As indicated in a prior blog post, effective management of an organization requires knowledge of the four functions of management: planning, organizing, leading and controlling.
One of the biggest problems for both start up entrepreneurs and business owners in the growth stages of business is organizing.
Organizing is the allocation of resources and establishing procedures for accomplishing company goals. Unfortunately, many small business owners either do not allocate the time, or do not pay attention to the need for organizing. Where are the receipts? Do I have a job description for my employee? What are my employment policies? These are only a few of the questions that regularly come about during the early stage of the business.
Items such as sales receipts and expense receipts are necessary for profit and loss statements, yet many times I have heard accountants say “my client needs to keep the receipts.” Establish a formal or effective informal method of categorizing documents and keeping them to support year-end financials.
Another problem affecting organizing is lack of a specific description for the position of the employee.
Often, I have heard employees say, “I really don’t know what my job is,” or, “ I had an interview, but I didn’t know what the owner wanted me to do.” Even though the business may only have one or two employees, it would be helpful to have a general written description of the job. This helps communication and morale.
There should also be a written document on company employment. It does not have to be extensive, but should include work hours, absentee or late policy, overtime, and overall behavior at work. When I review this item with entrepreneurs, a number of them indicate, that they should have one and have been planning to write one, but it has never happened.
Good organizing helps good management.