Preliminary communication
Model for defining the level of implementation of the management functions in small enterprises
Dragan Mišetić
; University of Mostar, Faculty of Economics
Abstract
Small enterprises, based on private ownership and entrepreneurial capability, represent, for the majority of the scientific and professional public, the prime movers of economic growth, both in developed market economies and in the economies of countries in transition. At the same time, various studies show that the main reason for the bankruptcy of many small enterprises (more than 90%) can be found in weak management, i.e. unacquaintance with management functions (planning, organization, human resources management, leading and control) and with the need of implementing those functions in practice. Although it is not easy to define the ingredients of the recipe for success or to define precisely the importance of different elements, and regardless of the fact that many authors think that the management theory for large enterprises is inapplicable for the small ones, we all agree that the owner/manager and his implementation of the management theory has a decisive influence on small enterprises in modern economic circumstances. Therefore, the author of this work is hereby representing the model, which defines the level of implementation of management functions in small enterprises, as well as three systems/levels (danger, risk, progress) in which small enterprises may find themselves. After the level of implementation of the management function is identified, it is possible to undertake some corrective actions, which will remove the found failures. While choosing the variables of the model, the author took into consideration specific features of a small enterprise, as well as specific features of its owner/manager.
Keywords
functions of management; small and medium enterprises; SME management
Hrčak ID:
184569
URI
Publication date:
14.7.2017.
Visits: 3.273 *