Management Theory for Small Business | How-to Guides for running your business from Business.com

When you decide to go into business for yourself — to "be your own boss" — it's common do so hoping to be a different kind of manager. You may want to be more efficient, more approachable, more productive and more compassionate than most corner-office types.

For those who are serious about being a better boss, there's a science to being a good manager. Known as management theory, it can convert good intentions into great results. Management theories dissect the ways in which managers run their companies; taken to heart, they can give you a proven system for:

Planning
Organizing
Leading
Coordinating
Controlling

Action Steps
The best contacts and resources to help you get it done

Scientific theories

Scientific, or classical, approaches to management emerged at the turn of the 20th century and promote hierarchies based on performance and productivity. The idea is to hire and train employees based on their unique skills, and to promote their growth within a narrowly defined job description.

I recommend: Scientific theories of management rely on individuals' — including managers' — expertise in order to thrive. Test your own management expertise with the Management Skills Assessment tool, instructions for which are available from BusinessBalls.com.

Contingency theories

A contingency approach to management, also known as a situational approach, is designed to be flexible; different problems are solved using different strategies and success relies on shared goals and values rather than power structures.

I recommend: Consider enrolling in an on-site seminar from the American Management Association on situational leadership. 12Manage.com offers a look at how to implement contingency management theory into decision-making.

Behavioral theories

The behavioral theory of management, or the human approach, became important during the Great Depression and proposes that employee job satisfaction hinges not only on salary, but also on working conditions and attitudes. Everything from friendly peer groups to clean office space influences employee happiness and productivity.

I recommend: Essential to behavioral management is teambuilding; try About.com's Team Building Exercises and Icebreakers to foster camaraderie and collaboration among your employees.

Contemporary theories

Modern management theories include the collaborative approach, whereby organizations rely on their political power and influence to form external alliances; the systems approach, where managers keep an entire organization in mind when making management decisions; and chaos theory, which managers use to find patterns in seeming chaotic business situations. One of the most widely used management theories is Total Quality Management. TQM's goal is ever-improving products and always satisfied customers.

I recommend: EnteGreat offers a Webinar on implementing end-to-end quality management in manufacturing.

Beyond the theories

Management is more than theory; it's style, personality and leadership, too. Knowing your management style, your leadership IQ and your personality type can make you a more effective manager regardless of the management theory you choose to follow.

I recommend: Take and administer PersonalityType.com's "What's Your Personality Type?" quiz to find out what type of person you are and what type of people you work best with. Register to take a free Management Style Test from Queendom.com to determine your overall approach to management. Find out what kind of leader you are by taking About.com's quiz, "What's Your Leadership Style?" Then, test your effectiveness as both a manager and a leader at the Cosmic Coaching Centre's Self Evaluation Center.

Tips & Tactics
Helpful advice for making the most of this Guide

Your management style may be people-oriented, idea-oriented or process-oriented.
You don't have to be married to a single theory. Draw from several different theories to create your own brand of management.
Make sure all new managers understand your management theory and embrace it.

The official source of Management Theory for Small Business is
the Management Theory page at Business.com

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