Managing a small business will differ in each of the three stages. Such human involvement in different stages of small business are as follows:
First Stage: One person’s operation, where the owner does all the activities. It is the simplest of all the forms- the owner himself is acting as both the manager and the worker. Here lies no employer-employee problem.
It is the owner who does everything there is no problem with communication &payment of benefits, hence no question of motivation arises.
Figure showing One Person Operation in Small Business
Second Stage: Separation of management and mm-management functions; hired subordinates to do some of the manuals and/or mental activities while o wren manages.
Here, there is a need to manage one/ two subordinates. The problem of offering benefits, that of motivation, the need for communication remains though in a simple manner.
Figure showing the Owner and One or Two Assistants in the Small Business Operation
Third Stage: Ownership and management function Separation; owner start to relinquish the duties for the day-to-day running of the business activities to a professional manager.
Figure showing the Owner, Manager) and Some Assistants or Workers
In the first stage, there is no problem with management as the owner does everything himself. He is supposed to take all the decisions in the best interest of the business. In the second stage owner is also the manager but .nore than one worker and employees need to be managed.
Here also managing the subordinates is not very difficult since the size is seemingly smaller. In the third stage where there is the separation of management from owners & workers, there appears the necessity of plan, instructions, control, coordination, motivation, etc that speak of the style of traditional management.
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