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Introduction to Business © Thomson South-Western ChapterChapter Management and Leadership 7-1 7-1Management Mrs. Metcalfe Business Essentials IB 7.

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Presentation on theme: "Introduction to Business © Thomson South-Western ChapterChapter Management and Leadership 7-1 7-1Management Mrs. Metcalfe Business Essentials IB 7."— Presentation transcript:

1 Introduction to Business © Thomson South-Western ChapterChapter Management and Leadership Management Mrs. Metcalfe Business Essentials IB 7

2 Introduction to Business © Thomson South-Western Managers What activities do managers complete to accomplish the goals of an organization? Chapter 7 Slide 2

3 Introduction to Business © Thomson South-Western Chapter 7 Slide 3 Who is a Manager? Managers are responsible for the success or failure of business and organizations People who want to experience the risks and rewards of business become managers _____________________– the process of accomplishing goals of an organization through the effective use of people and other resources Managers make things happen in business Example: Entrepreneur, Chief executive officer, supervisors, etc…

4 Introduction to Business © Thomson South-Western Chapter 7 Slide 4 What do managers do? Managers must complete similar activities no matter what the size or type of a business Managers work can be organized with 5 functions: Planning Organizing _________________ Implementing Controlling

5 Introduction to Business © Thomson South-Western Chapter 7 Slide 5 Five Management Functions 1._____________________– involves analyzing information, setting goals, and making decisions about what needs to be done 2._____________________– identifying and arranging the work and resources needed to achieve the goals that have been set 3.Staffing – includes all of the activities involved in obtaining, preparing, and compensating the employees of a business

6 Introduction to Business © Thomson South-Western Chapter 7 Slide 6 Five Management Functions 4.____________________– the effort to direct and lead people to accomplish the planned work of the organization 5. Controlling – determines to what extent the business is accomplishing the ___________it set out to reach in the planning stage.

7 Introduction to Business © Thomson South-Western Chapter 7 Slide 7 Management Functions Large corporations have many managers Management functions are usually divided among the owners of a __________________ Each owner works with functions he or she enjoys and performs well In small businesses, the owner is usually responsible for _____________the management functions As the business grows, other employees will be moved into management positions

8 Introduction to Business © Thomson South-Western Chapter 7 Slide 8 What do managers do? Managing a business is a very complex process Managers must make decisions, solve problems, respond to competition and develop new strategies Decisions made to complete one management function affect all other functions Effective managers ___________________employees to do their best Use money and other resources of the business wisely Successful businesses have managers who are able to complete each of the management functions well

9 Introduction to Business © Thomson South-Western Chapter 7 Slide 9 Directions: In Microsoft Word, create a cycle smart art graphic for the Five Functions of Management. Next, list each function and its definition into the chart. Lastly, under your chart, describe a specific activity a manager might complete that illustrates each of the five management functions (DO NOT use my example). Make sure to label your paper and turn into the box when you are finished. The Five Functions of Management Activity Planning Definition Organizing Definition Staffing Definition Implementing Definition Controlling Definition Planning – Organizing – Staffing – manager considers health insurance plans to offer her employees Implementing – Controlling -

10 Introduction to Business © Thomson South-Western Chapter 7 Slide 10 MANAGEMENT LEVELS Unless a business is very small, there will be several managers with responsibilities for leading the business Every manager completes all of the management functions and has authority over other people and their work Not every manager gives the same amount of attention and __________________to each of the functions Most organizations have three levels of managers: Executives Mid-Managers Supervisors

11 Introduction to Business © Thomson South-Western Chapter 7 Slide 11 Management Levels : Top Management ___________________– top-level managers with responsibilities for the direction and success of the entire business Set long term direction and plans Held accountable for the profitability and success of their business Job Titles include: Chief Executive Officer, President, ____________Operating Officer, and Vice President Spend most of their time on planning and controlling activities Study the economy and competition, Responsible for all major business communications, All other managers report to executives

12 Introduction to Business © Thomson South-Western Chapter 7 Slide 12 Management Levels : Mid- Management __________ __________________– specialists with responsibilities for specific parts of a company’s operations Take business plans developed by executives and prepare specific plans for their part of the business Coordinate their work with other managers Much of their time is devoted to the organizing, staffing, and implementing functions Examples: marketing manager, information technology manager, customer service manager, operations, manager, and human resources manager

13 Introduction to Business © Thomson South-Western Chapter 7 Slide 13 Management Levels : Supervisors Supervisors – the ______________level of management in a business. Responsible for the day-to-day work of a group of employees Have non-management duties in addition to their management work Plan the day-to-day work of the employees they supervise Make sure that needed resources are available and used wisely Evaluate the work of their employees and solve problems that occur in their area Spend most of their time ____________________the plans of executives and mid-managers

14 Introduction to Business © Thomson South-Western Chapter 7 Slide 14 Management Levels : Management by Others _______________who are not managers complete work that seems to be part of one of the management functions Plan and organize their work Might take part in training and hiring new employees Evaluate the quality of the work they complete BUT, ________________are responsible for the work of others and have authority over those employees Without that authority and responsibility, the work of an employee is not considered part of management

15 Introduction to Business © Thomson South-Western Chapter 7 Slide 15 Management Levels : Management by Others Some experienced employees are asked to serve as leaders for their work groups Example: Lead a project or train a new employee Many companies are now organizing _________ ___________ Giving teams both authority and responsibility for much of their work Team meets to make plans, determine how work will be completed, and divide the work among team members Team is responsible for meeting objectives and may even have some control over their budget Team will still report to a manager and can ask for that person’s assistance when needed Both work group leaders and employee teams can complete these management activities to develop the skills needed by managers and decide if they are interested in this type of career

16 Introduction to Business © Thomson South-Western Chapter 7 Slide 16 MANAGEMENT STYLES Managers approach the task of directing a group in different ways Management ___________________is the way a manager treats and involves employees Two different styles used by managers are tactical and strategic management Management styles can be chosen on characteristics of employees or work assignment Experienced and effective managers can change their management style

17 Introduction to Business © Thomson South-Western Chapter 7 Slide 17 Management Style: Tactical Management ___________Management – is a style in which the manager is more directive and controlling Manager will make the major decisions and stay in close contact with employees while they work to make sure the work is done well Ex. They don’t have time to let the group decide how to complete the task., working with part-time or temporary employees, working with unmotivated employees, assignment a new task for which employees are not experienced, employees prefer not to be involved in decision making

18 Introduction to Business © Thomson South-Western Chapter 7 Slide 18 Management Style: Strategic Management _____________Management – a management style in which managers are less directive and involve employees in decision-making A manager using a strategic style will trust employees to work without direct supervision and will seek their advice on important decisions Ex. Employees are skilled and experienced, the work is routine with few new challenges, employees are doing work they enjoy, manager wants to improve group relationships, employees willing to take responsibility for the results of their work

19 Introduction to Business © Thomson South-Western Chapter 7 Slide 19 Management Style: Mixed Management _______________Management – combined use of tactical and strategic management Effective managers are prepared to use __________styles because some employees prefer that the manager make day-to-day decisions and some employees are not experienced enough to work without supervision

20 Introduction to Business © Thomson South-Western Choosing a Management Style Chapter 7 Slide 20

21 Introduction to Business © Thomson South-Western Chapter 7 Slide 21 Questions… Under which management style would you like to work? Why? Working with a temporary worker that was hired in because an employee is on maternity leave… Your newest employees has been working with the company for 10 years… Your teams report is due tomorrow and you just received it today….

22 Introduction to Business © Thomson South-Western Chapter 7 Slide Assessment Directions: Answer the following questions below in Microsoft Word. Write the question and the answer for only assignments #1 - #3. Save the assignment in your Business Essentials folder as Chapter 7 Assessment. 1.What are the five management functions? 2.What are the differences among the three levels of management 3.How is tactical management different from strategic management 7-1 Assessment on page 154 #1-#4

23 Introduction to Business © Thomson South-Western Chapter 7 Slide 23 LESSON 7-2 LESSON 7-2 Leadership Mrs. Metcalfe Business Essentials IB

24 Introduction to Business © Thomson South-Western Chapter 7 Slide 24 Question Consider a club or organization that you are in or would like to be involved in…(example FBLA). Identify what qualities you look for in selecting a leader for that club or organization _______________________________________________ _______________________________________________ _______________________________________________ What do you believe makes a person a leader? _______________________________________________ _______________________________________________

25 Introduction to Business © Thomson South-Western Chapter 7 Slide 25 What is a Leader? One of the most important responsibilities of a business is managing people (employees) Managers who can effectively manage people are in high demand

26 Introduction to Business © Thomson South-Western Chapter 7 Slide 26 Need for Leadership The management of people has changed in recent years Past – if manager wanted something done, he or she just had to tell the employees and they would do as they were told Today – if employees feel that they are not involved in decisions and are not valued by the business, they will not be as committed to the work

27 Introduction to Business © Thomson South-Western Chapter 7 Slide 27 Need for Leadership The cost of hiring, training, and paying employees is usually one of a businesses highest expenses. If an employee is not satisfied, they might not perform the work correctly, treat the customers well, or quit – which will require the company to hire and train new employees Managers must involve employees and find ways to meet employee needs as well as business needs Managers must be effective leaders

28 Introduction to Business © Thomson South-Western Chapter 7 Slide 28 Need for Leadership Leadership – the ability to motivate individuals and groups to accomplish important goals When a manager is an effective leader they can get individual employees and groups to work well together to accomplish objectives

29 Introduction to Business © Thomson South-Western Chapter 7 Slide 29 Leadership Characteristics Leadership takes skill to get people with different backgrounds and personalities to work well together Most leaders report that they did not always have the characteristics needed for success, but they worked hard over many years to develop them

30 Introduction to Business © Thomson South-Western Chapter 7 Slide 30 Characteristics of Effective Leaders Understanding Initiative Dependability Judgment Objectivity Confidence Stability Cooperation Honesty Courage Communication Intelligence Describe specific instances when you have observed a leader demonstrating one or more of these characteristics

31 Introduction to Business © Thomson South-Western Chapter 7 Slide 31 Preparing to Be a Leader Study leadership – books and courses Participate in organizations and activities – clubs, teams, and organizations Practice leadership at work – help customers, complete work assignments, take initiative to solve problems, demonstrate dependability Observe leaders – observe people in leadership positions Work with a mentor – older brother, teacher, supervisor that will be able to help you learn about leadership skills Do a self-analysis and ask for feedback – find opportunities to show leadership characteristics then review what you did well and can improve. Ask others for feedback

32 Introduction to Business © Thomson South-Western Chapter 7 Slide 32 My Plan to Become a Leader Things I Plan To DoThings I Have Done Ticket Out the Door

33 Introduction to Business © Thomson South-Western Chapter 7 Slide 33 IMPORTANCE OF HUMAN RELATIONS Managers and leaders must be able to work well with other people Managers spend more than half of their time interacting with people Human Relations – the way people get along with each other Largely determines whether a manager is successful or not

34 Introduction to Business © Thomson South-Western Chapter 7 Slide 34 IMPORTANCE OF HUMAN RELATIONS Effective managers and leaders must be able to get along well with all the people with whom they work and help their employees develop effective human relations skills Important Human Relations Skills needed by managers are: Self understanding Understanding others Communication Team building Developing job satisfaction

35 Introduction to Business © Thomson South-Western Chapter 7 Slide 35 Human Relations Skills Self – Understanding To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses Managers cannot always do what employees prefer or make decisions in which every employee agrees but a manager cannot be viewed as unpredictable or unfair To Improve Human Relations Skills Study how you get along with others Recognize how you communicate and work with others Understand how you make decisions and which decisions are effective

36 Introduction to Business © Thomson South-Western Chapter 7 Slide 36 Human Relations Skills Understanding Others Leaders recognize that people in a business often are more alike than different Recognizing those similarities and differences will help develop a stronger team An effective leader gets to know each person’s skills and abilities as well as strengths and weaknesses A leader will not treat everyone alike, but will attempt to involve each person in the way that is most beneficial to the business and the employee

37 Introduction to Business © Thomson South-Western Chapter 7 Slide 37 Human Relations Skills Communication Managers must have effective communication skills Various Communication can be classified as: Formal or Informal Internal and External Vertical or Horizontal Oral or Written

38 Introduction to Business © Thomson South-Western Chapter 7 Slide 38 Communication Classification Formal or Informal – formal communications have been established and approved by the organization. Informal communications are common but unofficial ways that information moves in an organization Internal and External – Internal communications occur between managers, employees, and work groups. External communications occur between those inside the organization and outsiders such as customers, and businesses Vertical or Horizontal – Vertical communications move up or down in an organizations between management and employees. Horizontal communications move across the organization at the same level-employee to employee or manager to manager Oral or Written – oral communications are word of mouth. Written communications include notes, letters, reports, and messages

39 Introduction to Business © Thomson South-Western Chapter 7 Slide 39 Communication Managers need to recognize the ways communication occurs in business and use all communication effectively Communications must use words that are understandable and meaningful to the people receiving the communications (must be specific) An effective communication must be a good listener as well as skilled at providing information Helps managers understand employees and demonstrates that the manager respects their ideas

40 Introduction to Business © Thomson South-Western Chapter 7 Slide 40 Team Building Businesses are made up of groups and teams, not individuals The combined skills of the people in a team are greater than that of individuals working alone If there are problems in the team and members cannot get along, the team will not be effective Managers need team building skills to help people understand each other and their responsibilities They should be able to identify any problems within the groups and help solve the problems quickly

41 Introduction to Business © Thomson South-Western Chapter 7 Slide 41 Developing Job Satisfaction Managers influence how employees feel about their jobs on a daily basis Sources of dissatisfaction include; assignments employees do not like, poor working conditions, ineffective communication, and lack of recognition Daily difficulties lead to long-term dissatisfaction When a manger pays attention to the needs and concerns of individual employees, they appreciate that effort

42 Introduction to Business © Thomson South-Western Chapter 7 Slide 42 INFLUENCING PEOPLE Effective leaders must be able to influence members Influence – enables a person to affect the actions of others Kinds of influence Position influence Reward influence Expert influence Identity influence

43 Introduction to Business © Thomson South-Western Chapter 7 Slide 43 Kinds of Influence Position influence – 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 Positively - In the form of money, job benefits, recognition or awards Negatively – requiring people to work over time or criticizing them Expert influence – arises when group members recognize that the leader has special expertise in the area Ex. Manager with years of successful selling experience Identity influence – stems from personal trust and respect members have for the leader Ex. If a leader is well liked and though to have the best interests of the group in mind, members are likely to support the leader

44 Introduction to Business © Thomson South-Western Chapter 7 Slide 44 Kinds of Influence The influence of leaders is not always positive If manager is not viewed as an expert and is not liked, he or she will have to rely on position and reward influence Most leaders try to develop expert and identity influence

45 Introduction to Business © Thomson South-Western Chapter 7 Slide 45 Influencing You In your life, school, or extracurricular activities, identify a person that illustrates each of the four kinds of influence. Then prepare an example of how each person uses their influence to accomplish the work of the organization Position Influence – ____________________________________________________ Reward Influence – ____________________________________________________ Expert Influence – ____________________________________________________ Identity Influence – ____________________________________________________

46 Introduction to Business © Thomson South-Western Chapter 7 Slide 46 Formal and Informal Influence Informal Influence – leadership role is not part of a formal structure Ex. Group project in class – two students emerge as leaders to get group focused and organized Formal Influence – leadership position is part of the organizations structure Ex. FBLA election of officers Often in organizations, both formal and informal will operate at the same time Manager – formal Well Respected Employee - informal

47 Introduction to Business © Thomson South-Western Chapter 7 Slide 47 Formal and Informal Influence If there is a conflict between the formal and informal influence, the group will probably not work effectively. Group members will have difficulty deciding whose influence to follow Effective managers recognize informal influence and work closely with the informal leaders to gain their support and avoid conflicts

48 Introduction to Business © Thomson South-Western Chapter 7 Slide Questions Directions: Answer the following questions on the same piece of paper as the 7.1 questions (saved as Chapter 7 questions). Write the question and the answer for both assignments. Save your document when you are finished 1.What are six ways to develop leadership skills? 2.Why do managers and leaders need effective human relations skills? 3.What is the difference between formal and informal influence? 7-2 Assessment on page 162 #1 -4

49 Introduction to Business © Thomson South-Western Chapter 7 Slide 49 LESSON 7-3 LESSON 7-3 Ethical Management Ms. Metcalfe Introduction To Business

50 Introduction to Business © Thomson South-Western Chapter 7 Slide 50 Focus on Real Life (p.163) DIRECTIONS: Read focus on real life and answer the following questions. 1.Name one company or person who has been in the news because of unethical behavior.__________________________________________ 2.Name one company you believe to be an ethical company__________________________________________

51 Introduction to Business © Thomson South-Western Chapter 7 Slide 51 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.

52 Introduction to Business © Thomson South-Western Chapter 7 Slide 52 IMPORTANCE OF ETHICAL BEHAVIOR When a individual or company develops that reputation of not being trustworthy or fair, others are reluctant to trust or work with them Once this reputation is lost, it will be difficult to recover it and build a reputation of honesty and integrity It is important for an organization to develop a clear view of what is acceptable business behavior and what is not.

53 Introduction to Business © Thomson South-Western Chapter 7 Slide 53 WHAT IS ETHICAL BEHAVIOR? Ethics – the principles of conduct governing an individual or group Ethical Business Practices – ensure that the highest standards of conduct are observed in a company’s relationships with everyone who is a part of the business or is affected by the business' activities Ethical behavior is not just the decisions and actions of a company’s executives and managers – it involves the actions of every employee

54 Introduction to Business © Thomson South-Western Chapter 7 Slide 54 THE TWO PARTS OF ETHICAL BEHAVIOR Ethical Behavior is made up of two parts: 1.The actions of the individuals and groups 2.The results of those actions When considering whether the behavior is ethical or not, both the actions taken and the results of those actions should be considered

55 Introduction to Business © Thomson South-Western Chapter 7 Slide 55 Ethical Behavior Meets Many Standards…. It is lawful. It is consistent with company values and policies. It does not harm some while benefiting others. If the actions and results become public, it will not embarrass the company.

56 Introduction to Business © Thomson South-Western Ethics Handout Complete the Ethics Activity handout to help you recognize the forces that can cause unethical behavior. Turn into the box when you are finished Chapter 7 Slide 56

57 Introduction to Business © Thomson South-Western Chapter 7 Slide 57 ETHICAL MANAGEMENT Success and failure of a business can also be determined by the actions and activities of the business Managers must provide oversight on employees to make sure…. 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. Company works to protect the environment and conserve natural resources.

58 Introduction to Business © Thomson South-Western Chapter 7 Slide 58 INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP Leaders must take actions to prevent unethical behavior When people are under time pressures or facing a major problem, some people act unethically This unethical behavior ends up harming the business and its relationships with customers and the community

59 Introduction to Business © Thomson South-Western Chapter 7 Slide 59 INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP: Preparing the organization Preparing the organization It is a managers responsibility to create an atmosphere in which all employees know they are expected to act ethically Easier for employees to make the wrong decisions when they do not view ethics as important Leaders must make sure: Employees must know they will be supported when they make the right decision and will be punished if unethical behavior occurs

60 Introduction to Business © Thomson South-Western Chapter 7 Slide 60 Preparing the Organization: Mission Statement A mission statement describes the reason a business exists and what it wants to accomplish To make ethical behavior a part of a companies mission, many businesses develop a statement of core values Core values are the important principals that will guide decisions and actions of a company

61 Introduction to Business © Thomson South-Western Chapter 7 Slide 61 Role of Managers in Increasing Ethical Behavior in Business As part of the planning process, managers should work with employees to develop core values that emphasize ethical behavior As part of the staffing function managers should emphasize the importance of ethical behavior when employees are hired and interviewed New employee training should include info about the companies commitment to ethics and values

62 Introduction to Business © Thomson South-Western Chapter 7 Slide 62 Role of Managers in Increasing Ethical Behavior in Business As part of the day-to-day operations of the business, managers and supervisors should often stress the importance of ethics Look for situations that might encourage employees to act unethically Work teams should be encouraged to develop ethical solutions to problems Ethical behavior should be a part of employee evaluations and promotions Managers should recognize and reward employees who display high ethical standards

63 Introduction to Business © Thomson South-Western Chapter 7 Slide 63 Modeling Ethical Behavior The most important action leaders can take to emphasize the importance of ethical behavior in an organization is to always act ethically Being an ethical role model inspires others to do the same If employees read the core values of a company but do not see managers living up to those values, it will be clear that ethics are not important and vice versa Ex. When managers treat employees in a respectful way and rejects decisions that are illegal or would damage the reputation of the company employees will learn ethical behavior is a basic value of the organization

64 Introduction to Business © Thomson South-Western Chapter 7 Slide Questions Directions: Answer the following questions on the same piece of paper as the 7.1 questions (saved as Chapter 7 Assessment). Write the question and the answer for both assignments. Remember to bold the answers. Save your document when you are finished 1.What are the two parts of ethical behavior 2.What are the core values of an organization 7-3 Assessment on page 167 #1-3

65 Introduction to Business © Thomson South-Western Chapter 7 Slide 65 Ethical Scenarios Ethics Scenario Activity Directions: Each team (3) will receive an actual scenario that has occurred where business students have been employed. First, your team will read the scenario out loud. Next, you will work together on the team worksheet to come to a decision on the most ethical outcome. Last, you will present your scenario and results to the class (Each team member must participate in the discussion).

66 Introduction to Business © Thomson South-Western Chapter 7 Slide 66 Ticket out the Door Madoff: Biggest Financial Scam in History Using the Internet, find an article about the Bernard Madoff scandal. Then answer the questions below about ethics on another sheet of paper. 1.What unethical act did Madoff commit? 2.How did Madoff’s unethical act negatively effect others? 3.What is a Ponzi Scheme? 4.Which of the ethical behavior standards did Madoff violate?

67 Introduction to Business © Thomson South-Western Chapter 7 Slide 67 Ticket out the Door Business Ethics Magazine Directions: Go to the Business Ethics Magazine webpage Search for an article you are interested in concerning business ethics. Read the article and write a two paragraph summary of the article to turn in as your ticket out the door. In the summary, include if you believe ethical business practices are increasing, decreasing or remaining the same in businesses today. Make sure your summary is thorough. No spelling or grammar errors! We will discuss this in class tomorrow.

68 Introduction to Business © Thomson South-Western Chapter 7 Slide 68 Ethics Activities Is It Ethical Activity Go to t/ch07.html t/ch07.html Click on xtra study tools Click on Lesson 3: Ethical Management Complete Sort It Out Activity Person with the highest score wins!!!

69 Introduction to Business © Thomson South-Western Chapter 7 Slide 69 Code of Ethics Group Assignment Directions: Since 1996, the Center for the Study of Ethics in the Professions has developed a collection of Codes of Ethics representing nearly 1,000 organizations, professions, and businesses. Use the website below to locate and review ethic codes from different companies (use companies you are interested in). Identify principals and values that are important to you. Then, in Microsoft Word or Publisher, design a code of ethics that you would use if you were the manager/CEO of your own business. This code of ethics must have at least 8-10 statements and be grammatically correct. Be Creative! Turn into the box when you are finished. Under programs select Codes of Ethics Select Index of Codes Hyperlink Select Business


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