Entrepreneurial Behaviour

Entrepreneurial Behaviour

ENTREPRENEURIAL BEHAVIOUR INTRODUCTION: Human behaviour in an enterprise is generally concerned with the thoughts, feelings, emotions and actions of the people working in it. It is rightly said that the success of any enterprise primarily depends upon the efficiency and the effectiveness of the entrepreneur and the

effectiveness of entrepreneurs depends primarily upon its human skills and how well he understands the needs and desires of the people working in the enterprise. Meaning of entrepreneurial behaviour Entrepreneurial behaviour is directly concerned with the understanding, prediction and control of human behaviour in enterprises. Definition Entrepreneurial behaviour is a subset of entrepreneurial activities concerned with understanding, predicting and influencing

individual behaviour in entrepreneurial settings. -Callahan Characteristics of Entrepreneurial behaviour: Behavioural Cause and effect relationship A branch of social sciences Three level of analysis A science as well as an art A body of theory, Research &Application Rational thinking Human part of enterprise Change oriented

1. Behavioural approach to management : Entrepreneurial behaviour represents the behavioural approach of management. It emerged as a distinct field of study because of the importance of human behaviour in enterprise. 2. Cause and effect relationship: Human behaviour is generally taken in terms of cause and effect relationship. It provides generalisation that entrepreneurs can use to anticipate the effect of certain activities on human behaviour. 3. A branch of social sciences: Entrepreneurial behaviour is greatly influenced by other social sciences viz., psychology, sociology and

anthropology. 4. Three levels of analysis: Entrepreneurial behaviour is the study of three levels of analysis i.e. individual behaviour, inter-individual behaviour and the behaviour of organisations. 5. A science as well as an art: The systematic knowledge about human behaviour is a science and the application of behavioural knowledge and skills is an art. 6. A body of theory, research and application: Entrepreneurial behaviour consists of a body of theory, research and application which helps in understanding the human behaviour in organisation. 7.

Beneficial to both enterprise and individuals: A reasonable climate is created so that employees may get much needed satisfaction and the entrepreneur may attain its objectives. 8. Rational thinking: Entrepreneurial behaviour provides a rational thinking about people and their behaviour. The major aim of entrepreneurial behaviour is to explain and predict human behaviour in enterprise. 9. Human part of enterprise: It focuses on people, their desires and needs. It is the systematic study of the action of the action and attitudes of people working in enterprise. 10.

Change part of enterprise: It points to the need for change in human behaviour with change in technology and other fields of environment. Approaches to the study of entrepreneurial bhaviour: Human resources approach Contingency approach Productivity approach System approach 1) Human resources approach: Entrepreneurs should provide active support to workers by threating them part and parcel of the unit. Entrepreneurs should provide opportunities and encouragement

to workers to work under loose supervision 2) Contingency approach: According to this approach, there is no single way to handle the human resources under all conditions. The behaviours or methods successful in one situation may fail in other situation. 3) Productivity approach: Productivity means the numerical value of the ratio of output to input. Higher the value of this ratio, greater is the efficiency and effectiveness of the entrepreneur. 4) System approach: According to system approach, an enterprise is a powerful system with several subsystems which are highly and closely interconnected. Any action taken to solve the problem in one subsystem will have its effect on the other subsystems also. Thus, this approach gives the entrepreneur a way of looking at the enterprise as a whole, whole group, and the whole social system. C O L

Model of Entrepreneurial C L behaviour: U E S G AUTOCRATIC T I MODEL O A D L I A

M L O D E L OTHER MODELS Autocratic model: The basis of this model is the power of the boss. Maxweber defined power as, the probability that one actor, within a social relationship, will be in a position to carry out his own will despite resistance. 1) The essential feature of this model

are as follows: Enterprise with an autocratic environment is authority oriented. Under autocratic model, the employees orientation is obedience to the boss, they need not be respectful to him. The autocratic model has been successful in some situations where the workers are actually lazy and have a tendency to shirk work. The leadership in an autocratic model is negative 2) The custodial model: This model overcomes the shortcomings of the Autocratic model. The insecurity and frustration felt by the workers under the autocratic model sometimes

led to aggression frustration. There was a need to develop a model which will improve the employer-employee relations Some of this important features of this model are as explained below: 3) The success of the custodial model depends upon the economic resources because this model emphasis the economic reward & benefits. The employees depends upon unit rather than their boss. Under this model, the employees are satisfied & happy and they are not strongly motivated. The main benefit of this model is to bring security & satisfaction to the employees. The supportive model: The supportive model has originated from the Principals of supportive relationships.

The main features of this model are as follows: The supportive model depends on leadership instead of power or money. The leader assumes that the workers will take responsibility, make their contribution and improve themselves, if given a chance. It should be the duty of the entrepreneur to support the employees job performance. This model takes care of the psychological needs of the employees in addition to their subsistence and security needs. 4)The collegial model: The dictionary meaning of collegial is a body of persons having a common purpose.

The main features of this model are as follows: This model creates a favourable climate in the unit as the workers feel that they are the partner in the enterprise. This model inculcates the team spirit in an unit. In this model, the workers have job satisfaction, job involvement, job commitment. 5)Other model: 1. Normative models: The normative models seek to find out that what should be done to produce optimum result. 2. Empirical models: The empirical models describe the activities that the employees actually perform.

3. Ecological models: Models which deal with the changes which take place in the environment & which understand the complexities of environment are ecological models. 4. Non- Ecological models: Non- ecological models assume stability in the environment & that everything will remain the same. 5.Ideographic models: The models that are developed to deal with specific cases or unique situations are called ideographic models. 6. Nomothetic models: These models deal with general situations. These are concerned with theory building on the macro level basis. ROLE AND IMPORTANCE OF ENTREPRENEURIAL BEHAVIOUR: Predicting human

behaviour Control and direct behaviour Entrepreneurial effectiveness Motivation Better human relations Role and importance of Entrepreneurial behaviour 1. Understanding human behaviour: Entrepreneurial behaviour plays an important role to develop full knowledge about the behaviour of employees. 2. Predicting human behaviour: Entrepreneurial

behaviour also help in predicting the future employee behaviour. This would allow them to take preventive actions. 3. Control and direct behaviour: Entrepreneurial behaviour assists entrepreneur to direct and control the human behaviour to build successful enterprise. Entrepreneurial effectiveness: It helps in better use of raw material and other resources to improve the quality of work in the enterprises. 4. 5. Motivation: Entrepreneurial behaviour helps the entrepreneurs to identify the needs and requirement of the employees. 6. Better human relations: Entrepreneurial behaviour

also help in maintaining cordial human relations in the enterprise. It assists in find out causes of industrial conflicts.

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