Management and Leadership CHAPTER 7 4/16/2017 7 Management and Leadership 7-1 Management 7-2 Leadership 7-3 Ethical Management ITB

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. Managers make things happen Chapter 7

What do managers do? Planning – involves analyzing information, setting goals, and making decisions about what needs to be done. Organizing – means identifying and arranging the work and resources needed to achieve the goals that have been set Staffing – includes all of the activities involved in obtaining, preparing, and compensating the employees of a business. Chapter 7

Implementing – is 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. Duties for specific management functions are assigned to each manager. Often, due to the size of a business, several managers may have individual responsibilities within just one function. The management functions are usually divided among the owners of a partnership. Chapter 7

MANAGEMENT LEVELS Top management – Executives are top-level managers with responsibilities for the direction and success of the entire business. Held accountable for $$$. Job titles include: chief executive officer, president, chief operating officer and vice president Chapter 7

Mid-management – are specialists with responsibilities for specific parts of a company’s operations. Examples: marketing manager, customer service manager, human resources manager, etc. Supervisors – are the first level of management in a business. Responsible for the work of a group of employees. Plan the day-to-day work of employees. Supervisors spend most of their time implementing the plans of executives and mid-managers. Chapter 7

Management by others – employees who are not managers complete work that seems to be a part of one of the management functions. Employees plan and organize their work and may take part in hiring and training. Managers are responsible for the work of others and have authority over those employees. Without that authority and responsibility, the work of an employee is not considered part of management. Chapter 7

MANAGEMENT STYLES is the way a manager treats and involves employees. Chapter 7

Tactical Management Style Managers may be faced with a crises or under tight time pressure. They feel they don’t have time to let the group decide how to complete the task. Manager is more directive and controlling. Makes major decisions and stays in close contact with employees to make sure work is done well. Chapter 7

Strategic management A management style best to use when the work is routine with a few new changes. Time to bring team together to help plan work assignment, team members will prefer being involved in the decision-making process. Less directive Involve employees in decision-making Chapter 7

Mixed management Combined use of tactical and strategic management Chapter 7

WHAT IS A LEADER? Leadership is the ability to motivate individuals and groups to accomplish important goals. Chapter 7

Characteristics of Effective Leaders Understanding – respecting the feelings and needs of the people they work with. Initiative – having the ambition and motivation to get work done without being asked. Dependability – following through on commitments. Judgment – making decisions carefully. Objectivity – looking at all sides of an issue before making a decision. Confidence – being willing to make decisions and take responsibility for the results. Chapter 7

Stability – not being too emotional or unpredictable. Cooperation – working well with others, recognizing others’ strength, and helping to develop effective group relationships. Honesty – being ethical in decision-making and treatment of others. Courage – willing to take reasonable risks and make unpopular decisions. Communication – able to listen, speak, and write effectively Intelligence – having the knowledge and understanding needed to perform well. Chapter 7

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 Chapter 7

IMPORTANCE OF HUMAN RELATIONS Human relations skills Self understanding Understanding others – the leader will not treat everyone alike, but will attempt to involve each person in the way that is most beneficial to the business and that employee. Chapter 7

Developing job satisfaction Communication Formal/informal - Internal or external Vertical or horizontal – vertical is management to employee, horizontal – employee to employee or manager to manager. Oral or written Team building Developing job satisfaction Chapter 7

INFLUENCING PEOPLE Influence enables a person to affect actions of others. Kinds of influence Position influence – employee responds to leaders request Reward influence - $ or job benefits, praise Expert influence – leader has expertise in area, look up to this leader Identity influence – personal trust and respect members have for the leader. If the leader is well liked and is thought to have the best interests of the group in mind, members are likely to support the leader. Chapter 7

Formal and informal influence Informal influence – usually one or two people emerge as leaders to help get the group focused and organized. The leadership role is not part of a formal structure. Formal influence – there are bylaws that call for the election of officers. The personal elected has formal influence because the leadership position is part of the organization’s structure. Chapter 7

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. Chapter 7

WHAT IS ETHICAL BEHAVIOR WHAT IS ETHICAL BEHAVIOR? Ethical behavior is not just the decisions and actions of a company’s executives and managers. It involves the actions of every employee. It is lawful. It is consistent with company values and policies. It does not harm some while benefiting others. If the actions and results become public, it will not embarrass the company. Chapter 7

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. Company works to protect the environment and conserve natural resources. Core values – are the important principles that will guide decisions and actions in the company. Chapter 7

INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP Preparing the organization Modeling ethical behavior – The most important action leaders can take to emphasize the importance of ethical behavior in an organization is to always act ethically. Chapter 7