SLIDE 1

7-1 Becoming an Entrepreneur

7-2 Small Business Basics

7-3 Starting a Small Business

7C H A P T E R Management and

Leadership

7-1 Management Functions and Styles

Goals 1.Define the five functions of

management

2.Describe the levels of management in businesses and organizations

3.Discuss how and when to use the two management styles

Role and Work of Managers

Who is a Manager? Management- the process of accomplishing the goals

of an organization through the effective use of people and other resources.

What do Managers Do? Planning – analyzing information, setting goals, and

making decisions about what needs to be done. Organizing – Identifying and arranging the work and

resources needed to achieve the goals that have been set

Role and Work of Managers

What do Managers Do? Staffing – includes all the activities involved in

obtaining, preparing, and compensating the people who work for a business

Implementing – the effort to direct and 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.

Checkpoint #1 What are the five management

functions?planningorganizingstaffingimplementingcontrolling

Management Levels Top Management

Executives are top-level managers with responsibilities for the direction and success if the entire business.

Set the long-term direction and plans Spend most of their time on planning and controlling

activities

Middle Management Middle mangers are specialists with responsibilities for

specific parts of a company’s operation Work with a companies business plan once it is approved

Management Levels Supervisors

The first level of management in a business Responsible for the day-to-day work of a small group

of employees

Management by Others Employees plan and organize their work

Hiring and training of new employees

Checkpoint #2 What are the differences among the three

levels of management? Top-level managers are executives with

responsibilities for the direction and success of the entire business.

Middle managers are specialists with responsibilities for specific parts of a company’s operations.

Supervisors are first-level managers who are responsible for the work of a group of employees.

Management Styles

Management Style – the way a manager works with and involves employees

Two very different styles often used by managers are tactical management and strategic management

Management Styles

Tactical Management A style in which a manager is more directive and

controlling Manager makes the major decisions and stay in close

contact with employees while they work to make sure the work is done well

Strategic Management A style in which the mangers are more collaborative

and involve employees in decision making.

Checkpoint #3 How is tactical management different from

strategic management? The tactical management style is more directive

and controlling than the strategic management style.

Using tactical management, the manager makes the major decisions and supervises employees closely to make sure the work is done well.

In strategic management, managers are less directive and involve employees in decision-making.

7-2 Leadership

Goals 1. Describe the need for leadership skills and

the characteristics of an effective leader

2. Identify the human relation skills needed by manager and leaders

3. Recognize 4 types of leadership influence

What is Leadership The ability to motivate individuals and

groups to accomplish important goals Need for Leadership

Expected to find ways to meet employee needs as well as business needs.

Mangers must be effective leaders

Characteristics of an Effective Leader

Understanding Initiative Dependability Judgment Objectivity Confidence

Stability Cooperation Honesty Courage Communication Intelligence

Preparing to be a Leader

Study Leadership Books/Courses on the subject of leadership can help you

understand what it takes to be a leader

Participate in Organization Activities Clubs, teams, and organization need leaders and offer a

variety of opportunities

Practice Leadership at Work Develop leadership skills as you help customers, complete

work assignments, take initiative to solve problems

Preparing to be a Leader

Observe Leaders Everyday you can observe people in leadership positions in

your school or community.

Work with a mentor Older brother or sister, trusted adult, teacher or coach can

help you learn leadership skills and offer direction/progress

Do a self-analysis and ask for feedback Find opportunities to demonstrate leadership

characteristics

Checkpoint #4 What are several ways to develop

leadership skills?Leadership skills can be developed

through studying leadership, participating in organizations and activities, practicing leadership at work, observing leaders, working with a mentor, and doing a self-analysis and asking for feedback.

Importance of Human Relations

The way people get along with each other Self Understanding

Leaders must understand their own strengths and weaknesses

Understanding Others Leaders recognize that people they work with often

are more alike than different Effective leaders get to know each person’s skills and

abilities as well as strengths and weaknesses

Importance of Human Relations

Communication Formal and Informal Internal and External Vertical and Horizontal Oral or Written

Team Building The combined skills of the people in an effective team

are greater than that of individuals working alone

Developing Job Satisfaction

Checkpoint #5 Why do managers and leaders need

effective human relations skills? Managers and leaders need effective

human relations skills because much of their success depends on their ability to get along well with all of the people with whom they work and build effective work groups.

Influencing People Kinds of Influence

Position Influence – the ability to get others to accomplish tasks because of the position the leader holds.

Reward Influence – results from the leader’s ability to give or withhold rewards.

Expert Influence – exists when group members recognize and appreciate a leader’s expertise in a specific area.

Identity Influence – stems from the personal trust and respect members have for the leader.

Formal and Informal Influence

Mangers have formal influence, others have informal influence

Informal – power resulting from the personal characteristics of a leader rather than the formal structure of an organization.

Formal – power based on a leader’s position with the formal structure of an organization.

Checkpoint #6 What is the difference between formal

and informal influence? Formal influence results from a position

that is a part of the organization’s structure.

Informal influence results from personal characteristics and is not a formal position in the organization.

7-3 Ethical Management

Goals 1.Justify the need for ethical

management

2.Identify the role of leaders in increasing ethical behavior

Importance of Ethical Behavior

Not everyone has the same belief about what is ethical and what is not ethical.

Organizations should develop a clear view of what is acceptable business behavior and what is not.

Individuals and organizations develop reputations based on their actions and the decisions they make

What is Ethical Behavior Ethical Business Practices – ensure that

appropriate standards of conduct are maintained by everyone who is a part of the business and with anyone affected by the business.

It is lawful.It is consistent with company values and policies.It is not intended to harm some so that others can

benefit.If the actions and results become public, it will not

embarrass the company.

Ethical Management Actions and activities of the business are

legal, honest, and ethical. People and other companies treated fairly. Work of the company improves the

communities and countries in which it operates.

Resources are used efficiently with consideration of the effect on people and the environment.

Checkpoint #7 What are the two parts of ethical

behavior?The actions of individuals and groupsThe results of those actions

Increasing Ethical Behavior

Through Leadership Preparing the Organization Core Values – the important principles that will guide

decisions and actions in the company. Companies provide descriptions and examples to help

employees see how the core values can be incorporated throughout the company.

Modeling Ethical Behavior

Checkpoint #8 What are the core values of an

organization?An organization’s core values are the

principles that guide decisions and actions in the company.