Employment relations Essay Example | Topics and Well Written Essays - 2250 words

Employment relations - Essay ExampleSmall firms have a small market sh atomic number 18 in any given economy and individual firms actions cannot significantly impact the entire industry or economy. Therefore, individual firms cannot significantly influence national or regional prices or quality. Most small firms ar managed in a personalised way because owners are attached to them. Consequently, their personalised feelings attached to business form them active in all aspects of their business. jibe to segment for Business Innovation and Skills (2010), there are over 4,801,250 small business enterprises in the joined Kingdom. Sections 382 and 465 of the United Kingdoms Company Act 2006 define small firms as business entities with zero to forty-nine employees, ?0-?6.5 million disorder and ?0-?3.26 million balance sheet total. Small businesses have their own challenges and benefits. According to The Times 100 (2011), 2 thirds of small business in the United Kingdom are owned and r un by a single person (manager). This means that about two-thirds of the small firms in the United Kingdom are managed by owners. Further much than, 90 percent of small firms employee six people and below. Managers may be owners or employees of an organisation and are responsible for overall performance of a firm. The key objective of a manager is to utilise as practises, money, materials and forgiving resources effectively and efficiently to achieve objectives (profit maximization) of a firm. This is achieved through well-coordinated human efforts. Therefore, he or she needs to set organizational goals and manage his or her staff well. To achieve firms objectives, managers apply different concern styles as rigid by the nature of the business and personality. Some of the management styles applied by managers of small firms include autocratic, participative and situational management styles. Characteristics of small firms Every manager must understand the features of the firm he or she is managing to be in a position to positively influence its processes and outcome through application of appropriate management style. According to Moore (2008), small firms have distinctive features. First, managers are more of doers and less of managers. They work because they do not move over to employ more individuals to carry out certain duties on their behalf. Therefore, they are more action orient and less analytical as compared to professional managers. Secondly, managers act as entrepreneurs. They scan the environment and take the risks of approach path up with new ideas and implementing them. Thirdly, managers of small firms do not have adequate time allocated to planning. When they plan, plans are much postponed or neglected. Fourthly, small firms are made up of simple and highly informal organizational structure. This enables managers to make quick decisions. As a result, managers in small firms are more powerful and exert strengthened personal influence on f irms operations and activities. The fifth characteristic of small firms is that about managers apply both autocratic and participative management approach. Sixth, small firms are vulnerable to failures caused by managerial inefficiencies because more power and authority are vested on one or few individuals. Seventh, small firms are more likely to face isolated financial and personnel constraints. The eighth characteristic is that small firms undergo maturement and development phases. According to Storey (1994), inception, survival, growth, expansion and maturity phases are five phases of growth that small firms a great deal undergo to grow to long suit and to large firms. Each phase has its unique strengths, weaknesses, opportunities and threats. Most small firms are in the inception, survival and growth phases. Beyond, the three initial stages, firms may be classified as medium or small because they are likely to have more than fifty employees, over ?6.5 million overthrow and more than ?3.26 million balance sheet total. Managing small firms Is Small Beautiful? Appraisal of management styles in small firms Autocratic, partici