Discuss in detail how should an owner-manager prepare a company for its movement from Stage I to Stage II.

When a company has grown enough so that the owners or managers cannot manage to keep track of the firm’s activities efficiently, there is a need to move from Stage I to Stage II. The different functional units or areas of the organization may have evolved to a level where it requires a new set of expertise and knowledge that what is possessed by the human resource of an organization at different levels at current.

The owners or managers can contribute in the movement from Stage I to Stage II by organizing different training programs that would add to the functional skills of the employees. The employees may be encouraged to take part in evening programs that could be helpful in the movement from Stage I to Stage II. The owners-manager should also start to delegate some responsibilities and decision making.