The major challenge is that of moving from the comfort of self operating skills

The major challenge is that of moving from the

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The major challenge is that of moving from the comfort of self operating skills to exercising management skills. Resistance to doing so can result to the demise of the business. Phase 3: The Owner-managed organization This phase is marked by less owner dominance, a more deliberate approach to decision-making, and a tendency towards shared authority. Management needs in this phase include additional technology, customer service, or research requirements. Phase 4: Transition to Emergent Functional Management This phase entails delegation of more responsibility and to ensure the availability and proper use of information. Decisions are made in a more systematic manner.
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12 Phase 5: Emergent Functional Management A phase 5 enterprise is characterized by the presence of a general manager and a management team comprised of experts. Three basic requirements prevail: Sharing of authority and responsibility from top, The effective exchange of information up and down the organization, and Effective team planning. Nelson Model Five Stages of Growth Nelson (1998) identified five stages of growth: start-up, survival, success, take-off, and maturity. 1 st Stage Start-up: 2 nd Stage Survival: 3 rd Stage Success: 4 th Stage Take-off: 5 th Stage Maturity Critique of Stage Models of Small Enterprise Growth: O’Farrell and Hitchens (1988) present a comprehensive critique of stage models: The models are inclined to address the symptoms of growth rather than reveal the underlying processes of the phenomenon. The body of literature underlying stage models is largely discursive and wisdom based.
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13 Where attempts are made empirically to validate stage models, most often this is done with relatively small samples and cross-sectional data. Stage models tend to assume small enterprises pass inexorably through each stage, or fail in attempting to do so. Stage models typically fail to capture important stages in the initiation of small enterprises, including prior to start-up. Stage models usually measure enterprise size in terms of sales revenues or number of employees, and they usually disregard other measures of attainment or performance such as product mix, value added and rate of innovation. Stage models tend to focus on the internal dynamics of growing concerns, and typically, any pay insufficient attention to the impact of external factors in the social, economic and business environments. Review questions: a) Discuss the provisions of Greiner’s growth model? b) Describe the growth model as presented by Joan Mount et al? c) Compare between Churchhill and Lewis model and Nelson’s model d) Give a detailed critique of the stage models?
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14 CHAPTER THREE MANAGEMENT AND LEADERSHIP ROLES AS ENTERPRISES GROW Introduction It is part of the classical leadership tasks to motivate employees. The prevalent behaviour of executive still consists of prescribing work. In the long run, this behaviour is de-motivating and may even cause illness. Also, a new self-confident generation of employees is on the rise, a
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