A study on the management style of MSME Owners in the City of Manila

IOSR Journal of Business and Management 22 (8):60-69 (2020)
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Abstract

This study aims to identify the different managerial styles employed by owners of legitimate micro, small and medium enterprises (MSME) in different localities within the city of Manila in the day-to-day management and supervision of their enterprises. According to the Department of Trade and Industry of the Philippines (2003), micro, small and medium enterprises (MSMEs) are defined as any business activity/enterprise engaged in industry, agribusiness/services, whether single proprietorship, cooperative, partnership, or corporation whose number of employees are categorized as follows: for micro-enterprises, 1 – 9 employees; for small enterprise, 10 – 99 employees; and for medium enterprises, 100 – 199 employees. Out of the 99.6% MSMEs, the average micro-enterprises share 91.5 and the remainder is the share of SMEs. Unlike large firms, a micro, small, or medium enterprise is managed by an individual who is usually the owner-manager. Management style in large firms is mostly systematic and procedural while MSMEs management and operation are flexible, personal, and direct. This research used a self-assessment questionnaire formulated by two American psychologists Robert Blake and Jane Mouton. Face-to-face interviews were also administered to several MSME owner-managers. The interviews revealed that owner-managers are inclined to being task-oriented and people-oriented. However, women are more task-oriented than men. Based on the result of the self-assessment test the dominant management style among owner-managers is Team management.

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Leonardo Cada
Far Eastern University - Manila

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