Management & Leadership 4/22/2017

Role & Work of Managers Responsibility for the success or failure of a business. Managers receive recognition & other rewards when a business meets its goals They are also held accountable when goals are not met People who want to experience the risks & rewards of business often become managers. 4/22/2017

Management Process of accomplishing the goals of an organization through the effective use of people & other resources Managers make things happen in a business What do Managers Do? Every manager has specific job duties Must complete similar activities no matter what the size or type of business. Work can be organized within five functions listed on next page 4/22/2017

Five functions of a manager Planning – analyzing information, setting goals, & making decisions Organizing – identifying & arranging the work & resources needed to achieve the goals that have been set Staffing – obtaining, preparing, & compensating the employees of a business Implementing – effort to direct & lead people to accomplish the planned work of the organization Controlling – determines to what extent the business is accomplishing the goals it set out to reach in the planning stage 4/22/2017

Effective managers motivate employees to do their best work Depending on the size of the business, the managers responsibilities will vary As a business grows, other employees will be moved into management positions Managers must make decisions, solve problems, respond to competition, & develop new strategies The efforts of each manager impact the work of others & the results achieved by the business. Effective managers motivate employees to do their best work 4/22/2017

Management levels Unless a business is very small, there will be several managers with responsibilities for leading the business Most organizations have three levels of managers: Top management (executives) Mid-management Supervisors 4/22/2017

Top Management Executives- top-level managers with responsibilities for the direction & success of the entire business. Set long-term direction & plans Held accountable for the profitability & success of the business. Spend most of their time on planning & controlling activities. Study the economy & competition 4/22/2017

Mid-Managers Specialists with responsibilities for specific parts of a company’s operations Examples: marketing manager, IT manager, customer service manager, operations manager, & HR manager Take the company’s business plan & prepare specific plans for their part of the business Work must be coordinated with other managers 4/22/2017

Supervisors First level of management Responsible for the work of a group of employees Play the day-to-day work of the employees they supervise Make sure that needed resources are available & used wisely Evaluate the work of their employees & solve problems that occur in their area 4/22/2017

Management by others Employees that are not managers may complete work that seems to be a managers job Interviews, training, evaluating quality of work, lead a project 4/22/2017

Management styles The way a manager treats & involves employees Sometimes a style is chosen based on the characteristics of the employees being managed Other times, it is based on the work assignment Experienced & effective managers can change their management style based on the urgency of the work to be done & the confidence the manager has in the employees Styles Tactical management Strategic management Mixed management 4/22/2017

Tactical management Manager is more directive & controlling They will make major decisions & stay in close contact with employees while they work to ensure it’s done well 4/22/2017

Strategic management Managers are less directive & involve employees in decision making A manager using a strategic style will trust employees to work without direct supervision & will seek their advice on important decisions 4/22/2017

Mixed management Combined use of tactical & strategic management Effective managers are prepared to use both management styles 4/22/2017

Leadership Ability to motivate individuals & groups to accomplish important goals When a manager can get individual employees & groups to work well together to accomplish objectives, they are an effective leader When employees feel that they are not involved in decisions & are not valued by the business, they will not be as committed to the work People are the most important resource of a business. Cost of hiring training, & paying employees is one of a business’s highest expenses 4/22/2017

If employees are not satisfied, they might not perform the work correctly, may not treat customers well, or may quit These problems cost the company money & may require hiring & training new employees Managers must involve employees & find ways to meet employee needs as well as business needs.

Characteristics of Effective Leaders Understanding Initiative Dependability Judgment Objectivity Confidence Stability Cooperation Honesty Courage Communication Intelligence

Preparing to be a leader You shouldn’t wait until you become a manager to begin developing leadership skills Study leadership Participate in organizations & activities Practice leadership at work Observe leaders Work with a mentor Do a self-analysis & ask for feedback

Importance of human relations The way people get along with each other Managers & leaders must be able to work well with other people Human relations largely determines whether a manager is successful or not Human relations skills Self-understanding Understanding others Communication Team building Developing job satisfaction 4/22/2017

Communication Formal or informal Internal or external Formal – established & approved by the organization Informal – common but unofficial ways that information moves in an organization Internal or external Internal – between employees & managers External – w/customers, suppliers, etc. Vertical or horizontal Vertical – w/people up or down in an organization Horizontal – move across the organization at the same level Oral or written

Influencing people Enables a person to affect the actions of others Kinds of influence Position influence - Because of leadership position, managers are able to get others to complete tasks Reward influence – give or withhold rewards (money/job benefits) Expert influence – workers look to a manager for guidance based on their experience Identify influence – personal trust & respect members have for the leader 4/22/2017

Formal & informal influence Informal- leadership role is not part of a formal structure. People emerge as a leader when placed into groups. Formal- leadership position is part of the organization’s structure. People get elected as an officer. 4/22/2017

Ethical management Importance of ethical behavior Individuals & businesses develop reputations based on their actions & decisions they make When an individual or company develops that reputation, others will be reluctant to trust them or work with them. Ethics – principles of conduct governing an individual or group Ethical business practices – ensure that the highest standards of conduct are observed 4/22/2017

Ethical behavior meets several standards: It is lawful It is consistent with company values & policies It does not harm some while benefiting others If the actions & results become public, it will not embarrass the company

Increasing ethical behavior through leadership Leaders must take actions to prevent unethical behavior It is the managers duty to create an atmosphere in which all employees know they are expected to act ethically The employees must know they will be supported when they make the right decision Leaders should make clear that unethical behavior is unacceptable & will be punished it is occurs. 4/22/2017