Entrepreneur vs Manager: Roles and Responsibilities

2. Chapter 14 Preparing and Planning to Manage Entrepreneur or Manager? 14.1 Management Styles and Skills 14.2

3. 14.1 • Discuss the difference between the entrepreneurial role and the management role of a new business owner. • Identify the key management functions. • List and explain the key elements in a positive business climate. Section 14.1 Entrepreneur or Manager?

4. 14.1 To be successful in a new business, an entrepreneur must perform management functions and establish a positive working climate. Section 14.1 Entrepreneur or Manager?

5. 14.1 manager planning strategic plans tactical plans operational plans organizing directing controlling quality control program climate image team building communication Section 14.1 Entrepreneur or Manager?

6. Managers, Leadership, and Teamwork Each person in a business is a valuable resource. Everyone works together toward a common goal. Section 14.1 Entrepreneur or Manager?

7. Entrepreneur and Manager Once you open your business, you wear two hats: that of an entrepreneur and that of a manager. managera person who is responsible for directing and controlling the work and personnel of a business, or a particular department within a business Section 14.1 Entrepreneur or Manager?

8. Performing Management Functions When managers are managing, they use a series of activities called management functions to achieve their objectives. planning organizing directing controlling Section 14.1 Entrepreneur or Manager?

9. Planning The first step in managing is planning, determining your business’s objectives and how you are going to reach them. planningthe act of setting goals, developing strategies, and outlining tasks and timelines to meet those goals Section 14.1 Entrepreneur or Manager?

10. Planning The three levels of planning are: • strategic plans • tactical plans • operational plans Section 14.1 Entrepreneur or Manager?

11. Planning Strategic plans are long-term plans that don not usually include a specific target date. strategic planslong-range objectives based on long-term goals used to map out a business for three to five years Section 14.1 Entrepreneur or Manager?

12. Planning Tactical plans are medium-range plans that help ensure that you accomplish specific objectives to meet your plans. tactical plansmidrange objectives that focus on a period of one year or less, built on specific objectives with target dates Section 14.1 Entrepreneur or Manager?

13. Planning Operational plans are short-term plans that bring tactical plans to life. operational plansshort-term objectives that help achieve tactical plans, including policies, rules and regulations, and budgets for day-to-day operations Section 14.1 Entrepreneur or Manager?

14. Organizing Organizing people, equipment, materials, and other resources is an essential part of managing. organizingthe grouping of resources in combinations that will help you reach your objectives Section 14.1 Entrepreneur or Manager?

15. Directing Directing the efforts of your people and resources will help your company accomplish its planned objectives. directingthe process of guiding and supervising employees, often one-on-one, while they work Section 14.1 Entrepreneur or Manager?

16. Controlling The final step in managing, controlling, helps you take corrective action if things are not working out as planned. controllingthe process of comparing expected results (objectives) with actual performance Section 14.1 Entrepreneur or Manager?

17. Controlling A quality control program can prevent problems. quality control programa set of measures built into the production process to make sure that products or services meet certain standards and performance requirements Section 14.1 Entrepreneur or Manager?

18. Establishing a Positive Climate The climate that exists in a new business is linked to the tone the manager sets. climatethe prevailing atmosphere or attitude in a business Section 14.1 Entrepreneur or Manager?

19. Establishing a Positive Climate The three elements of a positive business climate are: • image • team building • communication Section 14.1 Entrepreneur or Manager?

20. Image To begin building a positive business climate, strengthen your company’s image with customers and in the community. imagethe mental picture and feelings people have when thinking about a business or its products or services Section 14.1 Entrepreneur or Manager?

21. Team Building Team building contributes to a positive climate by allowing employees to pursue common goals. team buildingthe act of encouraging teamwork through activities designed to foster respect, trust, cooperation, camaraderie, and communication among employees Section 14.1 Entrepreneur or Manager?

22. Communication Effective staff communication takes place in an atmosphere of respect and trust. communicationthe process of exchanging information Section 14.1 Entrepreneur or Manager?

23. 14.1 • Discuss the difference between the entrepreneurial role and the management role of a new business owner. In the entrepreneurial role, the emphasis is on starting the business. The management role focuses on growing and expanding the business and involves coordinating the people, processes, and resources. Section 14.1 Entrepreneur or Manager?

24. 14.1 • Identify the key management functions. The key management functions are planning, organizing, directing, and controlling. Section 14.1 Entrepreneur or Manager?

25. 14.1 • List and explain the key elements in a positive business climate. The key elements in a positive business climate are image (the mental picture and feelings people have when they think about the business), team building (activities designed to encourage teamwork), and communication (the process of exchanging information). Section 14.1 Entrepreneur or Manager?

26. 14.2 • Name the three basic management styles. • List the skills needed for managing. • Explain the principles of management excellence. Section 14.2 Management Styles and Skills

27. 14.2 To manage successfully and excel in leadership situations, you must establish a management style and draw on a specific set of skills. Section 14.2 Management Styles and Skills

28. 14.2 situational management human relations nonverbal communication networking time management conceptual skills cooperative advertising advertising agency Section 14.2 Management Styles and Skills

29. Adopting a Management Style Management style is the manner in which you approach your management responsibilities. Section 14.2 Management Styles and Skills

30. Adopting a Management Style The three styles of management are: • power-oriented • routine-oriented • achievement-oriented Section 14.2 Management Styles and Skills

31. Adopting a Management Style Good managers use situational management as a supplement to their basic approach. situational management the style of adapting the management approach to particular circumstances Section 14.2 Management Styles and Skills

32. Developing Management Skills To manage activities successfully, you must draw on a specific set of skills. These skills can be gained through education and training and improved with practice and experience. Section 14.2 Management Styles and Skills

33. Developing Management Skills Fundamental Management Skills human relations communication networking math problem solving and decision making technical time management conceptual Section 14.2 Management Styles and Skills 33

34. Human Relations Human relations skills, considered the most important of the management skills, are tied closely to communication skills. human relations the study of how people relate to each other Section 14.2 Management Styles and Skills

35. Communication Nonverbal communication is one of the communication skills essential to effective planning, organizing, directing, and controlling. nonverbal communication communication not involving words, transmitted through actions and behaviors, such as facial expressions, gestures, posture, and eye contact Section 14.2 Management Styles and Skills

36. Networking You can use business networking to discuss mutual opportunities, solve problems, and share or maximize resources. networking the process of building and maintaining informal relationships with people whose friendship could bring business opportunities Section 14.2 Management Styles and Skills

37. Time Management Time management can help managers because at any given time, managers may have several objectives to accomplish. time management the process of allocating time effectively Section 14.2 Management Styles and Skills

38. Time Management Time management techniques include: • Set and prioritize goals. • Delegate work when possible. • Plan to spend specific blocks of time on specific activities. • Schedule activities on a planning calendar. • Schedule most important work for times you do your best work. • Group activities for most efficient use of time. • Handle or eliminate interruptions. Section 14.2 Management Styles and Skills

39. Conceptual Skills As a small business owner/manager, yourconceptual skills enable you to appreciate how day-to-day decisions affect your business’s future. conceptual skills skills that enable a manager to understand concepts, ideas, and principles Section 14.2 Management Styles and Skills

40. Principles of Management Excellence Take action. Keep operations under control. Listen to customers. Keep organization simple, flexible, efficient. Encourage employees to act independently Keep business focused on what it does best. Stress respect. Instill commitment to values and objectives. Section 14.2 Management Styles and Skills 40

41. 14.2 • Name the three basic management styles The three basic management styles are power-oriented, routine-oriented, and achievement-oriented. Section 14.2 Management Styles and Skills

42. 14.2 • List the skills needed for managing. The skills needed for managing are human relations, communication, networking, math, problem solving and decision making, technical, time management, and conceptual. Section 14.2 Management Styles and Skills

43. 14.2 • Explain the principles of management excellence. The principles of management excellence are take action rather than overanalyze plans; listen to customers and put yourself in their shoes; encourage employees to act independently, be innovative, and treat the business as if it were their own; stress respect for the individual; instill commitment to values and objectives by staying in touch with employees; keep the business focused on what it does best; keep the organization simple, flexible, and efficient and do not overstaff; and keep operations under control and keep an eye on detail. Section 14.2 Management Styles and Skills

44. Managing aVirtual Workforce Technology has made it easier for businesses to have workers who work out of the office. Virtual office can help a company save money as workers telecommute, have e-meetings, and use instant messaging. Section 14.2 Management Styles and Skills 44

45. Tech Terms e-meeting a meeting that takes place online or via a telephone conference call groupware software designed to be used by more than one person at more than one location Section 14.2 Management Styles and Skills 45

46. Tech Terms instant messaging a software application that allows real-time communication between two or more people through a network telecommute to work outside an office on a computer linked to the workplace via a modem Section 14.2 Management Styles and Skills 46

47. End of