Roles played by Managers in Small Firms

A manager is someone who coordinates and oversees the work of other people so organizational goals can be
accomplished. There are three levels of managers which generally exist in an organization -

1. Frontline managers- Manage work of non-managerial employees, involved in operation and execution
of day-to-day tasks. Such managers require high technical skills.
2. Middle managers- Act as a two-way link between top-level management and front-line managers. They
set up procedures and tactics for lower employees to follow.
3. Top managers- Involved in framing strategy and policies for the organization as a whole. These
managers have high conceptual skills and can forecast the future of the organization and market to set
up organizational goals according to it.
Managers perform 4 kinds of functions in an organization - planning, organizing, leading, and controlling.

1. Planning- They formulate objectives, devise methods to meet those objectives, and devise plans to
integrate and coordinate activities.
2. Organizing- They arrange and structure employees' work in order to achieve the organization's
objectives.
3. Leading- They encourage subordinates, assist in resolving workplace issues, and have an impact on
individuals or teams as they work.
4. Controlling- They evaluate whether their subordinates are achieving set goals with help of various key
performance indicators.
Small organization- According to the companies act 2013 under section 2(85), a small company is other than
a public one:

• who is having paid-up capital of not more than Rs.50,00,000 or such higher amount as may be prescribed
which shall not be more than five crore rupees,
• whose turnover is as its last profit and loss account not more than Rs. 2 crore or such higher amount as
may be prescribed which shall not be more than Rs. 20 crores
There is a considerable difference between small and large businesses. Low profitability and income, fewer
employees, a smaller market area, sole proprietorship or partnership, and presence in fewer locations are all
characteristics of small businesses.
Manager in a small organization- In small organizations levels of management are not as categorized as it is
in big organizations. At times he is required to play the role of both frontline and mid-level managers. He is
responsible for framing procedures and tactics as well as supervising non-managerial employees in day-to-day
tasks. Due to the cross-functional nature of his work, a manager in a small organization is required to have both
high conceptual and technical skills. He is expected to have good multitasking skills and must be good at
prioritizing tasks. He is required to have good communication skills so that he can effectively communicate and
connect with non-managerial workers and also efficiently report status and feedback to high-level management
of the organization.

Mintzberg’s ten managerial roles analyzed on micro-business managers-

1. The interpersonal roles- The interpersonal role encompasses the actions taken by the leader to develop
relationships with other people and organizations. The figurehead, as described by Mintzberg, is a role
that can be found in all leaders. In small businesses, the manager is regarded as the person with the most
knowledge about the company and, as a result, is the person who people approach for advice and
 information. The manager, in the role of leader, is considered as the one that employees go to for advice
and motivation. Employees at small businesses are more motivated and content with their circumstances
as a result of this concern for their well-being. The manager's liaison position involves interacting with
various external individuals and organizations with whom he or she exchanges information and services.
This is especially significant for small businesses because they do not have a lot of resources. As a
result, it is even more critical for them to engage in various partnerships through which they can gain
expertise and information.

2. The informational roles- The manager in the monitor function is constantly looking for information
to keep him or her up to date and informed. Small business managers are constantly receiving
information on their activities and operations, external stakeholders, and environmental trends. The
disseminator is the second of the informative roles. The small business manager in this function is
viewed as the organization's heart, handling all information that comes in from the outside and then
acting as a middleman by sending the information to employees and departments. The manager's
function as a spokesman is to transmit information to the organization's environment and surroundings.
They're often the conduit for all information in small businesses, and they're the best person for the job.

3. The decisional roles- In the sphere of decision-making responsibilities, the manager must present
himself or herself as the one who assesses and judges how to proceed from one point to another. The
first is through the manager's entrepreneurial role, which entails a proactive approach to the company's
development. All of the observed managers are capable of performing this position because they are
always involved and cannot let go of any area of their organization, which is in contrast to managers in
larger organizations who do not always have the same participation in all aspects of the organization.
The disturbance handler role is followed by this, which implies that the manager can dress in this
capacity when confronted with an unexpected and unexpected circumstance because when situations
like this arise, the management must act quickly. The resource allocator is the next role, and when it
comes to dressing this role, the manager is at the center of the organization's strategy formulation. The
negotiator is the final job, and managers must be able to negotiate with other organizations and
individuals to accomplish this role.

Our Thoughts-
Managers of small businesses are frequently given a more dominating role and, as a result, are held to a higher
standard of accountability than managers of bigger corporations. Most micro businesses are solely owned and
the owner frequently influences the company's direction. His/her own perceptions of the environment in which
the firm operates, the company's relationship with it, and future strategies will have a significant impact on the
organization. Whereas managers in large businesses have highly specialized responsibilities, such as overseeing
the overall performance of one component of the organization, such as manufacturing, marketing, sales,
purchasing, finance, or personnel. Small business managers devote more time to activities that affect the
company's external environment, such as meeting with clients, looking for financiers, constantly seeking new
prospects, and planning for improvements in how the company does its job. The owner-manager, the
entrepreneur, and the manager are the three roles that a manager can perform in a small firm.
We are of the opinion that managers also play a very crucial part in all change management. The qualities and
effectiveness of managers are the most important variables for running any institution. Managerial skills and
abilities become most important in case of any complex and uncertain situation. These skills can get things done.
From planning to execution to cost, they assist their subordinates while leveraging their wide-ranging experience
and analytical insights across various parts of the company's businesses, spanning areas such as asset
management, cost tracking, employee productivity enhancement, quality, and safety, among others.
 1. Sponsoring ideas – Managers act as advocates for the changes at their level in the organization. They
are representatives who keep ideas involving changes in front of their peers, the “higher-ups.” Acting
as sponsors, they do not let the change initiative die from lack of attention and are always willing to use
their political capital to make the change happen.
2. Role Model – Managers as leaders are always willing to go first. They demonstrate the behaviors and
attitudes that are expected from everyone else. Employees watch them for consistency between words
and actions to see if they should believe the change is really going to happen. Managers are self-aware
and deliberate.
3. Communicate – Managers are the face and the voice of change. They communicate often to share
information, keep people updated and offer encouragement. They interpret the change message to be
relevant for their reports, while still matching the overall message. They are transparent and consistent.
4. Engage / Direction – Managers provide the motivation to change and get people involved. They create
a sense of urgency and importance about the change and show commitment and passion for getting
things done. They offer recognition to those who are participating and doing well. Managers realize that
change can be difficult and understand the need for people to be motivated to step out of their comfort
zone.
5. Sustainability – Managers are required to define goals that let them incorporate long-term values while
integrating with social, environmental, and economic aspects.
Recommendations based on group findings-

• The bottom line is that managers at small firms have to be all-rounders. They render work of multiple
Job Descriptions at once – Information, Processes, and Decision making. A person aiming to be a
specialist is not fit for this role.
• Studies have reached the consensus that such a manager is always gambling for time. Such managers
thus are advised to have thorough training for the soft skill of prioritization.
• Also, an offshoot would be a recent trend of recognizing mental health at the workplace. Not only does
such a manager have to have thick stress-potential, but should have frameworks to tackle and discuss
stress before it hampers the productivity of the firm.
• Such a manager has to be goal-oriented as he will always be doing the tasks as and when they come.
There is a probability that such a manager ends up becoming a fire extinguishing manager and not acting
proactively driving new businesses.
• One factor that emerges in literature as ubiquitous for a manager running a small firm is the speed of
response. The processes and systems are not fixed, and it was found that even the requirements of clients
and human capital are not fixed. A rigid person cannot do this job and one who can do should learn the
art of responsiveness.
• There is also a sense of street smartness associated with such a job. At every moment they are looking
at satisfying multiple stakeholders. They should know how to maneuver situations by playing cards
well.
• Finally, the structure of the environment the manager works in is fragmented. It is recommended that
such a manager should know how to navigate internal and external VUCA environments.

Conclusion- To conclude, we can say that this role is fit for individuals who are resilient, patient, and hard-
working. He should be a risk-taker to grab opportunities as and when they arise. As a sole manager, he should
be very vigilant towards the risk too. He gets to manage every function of the business which makes him a
versatile professional.

Report submitted by - Ankit Kumar (126KC), Bhavanshu Saini (132KC), Mayank Agarwal (147KC),
Nikhil Ranjan (151KC), Rupali Julka (161KC), Sharuar Ahmed (165KC), Suravi Agarwal (171KC)