Systems Model

The types of entrepreneurs that create organizations are: craftsmen (Mom & Pop companies), opportunists, and inventors. The craftsmen are the Mom & Pop companies, which account for 99% of the entrepreneurs of the world. They go into things that they know about. Many of them are 1st or 2nd ancestors.

The opportunist is the entrepreneur who goes into business that they know nothing about. Typically they start the business, hire managers to run the business, and then move on to starting another business.

The last group of entrepreneurs is the inventor. The inventors are the ones that love to tinker with stuff, until they find something that works. These people will eventually sell their business to an opportunists or a Fortune 500 company. The organization really has no control, for say, regarding the external environment. To counteract the forces of the external environment, which include, but not limited to natural, remote or industry specific, social, or political, & operating or regulators, the organization throws more resources at the external environment. These resources could range from capital to more labor. Management fits into the organizational system by: planning, organizing, staffing, directing, & controlling.

Planning is defined by: the ongoing process of developing the business' mission & objectives & determining how they will be accomplished. Organizing is best stated as establishing the internal organizational structure of the organization. The main focus in organizing is on division, coordination, & control of tasks and the overall flow of information within the organization. Staffing is simply maintaining of qualified people with an organization at all levels. Directing is influencing people through motivation, communication, leadership, & discipline. The main purpose of directing is to help facilitate all personnel to accomplish a predetermined goal/objective within the organization, while helping employees to further their personal career goals. Controlling is best thought of as viewing the company's performance objectives verse that of actual performance and taking corrective or preventative action as deemed necessary. Outputs can relate to goals is measured by the effectiveness of an organization; did the company accomplish what it was attempting to accomplish?