Business: RAGE ROOM that is going to be located on campuses of the universities in the US.
The Management Plan Proposal assignment helps you brainstorm a piece of the management plan section of your business plan. Typically, the management plan section includes information, including the following:
Organizational structure
Management team info, i.e., often including job descriptions
Management strategy and goals
Resumes of key managers (in appendix)
The section of the management plan we will focus on for this assignment is the different functions of management and how they apply to the organizational structure.
Categories of management may include:
Planning
Organizing
Staffing
Leading
Controlling
Who executes those functions of management and how they are executed depends on the organizational strategy. There are also a number of organizational strategies businesses can adopt, including:
Hierarchical: Accountablity and responsilbility flow from top down. Employees at the bottom have little say. This is a popular form of organizational strategy, especially for first-time entrepreneurs who have a tough time letting go of control and/or delegating tasks. However, this structure can also stiffle organizations in terms of overexpending managers and demotivating powerless employees.
Functional: Larger organizations eventually start to take on more functional structures and stragies, whereby the different management functions evolve into their own departments or units. The positive side lies in the spreading out of tasks and responsiblities. On the negative, top leadership may lose oversight over what is happening in the various units. Inefficiencies may arise without them knowing until damage has occured. Or, communication between different units may prove difficult.
Span of Control: This term quantifies the ratio of manager to employees. While the hierarchical structure maintains few managers, a flatter organization would have many. Some would argue that the greater number of managers, the more effective the organization. More managers equates to empowering more employees to make decisions and take action. However, this may also mean that less qualified employees are allowed to make poor decisions uncheck, leading to to other kinds of problems.
Leadership style: Least but not least, the leadership style adopted by the organization and its managers can have a significant impact on how the organization functions, including employee morale and by consequence, turnover. There are a number of leaderships styles commonly appropriated by managers. They include, but are not limited to three broader categoreis:Authoritarian or autocratic (all controlling/leading). The positive side is everyone knows who is in charge. The negative is side is it disempowers employees and creates an attitude of learned helplessness.
Democratic or participative (sharing control and leadership): The positive side is that includes more voices into decision making and empowers employees. The negative side is decision making may slow due to too many voices being voiced and lack of consensus.
Laissez-faire (all empowering and hands-off): The positive side is employees feel trusted and are empowered to act fast. The negative side means the increased probablity of conflicting interests being played out at the same time, lack of consistency, and poorer decision making from employees less qualified or experience to make higher level decisions.
Based on the above information, draft your Management Plan Proposal. It should include a detailed description of the organizational structure, leadership style, and span of control you plan to adopt for you business. Make sure to address who and how the different function of management, e.g., planning, organizing, etc. will be delegated within your organization. Make sure to project into the future for year 1, 3, and 5.
Use complete sentences and draft your proposal in a Word document. It should be 1-2 pages long.
