1. Management and Leadership
C H A P T E R 7
7-1 Becoming an Entrepreneur
7-2 Small Business Basics
7-3 Starting a Small Business

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

3. Role and Work of Managers
Who is a Manager?
Management- the process of accomplishing the goals of an organization through the effective use of people and other resources.
What do Managers Do?
Planning – analyzing information, setting goals, and making decisions about what needs to be done.
Organizing – Identifying and arranging the work and resources needed to achieve the goals that have been set

4. Role and Work of Managers
What do Managers Do?
Staffing – includes all the activities involved in obtaining, preparing, and compensating the people who work for a business
Implementing – the effort to direct and 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.

5. Checkpoint #1 What are the five management functions? planning
organizing
staffing
implementing
controlling

6. Management Levels Top Management Middle Management
Executives are top-level managers with responsibilities for the direction and success if the entire business.
Set the long-term direction and plans
Spend most of their time on planning and controlling activities
Middle Management
Middle mangers are specialists with responsibilities for specific parts of a company’s operation
Work with a companies business plan once it is approved

7. Management Levels Supervisors Management by Others
The first level of management in a business
Responsible for the day-to-day work of a small group of employees
Management by Others
Employees plan and organize their work
Hiring and training of new employees

8. Checkpoint #2
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.

9. Management Styles
Management Style – the way a manager works with and involves employees
Two very different styles often used by managers are tactical management and strategic management

10. Management Styles Tactical Management Strategic Management
A style in which a manager is more directive and controlling
Manager makes the major decisions and stay in close contact with employees while they work to make sure the work is done well
Strategic Management
A style in which the mangers are more collaborative and involve employees in decision making.

12. Checkpoint #3
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.

13. 7-2 Leadership
Goals
Describe the need for leadership skills and the characteristics of an effective leader
Identify the human relation skills needed by manager and leaders
Recognize 4 types of leadership influence

14. What is Leadership
The ability to motivate individuals and groups to accomplish important goals
Need for Leadership
Expected to find ways to meet employee needs as well as business needs.
Mangers must be effective leaders

15. Characteristics of an Effective Leader
Understanding
Initiative
Dependability
Judgment
Objectivity
Confidence
Stability
Cooperation
Honesty
Courage
Communication
Intelligence

16. Preparing to be a Leader
Study Leadership
Books/Courses on the subject of leadership can help you understand what it takes to be a leader
Participate in Organization Activities
Clubs, teams, and organization need leaders and offer a variety of opportunities
Practice Leadership at Work
Develop leadership skills as you help customers, complete work assignments, take initiative to solve problems

17. Preparing to be a Leader
Observe Leaders
Everyday you can observe people in leadership positions in your school or community.
Work with a mentor
Older brother or sister, trusted adult, teacher or coach can help you learn leadership skills and offer direction/progress
Do a self-analysis and ask for feedback
Find opportunities to demonstrate leadership characteristics

18. Checkpoint #4 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.

19. Importance of Human Relations
The way people get along with each other
Self Understanding
Leaders must understand their own strengths and weaknesses
Understanding Others
Leaders recognize that people they work with often are more alike than different
Effective leaders get to know each person’s skills and abilities as well as strengths and weaknesses

20. Importance of Human Relations
Communication
Formal and Informal
Internal and External
Vertical and Horizontal
Oral or Written
Team Building
The combined skills of the people in an effective team are greater than that of individuals working alone
Developing Job Satisfaction

21. Checkpoint #5
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.

22. Influencing People Kinds of Influence
Position Influence – the ability to get others to accomplish tasks because of the position the leader holds.
Reward Influence – results from the leader’s ability to give or withhold rewards.
Expert Influence – exists when group members recognize and appreciate a leader’s expertise in a specific area.
Identity Influence – stems from the personal trust and respect members have for the leader.

23. Formal and Informal Influence
Mangers have formal influence, others have informal influence
Informal – power resulting from the personal characteristics of a leader rather than the formal structure of an organization.
Formal – power based on a leader’s position with the formal structure of an organization.

24. Checkpoint #6
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.

25. 7-3 Ethical Management Goals Justify the need for ethical management
Identify the role of leaders in increasing ethical behavior

26. 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

27. What is Ethical Behavior
Ethical Business Practices – ensure that appropriate standards of conduct are maintained by everyone who is a part of the business and with anyone affected by the business.
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.

28. 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.

29. Checkpoint #7 What are the two parts of ethical behavior?
The actions of individuals and groups
The results of those actions

30. Increasing Ethical Behavior Through Leadership
Preparing the Organization
Core Values – the important principles that will guide decisions and actions in the company.
Companies provide descriptions and examples to help employees see how the core values can be incorporated throughout the company.
Modeling Ethical Behavior

31. Checkpoint #8 What are the core values of an organization?
An organization’s core values are the principles that guide decisions and actions in the company.