Management - Entrepreneurial Managers - Term Paper Example

?Entrepreneurial Managers Managers have the responsibility of organizing people and resources within an organization to achieve a common goal. On theother hand, entrepreneurship is the process of organizing all factors of production (Smither & Reilly, 2005). Entrepreneurs are therefore, responsible for financing innovations or transforming innovations and ideas into useful products. Management is an involving task and modern mangers must be able to cope with changes in their respective fields. This is because mangers work in unpredictable business environment. In such an environment, the competitive advantage of a business or manager may be insufficient. This indicates that mangers need to have an extra skill or advantage. Entrepreneurial skill is an essential skill that managers need to have. This essay will seek to establish why managers in modern organizations need to become entrepreneurs. An organization cannot dispense its duties without a manager. This proves that mangers are critical for the existence of an organization. However, critical role of mangers might be organization requires managers who have relevant entrepreneurial skills. Management revolves around management ideas and theories. An effective manager is therefore, expected to have sufficient of such knowledge. In addition to the knowledge, a manager is expected to bring innovations into the business. Their role therefore, involves discovering new ideas that are based on proved management knowledge. Ideas and innovations are critical to organizations. However, they are insufficient to sustain an organization in the modern, competitive business environment (Bade, Michael, 2001). By becoming entrepreneurs, mangers will be able to apply their knowledge and innovations to produce useful products and services. Application of established knowledge and innovations creates competitive advantage of a business. Organizations with entrepreneurial managers are therefore, more competitive than organizations with traditional managers and management styles. The existence and competitive advantage of a business organization depend on its ability to compete favorably with existing and expected competitors. This factor or requirement implies unpredictability of organizations and business environment. The future of a business is therefore, essential for its existence. Managers are trained to produce working solution to immediate business problems. This implies that manager operate to attain short-term goals and objectives in an organization. Although short-term goals and focus is essential in an organization, long-term planning is of equal importance. Unlike managers, entrepreneurs focus on long-term objectives of a business organization and their implications to the business. Entrepreneurs therefore, conduct a business with long-term objectives and plans. An entrepreneur will focus on how a new product will create a breakthrough in the market while a manager will be concerned with the improvement of existing products. The two roles are important to a business however, the role played by entrepreneurs is of greater importance since it includes the other role. Acquiring entrepreneurship skills will enable managers to balance the two roles within an organization. Becoming an entrepreneur will also enable managers to have long-term objective for the business. The main duty of an entrepreneur is to organize other factors of production and such roles involve taking of risks (Hirshleifer & Hirshleifer, 2005). Entrepreneurs therefore, expect a reward for the risks they assume. On the other hand, managers have the responsibility of ensuring that things in an organization are running according to the plan. Managers therefore, work according to a preset strategy or plan. Unlike managers, entrepreneurs are capable of varying their working strategy to cope with their expectations. Entrepreneurs are flexible in their duties and operations. Flexibility is an indispensable quality in modern business environment due to the unpredictability. Becoming entrepreneurs will enable managers to vary their working strategies and objectives to fit into the organization’s requirements and needs. Flexibility in an organization enables entrepreneurs to realize their reward or profit. Traditionally a manager is expected to oversee a project or a role to completion. In such cases, managers are less concerned with the outcome of the venture. A sustainable organization needs to have benefits that exceed the cost. This proves that management is insufficient to sustain an organization. Becoming entrepreneurs will enable managers to conduct their operations with an objective to make profits (Shaw, 1990). Managers who have entrepreneurial skills are also capable of varying their operation strategies to cope with the expectations of the organization. The success of a business depends on its ability to meet human needs (Hirshleifer, & Hirshleifer, 2005). The modern business world has saturated environment. This implies that most ideas and opportunities have been exploited. Opportunities in the new business environment are, therefore, not as profound as opportunities in the past business environments. However, the modern business environment has potential opportunities that require exploitation. Such business; environment is unfit for managers since they are not capable of exploiting the available opportunity. Normally, an entrepreneur perceives a business opportunity. After identifying the opportunity, an entrepreneur usually organizes the required resources and ideas. Entrepreneurs then finance and start the business with the existing capital and resources (Hirschey, 2009). The role of managers comes in later after a business has already been established. This implies that in the absences of entrepreneurs, managers will be of less value to the organization. Managers need to become entrepreneurs in order to avoid becoming redundant in the modern business world. According to the explanation on the roles and duties of a manager cannot exist without entrepreneurs. Entrepreneurs are also responsible of creating products from business ideas. Such a role is critical in satisfaction of human needs. The variations between the responsibility of managers and entrepreneurs also imply that their reward is different. Entrepreneurs have bigger responsibilities and, therefore they have bigger rewards. Entrepreneurs receive their rewards in the form of cash flow, asset acquisitions, and capital gains. On the other hand, managers have their salaries as their main reward. Managers can therefore, increase their reward by becoming entrepreneurs and, this will prevent them from becoming redundant in the modern unpredictable business world. In conclusion, entrepreneurship is a superset that includes management. Entrepreneurs are able to start a business from business ideas and opportunities while managers come later as organizers of the business. Managers need to become entrepreneurs in order to diversify their roles for the success of their organization. Becoming entrepreneurs will also make managers become critical in the business. This is because traditional mangers are continuously becoming redundant in the modern unpredictable business environment. By becoming entrepreneurs managers, assume bigger responsibilities and this will diversify their reward. References Bade, R. Michael P. (2001). Foundations of Microeconomics. New York: Addison Wesley Hirschey, M. (2009). Fundamentals of Managerial Economics 9th Ed. Boulevard: Cengage Learning. Hirshleifer, J. & Hirshleifer, D. (2005). Price theory and applications: Decisions, markets, and information. London: Cambridge University Press. Smither, J. & Reilly, R. (2005). Does performance improve following multisource feedback? Personnel Psychology 58: 33-66. Shaw, J. (1990). A cognitive categorization model for the study of intercultural management. Academy of Management Review, 15(4), 626-645. Read More