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MGT601 - SME Management - Lecture Handout 29

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Conditions that Stimulate Learning

  • Behavior of Boss
    Boss is the key figure in an organization. Others tend to emulate him. Every meeting between boss and subordinate presents a teaching learning situation. If the boss favors training and development, the subordinates tend to become positively inclined to learn. Therefore, the boss should exhibit a tendency towards learning and training.
  • Behavior of Informal Group.
    Informal groups set the behavior norms for its individual members. It may either support or resist the introduction of any change. If the informal groups support training, measure would find a motivated group inclined towards obtaining it.
  • Influence of Formal Organization.
    The organizational structure, policies, procedures, objectives etc. reflect and reinforce the behavior which the formal organization prizes. For instance, if the company keeps the top management within the family or has rigid control, would little opportunity for growth. Learning is stimulated when there is openness, lack of constraints and climate of exploring new ideas and the objectives of the organization support training and development.
  • Economical &Technological Influence.
    A rapidly growing company in an expanding field offers more opportunities through training.
  • Performance Appraisal
    It is a form of counseling and coaching. It is used for defecting and correcting errors. It is the process by which owner gathers information about each employee’s performance, effectiveness and communicates the same to employee. It includes
    1. Establishment of Standards.
    2. Recording of Performance.
    3. Reviewing of Performance in accordance with Standards.
    4. Taking Corrective Action
  • Purpose of Performance Appraisal
    1. To evaluate performance over a specific time.
    2. To motivate employees through performance feedback.
    3. To evaluate individual employee’s potential for growth and development.
    4. To collect information for decision making.
    5. To evaluate effectiveness of training program.

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MGT601 - SME Management - Lecture Handout 19

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Chapter deals with post and field this problems faced by a new concern.

  1. Acquisition of land;
  2. Construction of building and other aspect of civil works;
  3. Acquisition of machinery and its installation;
  4. Preliminary work about the sources of supply of raw materials , labor and managerial inputs;
  5. Prospecting about marketing;
  6. Preliminary work regarding sources of working capital;
  7. Coordination problem connected with the acquisition of different kinds of assets or completion of jobs;

Unless care is taken to ensure proper sequencing of different activities, the project would have cost over-run and/or time over run. Here in some kind of PERT analysis could be quite helpful.

Post Operative Problems of a New Enterprise

Several problems can create hurdle to start any enterprise-whether small or large. They need not always arise but an awareness regarding them could enable their timely avoidance or prevention. Below are given some of the post-operative problems.

  • Lack or absence of profits.
  • Experience factor:
    • Unfamiliarity or lack of experience in product or services line.
    • Lack of experience in management. There is a vast difference between being a machinist and being able to manage a machine shop.
    • Over-concentration of experience e.g. focusing only on the area of interest say, sales, finance, production etc and neglecting others.
    • Incompetence of management.

    Read more: MGT601 - SME Management - Lecture Handout 19