Management Practices and Their Impact on Performance

Abstract

Business skills are based on the quality of management, which guarantees the ability of people to incorporate technology and manage the necessary changes in order to adapt to various forms of competition. Colombia is below the Latin American average in management practices. Large companies have access to the best managers while SMEs do not, and this is reflected on their performance. The birth of companies does not imply the automatic renewal of the business fabric because there are problems of management capacity. In this sample of the furniture sector in Bogota, the management practices of SMEs based on Blackman are presented. This sector is made up of 98% of SMEs with a good performance in obtaining benefits but low performance in competitiveness, innovation, and sustainability. Management practices are proposed based on participation, planning, innovation, the use of external consultants, and financial control.