Introduction
The topics covered under week 4 were extremely useful and informative especially for a person who is an entrepreneur in real life. As managing director or Thai Lay fashion Company Ltd, almost all of what has been learnt this week has many practical applications for me. The two main areas covered this include the difference between an administrator and an entrepreneurial manager, and motivation and rewarding employees.
Main
An administrator actually plays the role of an employee manager in a firm. An administrator can be defined from three different types of responsibility. According the Princeton University definition an administrator is a “decision maker (someone who administers a business), (the party appointed by a probate court to distribute the estate of someone who dies without a will or without naming an executor) or executive (someone who manages a government agency or department).” (Noun. 2006). In this instance only the first definition is relevant. An entrepreneur can also be defined in many ways, but due to lack of space only one relevant definition is given. The “entrepreneur is the one that undertakes a venture, organizes it, raises capital to finance it, and assumes all or a major portion of the risk.” (Davidson, 1991, p. 28).
An administrator is concerned with how to do a job or duty assigned in a proper manner. On the other hand, an entrepreneurial manager is a risk taker who is also concerned with what needs to be done to make a venture successful. The main difference hence is between how (administrator) and what (entrepreneurial manager).
An entrepreneurial manager has to make and design policies often with the help of his or her staff. An administrator has to see that it is implemented properly. As an entrepreneurial manager myself, this module has been useful to me in finely understanding the roles performed by me and my managers and administrators. Another area of difference is the concept of risk. Administrators do not have to undertake risk in running the entire business. They do have the risks of seeing that their job is done properly. But an entrepreneurial manager has to shoulder the financial and mental risk of managing the business. He or she is responsible to the customers, creditors, employees and other stakeholders of the company.
An entrepreneur will have to see that profits are not compromised at the same time seeing to it that costs are kept to a minimum, prices are competitive and employees are paid well. This does not really affect the administrator except with regard to the tasks and duties assigned. An entrepreneurial manager has also a need to be innovative and have the ability to recognize and grasp opportunities that arises, sometimes unexpectedly. This is the definition of an entrepreneur according to the famous economist Joseph Schumpeter. (Carsrud and Brannback, 2007, p. 7).
Ethics is an important factor in business is a necessity for survival in the long run. An administrator also needs to be ethical, but not in the level of the entrepreneur. The role played by the entrepreneurial manager is much more stressful (but exciting) when compared to an administrator’s job. Finally, there is freedom in being an entrepreneurial manager while the administrator always in most cases remains an employee.
The next area of studies this week was also very exciting for me personally. The topic was employee motivation and reward. Employee motivation can be defined as “the willingness to exert high levels of effort toward organizational goals conditioned by the effort’s ability to satisfy some individual need.” (Gunkel, 2006, p. 21).
As mentioned in my earlier paper, keeping employees happy and motivated is an important function of the entrepreneurial manger. There are many factors that motivate employees and include both extrinsic and intrinsic rewards. Extrinsic awards are monetary in nature and will include the salary, performance bonuses and other benefits like paid vacation, healthcare etc. Intrinsic rewards include factors like job satisfaction, challenge, career advancement opportunities, team work, organizational culture, level of mutual respect (between employees and the employer), and the relationship between employees themselves. Intrinsic rewards result for the employee the following feelings namely “Self-esteem, a sense of accomplishment, the feeling of growth or development of special skills and talents.” (Intrinsic and Extrinsic Rewards).
Both extrinsic and intrinsic rewards are taken seriously by Thai Lay Fashion Company Ltd. We have various schemes and policies for both types of rewards to keep the employees motivated. It has also been useful to study the various motivational theories that have evolved over a period of time. The topic on team work was also very useful for me and many matters mentioned in it will be implemented in my company wherever possible.
On the whole this week’s module has been very useful. There have been some repetitions especially with regard to reward and motivation when comparing other modules and courses that I have undertaken. But I can say that this has not gone waste since the concept has become more and more familiar to me now. I have been able to attend student to insert number here classes out the total classes for the whole week. My work is going on as per schedule even though it is difficult to balance my work as managing director and the studies. But this is challenging and hence I will accept it as such. It will also help me in effective time management in the future. My tutor has been extremely helpful and kind as always.
Bibliography
CARSRUD, Alan L., and BRANNBACK, Malin. (2007). Entrepreneurship: What is Entrepreneurship?. Greenwood Publishing Group. Web.
DAVIDSON, Jeffrey P. (1991). Avoiding the Pitfalls of Staring Your Own Business. Sure Sellers Inc, p. 28. Web.
GUNKEL, Marjaana. (2006). Country-Compatible Incentive Design. DUV, p. 21. Web.
Intrinsic and Extrinsic Rewards.
Noun. (2006). WordNet. Web.