Economics assignment on: Small Vs. Large business

Q.1.) Key Questions

Identify the characteristics of a small vs. large business?

It is very clear that small business considered as the main feature of the economy of the New Zealand and sometimes believed to be the main contributors to economic growth and employment. The development of the industries governed by the small firms and small firms considered as more dynamic as compared to the larger firms. During recession period, small business in New Zealand offered more jobs as compared to the large business. New Zealand faced negative and low economic growth during the late 1980s and in early 1990s. The differences among the small and big business are interesting and recommend that the leaders of the small business are less visionary as compared to the large business (Attwood, 2007). In general, small business looks at the authoritarian, laissez faire and participative style of the leadership.

Investigate how the size of the business impacts on its organizational structure

It is very clear that size of the business impacts on the structure of the organization. In general, small businesses do not generally have the huge structure because the owner of the business is accountable for all types of tasks. On the other side, large business needs more intense kind of framework for the organizational structure. Organizations with more workers generally need more managers for managing of the individuals. Highly specialized operations of the business may also need a more formal kind of organization structure (Mansell, 2004).

Explore how the structure of organization influences the management style applied by managers?

The approach of the manager may have the influence on the productivity of the organization and staff. The efficiency of the organization is dependent upon the each department, maintained by the manager and performing the job and donating to the Company success. In general, organizational structure shows the choices of value based created by the organization. The structure of the Organization shows how the tasks of the job are grouped, divided and coordinated.

Explore how the size of an organization impacts on the style of leadership applied by managers

It is very clear that in larger organizations managers may make the roles exclusively that are focused more on leadership and making alternative departments which are full of lieutenants to execute the vision of the leadership. On the other side, small business like the large business requires both management and leadership skills. The difference lies in the small business is that managers do not have the compartmentalization luxury. For e.g. formation of silos requires management and leadership skills.

Identified leadership behavior or techniques are correctly identified and link to relevant leadership theories and concepts.

The Trait Approach to Leadership

It is viewed that Trait approach of Leadership helps in identification of features of the successful leaders. It was considered that with the help of this approach trait of the leadership may be isolated and that individual with such kind of traits could be selected, recruited and put into the positions of the leadership.The Contingency Approach to Leadership

It is very clear that behavioral theories might assist managers to form particular behaviors of leadership which constitutes efficient leadership in various situations.

The Hersey Blanchard Model of the Leadership

This model takes the situational aspect of the leadership. This model helps in determination of which style of the leadership is more appropriate. This theory offers socio-emotional support and level of the maturity to followers (Sparrow &Cooper, 1998).

2.) Comparison

What Leadership concepts or techniques are practiced in small business?

In general, one of the mistakes make by the owners of the small business is to indulge themselves operating in business as compared to operating on business. There are various leadership concepts or techniques which are practiced in the small business such as Directing, Delegating and Autocratic Style of the leadership (Attwood, 2007).

Directing

The directing style of the leadership usually comprises taking over the challenging condition and utilizing particular experience and knowledge to make the ship. For e.g. If the business is facing difficulty in establishing the brand, then the skilled manager of the marketing may be brought for developing the strategy of the marketing for creating the brand awareness. This style of the leadership is mostly applied in the small kind of the business in country like New Zealand.

Delegating

It is very clear that delegating style of the leadership places more accountability on workers shoulders as compared to managers. The manager is capable to offer suggestion, but when it is needed and requested by the employees and serves more of consultant capacity. This style of the leadership permits maximum creativity and applicable for the small business. In general, workers play an important role in the small business so that is why this style of the leadership is applicable for the small business.What leadership concepts or techniques are practiced in large business?

There are various leadership concepts or techniques which are practiced in the large business such as Bureaucratic Style of the leadership and Democratic style of the Leadership.

Bureaucratic Style of the Leadership generally develops over the extended time period and applicable to the large and old business. In hazardous workplaces, where methods save lives, a bureaucratic style of the management helps in enforcing security and health rules. The standard characteristic of the bureaucratic style of the leadership is the enhanced network of the communication line. Small business considered as the engine of the economic growth with the help of innovation and employment (Robbins, 1996).

Democratic Leadership

Democratic style of the leadership comprises workers in actions, delegate assignments and request workers for recommendations. The Democratic type of the leadership considered as the one in which each and every employee has decisions and voice and made through cooperation and consultation. Democratic style of the leadership usually applies in the larger type of the Business. Democratic type of the leadership is based upon on sharing of responsibilities and the decision making within the Company. In the environment of democratic leadership, consultation is taken from the members within the organization before the decisions are taken. This style of the leadership continuously encourages the employees to become into the roles of the leadership.

The aim of the Leadership in the New Zealand is to encourage and actively help in the nurturing, development and identification of the leaders in the community. It involves the New Zealand society leadership forum comprising all sectors and the diversity of the individuals throughout the New Zealand.

How are these concepts applied by managers?It is very clear that small business concentrates on providing long and true lasting leadership to accomplish the actual success with the help of marketing strategies and other marketing techniques. Leadership is the wider concept than the management because it comprises influence process with the broad variety of people. Managers are the potential leaders but they are not the ones in accomplishment of leadership concepts and styles. It is significant for the managers to develop particular skills in relation with role’s conventional responsibilities.

What similarities are evident in the application of leadership styles and techniques for these different entities?

Leadership comprises disproportionate influence throughout the world and the role of the leadership is related with status and power (Nutt, 2004).  Status and Power are categorized in the society and applicable to the role of the leadership. Status and the Power are the similarities in the application of the leadership techniques and styles for the different entities.

What are some of the differences in leadership style for each business entity?

There are various differences in the leadership style for each business entity for e.g. Small Business the directing style of the leadership usually comprises taking over the challenging condition and utilizing particular experience and knowledge to make the ship whereas in large business the Democratic type of the leadership considered as the one in which each and every employee has decisions and voice and made through cooperation and consultation. These are the differences in leadership style for each business entity.

Q.3.) Evaluation

Leadership Techniques for the Small business

Provide Clear Expectations

Employees in the small business need to know what they required to accomplish the desired objective. It is also significant to communicate the expectations at the individual, organizational and departmental level.Give the Employees the Techniques for Success

In small organizations new systems are bought, but no any training is offered to the employees. The policies and procedures are not followed or implemented and workers are hampered by the barriers. It is advisable for the small business entities to give the employees the techniques and tools for the success (Frank, 2009).

Grow the Employees

It is advisable for the small business to encourage the employees. Encouragement helps in delegation of the tasks, challenging the assignments and provides the support to the new employees.  At last these three techniques are offered to the small business entity for the effectiveness of the leadership.

Large Business

Listen

High performing kind of teams involve individuals who have done the listening art without any fear and permitting others to converse without reacting negatively or strongly what is said and anticipate what shall be said. The leaders understand that the higher innovation levels needs members of the team to convey unusual suggestions and suggest experimental process. Listen kind of the leadership technique is applicable to the large business because generally large business involves high performing teams involve individuals who have permitted others to converse strongly (Fong & Kleiner, 2004).

Defines the apparent picture for the future and vision for team

In general, large business defines the apparent picture for the future of the team. Leaders should be prepared to adapt and acknowledge the changes in the operational situations. As per my point of view, this leadership technique is applicable for the large business because large business sets the picture for the future and vision for the team.

Follow through the commitments

It is very clear that leader of the high executing teams search ways to make the trust and build it. High executing teams know how to differentiate the professional trust from the loyalty. As per my point of view, this technique of the leadership is applicable for the large business.

Q.4.) Leadership Theories

Path goal Theory

It is very clear that path goal kind of theory postulates the successful leaders who enhance the motivation of the subordinate by clarifying and charting out the ways for the high performance. As per the path goal theory, efficient leaders motivate the followers to accomplish the organizational goals and reward the subordinates for executing at the high level and achieving the work goals by offering them desired results. This type of the theory is applicable for the large business (Don Slater, 2002).

Leader Style Theory

This type of the theory in which leaders make decisions in finding out the extent for which subordinates must take part in the decision making. This style of the leadership indicates that the decisions of the organization must be of highest quality and subordinates must accept and committed to decisions of the organization. The model offers methods for finding out of the leader’s style appropriateness. This style of the leadership is applicable for the small business.

Transformational Leadership

Transformational Leadership prevails when the leader changes or transforms his followers in 3 significant ways which together result in the followers believing the leader, executing behaviors which give to the accomplishment of the goals of the organization and being encouraged to execute at the highest level. This style of the leadership help subordinates in their requirements for personal development, growth and accomplishment.  Motivate the subordinates to operate for the organization wellness as compared to their own benefit and gain. This style of the leadership is applicable for the large business in New Zealand.

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