1. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Business Principles and Management Guided Notes Mr. Kretschmer

2. CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING THE MANAGER AS LEADER nDefine the concept of leadership and important characteristics of leaders. nIdentify five important human relations skills needed by managers. nDiscuss two viewpoints of managers about employees' attitudes toward work. nCompare three different leadership styles and determine when each is most effective. nDescribe the importance of work rules in a business and the procedures managers should follow in enforcing them. 1212

3. © SOUTH-WESTERN EDUCATIONAL PUBLISHING THE IMPORTANCE OF LEADERSHIP nOne quality a manager should possess=Effective Leader nManager that earns the respect and cooperation of employees=Leader nReasons why groups do not work well together nDisruptive, Un-Cooperative, Don’t Listen

4. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Leadership Characteristics Five leadership characteristics to be effective: nMust satisfy the needs of each employee nMust help workers get work done effectively and correctly nMust understand the work nFlexible to changes nWork well with people The ability to control behavior = Power

5. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Types of Power nPosition Power = Comes from holding a position in an organization. Manager has power to give directions and expect the work to be done nReward Power = Manager has the ability to control rewards and punishments. nPay increases, preferred work schedule, penalize people for work, inappropriate performance nExpert Power = Power given to people because of superior knowledge on the subject matter (T.V. Show – House) nIdentity Power = Power given to someone because people want to be associated with them.

6. © SOUTH-WESTERN EDUCATIONAL PUBLISHING LEADERSHIP TRAITS nIntelligence nJudgment nObjectivity nInitiative nDependability nCooperation nHonesty nCourage nConfidence nStability nUnderstanding

7. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Leadership Are people “born” leaders where leadership comes naturally, or do people have to learn to become great leaders? What are the advantages and disadvantages of work teams?

8. © SOUTH-WESTERN EDUCATIONAL PUBLISHING HUMAN RELATIONS nSelf-understanding nUnderstanding others nCommunication nTeam building = Camp WatonkaCamp Watonka nDeveloping job satisfaction – How?

9. © SOUTH-WESTERN EDUCATIONAL PUBLISHING MANAGEMENT VIEWPOINTS ABOUT EMPLOYEES nEmployees need to be closely managed nEmployees perform well with limited management nA flexible viewpoint

10. © SOUTH-WESTERN EDUCATIONAL PUBLISHING LEADERSHIP STYLE nAutocratic leadership = gives clear, direct, and precise orders with detailed instructions as to what, how, when the work needs to be done nDemocratic leadership = Encourages workers to share in making decisions about their work and work-related problems. Also encourages them to communicate openly instead of announcing decisions. nOpen leadership = Management gives little or no direction to employees. Any employee may become the leader. Employees do not need help from others. nSituational Leadership = (The most effective leader) Matches the employees with the specific job.

11. © SOUTH-WESTERN EDUCATIONAL PUBLISHING HANDLING EMPLOYEE PROBLEMS nPersonal problems – Is it ok if an employee brings an issue from home to work? What would you do as a manager? nWork rules – Employees who are tardy or not following the rules. Temporary file vs. Permanent file nEnforcing work rules

12. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Employees Prefer Managers Who: nEncourages employee participation/suggestions nKeeps employees informed/shares employees ideas with upper management nWorks to build and maintain morale nIs available to employees and easy to talk to nSupports employee training and development nCommunicates effectively with employees nIs considerate of the feelings of others. nMakes changes when needed rather than relying on past practices nSupports employees when they are doing their best and a mistake is made. nShows appreciation and provides recognition for good work.

13. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Confidentiality How important is confidentiality when handling employee problems? Explain

14. © SOUTH-WESTERN EDUCATIONAL PUBLISHING Any Questions? Do you have any questions for Mr. Kretschmer?