Essential Standard 2.00 Understand business organization and management. 1

Objective 2.02 Understand leadership and management. 2

Topics Management Leadership Human Resource Management 3

Management 4

What is the role of a manager? –To analyze information, set goals based on information, and make decisions to accomplish the goals Mangers operate the five functions of management: –Planning –Organizing –Staffing –Implementing –Controlling 5

Describe the five functions of management: Planning - To analyze information, set goals based on information, and make decisions to accomplish the goals Organizing - To arrange resources in order to accomplish the goals of the business Staffing - To obtain, train, and compensate employees to accomplish the goals of the business Implementing - To direct and lead people to accomplish the goals of the business Controlling - To determine whether a business is accomplishing its goals that were set in the planning stage. 6

Management continued What are the different levels of management? –Top –Mid-management –Supervisors –Management by others 7

Describe each management level: Top - Executives who are responsible for the overall direction of the business Mid-Management - Specialists responsible for a specific part of the business Supervisors - First level of management in the business, Responsible for the routine work of employees Management by others - Other employees who are not managers, may serve as leaders for a group of employees 8

Management Styles What is management style? –The way a manager directs employees to accomplish the goals of the business. Different types of management styles include: –Tactical –Strategic –Mixed 9

Describe the different types of management styles: Tactical - Directed and controlling. Typically, use for inexperienced employees or during a crisis Strategic - Less directed with employees helping with decision making. Typically, used with trusted and/or experienced employees Mixed - Combination of both tactical and strategic 10

Leadership 11

Leadership What is leadership? –The ability to motivate others to effectively accomplish goals of the business. What characteristics does a good leader possess? 12

Leadership continued How many did you name? Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability 13

Leadership continued What are the different styles of leadership? –Autocratic leader –Democratic leader –Open or Laissez-faire leader? 14

What is an autocratic leader? 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 15

What is a democratic leader? Someone 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 16

What is an open or Laissez-fare leader? Someone 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 17

Human Resources Manager 18

Human Resources Management What is the role of human resources managers? –Human resources managers uses the management process of managing employees who collectively contribute to the achievement of the objectives of the business. 19

What are the functions of human resources management? What is included in each function of human resource management? –The functions of human resources management: Planning and staffing – includes planning and job analysis, recruiting and hiring Managing compensation and benefits – includes compensation methods and employee benefits Managing performance of employees – includes employee evaluation and promotions, transfers, and termination. 20

Human Resources Management continued What are the two main parts of planning and job analysis? Classification of employees and determining job requirements. Employees are classified as: –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 21

How does a human resource manager determine job requirements? –The use of job analysis to determine all the duties for a particular job What are the two main parts of recruiting and hiring employees? –The application process and new employee orientation. 22

What is included in the application process? –Reviewing applications/resumes –Interviewing applicants –Checking references of applicants –Making a job offer to applicants What is included in new employee orientation? Paperwork * Mentor Training * Possible probationary period Human Resources Management continued 23

What are the two main parts of managing compensations and benefits? –Determining compensation type and benefits Different types of compensation include: –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 Human Resources Management 24

Employee Benefits What are some employee benefits that may be available? –Employee benefits are additional items given to an employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. 25

What are the two main parts of managing performance of employees? –Employee evaluation and employee movement within the company (promotion, transfer, or termination) What is included in employee evaluation? –Objective evaluations of employees’ quality of work. Managers and employees are trained on evaluation procedures. Identifies strengths and weaknesses. Post-conference tells employee the results. Human Resources Management continued 26

How may an employee transition throughout the company? 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 27