MODES OF MANAGEMENT

        Actually, different management modes are present: planned, adaptive, and entrepreneur (Wirtz, 2010). Entrepreneurial mode’s target is growth because decisions are formed in a completely unstructured manner. It is possible for them to be risky but they are also proactive for small businesses. A benefit of this mode is the high standard of flexibility, appreciated and supported by investors which allow high adaptability levels (Wirtz, 2010).

        Management's adaptive mode is seemingly based on the need or willingness to modify a strategy. This management model doesn't involve specific guidelines or defined vision for making decisions. It is the objective of managers to obtain consensuses with stakeholders involved. Reactive decisions aren't connected; decisions and strategy can be created in steps and immediately adapted to fulfill the requirements of all the stakeholders. Overall, the orientation of short-term characterizes this mode (Wirtz, 2010).

        Planning mode is the third mode and the objective is all about achieving optimal efficiency by determining effects at a large scale. This mode is seemingly based on different requirements including stated and defined targets which are connected together over the whole firm, company's stable situation, and the reactive and proactive making of decisions which is based on planning at a long-term and analytical method (Wirtz, 2010).

For handling large businesses, these modes are combined and can be interlinked to different stages of development (Wirtz, 2010):

Growth is the aim of entrepreneurial mode

Implementation is the aim of adaptive mode

Degeneration is the aim of planning mode

        Within an organization, different power constellations use different processes of decision-making, hence, different modes are adopted by them. Following example will illustrate the entrepreneurial mode: the head of the R&D department may have connected personal interests to risk decisions at a certain extent (Afuah, 2003). In intended mode, the production seems to operate for realizing growth with the utilization of scale effects. Meanwhile, marketing seems to operate in the mode of adaption or adaptive mode since stakeholders have a powerful impact on adaption on a short-term basis (Wirtz, 2010).