How To Develop "Three Small Businesses"?

First of all, we must make it clear that the small and medium-sized private enterprises we are talking about refers to the production enterprises with relatively small scale of personnel, assets and scale of operation.

Whether it's three small businesses or small and medium-sized enterprises is a vague position. We have hundreds of millions of scale enterprises still regard themselves as small and medium-sized enterprises, constantly challenging new goals.

We also have hundreds of millions of enterprises, like the top 500 in the world, submerged in complicated details.

The key is what kind of mentality! We are still young, we still have a long way to go, always alert, no burden, no red tape, change at any time, this is small and medium-sized enterprises, small and medium-sized enterprises represent vitality and infinite future.

On 23 December 2009, the Ministry of industry and Commerce issued the "small and medium-sized enterprises in China".

This conclusion is also collected from 28518 quantitative survey data and 68568 qualitative survey data of small and medium-sized enterprises, focusing on the analysis of 5 indexes of enterprise inventory turnover, accounts receivable turnover, operating profit rate, sales growth rate and profit growth rate.

The report determined that a full score of 10 points, 8 points or more for health, 5 points below is unhealthy, although such assessment has been data, but also in contrast, compared with domestic large enterprises, compared with foreign SMEs, compared with the past of Chinese SMEs.

Most of the small and medium enterprises in China are developed by small units or small workshops of dozens of people or even more than ten persons. They have courage and courage in making a career in the market trend of reform and development. They have accumulated a lot of experience and competitive advantages in many years of operation. At the same time, the most easily occurring defects in these enterprises are the non-standard and backward management systems, especially in comparison with modern enterprise systems and management theories.

The author found in consultation and training that small and medium-sized enterprises: compared with large enterprises,

The two characteristic is that the staff is few, the organizational structure is simple, and the organization of human resources organization is not perfect. Only a small number of managers can perform performance management, resulting in low efficiency, and can not give full play to the functions of all aspects of performance management.

The three characteristic is the small scale, the unique property right structure and the lack of systematic management, resulting in the phenomenon of simplification, non procedure and arbitrariness in the performance management. How to make use of the results of the evaluation to formulate "employee's personal development plan", "training plan" and "salary plan" and other deep level problems are also difficult to get attention, resulting in poor performance management.

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From the traditional management of patting head to the flood of modern western management thoughts, Chinese entrepreneurs have never stopped exploring.

In China, where small and medium-sized enterprises are firing all over the place, the relocation of the management mode of western large enterprises (such as SixSigma) has not brought us much gospel. Instead, many small and medium-sized enterprises have suffered a series of sequelae such as institutional rigidity and inefficiency.

The reason is not the difference in scale between Chinese enterprises and western enterprises, but on the different stages of development between enterprises.

But the author insists that the process based performance appraisal is an inevitable requirement for the development of modern enterprises to a certain stage.

First, the development of enterprises has put forward higher requirements for the company's strategic planning and strategic implementation capability. The process based performance appraisal is an effective tool for decomposing the company strategy into various units and departments. Through the goal decomposition and formation of key performance indicators and monitoring indicators, it guides the actions of middle managers, grass-roots managers and ordinary employees in keeping with the company's strategic direction so as to enhance the strategic execution of enterprises.

Two, the development of modern enterprises has put forward higher requirements for salary management: with the increasingly fierce competition in the human resources market and the increasing mobility of talents, rational planning of human resources and the incentive and challenging personal performance appraisal have given employees a high degree of recognition and sense of ownership, which has posed a great challenge to the work of human resources.

The performance appraisal of employees at all levels is based on the decomposition of the company's strategic objectives and departmental objectives. This is a top-down process of decomposition. It can be said that the performance appraisal at the business level is a bridge linking company strategy and employee performance appraisal.

Three, the development of Chinese enterprises to a certain stage, many small and medium-sized enterprises internal management has the unclear process, the key link control disjointed and the overlapping of responsibility and power, resulting in a certain level of performance level is low. The urgent need to improve the performance level has become the internal driving force of the implementation of performance appraisal, and is also the inevitable requirement for the enterprise to develop to a certain stage.

Mr. Tam stressed that if small and medium-sized enterprises want to make great progress, get rid of the original extensive management and management state of "Lao Tzu's team is the 35 person and seven or eight guns", and make the life span of enterprises as far as possible, and develop into a "century old shop". We must carry out a thorough reform with pains in essence and establish a gradual development mode.

First of all, we must establish an enterprise culture with enterprise characteristics, and understand that the most fundamental driving force of "culture" determines external, intangible and tangible, and the survival and development of the nation is a spiritual culture. The same is true for the people's enterprises. The importance of "enterprise culture" determines that the development and growth of enterprises will always be culture, and culture will always be the core of all business management activities of enterprises.

Secondly, not only have strategy, but also have strategy, strategic design, strategy have future, clear and correct enterprise tenet is the first step of strategy.

One is to establish the decision-making mechanism of enterprise management.

A decision-making mechanism should also be established within the management team of an enterprise.

We should pay attention to planning organization, plan is higher than planning, implementation is higher than decision, execution is higher than creativity.

The separation of management power from management right within the enterprise will result in low efficiency. The combination of the two powers will inevitably result in blind obedience to the highest authority of the enterprise.

Third, to abandon the family, the individual interests of the family members are not always consistent with the interests of the enterprise.

Change "rule by man" to "law" and change "family management" as "talent management".

The development of small and medium-sized enterprises needs a stable, reliable and loyal core management team.

For this team member, we should fully reflect their own value.

Everyone has different needs of each individual. Entrepreneurs must study the needs of team members, correctly guide and satisfy them, so as to form a complete team of management pformation and enterprise development.

Fourth, no enterprise, no everything, and small and medium-sized enterprises should abandon the selfish, indifference and disrespect for talent.

Mr. Tan Xiaofang suggested that small and medium-sized enterprises should implement the method of "sending out and coming in", that is, to strengthen the training of in-house personnel, and sometimes to send out training to bring in talents who are good for the development of enterprises.