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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.