Chapter 7 Management and Leadership

1. Chapter 7Management and Leadership Ms. Baumgartner Business Essentials

2. Think About it…. • Who do you know who is a leader? • Parents • Teachers • Friends • Boss • Preacher/minister • Coach • Team mates

3. Who is a Manager? • Management • The process of accomplishing goals of a company through effective use of people and resources • Make things happen in a business • The entrepreneur who develops the idea for the business is a manager

4. The 5 Management Functions • Planning (analyze info, set goals, make decisions) • Organizing (identify and arrange work needed to achieve goals and how to complete it) • Staffing (find, prepare and pay employees) • Implementing (direct and lead people to accomplish planned work) • Controlling (makes sure the business does it’s part accomplishing its goals)

5. 3 Levels of Management • Top Management (EXECUTIVES) • Set long term plans/directions, held accountable for profitability, spend time planning and controlling activities (CEO, President, VP) • Spend most time planning/controlling activities • Mid-Management (MID-MANAGERS) • Focus on specific parts of a company • They spend a lot of time organizing and staffing (Marketing Mgr, Operations Mgr, Customer Service Mgr) • Supervisors • Evaluate work of employees, focus on implementing, usually have other non-mgt duties • First level of management; responsible

6. Management by Others • Even if you are not a manager, you will still complete work that seems like a management function • You might help train someone new • Might be asked to be a group leader • You can develop managerial skills and decide if you are interested in being a manager someday

7. Different Management Styles • Management can be difficult – it’s not always easy to get along with everyone • Backgrounds, personalities, experiences • Managers approach this challenge and other tasks in different ways based on their management style • Management style is the way a manager treats and directs employees • 2 types (on next slide) for different kinds of managers

8. Different Management Styles • There are 2 very different leadership styles often used by managers: • Tactical management – manager is directive and controlling; monitors employees closely • Strategic management – less directive and involve employees in decision-making process; work without direct supervision • The combined use of tactical and strategic management known as mixed management

9. 7-1 Assessment Questions • T/F An entrepreneur who starts a new business is not considered to be a manager • Which of the following is NOT one of the 5 functions of management? • Planning • Implementing • Producing • Controlling • Which level of management spends most of its time completing planning and controlling activities? • Top management • Mid management • Supervisors • Team management

10. What is a Leader? • One of the most important responsibilities is managing people • Managers are often good at managing things but not as good at managing people • Good leaders are hard to find

11. The Importance of Leadership • Managers are responsible for the success or failure of a business. • Managers are the people who are responsible for making sure that resources are used effectively, so that the business is successful

12. The Importance of Leadership • People are the most important resource of a business • The cost of hiring, training, and paying employees is usually 1 of a business’ highest expenses • Managers must involve employees and find ways to meet employee needs as well as business needs

13. The Importance of Leadership • Managers must also be effective leaders • Leadership is the ability to motivate individuals and groups to accomplish important goals • Leaders must have effective human relations skills (getting along with others)

14. The Importance of Leadership • It takes skills to get people with different backgrounds and personalities to work well together • “Leaders are born and not made”—agree? • Leaders should possess: • Understanding • Initiative • Dependability • Objectivity See Figure 7-2 on pg.157

15. The Importance of Leadership • Some people are born leaders, others are able to learn to lead by doing the following: • Study leadership (books, courses to take) • Participate in organizations & activities (clubs, teams) • Practice leadership at work (be dependable, honest, helpful) • Observe leaders (in leadership positions at work or school) • Work with a mentor (sibling, teacher, coach to learn from) • Do a self-analysis and ask for feedback (good/bad)

16. Importance of Human Relations • Managers and leaders must be able to work well with others • Human relations is the way people get along with each other • The important human relation skills of managers are: • Self-understanding (understand your own strengths and weaknesses) • Understanding others (recognize similarities/differences in people for stronger team) • Communications (can be classified in several ways—next slide) • Team building (combined skills of whole team is better than 1 person alone) • Developing job satisfaction(help people like their job more = happier = better work)

17. Types of Communication • Formal: has been established and already approved • Informal: common ways to communicate but not “official” • Internal: occurs between managers, employees or groups • External: occurs between company and customers (outsiders) • Vertical: (move up and down between management and employees) • Horizontal: (communication at the same level—mgr to mgr) • Oral: (spoken communication) • Written: (incl notes, emails, reports, letters)

18. Influencing People • Effective leaders must be able to influence others into making a decision. • Influence is the ability of a person to affect the actions of another person or people • There are several kinds of influence a leader can use:

19. Influencing People • Position influence – the ability to get others to accomplish tasks because a LEADER says so • Reward influence – the ability of the leader to give or withhold rewards (money or job benefits) to get people to do or not do something • Expert influence – when group members recognize that the leader has special expertise in the area • Identity influence – having personal trust and respect for the leader—so you listen to what they say

20. Influencing People • There are 2 types of influence in an organization – formal influence and informal influence • Formal influence – an elected leader—supposed to be the leader; in charge because of role • Informal influence – someone who naturally emerges as a leader from a group

21. 7-2 Assessment • It is often said that the most important resource of a business is: • Cash • Technology • Customers • People • T/F Research has proven that effective leaders are born, not made • The way people get along with each other is known as • Human relations • Influence • Management style • Communications • A person who is not a manager but is still able to get a group focused and organized is using • Tactical management • Strategic management • Formal influence • Informal influence

22. Importance of Ethical Behavior • Is it okay for an employee to call in sick if they are not sick? • Would you cheat on a test to ensure a higher grade? • Do you believe a mgr should ever lie to an employee or ignore unsafe working conditions to save money? • Individuals and organizations develop reputations based on their actions and the decisions they make. • You can identify people and businesses that are not trustworthy vs ones that are

23. What is Ethical Behavior? • Ethics are the principles of conduct governing an individual or a group. • Ethical business practices: make sure company is practicing highest level of conduct within company and with customers • Ethical behavior is made up of 2 parts: • actions of individuals • the results of those actions.

24. Ethical Behavior (cont.) Consider these before deciding if something is ETHICAL or not:

25. Preparing an Organization to Make Ethical Decisions • Mgrs must create an atmosphere where employees know they are expected to act ethically. • Employees are supported when making right decisions. • Company Mission Statement describes why the business exists and what it believes in • Have a statement of core values – the important principles that will guide decisions and actions of the company

26. What Can the Manager Do? • Managers should always model ethical behavior….remember actions speak louder than words!!!! • Treat each employee with respect • Reject decisions that would damage the reputation of the business.

27. 7-3 Assessment • Which of the following is NOT a standard of ethical behavior: • It should be lawful • It should not benefit someone while harming someone else • It should not give the company a competitive advantage • It should not result in embarrassment for the company • T/F Managers are responsible for the ethical actions of businesses • Important principles that guide decisions and actions in a company are: • A mission statement • A business plan • Ethical behavior • Core values

28. Chapter Assignments • Chapter 7 Assessmt: 4, 5, 11-24 (Def & Ans) • Chapter 7 Study Guide

29. Any Questions? “A leader is one who knows the way, goes the way, and shows the way.”