Management models for each stage of business development

Management is a complex form that business administrators need to pay attention to. Mastering these management styles helps managers optimize human resources and resolve issues within the current personnel structure. Let’s explore the 4 management styles corresponding to each stage of business development with 1Office in the following article!

1. Management Style in the Formation Stage

Management style: Dream

Management method: Management by emotion – relationships.

Company size: 5 – 8 people.

In the startup stage, the business is formed by a group of people with a common vision and ideals, working with enthusiasm. At this stage, personnel do not work for immediate financial gain but strive out of passion and dedication. They possess abundant energy and an endless well of ideas.

At this time, the company size is quite small (under 10 people), so everyone is closely bonded by emotion and relationships. Although this management method is highly sentimental, it is very suitable for the development circumstances at that time, creating motivation to promote enthusiasm, employee effort, and increase cohesion to develop and perfect the product.

See more: When Employees Underperform, What Should a Boss Do to Improve It?

2. Management Style in the Turbulent Stage

Management style: Framework

Management method: Management through strict methods, establishing a series of criteria, standards, and monitoring systems, and applying pressure to ensure personnel complete their work.

Company size: 10 – 40 people.

Entering the Turbulent stage, the business begins to undergo internal changes. This is the stage where the company has chosen a business plan and starts to build and assert its position in the field.

At this point, the company’s financial situation may take a turn for the worse, and disagreements and conflicts begin to arise. Founders who were expected to “stick together through thick and thin” decide to leave, putting those who remain in a difficult dilemma.

To turn the situation around and stabilize business operations, leaders cannot manage based on emotions but must apply a strict approach. A series of criteria, standards, and monitoring systems are established, putting pressure on personnel to complete their work.

This management style has the potential to weed out underperforming employees who are unable to complete their tasks, while also leading to many shortcomings as the business is constantly in a state of personnel shortage.

See more: Elements of a Positive and Strong Corporate Culture: 8 Things to Know

3. Management Style in the Stability Stage

Management style: Friendly

Management method: Managing with a friendly approach, setting appropriate goals, training – coaching, and mentoring employees.

Company size: 70 – 200 people

After overcoming difficulties, the business’s structure begins to stabilize, and its name and brand start to establish a position in the market. The business aims to capture market share and begins to invest in its people. This gives rise to two concerns:

• Standardized KPI process.
• Employee benefits.

In the Stability stage, to develop and optimize human resources, the business begins to ease pressure and sales targets, shifting to a friendly management style. Managers set appropriate goals and proceed with training, coaching, and mentoring employees.

This management method is highly effective when employees are “nurtured” to become key warriors for the company, increasing not only the quantity but also the quality of personnel.

However, friendly management can also create individuals who are highly controlling, seek power, and interfere with other departments.

4. Management Style in the Development Stage

Management style: Fair

Management method: Fair management, building a clear promotion system for employees, developing organizational culture, and establishing reward and disciplinary policies

Company size: Over 200 people

After identifying the shortcomings of friendly management, the business shifts to the final and highest form of management: fair management.

With this management approach, the business aims to build a clear promotion path for employees, develop an organizational culture, and have a transparent and clear reward and discipline system.

Fair management is an improvement on friendly management, where the core advantage of employee competency training is maintained, with the addition of roadmaps and regulations to prevent abuse of power.

5. Secrets to Effective Business Management

Depending on the business’s situation, CEOs and managers can choose suitable management models and be flexible in their organizational methods.

However, regardless of the stage or model, businesses always face challenges in organizing and managing personnel. After a long period of research, testing, and applying the most advanced scientific and technological innovations, 1Office has provided a comprehensive business management solution suitable for any type of management:

• Intelligent work management, integrating two famous management methods: the Waterfall Model and the Scrum Model.
• Online working environment connecting employees and managers regardless of distance or time.
• Automatic updates and accurate data analysis, helping to grasp the business situation and manage and optimize personnel operations.
• Manage, monitor, and evaluate employees according to set standards, providing detailed data on employee performance and capabilities. 
• Build company culture with the internal communication feature.

With 1Office, managers can manage their business comprehensively, scientifically, and effectively, saving time and costs.

If you are facing difficulties in business management, sign up for a trial to receive a consultation. 1Office will help you resolve your challenges quickly!