Essential Standard 2.00

Understand business organization and management.

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Objective 2.02Understand leadership and management.

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Topics• Management• Leadership• Human Resource Management

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Management

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ManagementWhat is the role of a manager?

Managers are responsible for management of a business to accomplish goals by effectively using people and other resources.

Describe the five functions of management:

Planning

To analyze information, set goals based on information, and make decisions to accomplish the goals

Organizing

To arrange resources in order to accomplish the goals of the business

Staffing

To obtain, train, and compensate employees to accomplish the goals of the business

Implementing

To direct and lead people to accomplish the goals of the business

Controlling

To determine whether a business is accomplishing its goals that were set in the planning stage.

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Management continuedWhat are the different levels of management?

TopMid-managementSupervisorsManagement by others

Describe each level:Top

Executives who are responsible for the overall direction of the businessMid-Management

Specialists responsible for a specific part of the businessSupervisors

First level of management in the businessResponsible for the routine work of employees

Management by othersOther employees who are not managers, may serve as leaders for a group of employees

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Management continuedWhat is management style?

The way a manager directs employees to accomplish the goals of the business.

Describe the different types of management styles:

Tactical

Directed and controlling

Typically, use for inexperienced employees or during a crisis

Strategic

Less directed with employees helping with decision making

Typically, used with trusted and/or experienced employees

Mixed

Combination of both tactical and strategic

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Leadership

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Leadership

What is leadership?

The ability to motivate others to effectively accomplish goals of the business.

What characteristics to a good leader possess?

(Have students name these. The entire list is on the next slide.)

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Leadership continued

How many did you name?

• Intelligence• Judgment• Objectivity• Initiative• Dependability• Understanding

• Cooperation• Honesty• Courage• Confidence• Stability

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Leadership continuedWhat are the different styles of leadership?

Leadership styles

What is an 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

What is a democratic leader?

one who includes employees in making decisionsSituations to use style:

To monitor quality of work of employees

To direct the work of employees working as a team

What is an open or Laissez-fare 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 employees11

Human Resources Manager

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Human Resources Management

What is the role of human resources managers?

Human resources managers uses the management process of managing employees who collectively contribute to the achievement of the objectives of the business.

What are the functions of human resources management? What is included in each function of human resource management?

The functions of human resources management:

Planning and staffing – includes planning and job analysis, recruiting and hiring

Managing compensation and benefits – includes compensation methods and employee benefits

Managing performance of employees – includes employee evaluation and promotions, transfers, and termination. 13

Human Resources Management continuedWhat are the two main parts of planning and job analysis?

Classification of employees and determining job requirements.

How can employees be classified?

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 weekHow does a human resource manager determine job requirements?

The use of job analysis to determine all the duties for a particular job

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Human Resources Management continuedWhat are the two main parts of recruiting and hiring

employees? The application process and new employee orientation.

What is included in the application process?Reviewing applications/resumesInterviewing applicantsChecking references of applicants Making a job offer to applicants

What is included in new employee orientation?PaperworkTraining MentorPossible probationary period

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Human Resources Management continuedWhat are the two main parts of managing compensations and benefits?

Determining compensation type and benefits

What are the different types of compensation?

Compensation types

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

What are some employee benefits that may be available?

Employee benefits

Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. 16

What are the two main parts of managing performance of employees? Employee evaluation and employee movement within the company (promotion, transfer, or termination)

What is included in employee evaluation?

Objective evaluations of employees’ quality of work. Managers and employees are trained on evaluation procedures. Identifies strengths and weaknesses. Post-conference tells employee the results.

How may an employee transition throughout the company?

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 17

Human Resources Management continued