MANAGEMENT PRACTICES OF MICRO AND SMALL COMPANIES

The study investigates which instruments and management procedures are used in micro and small companies in decision making. Descriptive research with quantitative approach was conducted through survey, with a sample of 41 companies. Data analysis was performed with the application of descriptive statistics, informational entropy and Mann-Whitney U test. The results show that, in the companies surveyed, the decision making is based on the owner's experience. Companies are aware of the monthly result, but it is not discussed with the accountant. Most companies do not use the accounting in the decision making, either because the accounting information does not reflect the real situation of the company, and/ or the manager is not familiar with its usefulness. The most used management tools in decision making are operating controls and tax planning, and the least used are financial statements, costing methods and other management tools. Most of these companies do not know or makes no use of instruments which guide the strategies and organizational actions, such as strategic planning and budget.