Managing Business Through Human Psychology - “A Handbook for Entrepreneur” by Ashish Bhagoria - HTML preview

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Phase 6: Managing Business Operations

“You must be the change you wish to see in the world.” - Mahatma Gandhi

The definition of management is to get the work done from others. Many entrepreneurs however, get themselves involved in day to day operations of the organization. If we get involved in day to day operations of the organization, we would not be able to focus on our main role. The role of the entrepreneur is to give direction to the organization. For this we have to do planning, decision making, problem solving, policy making, developing strategies, handling finance and finding opportunities for growth and expansion. The entrepreneur should spend minimum time in day to day functioning of the organization, please remember we have hired staff for this purpose. The only time when we should be involved in the daily operations is when the staff is not able to handle a situation or the task. Otherwise, we should spend our time and focus on fulfilling our role and responsibilities.

What are Operations that need to be Managed

Operations in an organization are of two types, front end and back end. For the operations to function properly we need to develop well-defined systems and procedures. These should be developed in such a way that they automate the whole operations. In simple terms the system should work by itself irrespective of the person involved in it. For this reason companies develop operation manuals and standard operating procedures. Tasks, roles, responsibilities, flow charts, procedures, rules, regulations and documentation procedures should be predefined to develop the system.

A system is developed to manage the workflow in an organization. This makes work easier for the staff and the management. A well defined system creates discipline. For example, when a system is developed where the office starts at nine and closes at six and punctuality is taken seriously, everyone will come to the office on time. When a system is defined it also helps new recruits to learn the work flow and operations of the organization. For example, a person joins the purchase department. In a predefined system he would be able to learn the policies of the company and the standard operating procedures of purchase department. This would help the person in adapting to the organization and the department. A well defined system also creates a deep psychological impact on the staff. For the people who are used to following procedures they feel safe and comfortable within the system. These people are generally not good in taking decisions and struggle with their problem solving skills. For such people standard operating procedures help them to function properly. Then, there are people who are independent. They run the risk of going haywire and creating their own way of functioning in an open system. In a well defined system they can be kept under check. Most importantly, a well defined system has checks in place which helps the entrepreneur in controlling the operations without being involved in it directly.