One Man Control Is Best In The World
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Mar 16th, 2010
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What is Meant By One Man Control?
One man control or one man business (also called sole proprietorship) is the simplest form of business organization. The description ‘One man business’ or ‘one man control’ is sometimes con as misleading one, as there may be more than one persons working as employees in the business. The essential condition of one man control or one man business is that it i.e. a business owned by one person, managed and operated for one’s own profit.
Statute of One Ban Business
The one man business’ was the earliest to be developed. It is even today, the most common and numerically the largest form of business ownership in the developed and underdeveloped countries of the world. It represents about more than 74% of all the business firms. However the share of sole proprietorship in the national income is small of all the business activities. That is why it Is said of sole traders that they are an awful lot of them but they do not do very much.”
Is One Man Control Best in The World?
With the advent of Industrial Revolution, introduction of machinery, division of labour, specialization, expansion in the scale of production, greater business risks, diversification of managerial tasks, large capital requirement, etc., etc. the one man control Is no more the rule of the world. The reason is that ‘one man’ Is not big enough to manage everything. The basic functions of business i, e., buying, selling, advertising, accounting, insurance, credit, personal management etc cannot be successfully performed by one man. He cannot be expert in all these areas. In addition to this, one man can provide a limited amount of capital for establish and operating a business. His risk bearing capacity is ‘also limited. In the present age of competition and technological advancement, the single proprietor has to seek the aid of other persons, managers, secretaries, advisers, consultants etc. He now is one man among many, though perhaps he is the most important one. The one man control is the best in the world It that one man is big enough to manage everything does not seem to be feasible. The sole trading business is confined now to small scale sector.
Suitability of sole proprietorship
The sole proprietorship from of organization is existing and competing quite successfully with other forms of organizations like partnership, Joint Stock Company. There are many reasons for it. Sole proprietorship is the most ancient form of business enterprise. If has a weight of tradition
behind it. Moreover it is good to experiment with it. The circumstances favorable to sole proprietorship form of organization are:
(a) Where Market Is Local
When the market for a good or service is local, the scale of business opera will be small. The amount of capital required will also be less. Under such circumstances, the sole proprietorship is considered the most suitable from of organization. For example most of the retail trading is controlled by the sole traders.
(b) When Personal Contract With Customers is Required
There are certain businesses where goods or services are provided according to the individual tastes or liking of the customers. For example in the beauty parlours, the tailoring shops, cafeterias etc the sole proprietor has a direct link with his customers. He provides the goods and caters to the individual tastes of the customers. So in al these and other similar businesses, sole proprietorship is the most popular and suitable form.
(c) Where One Likes, Being His Own Boss
There are many owners who cannot work w other persons or under some one else. They want to work hard and succeed in business. Being one own boss and keeping all the profits with himself has a special attraction to run the business individually.
(d) Where Promptness is Required in Decision Making
There are businesses where immediate decisions is required as warranted by the situation. The businessman has no time to consult others. Far example, the prices of the shares change every rapidly in the stack exchange market. The businessman has to take prompt decisions. In such businesses where demand and prices of goods change quickly, sole proprietorship form of business is most suitable
Professor L. H. Haney
Has summed up the future of sole proprietorship in the following words. “In case of enterprises requiring modest capital, limited managerial talent but greater personal attention to customers, sole trading is the ideal type of organization, viz retail shops, tailoring firms, medical practice, lawyer etc. In case of enterprises where fashions often change, or where demand and suppl9 are influenced by seasonal trends, sole trading form of organization is most appropriate viz., winter goods dealers, ice cream factories, hair dressing firms, toilet dealers etc. When business expands and needs the services of experts for control and supervision, larger capital etc. then other forms of organizations will be more suitable and successful.
Article Source: http://www.informationbible.com/article-one-man-control-is-best-in-the-world-24.html
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