Summary. Small-medium businesses have unique characteristics that require special responses. They are not underdeveloped big businesses. This is particularly so in people management. If employees don’t respect each other’s work and contribution, you’ll have “people problems”.
1. Compatibility Is Vital. You don’t want clones of you. But you do want people you can get on with both personally and professionally. You can’t escape from them or they from you.
2. People You Trust Absolutely. Even though you may own your small-medium business, you simply can’t do everything yourself. You have to give others responsibility and accountability. If you don’t have staff you trust, your business will stagnate.
3. Flexibility and Adaptability. You’ll employ people because they bring specialist skills to you. But they must be prepared to “fill-in” and “help out” in areas outside their speciality.
4. On Job Training. I happen to believe that the most effective training occurs on the job. This is particularly true in small business. Your people need to understand that they’ll learn new things by doing them. Avoid people who want to go to “courses” to learn.
5. Limited Opportunities. You can’t offer long term careers. Recognise that valued employees may leave for “greener pastures”. To limit the damage, introduce incentive and reward schemes including profit share if possible.
6. Systematize, Systematize, Systematize … “There are few poor people, but lots of lousy systems” so the saying goes. Do your best to introduce systems that make it impossible for your people to fail. Good systems reduce stress, increase self esteem and build confidence in all who use them. They improve profitability too.
7. Openness and Information. Keep your staff informed. If you don’t, rumours will develop to replace fact. Ensure your staff know what you and they are trying to achieve and how well you’re progressing. There’s no need to reveal the most secret parts of your business. But your staff are all close to your business. They deserve to know.
8. Sensitivity. Staff will have personal problems. Occasionally these problems will affect how they do their jobs. Show concern. See if you can help without “playing favourites”. Other staff will judge you harshly if you seem cold and unfeeling.
9. Develop a Sound Network. You need other business managers you can talk to and exchange ideas with. This is important for general business ideas and especially so for sound business management.
10. You’re The Role Model. That’s the fact. Because your business is small you can’t escape scrutiny. They’ll do what you do, not what you say. They’ll treat customers the way you do; not how you say they should be treated. This applies to all aspects of your behaviour.
Conclusion. There’s little room for textbook management in small business. The people management textbooks are written for managers in big business, not for small business managers desperate to grow their business and make a worthwhile living. Sound people management helps a lot.
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