Building a New Venture, Book Review Example

Company culture refers to the normal activities carried out in the workplace. It is the way things usually done or carried out by individuals and the company. Company culture is an essential tool in supporting the strategy employed by the company. Company culture is what governs the actions of individuals in the company. Company culture helps small companies prosper competitively and is equivalent to the strategy adopted. In small companies, the culture adopted should support the strategies of the company and encompass the values of the individuals involved. The effects of rapid growth on the culture of the company are that, with these, companies tend to adopt nontraditional cultures and incorporate them into the culture of the company.

Job simplification is the disintegrating the work into small and clear bits and reduces the scope of the work to done. Job simplification fails to motivate employees, as the work is repetitive, narrow, dull and impersonal. Job enlargement is increasing the scope of work covered to include more tasks and engagement involved. Job enlargement tends to vary the work done by the employee and gives an opportunity to the employee to do a more comprehensive work. Job rotation involves the movement from one job to another and increasing the number of tasks done by the worker and involves cross training to increase understanding on the company. Rotation has the effect of enhancing the flexibility of the employee to shift from one job to another. On the other hand, job enrichment involves the increase of managerial tasks of the employees and increase employee satisfaction. Job enrichment involves increasing planning, organization, controlling worker functions and decision-making.

Money is the best motivator since it can take several approaches in the motivation process. Money can incorporate the pay for performance scheme of compensation, open book management, and profit sharing plan. The pay for performance works by relying on the productivity of the workers to determine their pay and pay related to the performance of the company financially. There should be a clear connection between the pay and performance for this to be effective. Other motivators that can be used include praise, job security, promotions, feedback, and recognition. These factors have an effect on the long run motivation of workers and have longer lasting motivational effects on the employees.

The importance of a succession plan for the management is that it lets the management of the company pass without interruption of the operations. A succession plan facilitates the smooth transition of managerial position from one party to another. It reduces conflicts and interruptions in the control of the business. At times, it becomes difficult to create these succession plans because the owner of the business are not willing seemingly difficult decisions that may disorient the family. The opinion is that family arguments on who should or should not be a successor. The steps that should be involved in the creation of a succession plan should include selecting the person who succeeds and whether the successor is willing to do so. Another step is the development of a kit to assist the successor to acquire an understanding of the company. The third step involves grooming the successor followed encouraging an atmosphere of respect and trust. The final step is dealing with financial circumstances involved in the transition.