Understand the nature of business

2.02 Understand the leadership and management.

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

Management

Planning Organizing Leading Controlling

5 Functions of Management

The planning function involves… Analyzing information Setting goals Making decisions to accomplish the goals

Planning

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

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

Leading

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

Controlling

Top Management

Mid-management

Operational Management

Levels of 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

Top 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

Mid-Management

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

Operational Mngt

Other employees who are not managers, may serve as leaders for a group of employees

Management by others

The management style is the way a manager treats and involves employees Tactical Strategic Mixed

Management Styles

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

Less directive with employees Involves team members with

decision making Typically, used with trusted

and/or experienced employees Limited direct supervision

Strategic

Combination of both tactical and strategic

Effective managers can use both styles in order to accommodate different types of employees

Mixed

Leadership is the ability to motivate individuals and groups to accomplish important goals.

What type of traits should a leader possess?

Leadership Styles

Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability

Leadership Traits

Autocratic Leader Democratic Leader Open or Laissez-faire leader

Leadership Styles

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

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

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

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

Human Resources Managers

Planning, staffing, recruiting, & hiring

Managing compensation and benefits

Managing performance of employees

Human Resources Management Activities

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

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

Recruiting & Hiring New employee orientation

Paperwork Training Mentor

Planning, Staffing, Recruiting, Hiring

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

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