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ManagementRecommendation For Amanda Smith

Startinga small business appears a simple task and most entrepreneurs tend tooverlook most procedures that are necessary to become successful. Oneof such mistakes is in management of the business. In the case ofAmanda Smith, she has quite some knowledge in business managementhaving worked at managerial level before. She is also well informedon her area of specialization, which is her main business. Despitethe opportunity and the potential to grow into a large company,&nbspSmith’s Accounting and Tax service is at the verge ofcollapsing. This letter is a recommendation to Amanda on the fewmanagement tips that she needs to consider in the different areas inorder to bring her business on track, and to live to her missionstatement.


Theprocess of staffing is one of the most important part of management.The employees one chooses or selects to work with are what determinethe success or failure of a business. This is because the employeesare in direct contact with customers and thus reflect the entireorganization. Amanda did not follow the right process of hiring heremployees and worked with Lisa a friend and a college acquaintanceand relied on her for virtually all decisions, including hiring ofother employees (Caruth, Caruth &amp Pane, 2009).Amanda shouldconsider following simple steps in staffing of her business. thesteps include

1.Evaluating manpower requirements

Theprocess of staffing should begin with estimation of manpower needswhich entail finding out the number and the type or qualification ofthe employees required by the organization currently and in thefuture. Besides, the employment law must be considered while thinkingabout staffing.

2.Recruitment process

Thisis the stage where the employer induces potential applicants to applyfor the job in the organization. The positions should be advertisedallowing a large number of people to apply. The job descriptionshould be very clear including terms of work, so that to fetch theright candidates.


Afterattracting potential candidates, the employer must select the mostsuitable candidate to take the vacant job position. Selection shouldinvolve tests such as aptitude tests or interviews or any othersuitable method depending on the job type. Besides getting the rightcandidate, the selection process serves as a reminder to the selectedcandidate that the organization takes things very serious (Caruth etal., 2009).

4.Placement and Orientation

Placementis occupying of the position by the successful candidate. Thisinvolves an appointment letter for the job. Orientation is done inorder to make the new employee familiar with the organizationalculture, understand how things are run and know where to report.

5.Training and Development

Afterhaving a candidate familiarize with the organization, there is needto take them through brief training in order to enhance theircompetence and motivate them. Training and development opportunitiesare important as they allow an employee reach his or her fullpotential and improve his or her skills which are beneficial to theorganization. Amanda could liaise with other organizations fortraining or organize an in-house training.

Inaddition, Amanda should consider ensuring that her employees aremotivated throughout their work. She should supervise, monitor andevaluate her employees’ performance to ensure that they are in linewith the organizational goals. This does not mean that she shouldmicromanage her employees. the following human resource tips can helpAmanda motivate her employees and improve their performance (Larkin,Pierce, &amp Gino, 2012).

1.Performance appraisal

Evenafter training, Amanda should be able to evaluate her employees’performance. Performance appraisal entails assessing the performanceof individual employee against some stipulated standards. This wouldhelp Amanda identify any shortcomings and mistakes in tax analysisand accounting of client’s accounts. These appraisals should bemade known to employees beforehand and feedback should be quick basedon performance evaluation.

2.Promotion and career planning

Despitebeing a small organization, Amanda should not assume that employeeswill become motivated automatically. She should consider careerplanning and promotion to motivate them to work effectively andefficiently to the growth of both the organization and their careers.promotion simply entails being given a higher position than theprevious one, with more responsibilities, more pay, and jobsatisfaction. From performance appraisal feedback, employees shouldbe promoted, demoted or even dismissed if they fail to meet therequired standards.

3.Compensation and Benefits

Anotherway to motivate employees that Amanda should consider using isthrough compensation and benefit plan. Compensation includes bothdirect monetary and non-monetary benefits. Monetary benefits includebonuses at the end of the year or after good performance. Otherbenefits such as medical cover, paid holidays, paid leaves etc.should be based on job category, qualifications, performance andother aspects that are within the confinement of employment policiesincluding labor laws, Minimum wages payment act, competitor’spolicy, union’s policy etc (Larkin et al., 2012). Ultimately, thegrowth of the organization should be reflected to employees. Theyshould feel the change and benefit from their work.

Functionsof Management

Amandaneeds to run her business like a business and not like a nonprofitorganization. She should consider the four functions of management tohelp her keep her young business running. The four functions ofmanagement that Amanda needs to consider include planning,organizing, leading and controlling.


Thisis the first component of management. As a manager of her business,Amanda must determine what her business goals are and how she intendsto achieve them. The organization’s mission and vision statementwill be critical in guiding Amanda on planning. setting objectivesfor the organizational goal and following up on implementation of theplan are very important elements of the planning function (Tripathi &ampReddy, 2008). Amanda will need to have a hiring plan and a marketingplan. &nbsp


Amandaas the manager of her young business is responsible for organizingroutine functions of both employees and resources. Amanda should bein a position to ask questions such as are employees meeting the settargets?, are client’s needs met?, if not, why is it so?.Organizing can be termed as the central function of management as itis direct. It is one of the functions that staff see and are impactedby. Hence, Amanda needs to be not a fence player and leaving one ofher employee, Lisa worry about things, but actively lead from thefront. When a manager is not organized like in the case of Amanda,there`s a ripple effect (Tripathi &amp Reddy, 2008). this is one ofthe reason why clients are complaining about their tax and accounts.Besides, employees may lose regard to the manager/Amanda making ithard for her to direct.


Toachieve the organization’s goals, the manager must be able to leador provide direction to employees. Without planning and organization,one cannot be able to lead. direction and motivation are important inleading. employees are seeking a clear plan that is organized andgiven to them, in order to execute their duties effectively. In thecase of Amanda, she is not directing on how things should be done.the emerging mistakes and complains are as a result of failure todirect her employees on how to do things. She is so busy with her owntasks as an accountant and does not delegate time to know how othersare doing, and guiding them. To be an effective leader, employeesmust be able to understand what is needed of them and why. Themanager must also understand his or her employees and what motivatesor inspires them to work (Tripathi &amp Reddy, 2008). Amanda shouldnot assume her role as the leader for fear of becoming amicro-manager.


Thisis the final function of management. It entails monitoring theperformance of the business to make sure goals are being met. As amanager, one needs to evaluate costs in relation to performance ofthe business. For example, if Amanda is aiming at having more than200 clients by the end of the year, she should check the progress ofher business towards this target. She should also share the progresswith employees. This helps in building trust and feeling of belongingfor the staff (Tripathi &amp Reddy, 2008). Amanda obviously has nocontrolling and she is not aware that her organization is not meetingthe business goals. She does not communicate with employees regardingprojection which made it difficult to predict a disaster.

Inaddition, Amanda should consider the 14 principles of management asput forth by Henri Fayol (known as the father of management). Theprinciples include: (Tripathi &amp Reddy, 2008)

Divisionof labour: employees should be focused on a particular work.Specialization is recommended. In Amanda’s case, Lisa performs allthe work including acting as a receptionist, a cleaner, recordkeeping, accountant, and the human resource manager which bringsfailure in the long run.

Authority:This is also the ability to lead. Amanda needs to be firm and guideothers on the way forward, just as stipulated in the four functionsof management.

Discipline:Employees should know their work and in case of mistakes should takeresponsibility.

Unityof command: employees should receive command from only one person toenhance flow and avoid confusion, as in the case of Amanda, whereemployees do not know who the boss is, Lisa or Amanda.

Unityof direction: The entire business should be moving in one directionhence everyone knows what the norm is.

Organizationalinterest comes before personal interest: this should be set clear bythe manager.

Remuneration:workers pay should be determined by organizational performance, jobdescription and other aspects.

Centralization:where orders and instructions should be communicated from the managerto subordinates and also concerned addressed.

Scalarchain: there is a hierarchy of power, who reports to who. Lisareporting to Amanda.

Order:there must be an order of carrying out things in an organization. Forexample, the organizational culture.

Equity:all staff should be treated as equally as possible.

Stabilityof tenure of personnel: employees should be assured of their job inorder to be effective.

Initiative:management should encourage employees to take a step and notify themanagement on any concern. Amanda lacked initiative as no employeetook the liberty to inform her.

Espiritde corps: encouraging team spirit by the management is important fora successful organization.

Ultimately,Amanda needs to embrace communication within her organization. As theboss she needs to engage every employee including Lisa and otherstaff. This is because failure to communicate can lead to a majorproblem.


Caruth,D., Caruth, G. &amp Pane, S. (2009). Staffingthe contemporary organization a guide to planning, recruiting, andselecting for human resource professionals.Westport, Conn: Praeger Publishers.

Larkin,I., Pierce, L., &amp Gino, F. (2012). The psychological costs ofpay‐for‐performance:Implications for the strategic compensation of employees. StrategicManagement Journal,33(10),1194-1214.

Tripathi,P. &amp Reddy, P. (2008). Principlesof management.New Delhi: Tata McGraw-Hill Pub.