Understand the nature of business 2.02 Understand the leadership and management.

Management Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

5 Functions of Management Planning Organizing Staffing Implementing Controlling

Planning The planning function involves… Analyzing information Setting goals Making decisions to accomplish the goals

Organizing The organizing function involves… Identifying the work & resources needed to achieve the goals of the business that have been set in the planning stage.

Staffing The staffing function includes the activities involved in… Obtaining the employees Training the employees Compensating the employees

Implementing The implementing function involves directing and leading people in order to accomplish the goals set out in the planning stage.

Controlling The controlling function is used to determine whether a business is accomplishing its goals that were set in the planning stage.

Levels of Management Top Management Mid-management Supervisors Management by others

Top Management Executives are top-level managers Responsible for the direction and the success of the business (controlling) Set long-term goals (planning) Held accountable for profitability & success Examples: CEO (Chief Executive Officer President

Mid-Management Mid-managers are specialists Responsible for specific parts of the business Devoted to the organizing, staffing, and implementing functions Examples Marketing Manager Information Technology Manager Customer Service Manager

Supervisors First level of management Responsible for the routine work of a group of employees Evaluate the work of the employees Implement the plans set forth by executives and mid-managers

Management by others Other employees who are not managers, may serve as leaders for a group of employees

Management Styles The management style is the way a manager treats and involves employees Tactical Strategic Mixed

Tactical Directive and controlling Manager makes the major decisions Stays in close contact with employees while they work Typically, use for inexperienced employees or during a crisis

Strategic Less directive with employees Involves team members with decision making Typically, used with trusted and/or experienced employees Limited direct supervision

Mixed Combination of both tactical and strategic Effective managers can use both styles in order to accommodate different types of employees

Leadership Styles Leadership is the ability to motivate individuals and groups to accomplish important goals. What type of traits should a leader possess?

Leadership Traits Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability

Leadership Styles Autocratic Leader Democratic Leader Open or Laissez-faire leader

Autocratic Leader 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

Democratic Leader 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/Laissez-faire Leader 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

Human Resources Managers Human resources managers use the management process of managing employees to achieve the objectives of a business.

Human Resources Management Activities Planning, staffing, recruiting, & hiring Managing compensation and benefits Managing performance of employees

Planning, Staffing, Recruiting, Hiring 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

Planning, Staffing, Recruiting, Hiring Planning & 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

Planning, Staffing, Recruiting, Hiring New employee orientation Paperwork Training Mentor

Managing Compensation & 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 performance based pay Employee benefits Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc.

Managing performance of employees Employee evaluation Objective evaluations of employees’ 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