Understand the nature of business

1. Understand the nature of business 2.02 Understand the leadership and management.

2. Management • Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

3. 5 Functions of Management • Planning • Organizing • Leading • Controlling

4. Planning • The planning function involves… • Analyzing information • Setting goals • Making decisions to accomplish the goals

5. Organizing • The organizing function involves… • Identifying the work & resources needed to achieve the goals of the business that have been set in the planning stage.

6. Leading • The implementing function involves creating a vision of your company to inspire employees.

7. Controlling • The controlling function is used to determine whether a business is accomplishing its goals that were set in the planning stage.

8. Levels of Management • Top Management • Mid-management • Operational Management

9. Top Management • Executives are top-level managers • Responsible for the direction and the success of the business (controlling) • Set long-term goals (planning) • Held accountable for profitability & success • Examples: • CEO (Chief Executive Officer • President

10. Mid-Management • Mid-managers are specialists • Responsible for specific parts of the business • Devoted to the organizing, staffing, and implementing functions • Examples • Marketing Manager • Information Technology Manager • Customer Service Manager

11. Operational Mngt • First level of management • Responsible for the routine work of a group of employees and meeting deadlines • Evaluate the work of the employees • Implement the plans set forth by executives and mid-managers

12. Management by others • Other employees who are not managers, may serve as leaders for a group of employees

13. Management Styles • The management style is the way a manager treats and involves employees • Tactical • Strategic • Mixed

14. Tactical • Directive and controlling • Manager makes the major decisions • Stays in close contact with employees while they work • Typically, use for inexperienced employees or during a crisis

15. Strategic • Less directive with employees • Involves team members with decision making • Typically, used with trusted and/or experienced employees • Limited direct supervision

16. Mixed • Combination of both tactical and strategic • Effective managers can use both styles in order to accommodate different types of employees

17. Leadership Styles • Leadership is the ability to motivate individuals and groups to accomplish important goals. • What type of traits should a leader possess?

18. Leadership Traits • Intelligence • Judgment • Objectivity • Initiative • Dependability • Understanding • Cooperation • Honesty • Courage • Confidence • Stability

19. Leadership Styles • Autocratic Leader • Democratic Leader • Open or Laissez-faire leader

20. Autocratic Leader • Used when a leader needs to give direct, clear, and precise orders and makes decisions • Situations to use style: • During an emergency • To direct the work of inexperienced employees

21. Democratic Leader • One who includes employees in making decisions • Situations to use style: • To monitor quality of work of employees • To direct the work of employees working as a team

22. Open/Laissez-faire Leader • One who gives little or no direction to employees • Situation to use style: • To monitor achievements and communicate regularly with employees • To direct the work of experienced and trained employees

23. Human Resources Managers • Human resources managers use the management process of managing employees to achieve the objectives of a business.

24. Human Resources Management Activities • Planning, staffing, recruiting, & hiring • Managing compensation and benefits • Managing performance of employees

25. Planning, Staffing, Recruiting, Hiring • Planning & Staffing • Classifying employees • Permanent • Long term commitment • Temporary • Hired for a specific time/job • Full Time • 30 or more hours per week (usually 40+ hours) • Part Time • Short work week

26. Planning, Staffing, Recruiting, Hiring • Planning & Job Staffing • Determining job requirements: • The use of job analysis to determine all the duties for a particular job • Recruiting and hiring employees • The application process • Reviewing applications/resumes • Interviewing applicants • Checking references of applicants • Making a job offer to applicants

27. Planning, Staffing, Recruiting, Hiring • Recruiting & Hiring • New employee orientation • Paperwork • Training • Mentor

28. Managing Compensation & Benefits • Compensation method • Time Wage – Direct payment per hour • Salary – Direct payment per week, bi-weekly, or monthly • Commission – Percentage of sales • Piece Rate – Payment per unit produced • Base plus incentive – Direct payment plus performance based pay • Employee benefits • Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc.

29. Managing performance of employees • Employee evaluation • Objective evaluations of employees’ quality of work • Promotion • Advancement of an employee to a position with greater responsibility • Transfer • Assignment of the employee to a job in another area with similar responsibility • Termination • Ends employment relationship