1. 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

2. 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.

3. KEY TERMS management planning organizing staffing implementing
controlling
management style

4. ROLE AND WORK OF MANAGERS
Who is a manager?
Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

5. What do managers do? What are the five management functions? planning
organizing
staffing
implementing
controlling

6. Planning
Planning involves analyzing information, setting goals, and making decisions about what needs to be done.

7. Organizing
Organizing means identifying and arranging the work and resources needed to achieve the goals that have been set.

8. Staffing
Staffing includes all of the activities involved in obtaining, preparing, and compensating the people who work for a business.

9. Implementing
Implementing is the effort to direct and lead people to accomplish the planned work of the organization.

10. Controlling
Controlling determines to what extent the business is accomplishing the goals it set out to reach in the planning stage

11. MANAGEMENT LEVELS Top management Middle management Supervisors
Management by others

12. Top management (CEO, COO, Pres. VP)
Executives are top-level managers with responsibilities for the direction and success of the entire business.
They set long-term direction and plans.
They are held accountable for the profitability and success of the business.
Executives spend most of their time on planning and controlling activities.
Executives are responsible for the work of all other managers and employees.

13. Middle management
Middle managers are specialists with responsibilities for specific parts of a company’s operations.
Marketing, information technology, customer service manager, operations manager, and human resources manager
They must coordinate their work with other managers.
Much of their time is devoted to organizing, staffing, and implementing functions.

14. Supervisors
Supervisors are the first level of management in a business. They are responsible for the day-to-day work of a small group of employees.
They may have non management duties in addition to their management work.
They spend most of their time on the implementing management function

15. Management by Others
Employees who are not managers may complete work that seems to be a part of one of the management functions.
Employees plan and organize their work.
They might take part in hiring and training new employees
Without authority and responsibility, the work of an employee is not considered management.

16. Work Teams
Many companies organize employees into work teams. Those teams have both authority and responsibility for much of their work.
Some experienced employees are asked to serve as leaders in their work group.
Both situations are effective ways for employees to develop management skills.

17. 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.

18. MANAGEMENT STYLES
The way a manager treats and involves employees is called “Management Style”
Tactical management
Strategic management
Mixed management

19. Tactical management
Tactical management is a style in which the manager is more directive and controlling.
The manager will make the major decisions and stay in close contact with employees while they work

20. Strategic management
Strategic management is a style in which managers are more collaborative and involve employees in decision making
A manager using a strategic style expects employees to work without direct supervision and will seek their input on important decisions.

21. Mixed management
Many times the situation may dictate which type of management will work better
The combined use of tactical and strategic management is known as mixed management.

22. CHOOSING A MANAGEMENT STYLE

23. 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.

24. Your Insight
Think of a coach, teacher or other leader with whom you particularly liked to work.
Identify the approaach the person used in working with people and describe why that approach seemed to be effective

25. Your Style Decision
List several situations in an organization that would require management action. (such as preparing a budget, handeling a conflict among co-workers or solving a production problem)
Which management style would be most effective for each situation and why?
Justify your position

26. 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.

27. KEY TERMS leadership human relations influence informal influence

28. WHAT IS LEADERSHIP?
Effective leadership is the ability to motivate diverse individuals and groups to accomplish important goals. This requires different techniques for each situation
Need for leadership
Today, managers are expected to do more than just give orders. They are expected to find ways to meet employee needs as well as business needs.

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

31. 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

32. 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.

33. IMPORTANCE OF HUMAN RELATIONS
Human relations skills
Self-understanding
Understanding others
Communication
Team building
Developing job satisfaction

34. Self-understanding
To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses

35. Understanding others
Leaders recognize that people they work with often are more alike than different. Recognizing those similarities will help develop a stronger team.
Differences can also improve a work team. If everyone thought and acted the same, there would seldom be new ideas

36. Communication Formal or informal Internal or external
Formal uses official established processes
Informal uses unofficial processes
Internal or external
Internal is within the organization
External is to someone outside the organization

37. Communication cont. Vertical or horizontal Oral or written
Vertical to a different personnel layer
Horizontal to the same level
Oral or written
Oral is spoken
Written include notes, letters, reports, and text or graphics sent via technology.

38. Team Building
Businesses are oranized into groups and teams. The combined skills of the people in an effective team are greater than that of individual workers alone.

39. Developing Job Satisfaction
Most people are more satisfied than dissatisfied with their work because they have jobs that use their skills and interests
Employees appreciate it when a manager offers recognition for a job well done.

40. Checkpoint 
Why do managers and leaders need effective human relations skills?
Most managers spend a majority of their time interacting with people. They work with employees, customers, people from other businesses, and other managers in their own organizations.

41. INFLUENCING PEOPLE Kinds of influence
Position influence – is 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

42. INFLUENCING PEOPLE cont.
It is not easy to continue to get people to do things just because you are their manager. They will probably do just enough to get by, get a reward, or avoid punishment. Most leaders try to develop Expert and Identity influence to gain the respect and support of the group.

43. Formal and Informal Influence
Informal Influence – is power resulting from the persona; characteristics of a leader rather than the formal structure of an organization.
Formal Influence – is power based on a leader’s position within the formal structure of an organization.

44. 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.

45. 7-3 Ethical Management Goal 1 Justify the need for ethical management.
Goal 2 Identify the role of leaders in increasing ethical behavior.

46. KEY TERMS ethical business practices core values
Actions, activities and results of the business are legal, honest, and fair (the golden rule).
core values
principles that guide decisions and actions in the company.

47. 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.

48. 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.

49. ETHICAL Business Practices
Actions, activities and results of the business are legal, honest, and fair (the golden rule).
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.

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

51. INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP
Preparing the organization
It is the responsibility of managers to establish an atmosphere in which all employees know they are expected to act ethically and believe they will be supported when they make the right decision.
Modeling ethical behavior
Managers demonstrate their commitment to ethical behavior with their actions.

52. Mission Statement
Mission statements - describe the reason businesses exists and what they want to accomplish.
Mission statements alone do not set an ethical tone for a business. A core value statement and a business ethics statement are needed to set the ethical tone for a company

53. CORE VALUES – Rite Aid

54. 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.
Mission statements - describe the reason businesses exists and what they want to accomplish.