© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE Management Functions and Styles Leadership Ethical Management 7 C H A P T E R Management and Leadership

© 2012 Cengage Learning. All Rights Reserved. SLIDE Management Functions and Styles Goal 1Define the five functions of management. Goal 2Describe the levels of management in businesses and organizations. Goal 3Discuss how and when to use the two management styles.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 3 KEY TERMS ●management ●planning ●organizing ●staffing ●implementing ●controlling ●management style

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 4 ROLE AND WORK OF MANAGERS ●Is an entrepreneur considered a manager? ●Who else is a manager? ●What do managers do? ●Planning ●Organizing ●Staffing ●Implementing ●Controlling

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 5 Checkpoint ●What are the five management functions? ●planning ●organizing ●staffing ●implementing ●controlling

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 6 MANAGEMENT LEVELS ●Top management (executives) ●Provide long-term direction ●Middle management (specialists) ●Responsible for specific operations ●Organizing, staffing, and implementing ●Supervisors (first/lowest level) ●Daily monitoring and supervision ●Management by others – sometimes do same tasks, but managers are ultimately responsible

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 7 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 8 MANAGEMENT STYLES ●Tactical management ●More hands-on and supervisory ●Some call it micro-managing ●Strategic management ●Employees more involved in decision making ●Mixed management ●Employs both types

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 9 CHOOSING A MANAGEMENT STYLE

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 10 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 Homework ●7-1 Assessment ●1-4 ●#6 SLIDE 11

© 2012 Cengage Learning. All Rights Reserved. SLIDE Leadership Goal 1Describe the need for leadership skills and the characteristics of an effective leader. Goal 2Identify the human relations skills needed by managers and leaders. Goal 3Recognize four types of leadership influence.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 13 KEY TERMS ●leadership ●human relations ●influence ●informal influence ●formal influence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 14 WHAT IS LEADERSHIP? ●Ability to motivate individuals and groups to accomplish important goals ●Need for leadership ●Leadership characteristics

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 15 CHARACTERISTICS OF EFFECTIVE LEADERS ●Understanding ●Initiative ●Dependability ●Judgment ●Objectivity ●Confidence ●Stability ●Cooperation ●Honesty ●Courage ●Communication ●Intelligence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 16 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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 17 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 18 IMPORTANCE OF HUMAN RELATIONS ●Human relations skills ●Self-understanding ●Understanding others ●Communication ●Team building ●Developing job satisfaction

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 19 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 20 INFLUENCING PEOPLE ●Kinds of influence ●Position influence ●Reward influence ●Expert influence ●Identity influence ●Formal and informal influence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 21 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 HOMEWORK ●7-2 Assessment (1-5) ●Read 7-3 SLIDE 22

© 2012 Cengage Learning. All Rights Reserved. SLIDE Ethical Management Goal 1Justify the need for ethical management. Goal 2Identify the role of leaders in increasing ethical behavior.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 24 KEY TERMS ●ethical business practices ●core values

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 25 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 26 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 27 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 28 Checkpoint ●What four standards should ethical behavior meet? ●It is lawful ●It is consistent with company values and policies ●It is not intended to harm some so others can benefit ●If the actions and results become public, it will not embarrass the company

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 29 INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP ●Preparing the organization ●Modeling ethical behavior

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 30 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 HOMEWORK ●7-3 Assessment (1-4) SLIDE 31