Small business management refers to the process of planning and controlling the small business, it requires entrepreneurs to use a variety of knowledge and understanding of practical business implementation. The management of a business requires managing employees, reporting financial perspective of an organization, acquisition, and utilization of finances raised for various operations or assets and other business decisions.
Relationship of theory to practical: Theory and Practice has a reciprocal relationship, as no one can implement the practical without gaining theoretical information.
Working environment refers to the surroundings of an employee involves the physical location of a workplace and the psychological factors of all members or human beings working at the workplace. A good working environment is one, which makes a person feel good and develop the overall business and its functions. It is the responsibility of all to build a healthy environment at the workplace. A single person cannot make it possible. Form higher hierarchy to the lower, including CEO, Director, Manager, Representative, and employees, everyone is responsible to maintain a conducive environment in an organization. a higher level of the hierarchy is responsible to formulate policies and procedures to maintain an efficient working environment and update it according to changing situations of the company. on the other hand, employees are responsible to follow such policies and procedures and provide feedback to management for its improvement. The characteristics of a good working environment are as follows:
• Transparent and open communication to discuss philosophy’s, mission, vision and values of an organization form time and time as and when required to motivate all members to achieve desired goals.
• Give and Take: There must always mutual respect among all the employees or members of an organization irrespective of designation or status of a person in an organization, which is possible with giving and take relationship among them. It will ultimately build trust between all members of an organization.
• Work-life balance: There must always a balance between personal and professional life of a person, the sense of balance will improve the satisfaction of a person towards its job and improve the performance.
• Training and development: Every employee wants growth at the workplace which is possible with better training and development program undertaken by the organization. It is just not significant for the employee, even for the organizational development and adapts the changes timely training must be provided to the employees.
• Recognition for hard work: To motivate an employee and improve its performance, it is necessary that management should praise its good performance. Even it will encourage other employees also. The Reward could be anything
• Monetary benefit
• Non- monetary praise to the employee in front of other employees.
It is a positive reinforcement to improve the psychological conditioning of an employee. A daily interaction if an employer with employees is also recognized as an appreciation of the good work of an employee.
Strong team spirit: A management of an organization must encourage team spirit to coordinate and co-operate with all the employees, whether it is superior and subordinate. A sense of unity will improve the performance of an organization as collaborative efforts will be devoted.
Business Behavior is the actions undertaken by a company or group of people, the behavior of a company shows the ethical strategies followed by a company. The key factors of behavioral leadership are as follows:
• Observational Learning
• Better Social relations
• Negligible group paradigm
• Follow the Prisoner's Dilemma
• Halo effect
To improve business behavior, an organization must follow some practices, which are as follows:
• Management must seek input from employees, who are responsible for actual performance.
• Management must be clear about the policies and procedures.
• Management must provide the responsibility and authority to employees, to make them accountable for their performance.
• Management of an organization must set high standards and update it timely.