of time and seeing little results. What you have to understand is that it takes time to generate traffic. It takes time to create that first sell. And it certainly takes time to create a regular flow of traffic and customers. Whatever you do, do not give up just because you are not rich after the first month. You have to be patient.
Characteristics of Entrepreneur
1. 2. 3. 4. 5. 6. 7. Good Organizer. Foresight. Independence. Highly Optimistic. Desire for High Achievement. Hard Worker. Specialized Knowledge of his Field.
Excellent Communicator. Human Relation Ability. Business Secrecy. Clear Objectives. Mental Ability. Pro-Active. Common Sense. Creativity. Ability to lead i.e. Leadership.
An entrepreneur is a person who initiates a business venture. there are some essential feature of an entrepreneur which are describe below. RISK TAKING CAPABILITY: Every business has risk of time money etc .so an entrepreneur must have the risk taking capability. CREATIVITY AND INNOVATION: An entrepreneur has an initiator possesses creativity and innovative power. NEED FOR ACHIEVEMENT: The entrepreneur has strong desire to achieve the goal of business. he is always driven by the needs for achievement. NEED FOR AUTONOMY: An entrepreneur does not like to be under anybody. it is the need for autonomy which drives a person to be an entrepreneur. INTERNAL LOCUS OF CONTROL: An entrepreneur believes in him his work. EXTERNAL LOCUS OF CONTROL: He also believes in fate for ultimate result. SELF CONFIDENT: An entrepreneur has confidence in him.
LEADERSHIP CAPABILITY: An entrepreneur must have leadership capability to lead works under him
INDUSTRIOUSNESS: A successful entrepreneur must have leadership capability to lead workers working under him. DECISION MAKING CAPABILITY: The entrepreneur has capability to take quick decision
ADAPTABILITY: He has the capacity to adapt with any kind of situation that arise in the enterprise
FORESIGHTNESS: The entrepreneurs have a good foresight to know about future business environment. OTHERS: The other feature are dynamism, ambition, education and training, long term involvement, future orientation.
Proper Planning Self Confidence Assertiveness Persuasion Efficient Monitoring Concern for employees Energetic Resourceful Willingness to Work Hard
FUNCTIONS OF AN ENTREPRENEUR
PRIMARY FUNCTION OTHER FUNCTIONS
Planning Organizing Decision Making Innovation Risk Bearing Uncertainty Bearing Managing Finance Perceiving Market Opportunities Marketing of the Product Management
Diversification of Production Expansion of the Enterprise Maintaining Cordial Employer and Employee Relations Tracking Labor Problem Co-coordinating with outside Agencies Managing Relations With Costumer and Supplier Responding to the Competition
FUNCTION IMPORTANT FOR DEVELOPING COUNTRIES
Gaining command over scarce resources Dealing with Public Bureaucracy Acquiring and Assembly of the Factory Engineering Parallel Opportunities Marketing Customer Relation Introduction of New Product and Techniques Investing in R&D of Product
IMPORTANCE OF ENTREPRENEUR
OPTIMUM UTILISATION OF RESOURCESResources are put to proper use by Entrepreneurs. They combine various resources like Land, Labour, Capital, Technology, and Organisation to produce goods. GENERATION OF EMPLOYMENTProvides employment opportunities by establishing new industries, mills, factories etc , and thus reduces the burden on government of employing the youth of the country in some thing productive reducing unemployment problem. IMPROVEMENT IN LIVING STANDARD OF PEOPLE- By providing quality goods & services to the people
Government incentives encourage entrepreneurs to establish industry units in rural & backward areas- create employment opportunities in industrially backward areas.
NEW/ IMPROVED GOODS & SERVICES- For the
HELP AGRICULTURAL SECTOR- Providing high yielding variety of Seeds, Fertiliser, Insecticides Pesticides, Agricultural equipments Machineries etc many entrepreneurs buy agricultural produce for further processing.
PROMOTE INTERNATIONAL TRADE- Exporting goods mfg by them help govt to earn FE.
HELP COMMUNITY AT LARGEBy providing welfare activities- adopting villages, schools, stating educational institutes, healthcare services, sports. CAPITAL FORMATIONPooling the savings of people by issuing shares/ debenturesoffering more returns comparatively. DISTRIBUTION OF INCOME & WEALTHBy establishing in rural / backward areas, entrepreneurs not only balance regional development but also redistribution of income & wealth.
entrepreneur has to determine what type business he is going to start. Form various points of view the feasibility of the business should be tested.
3. Initial Capital: if the initial capitals are not an optimal level the organization 4. Determination 0f Market Demand: Through research the demand in the 5. Marketing Of Product: If the promotion policy, channel of destitution,
6. Education And Experience: One of the important tasks of the entrepreneurs is to select right person for the right post because the success of an enterprise depends on the right selection of employees. 7. Joint Initiative: One may have much money and another may have more merit. Through joint initiative it can be balanced. But sometime for joint initiative misunderstanding arise, or sometimes corruption occur which may result in fall of enterprise. 8. Employment: Recruitment and appointment should be properly done. Those who have specialized skill should be appointed to that specialized job. Inefficient, corrupted employees may be responsible for fall of business. 9. Location Of Business: Site selection is an important factor. While starting a new business, an entrepreneur should think about the location of the business. In this case, many factors should be considered such as availability of raw materials, proper communication system, availability of labor, marketing facilities and so on. 10. Qualities Of Management: The management must have a minimum quality to success otherwise it would fall. These are the common few causes for which one enterprise may become successful and another may fall.
ENTREPRENEURSHIP
B. HIGGINS: The function of seeing investment &
production opportunities; Organising an enterprise to undertake a new production process; raising capital; hiring labour, arranging for raw material, finding a site & combining these factors of production into a going concern; introducing new techniques, new commodities, discovering new sources of natural resources & selecting top-managers for day-to-day operations.
SCHUMPETER: Entrepreneurship is based on purposeful & systematic innovation. It includes not only the independent businessman but also company directors & managers who actually carryout innovative functions.
AMERICAN CONFERENCE ON ENTREPRENUERSHIP:
Entrepreneurship is a attempt to create value through recognition of business opportunity, the management of risk taking appropriate to the opportunity & through the communicative & management skills to mobilise human, financial & material resources, necessary to bring a project to completion.
Thus Entrepreneurship is a combination of various qualities like organisation skills, innovativeness, risk-bearing, managing uncertainty, ability to bring things together & use factor of production, analysing market opportunities, observing the change taking place in the market, methods & technologies, studying the tastes & preferences of consumers.
ENTREPRENEUR
1. 2. Entrepreneur is employer Independent in operation 1. 2.
INTRAPRENUER
Intraprener is employee Depends on the organization to implement his ideas. Does not bear all the risk.
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Attractive salary, promotion & incentives are the reward. Should have some professional or technical qualification.
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ENTREPRENEUR
1. 2. Entrepreneur is employer Independent in operation 1. 2.
MANAGER
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ENTREPRENEURIAL MOTIVATION
INTERNAL FACTORS
Strong desire to do something new. To be independent in Life. Making the maximum use of technical/professional knowledge. Occupational experience/background. Passionate about particular activity. Dissatisfaction with present job. To attain self-satisfaction.
EXTERNAL FACTORS
Utilizing Government grants & subsidiary. To continue ancestor business. Financial assistance from Institutions. Availability of resources. Encouragement from big business houses. Availability of sick units/ easy financial terms. Encouragement from family members.
ESTABLISHMENT OF AN ENTERPRISE
1. IDENTIFICATION OF OPPORTUNITIES: The product to be produced or service to be provided should be carefully selected. Thus the idea to select such a product may originate from different sources. The important sources of business idea are as follows: a) Market observation: Analysis of demand & supply for goods, availability of raw materials, profit range, likely change in future demand. b) Consumer survey: taste & preferences of consumers, considerable no of consumers
C) Competing Alternative Product: No of manufacturers, Degree of competition, to manufacture either better quality goods at same price or even to provide same quality goods at a cheaper rate. d) Development In Other Countries: borrowing business ideas attending trade fairs in foreign countries through trade delegation sponsored by Chambers of commerce/ government or collaboration/ joint venture with foreign producer.
e) Product profiles: Various government & non-government agencies prepare & publish product profiles which can be a basis for business idea generation.
c) Financial & Managerial Considerations: Amount of finance required, sources of finance to be worked out & managerial sources, its availability & its cost.
d) Final selection: Products which pass through all the tests(be technically feasible, commercially viable) are considered for final selection. some points may be allotted for each test and that product which gains highest points may be selected for production.
DECIDING THE LOCATION Many factors influence the location of the unit. 1) Availability of raw materials. 2) Market accessibility 3) Human resource 4) Supply of power 5) Fuel & water 6) Transportation 7) Government policies- subsidies & incentives. 8) Climate. 9) Scope for further expansion.
1) EASE OF FORMATION- Sole proprietorship is easy to form. 2) CAPITAL REQUIRED- Small business less capital required then sole proprietorship is applied. If the business requires high capital joint venture is applied.
3) EXTENT OF LIABILITY- Unlimited liability in case of sole proprietorship & partnership, limited liability in case of joint stock company and cooperatives. 4) CONTROL- The complete control lies with the proprietor in case of sole proprietor. In case of partnership control is as per partnership deal. In case of joint companies & cooperatives, control is different from ownership. 5) CONTINUITY OF BUSINESS: Joint stock companies enjoy continuity of business because ownership is different from management. 6) FLEXIBILITY: Sole proprietorship is more flexible
REGISTRATION & LICENSING It is necessary in case of starting industrial units. Certificate of registration will be issued in two stages. 1) Provisional Registration Certificate:
It is the initial registration to starting a small scale industry. It is issued for 1 year which can be extended for another six months. This certificate can be used for
To get an industrial plot or industrial shade. To avail bank loan. To get license from local administration. To get water & power supply. For procuring plant machinery & raw materials. To get NOC from PC board.
2) Permanent Registration Certificate: It is issued when all the formality of establishing the unit is over. This certificate will be useful for: a) To apply for subsidies & incentives b) To avail bank loan c) To get income tax & sales tax concession d) To avoid central excise duty concession
6] SPECIFIC CLEARANCES 1) Conversion of agricultural land: through an application to concerned local authority. 2) Urban land ceiling clearance: taking permission to hold vacant land beyond the limit through special permission. 3) Building plan approval: to be approved by local authority.
4) Factories Act: obtain permission from authorities ex- permission from inspectorate of factories to start factory. 5) Trade license: from local authority ex-certificate from local municipality for a hotel industry. 6) Pollution control board clearance: getting NOC from PC board. 7) Sales tax registration: from the state & centre authorities to sell & purchase goods.
8) Central Excise Registration: to get registration from central excise authorities if the goods are excisable. 9) Bureau of Indian Standard (BIS) certificate: 10) Fruit product order 1955: license through ministry of food processing 11) Food Adulteration Act: that can get from local authorities in case of sale of food & food articles.
12) Power Loom Registration: 13) Drugs & cosmetics license: In case of manufacturing drugs & cosmetics. 14) Approval for Hotels: From department of
tourism in case of big hotels.
2) BUILDING- To be constructed in case no industrial shade is allotted. 3) PLANT & MACHINERY- Placing purchasing order
for plant & machinery. 4) RAW MATERIALS- Get the raw materials through private party or through government. 5) HUMAN RESOURCES- Appointment of workers & management personnel.
ENTREPRENEUR
1. 2. Entrepreneur is employer Independent in operation 1. 2.
INTRAPRENUER
Intraprener is employee Depends on the organization to implement his ideas. Does not bear all the risk.
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MOTIVATION
MASLOW
DRUCKER
LIKERT
TAYLOR
ARGYRIS
HERZBERG
INTERNAL FACTORS
Strong desire to do something new. To be independent in Life. Making the maximum use of technical/professional knowledge. Occupational experience/background. Passionate about particular activity. Dissatisfaction with present job. To attain self-satisfaction.
EXTERNAL FACTORS
Utilizing Government grants & subsidiary. To continue ancestor business. Financial assistance from Institutions. Availability of resources. Encouragement from big business houses. Availability of sick units/ easy financial terms. Encouragement from family members
Importance of Motivation
Excite Employees Maintaining Human Relations Raises Productivity Efficiency Raises Morale Affable Industrial Relations Facilitates Changes Employees Involvement Increases Reduces Malingering and Absenteeism Reduces the chances of Accident Generates the feeling of importance in the mind of employees
Selfactualization
Esteem Belongingness Security Physiology
Challenging job
Job title Friends at work Pension plan Base salary
Level
Physiological
Safety
How to Motivate
Financial Incentives
Availability Of Technology/Raw Material Profit Margin Desire For Taking Personal Responsibility Anticipation Of Future Possibilities Success Stories Of Entrepreneurs To Gain Social Prestige Heavy Demand Technical Knowledge
Observation
Selection Of Product
Product Innovation
DECISION MAKING
Decision is something that always come before actual action. That is why Decision making process is a process which involves high degree of MENTAL EXERCISE. Decision Making means choosing of one of the best among available alternatives.
Decision-Making Process
Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice. An effective decision is one that optimizes some set of factors such as profits, sales, employee welfare, and market share. Managers make decisions about both problems and opportunities.
Types of Decisions
Programmed Decisions
A decision that is a fairly structured decision or recurs with some frequency or both.
Example: Starting your car in the morning.
Non-programmed decisions
A decision that is relatively unstructured and occurs much less often than a programmed decision.
Example: Choosing a vacation destination.
Decision-Making Conditions
The decision maker faces conditions of...
Certainty
Risk
Uncertainty
Lower
Moderate
Higher
DECISION-MAKING CONDITIONS
Decision Making Under Certainty
A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative.
of the organization.
rationally and logically
3. Evaluating alternatives
Increasing benefits may not be feasible. Increasing wages and changing hiring standards may satisfy all conditions.
Detail Consider all situational factors, and choose the alternative that best fits the managers situation. The chosen alternative is implemented into the organizational system.
Example Changing hiring standards will take an extended period of time to cut turnover, so increase wages. The plant manager may need permission from corporate headquarters. The human resource department establishes a new wage structure. The plant manager notes that, six months later, turnover has dropped to its previous level.
At some time in the future, the manager should ascertain the extent to which the alternative chosen in step 4 and implemented in step 5 has worked.
affordable?
No
No
No
Decision is always taken at high levels but affects all levels this makes it a very sensitive issue. Involves A Process Of Selection.
Involves The Collection of Data. An Element of Assurance.
Decision is based on Data collected that is why data collected plays very vital role in end result.
DECISION MAKING
Making decisions has been identified as one of the primary responsibilities of any manager. Decisions may involve allocating resources, appointing people, investing capital or introducing new products. If resources like men, money, machines, materials, time and space were abundant, clearly any planning would be unnecessary. But, typically, resources are scarce and so there is a need for planning. Decision making is at the core of all planned activities. We can ill afford to waste scarce resources by making too many wrong decisions or by remaining indecisive for too long a time.
Communication
Communication
COMMUNICATION IS THE ART OF TRANSMITTING INFORMATION, IDEAS AND ATTITUDES FROM ONE PERSON TO ANOTHER.COMMUNICATION IS THE PROCESS OF MEANINGFUL INTERACTION AMONG HUMAN BEINGS
ITS ESSENCES :
PERSONAL PROCESS
Communication
Ways to Communicate
Ways to Communicate
Verbal
Non verbal
Oral
Written
Paralinguistic
Speaking
Listening
Silence
TYPES OF COMMUNICATION
Downwards Communication : Highly Directive, from Senior to subordinates, to assign duties, give instructions, to inform to offer feed back, approval to highlight problems etc. Upwards Communications : It is non directive in nature from down below, to give feedback, to inform about progress/problems, seeking approvals. Among colleagues, peers at same level for information level for information sharing for coordination, to save time. In modern business environment communication extends beyond written or spoken words to listened word. Visual dimension added by T.V., computers has given to new meaning to communication. COMMUNICATION NETWORKS Formal Network Informal Network : : Virtually vertical as per chain go command within the hierarchy. Free to move in any direction may skip formal chain of command. Likely to satisfy social and emotional needs and also can facilitate task accomplishment.
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3 Y 1
Circle
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1 2
3 Chain
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5 5 4
All channel
HIERARCHY LEVEL
Executive Director
Manager
Characteristics of Communication
Communication always take place between two or more people
Learn new skills and technologies. Become more responsive to customers. Improve Quality of their product or service. Foster innovation
Sender must decide on a message to share Sender also puts the message into symbols or language, a process called encoding.
Sender
NOISE
Decoding
Medium
Encoding
Message
Feedback Phase
Medium: pathway the message is transmitted on (phone, letter). Receiver: person getting the message.
Decoding allows the receiver to understand the message. This is a critical point, can lead to mis-understanding.
Feedback is started by receiver and states that the message is understood or that it must be re-sent.
Communication Issues
Verbal: spoken or written communication. Nonverbal: facial gestures, body language, dress.
Subjective perception can lead to biases and stereotypes that hurt communication. Effective Managers avoid communicating based on a pre-set belief.
Managers spend most of their time communicating so both they and the subordinates must be effective communicators. To be effective: Select an appropriate medium for each message.
There is no one best medium.
Low Richness
Communication Media
Face-to-Face: highest information richness.
Can take advantage of verbal and nonverbal signals. Provides for instant feedback.
Management by wandering around takes advantage of this with informal talks to workers.
Communication Media
Personally Addressed Written Communication: lower richness than the verbal forms, but still is directed at a given person.
Cannot provide instant feedback to sender but can get feedback later.
Excellent for complex messages needing follow-up.
E-Mail Trends
E-mail use is growing rapidly in large firms, and there are even special e-mail etiquette:
Words in all CAPITALS are seen as screaming at the receiver. Punctuate your messages for easy reading and dont ramble on. Pay attention to spelling and treat like a written letter.
E-mail has allowed telecommuting, where workers can work from home and be in touch with e-mail.
Communication Networks
Networks show information flows in an organization.
Wheel Network: information flow to and from one central member. Chain Network: members communicate with people next to them in sequence.
Wheel and Chain networks provide for little interaction.
Circle Network: members communicate with others close to them in terms of expertise, office location, etc. All-Channel Network: found in teams, with high levels of communications between each member and all others.
Wheel Network
Chain Network
Circle Network
Communication is informal and flows around issues, goals, and projects. Vertical Communication: goes up and down the corporate hierarchy. Horizontal Communication: between employees of the same level.
Informal communications can span levels and departments.
Technological Advances
World Wide Web (WWW): provides multimedia access to the Internet. Intranets: use the same information concepts as the Internet, but keep the network inside the firm. Groupware: software designed to let workers share information and improve communication.
Best for team oriented support.
Send clear and complete messages. Encode messages in symbols the receiver understands. Select a medium appropriate for the message AND monitored by the receiver. Avoid filtering (holding back information) and distortion as the message passes through other workers. Ensure a feedback mechanism is included in the message. Provide accurate information to avoid rumors.
Be empathetic: try to understand what the sender feels. Understand linguistic styles: different people speak differently.
Speed, tone, pausing all impact communication. This is particularly true across cultures. Managers should expect and plan for this.
Objectives of Communication
Conveying the Right Message Co-ordination of Effort Sound Internal and External Relations Development of Managerial Skills Effectiveness of Policies Facilitates Decision Making Free Exchange of Information
LEADERSHIP
Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. When you boil it down, contemporary leadership seems to a matter of aligning people toward common goals and empowering them to take the actions needed to reach them. Sherman, 1995
MANAGERS VS LEADERS
MANAGER CHARACTERISTICS Administers A copy Maintains Focuses on systems and structures Relies on control Short range view Asks how and when Eye on bottom line Imitates Accepts the status quo Classic good soldiers Does things right LEADER CHARACTERISTICS Innovates An original Develops Focuses on people Inspires trust Long range perspective Asks what and why Eye on horizon Originates Challenges the status quo Own person Does the right thing
Behavioral Theories
Ohio state studies: initiating structure (task or goal orientation) vs consideration (recognition of individual needs and relationships) University of Michigan studies: Employee oriented ( genuine concern for people) vs production oriented genuine concern for task)
CHARISMATIC LEADERSHIP
Key Characteristics of Charismatic leaders
1. 2. Self Confidence- They have complete confidence in their judgment and ability. A vision- This is an idealized goal that proposes a future better than the status quo. The greater the disparity between idealized goal and the status quo, the more likely that followers will attribute extraordinary vision to the leader.
3.
Ability to articulate the vision- They are able to clarify and state the vision in terms that are understandable to others. This articulation demonstrates an understanding of the followers needs and, hence acts as a motivating force.
Strong convictions about vision- Charismatic leaders are perceived as being strongly committed, and willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve their vision.
4.
Behavior that is out of the ordinary- Those with charisma engage in behavior that is perceived as being Nobel, unconventional, and counter to norms. When successful , these behaviors evoke surprise and admiration in followers. Perceived as being a change agent- Charismatic leaders are perceived as agents of radical change rather than as caretakers of the status quo.
Environmental sensitivity- These leaders are able to make realistic assessments of the environmental constraints and resources needed to bring about change.
Networking
Training/Developing
2.Managing stress
1.Developing Self-awareness
Determining values and priorities Identifying cognitive style Assessing attitude toward change
Using the rational approach Using the creative approach Fostering innovation in others
INTERPERSONAL SKILLS
Gaining power Exercise influence Empowering others
6. Motivating others
Business Ownership
SOLE PROPRIETORSHIP PARTNERSHIP COOPERATIVE
SOLE PROPRIETORSHIP
This type of enterprise is owned by a single person. He sows, reaps, and harvest the output of his efforts. He manages his own business. Sole proprietorship is the simplest form and easiest form. It does not require legal recognition and attendant formalities.
Advantages
Simple form of Organisation Owners Freedom to take Decision High Secrecy Tax Advantages Easy Dissolution
Disadvantages
Limited Resources Limited Ability Unlimited Liability Limited Life of Enterprise form