Text 5 the difference between an entrepreneur and a manager

Strategic Orientation. In terms of strategic orientation, the entrepreneur is oriented toward a search of new opportu­nities (ideas). This orientation is most important when the output falls due to rapid changes in technology, consumer demand, social values or political rules. When the use of plan­ning systems which control current resources is the strategic orientation, there is more pressure for the administration (man­ager). This is a peculiar feature for many businesses.

Commitment to Opportunity is the second key business point of difference. The two domains vary greatly in terms of the length of this commitment. Entrepreneurs have a short time span in terms of commitment to opportunity. They have to act and make decisions very quickly. They may have no advisers. They should be able to assume risk. Managers, on the contrary, are slow to act on an opportunity. When action is taken, the commitment is for a long time span, perhaps too long in some cases.

Commitment to Resources. An entrepreneur, as a rule, in­troduces resources at periodic intervals, often based on certain tasks or objectives that are supposed to be reached. These re­sources, often acquired from others, are usually difficult to obtain from lenders or investors. Therefore, the entrepreneur often achieves significant results with very few resources. This allows the resource providers to have as small a level of risk as possible at each stage of business development. While funding for managers may also be in stages, the commitment to die total amount of resources needed is in the administrative do­main. Managers have to effectively use the resources in order to receive as many rewards as possible (bonuses to salary).

Control of Resources differs in the same way. Since the manager's salary depends on effective resource control, he often takes interest in owning or accumulating as many re­sources as possible. The pressures of power, status, and fi­nancial rewards cause the administrator to avoid rental or other periodic use of the resources. The opposite is true for the entrepreneur who, under the pressures of limited resources (funding), risk of obsolescence, need for flexibility, and the risks involved, strives to rent or achieve periodic use of the resources only when they are badly needed.

Organization Structure. In the administrative domain, the organization structure is formalized due to the need for clear­ly defined lines of authority and responsibility based on man­agement theory and the reward system. The entrepreneur, true to his or her independence, employs a flat organization struc­ture based on informal personal contacts.

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1. Why do you think that some successful entrepreneurs have had difficulty in managing their companies beyond the start­up stage?

2. How could entrepreneurial education help this problem?

TEXT 6

WHAT IS A MANAGER?

A number of different terms are used for «manager», including «director», «administrator» and «president». The term «manager» is used more frequently in profit-making organizations, while the others are used more widely in government and non-profit orga­nizations such as universities, hospitals and social work agencies.

What, then, is a manager?

When used collectively the term «management» refers to those people who are responsible for making and carrying out de­cisions within the system.

An individual manager is a person who directly supervises people in an organization.

Some basic characteristics seem to apply to managers in all types of organizations; they include hard work on a variety of acti­vities, preference for active tasks, direct personal relationships.

Almost everything a manager does involves decisions. The reason for making a decision is that a problem exists. In decision-making there is always some uncertainty and risk.

Managing is a hard job. There is a lot to be done and relatively little time to do it. The engineer can finish a design on a particular day, and the lawyer can win or lose a case at a certain time. But the manager's job just keeps going.

How is 'Manager' defined? Section 1 of the Employment Standards Act Regulation says a "manager"is:

(a) a person whose primary employment duties include supervising and directing other employees, or

(b) a person employed in an executive capacity.

It is not enough to say a person has the authority of a manager. This authority must have been used by that person. To determine if an employee is a manager, the Director considers:

(a) the amount of time spent supervising and directing other employees,

(b) the nature and amount of the person's other (non-supervisory) duties,

the degree to which the person exercises the kind of power and authority typical of a manager, the reason for employment; and the nature and size of the business.

Typically, managers have a power of independent action, autonomy and discretion. They have the power to make final decisions, not simply recommendations, relating to supervising and directing employees or to the conduct of the business. Managers may also make final judgments about:

(a) hiring and firing staff,

(b) disciplining staff,

(c) authorizing overtime, time off or leaves of absence,

(d) calling employees in to work,

(e) laying them off,

(f) altering work processes,

(g) establishing or altering work schedules and

(h) training employees.

If there are no other employees, there is no manager. If there are no duties consisting of supervising and directing other employees, and the person is not employed in an executive capacity, the person is not a manager, regardless of the importance of their duties to the operation of the business.

Executive Capacity: A person is said to be in an executive capacity when she or he makes key decisions which are critical to the business, such as :

(a) how many employees are to be employed,

(b) what product should be purchased or produced,

(c) what services should be provided,

(d) from whom should supplies be purchased, and

(e) at what price should produce be sold.

They are the controlling mind of the business. They need not be the owner. They are sometimes given titles such as General Manager, Manager of Operations, Comptroller,or Director of Store Development.

An executive is the person who decides that a store should be opened in a particular shopping mall; approves the size and location of the store, and authorizes the number of employees to work there. A manager is the person who directs the employees who work at that store, schedules shifts, approves leaves, authorizes overtime, and monitors performance.

What the Director does not consider:

(a) When determining who is a manager, the Director does not take into account:

(b) The title given to a position,

(c) The fact that other employees refer to that person as a 'manager',

(d) The form of payment of wages, (eg salary, hourly wage, commission);

(e) The responsibility to open and close the business, or the ability to make special arrangements with customers as to price or delivery of products or services.

An employee who is not a manager is entitled to the full range of entitlements including premium wage rates for overtime and statutory holidays with pay.

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