Five Misunderstandings In Private Enterprise Management

The changes in the modern social and economic system have provided good venture opportunities for the original risk speculators and wise people. A batch of private enterprises developed rapidly and rapidly after the early 90s, breaking the pattern of state-owned capital's exclusive ownership. At the same time, because of the government's rectification and opening up to the industry and the whole market, it gave all enterprises an equal and free competition space.

However, under such equal opportunities, there are indeed some enterprises that grow rapidly and become listed as the dark horse of the industry. They have also become the new favorites of Forbes and Hu Runfuhao rankings. Some enterprises are still sticking to the original capital scale and even have a crisis of survival.

Although some of them are different in terms of business models, product positioning, marketing tools and business philosophy, why are there such huge differences in the same external factors? In the process of implementing management consultants for some enterprises, we find the problem of partial division, that is, the effective management of enterprises, and the neglect of management consciousness that a business decision-maker should have.

Next I will introduce some of the problems we have seen to the management of enterprise managers to introduce to you for your reference.

First, stick to the original experience of the industry, unable to break through the habit of thinking, many owners of private enterprises have accumulated a certain amount of contacts and practical experience in the industry because of their early start from scratch, and have accumulated capital.

Because of the accumulation of these capitals, these enterprises often operate their enterprises with their own experience and intuition. They believe that experience will have many benefits and benefits to the development of enterprises. Therefore, in the actual management of enterprises, they only rely on past experience accumulated to carry out management judgment, and manage them according to the experience of the industry.

Because of the rigid thinking of these private owners, enterprises can only manage in accordance with the original traditional mode, lack of effective overall management operation system, and can not form cross management and management mode of specific industries.

Under the restriction of human management and monitoring conditions, it is easy to assume subjective assumptions on the management of enterprise personnel, and more by the emotional judgment of managers' personal likes and dislikes, which leads to biased management and loss of employees' sense of fairness and trust.

At the same time, it also causes employees' lack of management trust and enterprise security, which makes employees' mood swings and staff turnover.

At the same time, because of the lack of standardized management and operation system, there is no experience in judging the setting of Posts and the operation process of personnel. There is no way to reasonably assess the capabilities and workload of workers. It only emphasizes workload and cost, resulting in one or more posts or fuzzy responsibilities. The invisible man created the internal management problems of enterprises, and then the managers acted as "firefighters" to solve them with experience and intuition.

In addition, because of the management experience of enterprise managers, it is often lack of relevant data analysis as a basis for decision making. Production enterprises only have the basic concept of production cost. There is no data analysis on start-up rate, material consumption, defective product rate, rework production cost, depreciation of production tools, turnover rate statistics, etc., and sales enterprises do not have a cost breakdown analysis of market cost budget and market cost AP, but also do not do SWOT analysis of internal and external businesses.

Two, conservative inherent capital, careful management, fear of leakage, "entrepreneurship is easy to stay in business." many business operators understand these principles. They can not forget the painful experience of initial capital accumulation in the early stage of entrepreneurship.

Therefore, in the late stage of the development and operation of enterprises, managers who had gone through arduous pioneering work were extremely conservative in all management behaviors and changes involving enterprise capital in the development of enterprises.

Management of a company needs cost. Any change in the management behavior of an enterprise will cause labor pains and cost inputs in the process of change. At least when the form is controlled, the printing of these forms will result in a certain cost.

However, those who are accustomed to "frugal" have not yet been aware of the consequences of changes in their business. They are always cautious or cautious about the initial investment in management, or simply do not have the necessary mindset to carry out changes. They dare not risk even 1%.

These are certainly related to the interests of business operators, but more often they lack the sense of professional management and do not understand the true meaning of "managing efficiency".

It is considered that as long as there are products, the operation of the enterprises can smoothly satisfy the current situation.

It is not known that the barriers to development of enterprises are produced in such a way of self preservation and meticulous care.

Three, trust in nepotism and neglect of the mentality of professional managers.

In the initial stage of enterprise building, due to the restriction of funds and other conditions, the family type co operation really made everyone work hard together at that time, which brought a sense of security to the business operators, so that the enterprises could survive and develop.

However, when the enterprise develops to a certain scale and time, the family management mode will bring a lot of constraints to the enterprises. These aspects lie in the decision-making of shareholders, the lack of professional management, the management of ultra vires, the communication barriers between employees and management and so on.

Although a lot of private enterprises have used some professional managers after a certain scale, however, due to the uneven professional level of professional managers, their performance in posts also has their own shortcomings. Due to their differences in performance, the main decision-makers have different evaluations of career managers, and the degree of trust also varies. However, no matter how professional managers behave, there is always a constant position in the minds of entrepreneurs.

As long as professional managers fail in their work, the nepotism loyalty in the enterprise will immediately explode and give the relevant personnel great ideological and working pressure.

However, when a crony employee in a business is adjusted to his post or punished for his work ability or performance, professional managers are often very cautious, even because they are "not punished by doctors" and are not subject to management control. They can not be equated with other employees. Because of their disparities in status, they are often "dealing with fish in troubled waters" when dealing with such problems.

This is why a lot of professional managers can not play a role in a private enterprise for a long time and the rapid flow of their employees and lack of corporate loyalty.

Four, pay attention to the short-term interests of the eyes and lack long-term planning. Most private enterprises are limited by their academic background and culture background. In the process of considering the development of enterprises, they often carry out their own intuition and sensitivity to the industry. There is no design for the long-term plan of the enterprise, but they invest more time in thinking according to the existing scale of the enterprise.

In the whole business process of enterprises, they pay too much attention to the change of profits and seldom consider the brand and the construction of enterprise culture. From another angle, they are too realistic and eager for quick success and instant benefit.

In many business processes of consultants, many companies want to pay a small price for consultants to do the most things, and even think that consultants are their subordinate departments and employees. Therefore, we constantly change our requirements and hope for immediate results in our original schedule.

From this, our consultant company feels that managers of a private enterprise will face the mentality of managers.

As an enterprise, it should have a good psychological quality. It should also understand the importance of the process. Everything must be operated in a sequential way under the premise of a plan. If the enterprise does not have a plan, "headache and pain", the enterprise will always be in a process of sorting out and solving, and the result is a permanent unknown.

Five, excessive centralization, lack of integrity and trust, the company is a Pyramid type organization structure. Core management is decision-making management. We can see clearly in the organizational structure that the arrangement of hierarchy means the right of status.

However, the establishment of organizational structure in private enterprises is often an armchair strategist.

There are 2 possible reasons: first, the existence of the structure, but no implementation, the Department is nominal; two, there is no authority in the management of the organizational structure.

This is a common problem in many of our consultants.

It is relatively simple to structure such problems. If we improve the system and organize the structure, we can carry out the work smoothly.

But there is no authority to manage the second party's organizational structure. It is a barrier that makes us feel difficult to break through. The reason lies in the way of thinking and the connotation and character of an entrepreneur.

In order to smooth the work process, it is necessary to follow up the management and supervision mechanism. However, managers do not have the corresponding rights, so that the mentality and working mode of managers will be changed passively. Too much centralization of power will make the enterprises obsessed by lots of comments and signing. Therefore, it will also form the role of low efficiency and "firefighters", and professional managers can not play their due effect.

Enterprises are far from rapid development.

Business management is the management of people, wealth and goods.

However, in practice, enterprises can not carry out effective detail management and cross control management.

In fact, the reason why they pursue their business is ultimately the decisions of the business decision-makers, the boss's thinking. Therefore, I would like to suggest that all the private enterprises can take a quiet mind to review all the ways of thinking and business management, which may help the management development of enterprises.

The management thinking and behavior of an enterprise will determine the survival of an enterprise.

Xu Qiyun, editor in chief: