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

Describe the role of a manager Managers are responsible for management of a business to accomplish goals by effectively using people and other resources. 5

The 5 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 Levels of management – 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 7

Management continued What is management style? The way a manager directs employees to accomplish the goals of the business. – Tactical – Strategic – Mixed 8

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 9

Leadership 10

Leadership The ability to motivate others to effectively accomplish goals of the business. What characteristics do a good leader possess? 11

Leadership continued How many did you name? Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability 12

Leadership continued Leadership styles Autocratic 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 13

Leadership continued – Democratic one 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 – Open or Laissez-fare one 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 14

Human Resources Manager 15

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. 16

3 Functions of Human Resources Management The functions of human resources management: Planning and staffing Managing compensation and benefits Managing performance of employees 17

Human Resources Management continued Planning and job staffing – Classifying employees 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 18

Human Resources Management continued Planning and job staffing – Determining job requirements: The use of job analysis to determine all the duties for a particular job Recruiting and hiring employees The application process – Reviewing applications/resumes – Interviewing applicants – Checking references of applicants – Making a job offer to applicants New employee orientation – Paperwork – Training – Mentor 19

Human Resources Management continued Managing compensations and benefits – Compensation method 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 perfomance based pay – Employee benefits Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. 20

Managing performance of employees – Employee evaluation Objective evaluations of emplyees’ quality of work – 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 21 Human Resources Management continued