Entrepreneurs, Managers, and Employees Chapter Three Entrepreneurs, Managers, and Employees © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business
Learning Objectives Describe the nature of entrepreneurship and the kinds of entrepreneurial opportunities that can increase the profitability of business commerce, occupations, and organizations. Identify how the process of creative destruction leads to the emergence of new companies, the decline of established companies and raises a society’s standard of living. Appreciate the problems involved in aligning the interests of a manager with those of a company’s owners.
Learning Objectives Distinguish the three different levels of managers and understand the different roles they perform to increase efficiency, effectiveness, and profitability. Differentiate between two main approaches employees can take to their jobs and the way their performance affects their long-term career prospects.
The Role of the Entrepreneur Forms of Entrepreneurial Opportunities Why Be an Entrepreneur? Entrepreneurship as “Creative Destruction”
Forms of Entrepreneurial Opportunities Commercial First mover advantage Occupational Organizational Intrapreneurship
Risks of Entrepreneurship Entrepreneurs often overestimate their ability to create new products Entrepreneurs underestimate how difficult it is to reach prospective customers Entrepreneurs may not realize how much ready cash is needed to see a small business through its critical “birth” period
The Role of Management The Agency Problem: The Separation of Ownership from Control Levels of Managers Types of Managers Profitability: Efficiency and Effectiveness Managerial Functions
The Agency Problem Delegate Agency problem Managers Stock options
Levels of Managers Board of directors Chief executive officer Top managers Middle managers First-line managers
Profitability: Efficiency and Effectiveness
Managerial Functions Planning Organizing Leading Controlling Organizational culture Leading Cross-functional team Controlling Benchmarking
The Role of the Employee What is Appropriate Employee Behavior? Role
Career Management Stage 1: Preparing for Work Stage 2: Entering the Workforce Stage 3: Early Career Stage 4: Midcareer Stage 5: Late Career
Career Management Mentor