Why is it important for managers today to be entrepreneurial - Essay Example

? Why is it important for managers today to be entrepreneurial ? Why is it important for managers today to be entrepreneurial? In today’s globalized world, change happens at a very fast rate. If one is able to keep up with the pace of change, he is on the road of success but those who fail to do so are left behind. The world is witnessing competition in every corner and at every scale. The globe revolves around money. Money is the game changer and for that matter the business and economic arena is expanding every day swiftly. Now money is not only dealt with at organizational level, instead it has seeped into the lives of individuals. That means that in this twenty-first century, an individual can be an organization in itself given he/she is creative and capable enough. Such individuals are called entrepreneurs who are replacing managers. Whether this new trend could be successful depends on certain skills required that form the prerequisite of booming businesses. How similar are entrepreneurial skills similar to managerial skills would determine whether these two are contradictory or complementary in an organization. To start off with, the terms entrepreneur and manager need to be defined separately. According to the Merriam-Webster dictionary, an entrepreneur is that individual “who organizes, manages and assumes the risks of a business or enterprise” or “one who organizes a new business venture in the hopes of making a profit. On the other hand a manager is “a person who conducts business or household affairs and does the job of management.” (Reh, About.com) These definitions show that they overlap at certain points. An entrepreneur can be a manager and vice versa. Many individuals who start their business as entrepreneurs tend to be more like managers and leaders at the same time. An entrepreneur is also believed to be a “thinking” manager. A manager whose job is to handle the affairs of the organizations and look after the maintenance of the internal atmosphere is seen to be more rigid in attitude and sticks to his limited duties. But the demand of the growing business world requires resiliency and thinking out of the box skills. According to an online discussion,(India BIX) developing countries need more entrepreneurs than managers. This is because it is believed that only entrepreneurs with their skills of “creativity, intuition, goal-oriented, responsibility, self-confidence, independence, optimism, discipline and fantasy” can come up with possible solutions to the problem of poverty, unemployment and environmental hazards.(Papulova & Makros 2007). For managers, the required and basic skills are technical, interpersonal, conceptual and communication. These are the pre-requisites for having a healthy relationship with the leader and subordinates of the organization. If the manager fails to do so, the organization will also be deemed to fail. It would mean that the core of the organization is corrupt. Managers need to be prepared for the best and worst case scenarios. They have to play the role of entrepreneurs when at the peak of success or on the verge of tipping over. There are a few traits that should be present in both managers and entrepreneurs simultaneously. The interpersonal roles of figurehead, leader, liaison, information roles of monitor, disseminator, spokesperson and the decision making role of entrepreneur, disturbance handler, resource allocator and negotiator need to show face at the right time. (Papulove & Mokros 2007). There are five stages of growth of an organization where the founder/leader needs managerial and entrepreneurial skills. The first phase that is pre start-up phase requires relevant knowledge of setting up a business, demand of the market and one’s own abilities. To be successful in this competitive world, one needs to have a new and unique idea at the initial phase. That certainly requires entrepreneur skills because rigidity is just not acceptable at this stage. The second phase is the survival stage. This is a critical stage because at this point it’s the matter of either making or breaking. The managerial skills should be prominent here to maintain the pace, organize, plan, lead and control the situation. The second phase is followed by the growth phase. Here the organization needs to interact with the outside world. A stream of openness is essential to have knowledge of what is going on in the surroundings. The third phase, after maturing the organization is followed by the expansion phase. Here again a combination of both entrepreneurial and managerial skills are required to come up with ideas that will expand the scope of their organization and help fulfill the desired vision. Either the entrepreneur will have to be a manager or the manager an entrepreneur at the same time. Expansion would require making deals with other organizations with similar frame of mind. While interacting outside the organization, the manager needs to have the proper appearance and attitude so that he is able to sell his idea. Finally, when the enterprise is booming internally, it needs to have recognition globally. This phase is called global perspective. If this phase is achieved, the organization will be able to go beyond geographical limits and stay in the market for a long time.(Papulove & Mokros 2007). All of these phases reflect the ways in which a manager can be an entrepreneur instead of being a typical boss. The entrepreneurial skills if implemented on small enterprise will not prove to be effective. This is because an entrepreneur who is a leader and manager at the same time is over confident and hence is unable to play every role. He is hesitant to hire personnel and therefore the enterprise doesn’t really flourish. Managers running large organizations keep the staff intact and form the backbone or software of the whole system. Due to increased demand and competition, the leader would prefer creativity over going by the book. Therefore, before the manager is replaced with an entrepreneur, he/she should adopt the required skills and paint abstract with logic. Innovation is the key to success at every level, be it the pre-start up phase or the global perspective one. It is necessary to keep up with the demands of both internal and external environment of the organization. For that, a manager should communicate with a level of comfort and be a role model who can be followed by his/her subordinates. References Donald F. Kuratko, Jeffrey S. Hornsby, Douglas W. Naffziger, Ray V. Montagno, “Implement Entrepreneurial Thinking in Established Organizations”. (Questia: Journal Article). Accessed on January 24th, 2012 from http://www.questia.com/googleScholar.qst?docId=5000206620 Entrepreneurship, (Reference for Business, Encyclopedia of Business) . Accessed on January 24th, 2012 from http://www.referenceforbusiness.com/small/Di-Eq/Entrepreneurship.html India BIX, “We need more entrepreneurs than managers”. (Group Discussion). Accessed on January 24th, 2012 from http://www.indiabix.com/group-discussion/we-need-more-entrepreneurs-than-managers/ Papulova Zuzana & Mokros Matej, 2007. “Importance of managerial skills and knowledge in management for small entrepreneurs”. Accessed on January 24th, 2012 from http://www.g-casa.com/PDF/Papulova-Mokros.pdf Reh John F. “Professional management vs. Entrepreneurial management”. (About.com Guide). Accessed on January 24th, 2012 from http://management.about.com/od/planning/a/EntreVsProMgt00.htm Simpson L. Gordon, “Management and the Entrepreneur”, (ManagerWise). Accessed on January 24th, 2011 from www.managerwise.com/article.phtml?id=160 Read More