John Carlo G. Paradero

BBTE-IT 3-2N

PERSONAL

ENTREPRENEURIAL

CHARACTERISTICS (PECs)

has three clusters:

ACHIEVEMENT CLUSTER Opportunity Seeking

- sees and acts on new business opportunities

Persistence- a persistence individual takes

repeated or different actions to overcome obstacles to his/her goals

- stick to his judgment in the face of opposition or early lack of success

- makes personal sacrifices

Commitment to the Work Contract

- should accept full responsibility

- pitch in for others to finish the job

- express concern towards the customer

Demand for quality and efficiency

- do things that meet existing

standards of excellence

- strive to do things better, faster and cheaper

Risk Taking- take moderate risks

- state a preference for situations that involve moderate risks

Risk Taking- take moderate risks

- state a preference for situations that involve moderate risks

2. PLANNING CLUSTER

Goal setting

- should always have clear and

specific objective –- a long-term and

short term objective --

- they are guided by the word SMART(specific, measurable, attainable, realistic and time-bound)

Information Seeking

- entrepreneurs do not stop seeking information for their businesses for improvement of the company

- information-seeking on clients, supplies, and competitors

Systematic Planning & Monitoring- developing & using logical, step by

step plans, evaluate, monitor progress & switch to alternative strategies

WAYS THAT ARE USED BY THE ENTREPRENEURS TO

EXERCISE SYSTEMATIC PLANNING & MONITORING

learn from mistakes

constantly review performance

Concentrate on present situations

go back & review goals

If still unproductive, accept changes, but find other means to achieve goals

Tries to change environment if the environment is the cause of the low standard performance

3. POWER CLUSTER Self-confidence

- possess a strong believe in their abilities

- express confidence in their own ability

- they believe their business to be successful and profitable

Persuasion & Networking- should use deliberate strategies to

influence others-use their business & personal contact to

accomplish their objectives

1. Financial problems- lifeblood of business is money

- it is a must to have your own money before staring a business

2. Managerial problems- lack of management skills of the entrepreneur

- should think well before giving instructions to avoid poor management

3. Marketing problems

- some of these are problems with

competitors, taxes & advertising costs

4. Over-regulation & taxes

- amount of income for reinvestment is reduced by corporate income taxes

5. Problems relating to facilities

- production & sales are solved by problems of power supply, transportation & communication

Human mind

- considered as the most outstanding machine because it creates & innovates

Innovation

- introducing a new idea or method in an already existing product or concept as a way of enhancing & improving it

Creativity

- ability to develop an original idea

results-oriented

aware of people’s needs

involve others in decision-making

risk-taker

is not satisfied with the usual way of doing things

questions & innovates business practices

CLASSICAL MANAGEMENT THEORIES

A. Classical Scientific

- innovated by Frederick Winslow Taylor

- it is concerned on how to increase production efficiency to lower costs, raise profits & increase workers’ pay --- through increased production

- Gantt Chart was invented by Henry L. Gantt

- used for programming production & gave importance to the role of workers

B. Classical Administration

- proponent of this theory is Henry Layol

- emphasis is more on management principles than on work methods

BEHAVIORAL MANAGEMENT THEORY

- Robert Owens states that quality & quantity of work are affected by conditions workers

- workers’ morale improved resulting in improved production & reduction of operational cost after many years

CONTINGENCY MANAGEMENT THEORY

- solves by analyzing, listing circumstances prevailing at the time

- identifying available causes of action

-identifying the consequences of each cause of action

- choosing the bets solution

QUANTITATIVE MANAGEMENT THEORY

- recommends the use of mathematical approaches to management problems

SYSTEM MANAGEMENT THEORY

- emphasizes system as a group of interrelated parts operating as a whole to achieve desired goals and to function according to design.

CHAOS THEORY

-Change is constant. Although certain events and circumstances in an organization can be controlled, others can't. Chaos theory recognizes that change is inevitable and is rarely controlled. While organizations grow, complexity and the possibility for susceptible events increase. Organizations increase energy to maintain the new level of complexity, and as organizations spend more energy, more structure is needed for stability. The system continues to evolve and change.

THEORY X AND THEORY Y

-The management theory an individual chooses to utilize is strongly influenced by beliefs about worker attitudes. Managers who believe workers naturally lack ambition and need incentives to increase productivity lean toward the Theory X management style. Theory Y believes that workers are naturally driven and take responsibility. While managers who believe in Theory X values often use an authoritarian style of leadership, Theory Y leaders encourage participation from workers.