Management & Leadership

1. Management & Leadership

2. Role & Work of Managers • Responsibility for the success or failure of a business. • Managers receive recognition & other rewards when a business meets its goals • They are also held accountable when goals are not met • People who want to experience the risks & rewards of business often become managers.

3. Management • Process of accomplishing the goals of an organization through the effective use of people & other resources • Managers make things happen in a business • What do Managers Do? • Every manager has specific job duties • Must complete similar activities no matter what the size or type of business. • Work can be organized within five functions listed on next page

4. Five functions of a manager • Planning – analyzing information, setting goals, & making decisions • Organizing – identifying & arranging the work & resources needed to achieve the goals that have been set • Staffing –obtaining, preparing, & compensating the employees of a business • Implementing – effort to direct & lead people to accomplish the planned work of the organization • Controlling – determines to what extent the business is accomplishing the goals it set out to reach in the planning stage

5. Depending on the size of the business, the managers responsibilities will vary • As a business grows, other employees will be moved into management positions • Managers must make decisions, solve problems, respond to competition, & develop new strategies • The efforts of each manager impact the work of others & the results achieved by the business. • Effective managers motivate employees to do their best work

6. Management levels • Unless a business is very small, there will be several managers with responsibilities for leading the business • Most organizations have three levels of managers: • Top management (executives) • Mid-management • Supervisors

7. Top Management • Executives- top-level managers with responsibilities for the direction & success of the entire business. • Set long-term direction & plans • Held accountable for the profitability & success of the business. • Spend most of their time on planning & controlling activities. Study the economy & competition

8. Mid-Managers • Specialists with responsibilities for specific parts of a company’s operations • Examples: marketing manager, IT manager, customer service manager, operations manager, & HR manager • Take the company’s business plan & prepare specific plans for their part of the business • Work must be coordinated with other managers

9. Supervisors First level of management Responsible for the work of a group of employees Play the day-to-day work of the employees they supervise Make sure that needed resources are available & used wisely Evaluate the work of their employees & solve problems that occur in their area

10. Management by others Employees that are not managers may complete work that seems to be a managers job Interviews, training, evaluating quality of work, lead a project

11. Management styles • The way a manager treats & involves employees • Sometimes a style is chosen based on the characteristics of the employees being managed • Other times, it is based on the work assignment • Experienced & effective managers can change their management style based on the urgency of the work to be done & the confidence the manager has in the employees • Styles • Tactical management • Strategic management • Mixed management

12. Tactical management Manager is more directive & controlling They will make major decisions & stay in close contact with employees while they work to ensure it’s done well

13. Strategic management Managers are less directive & involve employees in decision making A manager using a strategic style will trust employees to work without direct supervision & will seek their advice on important decisions

14. Mixed management Combined use of tactical & strategic management Effective managers are prepared to use both management styles

15. Leadership • Ability to motivate individuals & groups to accomplish important goals • When a manager can get individual employees & groups to work well together to accomplish objectives, they are an effective leader • When employees feel that they are not involved in decisions & are not valued by the business, they will not be as committed to the work • People are the most important resource of a business. Cost of hiring training, & paying employees is one of a business’s highest expenses

16. If employees are not satisfied, they might not perform the work correctly, may not treat customers well, or may quit • These problems cost the company money & may require hiring & training new employees • Managers must involve employees & find ways to meet employee needs as well as business needs.

17. Characteristics of Effective Leaders • Understanding • Initiative • Dependability • Judgment • Objectivity • Confidence • Stability • Cooperation • Honesty • Courage • Communication • Intelligence

18. Preparing to be a leader • You shouldn’t wait until you become a manager to begin developing leadership skills • Study leadership • Participate in organizations & activities • Practice leadership at work • Observe leaders • Work with a mentor • Do a self-analysis & ask for feedback

19. Importance of human relations • The way people get along with each other • Managers & leaders must be able to work well with other people • Human relations largely determines whether a manager is successful or not • Human relations skills • Self-understanding • Understanding others • Communication • Team building • Developing job satisfaction

20. Communication • Formal or informal • Formal – established & approved by the organization • Informal – common but unofficial ways that information moves in an organization • Internal or external • Internal – between employees & managers • External – w/customers, suppliers, etc. • Vertical or horizontal • Vertical – w/people up or down in an organization • Horizontal – move across the organization at the same level • Oral or written

21. Influencing people • Enables a person to affect the actions of others • Kinds of influence • Position influence - Because of leadership position, managers are able to get others to complete tasks • Reward influence – give or withhold rewards (money/job benefits) • Expert influence – workers look to a manager for guidance based on their experience • Identify influence – personal trust & respect members have for the leader

22. Formal & informal influence • Informal- leadership role is not part of a formal structure. People emerge as a leader when placed into groups. • Formal- leadership position is part of the organization’s structure. People get elected as an officer.

23. Ethical management • Importance of ethical behavior • Individuals & businesses develop reputations based on their actions & decisions they make • When an individual or company develops that reputation, others will be reluctant to trust them or work with them. • Ethics – principles of conduct governing an individual or group • Ethical business practices – ensure that the highest standards of conduct are observed

24. Ethical behavior meets several standards: • It is lawful • It is consistent with company values & policies • It does not harm some while benefiting others • If the actions & results become public, it will not embarrass the company

25. Increasing ethical behavior through leadership • Leaders must take actions to prevent unethical behavior • It is the managers duty to create an atmosphere in which all employees know they are expected to act ethically • The employees must know they will be supported when they make the right decision • Leaders should make clear that unethical behavior is unacceptable & will be punished it is occurs.