7 Management and Leadership 7-1 Management Functions and Styles C H A P T E R 7 Management and Leadership 7-1 Management Functions and Styles 7-2 Leadership 7-3 Ethical Management

7-1 Management Functions and Styles Goal 1 Define the five functions of management. Goal 2 Describe the levels of management in businesses and organizations. Goal 3 Discuss how and when to use the two management styles.

KEY TERMS management planning organizing staffing implementing controlling management style

ROLE AND WORK OF MANAGERS Who is a manager? What do managers do? Planning Organizing Staffing Implementing Controlling

Checkpoint  What are the five management functions? planning organizing staffing implementing controlling

MANAGEMENT LEVELS Top management Middle management Supervisors Management by others

Checkpoint  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 Tactical management Strategic management Mixed management

CHOOSING A MANAGEMENT STYLE

Checkpoint  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 Goal 1 Describe the need for leadership skills and the characteristics of an effective leader. Goal 2 Identify the human relations skills needed by managers and leaders. Goal 3 Recognize four types of leadership influence.

KEY TERMS leadership human relations influence informal influence

WHAT IS LEADERSHIP? Ability to motivate individuals and groups to accomplish important goals Need for leadership Leadership characteristics

CHARACTERISTICS OF EFFECTIVE LEADERS Understanding Initiative Dependability Judgment Objectivity Confidence Stability Cooperation Honesty Courage Communication Intelligence

PREPARING TO BE A LEADER Study leadership Participate in organizations and activities Practice leadership at work Observe leaders Work with a mentor Do a self-analysis and ask for feedback

Checkpoint  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 Human relations skills Self-understanding Understanding others Communication Team building Developing job satisfaction

Checkpoint  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 Formal and informal influence Position influence Reward influence Expert influence Identity influence Formal and informal influence

Checkpoint  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 Goal 1 Justify the need for ethical management. Goal 2 Identify the role of leaders in increasing ethical behavior.

KEY TERMS ethical business practices core values

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? 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  What are the two parts of ethical behavior? The actions of individuals and groups The results of those actions

INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP Preparing the organization Modeling ethical behavior

Checkpoint  What are the core values of an organization? An organization’s core values are the principles that guide decisions and actions in the company.