ASSIGNMENT

Assignment

Assignment

Q.1 THE MANAGEMENT OF SMALL FIRMS DIFFER FROM THE MANAGEMENT OF LARGE ONES

Overview of the relative strengths and weaknesses of small firms shows that the business principles, such as employee participation and flexibility can, in fact, be more successfully applied in small firms than in large. For example, small enterprises tend to foster innovation and can supply products at lower prices due to lower overhead costs. On the other hand, researchers argue that small firms lack of influence with suppliers and the lack of capital. They also lack professional management experience, which accounts for about 90 percent of small business failures. These critical aspects for the implementation of the business. For example, the lack of influence with suppliers can affect the firm's ability to dictate the quality of incoming materials. In addition, lack of capital may limit the small firms from investing in high quality processes. In addition, the knowledge and perfect control is essential for the successful implementation of business. Human resource management priorities and practices of small enterprises also differ from large firms (Kochan, 1985). Small business owners and managers tend to view human resource management strategies as important as finance, marketing, planning. In addition, small business managers do not perceive incentives to be critical to improving productivity. These findings may lead one to believe that the experience of small firms to economic activity may differ from large firms. Thus, the size of the organization may affect the effectiveness of different methods of quality management (Becker, 1996).

Human resource management priorities and practices of small enterprises also differ from large firms. Small business owners and managers tend to view human resource management strategies as important as finance, marketing, planning. In addition, small business managers do not perceive incentives to be critical to improving productivity. These findings may lead one to believe that the experience of small firms to economic activity may differ from large firms. Thus, the size of the organization may affect the effectiveness of different methods of quality management (Paauwe, 2009).

Despite certain differences, the published results of studies on quality management treat small and large firms as well. Baldrige Award uses the same criteria for assessing the quality of management in large and small firms. This suggests that the size of the organization itself does not limit its quality management. There is a clear need to determine what differences, if any, between small ...