Controlling the Small Business

admin — Tue, 02 Jun 2009 04:50:13 +0000

The management functions of organizing, directing, and controlling are required activities for all firms
including small businesses.
The form of organization that will be adapted will depend on what particular phase the small business is in. In structuring the
organization, considerations on the following must be made;specialization,departmentalization,delegation of authority, span of management,
hierarchy of objectives, and degree of centralization. Formal organizations may consists of the line organization,functional organization,
line and staff organization, or committee organization.
Informal organizations oftentimes exists within the firm and they may hinder or assist in realizing the objectives of the formal set-up.
In the early stage of the small business, the line structure is often applicable. As the business grows, the shift to the more complex structure.
Controlling involves establishing goals and standards,company-measured performance against established goals and standards, and reinforcing successes and correcting
short comings.The kind of control measures applicable to a small business are simple accounting records,personal supervision,operational budgets,management by objectives, greater
use of budgets, standard cost systems and the use of computers.

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Controlling the Small Business