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Understand the nature of business
2.02 Understand leadership and management.
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Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.
Management
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Planning Organizing Staffing Implementing Controlling
5 Functions of Management
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The planning function involves… Analyzing information Setting goals Making decisions to accomplish the goals
Planning
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The organizing function involves… Identifying the work & resources needed to achieve the goals of the business that have been set in the planning stage.
Organizing
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The staffing function includes the activities involved in… Obtaining the employees
Training the employees Compensating the employees
Staffing
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The implementing function involves directing and leading people in order to accomplish the goals set out in the planning stage.
Implementing
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The controlling function is used to determine whether a business is accomplishing its goals that were set in the planning stage.
Controlling
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Top Management Mid-management
Supervisors Management by others
Levels of Management
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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
Top Management
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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
Mid-Management
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First level of management Responsible for the routine work of a
group of employees Evaluate the work of the employees Implement the plans set forth by
executives and mid-managers
Supervisors
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Other employees who are not managers, may serve as leaders for a group of employees
Management by others
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The management style is the way a manager treats and involves employees Tactical Strategic Mixed
Management Styles
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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
Tactical
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Less directive with employees Involves team members with
decision making Typically, used with trusted
and/or experienced employees Limited direct supervision
Strategic
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Combination of both tactical and strategic
Effective managers can use both styles in order to accommodate different types of employees
Mixed
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Leadership is the ability to motivate individuals and groups to accomplish important goals.
What type of traits should a leader possess?
Leadership Styles
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Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability
Leadership Traits
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Autocratic Leader Democratic Leader Open or Laissez-faire leader
Leadership Styles
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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
Autocratic Leader
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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
Democratic Leader
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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
Open/Laissez-faire Leader
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10 Commandments of a Good Leader Believe in something other than
yourself. Listen to others. Work in a team, never be a loner. Be considerate of a different opinion. Stand for what you believe when
criticized.
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10 Commandments of a Good Leader Be a peacemaker above all. Be patient with other people even if
they do not see your way. Stick to the promises you make. Work hard as a leader. Thank people for what they do for
you even though you may receive no thanks.
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Human resources managers use the management process of managing employees to achieve the objectives of a business.
Human Resources Managers
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Planning, staffing, recruiting, & hiring
Managing compensation and benefits
Managing performance of employees
Human Resources Management Activities
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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
Planning, Staffing, Recruiting, Hiring
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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
Planning, Staffing, Recruiting, Hiring
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Recruiting & Hiring New employee orientation
Paperwork Training Mentor
Planning, Staffing, Recruiting, Hiring
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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.
Managing Compensation & Benefits
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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
Managing performance of employees