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| Sunday, 23 November 2003 |
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Business |  |
| News Business Features Editorial
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Direct involvement In a business, direct involvement is necessary for efficient and smooth working. Direct involvement is not possible due to:- a. Non-availability of time - that means you are not interested in the business. Please accept this raw fact. b. You are not familiar with the business tactics - you should not have started a business if you are not familiar with its techniques. You should not leave the business in the hands of employees, placing too much trust in them. This will result in camouflaging of figures and funds with frauds being undetected. Whenever you have direct involvement in a business, the following advantages will accrue: i. The business enjoys your efficiency, which you have earned due to qualifications and experience. ii. You have a clear understanding of the business. iii. Corrective action is taken whenever there are drawbacks. iv. Ensures smooth functioning. v. Major decisions are taken without delay. vi. Staff, customers and suppliers will be kept on the alert. vii. Partial or full failure is avoided by arranging for substitutes. viii. Resources would be allocated efficiently. ix. Fraud, exploitation etc are avoided. Direct involvement does not mean that you should always be present. There are branches which are run efficiently based on information and by regular visits. You must improve information technology and any material observations should be scrutinized. Internal control and audit checks should be strengthened. A sudden increase or fall in the sales should be checked. Normally, people are happy when sales go up, but if the sales of your product increases tremendously, this may be a trap planned by your competitors to put you in an over-trading situation. I am aware about an Indian film producer, S.S. Vasan, who used to come to his office daily and watch the progress of film shooting. This action had made the actors, director and cameramen to come on time and he was able to produce his film within his budget. It was true that one or two directors left because of his interference. However, he became a director and using his experience, he produced successful films. Personal Attention Personal attention is a part of direct involvement. You have to depend on reports available to make decisions. However, personal attention also improves the efficiency of a business. E.g. recruitment of staff, signing important contracts, taking part in major decisions and even taking part in staff functions such as annual trips and get-togethers, improve the employer, employee relationship. |
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