Entrepreneur's Handbook

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Entrepreneur's Handbook

Professionalization of Enterprise and Its Dimensions

In general, start-ups are initially included in the SME classification and it is natural that they were dominated by the founders and their families in their early days. However, the continuation of this situation in the future causes some problems and may prevent the business from reaching the size that will have the above advantages. Typical indicators of this situation are the arbitrariness of decision-making processes in the enterprise; the sparseness or lack of implementation of written rules; uncertainty and / or frequent change of goals; absenteeism and / or inconsistency in the division of labor; failure to implement effective communication and lack of supervision, or failure to implement corrective actions based on the consequences, even if it is done. These indicators are interpreted as indicators of the problem of the enterprise not being professionalized.

Professionalization, as it is generally understood, is not limited to formalization and employment of managers outside the family. In addition, the establishment of effective governance structures such as boards of directors; Creating a rational, analytical and formalized organizational structure; decentralization in decision making; establishment of formal financial control mechanisms; Establishment of formal human resources control systems is also in the process of professionalization. In this context, six dimensions of professional management; corporate governance, non-family participation in governance, formalization and segmentation, and employee participation in decision-making, financial control systems are human resources management (Dekker et al., 2013; Stewart & Hitt, 2012). Some of these dimensions have been emphasized in other chapters in your book. In this section, the remaining dimensions of formalization, segmentation, participation in decision making and human resources management are examined.