Chapter 1.1 Introduction to Management

Management Talk Bill Gates Complacent: pleased, especially with oneself or one's merits, advantages, situation, etc., often without awareness of some potential danger or defect; self- satisfied. Companies fail with this kind of attitude The most successful companies must constantly reinvent themselves – CHANGE! gates-leadership.html gates-leadership.html

The Importance of Business Management The Business World Today – Technology and society are changing more rapidly than ever before; ex. Bank of America – Concern for the environment has forced companies to think about how their actions affect the quality of the air, land, and water. Ex. Paper or plastic; OR visit our website at – Competition – Is this a good thing? – Minorities, women, immigrants in the workplace ALL OF THESE CHANGES HAVE CREATED NEW CHALLENGES FOR MANAGERS!

What is Management The process of deciding how best to use a business’s resources to produce goods or provide services. – Those resources are its employees, equipment, and money.

Levels of Management Senior Management – establish goals, decides what actions are necessary to meet the goals, decides how to use the company’s resources. – CEO, COO, Senior VP’s, Principal of North – NOT involved in the day-to-day operations; but concentrate on setting the direction the company will follow. Middle Management – meets the goals that senior management sets. Sets goals for specific areas of the business and decides what the employees in each area must do to meet those goals. – Dept. heads, District sales managers, Mr. Parks in Business Supervisory Management – Lowest level of management. – Make sure day-to-day operations of the business run smoothly. – Teachers managing their classrooms Large companies usually have all three kinds of managers. Heirarchy – group ranked in order of importance

The Management Process Three ways management works: – Divide tasks managers perform into categories – Look at the different roles managers play – Look at skills managers need to do their jobs.

Tasks Planning – sets goals and plans to reach them Organizing – assigns employees to perform activities Staffing – recruits, selects and trains employees Leading – guides and keeps lines of communication open Controlling – analyzes accounting records and makes changes if financial standards are not being met. Mrs. Marquart is the “manager” at North. Can you explain this.

Management Roles Interpersonal – requires a manager to have positive relationships with people. – What does the term "sugar catches more flies than vinegar" mean? – How you react has a far greater impact than any problem ever could. – When someone drops the ball... Don't attack -- Teach. – When everyone disagrees... Don't take sides -- Mediate. – When things fall apart... Don't blame -- Solve. – When you hear a new idea... Don't close doors -- Open doors. – When you run into confrontation... Don't argue -- Negotiate. – When bad news hits... Don't avoid -- Confront. Information-related roles – requires a manager to provide knowledge, news, or advise to employees. Decision-making roles – managers must make changes in policies, resolve conflicts and decide how best to use resources.

Management Skills Conceptual Skills – the ability to understand how different parts of a business relate to one another and to the business as a whole. Human Relations Skills – the need to understand and work well with people. Technical Skills – specific abilities that people use to perform their jobs.

Principles of Management Principles – not principal! A basic truth or law Based on a hypothesis – or an idea about the way something works. Once something is tested many times with the same results, the hypothesis is accepted as a law or principle. Developing Principles of Management is difficult because it is not a science. We are dealing with people. Principles of Management are developed through observation and deduction – drawing conclusions from specific examples. Principles of management should be viewed as a guide to action rather than a rigid law. Example: Flex scheduling

Women and Minorities Glass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of business. 1950’s – 1960’s – Most women were secretaries, teachers, and nurses. Minorities: custodial workers and laborers. 70’s – present: We are seeing some change in women and minorities in the workplace and in managerial positions. Some women and minorities in CEO positions Hewlett Packard first company to appt. a woman as CEO. Federal government has increased their hiring/promoting of women managers. Most Senior Managers are still white men. Sports and Space Exploration slowly breaking the glass ceiling. When top white men managers retire, this opens the door for more women and minorities. Managers must be sensitive to the multicultural challenges in the workplace today: language barriers, dress, holiday observances, etc.

Section Entrepreneurship

What is an Entrepreneur? 1.A professional manager is any manager at the senior, middle, or supervisory position of management. Work for businesses, but do not own them. 2.An entrepreneur is someone who launches and runs their own business. They can hire professional managers for them if they wish. 3.Five large companies started by an entrepreneur: Estee Lauder, Kelloggs, General Electric, Mrs. Fields, Land’s End 4.Being an entrepreneur is risky because you must have the right skills and a lot of dedication to hard work. All assets can be lost if the business fails. Tough competition unless you have an outstanding product or service that no one else has. 5.Characteristics of an entrepreneur include: independent, less formal education, job hoppers before starting their own business, decision makers, are their own boss, find satisfaction in working, work long hard hours, invest their own money 6.Sole Proprietorship - a business run by ONE person Partnership – one or more partners run a business Corporation – one, two, or more persons begin a business and have ownership in shares. The advantage of a corporation is that you are NOT held personally liable for financial losses.

Entrepreneurs in Large and Medium-Sized Business 1.1. Large companies encourage employees to become more innovative and take more risks because employees can make mistakes and learn from those mistakes. 2.CEO Michael Dell (Dell Computers) encouraged employees to take risks by allowing employees to work independently, make mistakes and learn from the process. He set hard-to-meet targets and encouraged employees to stretch themselves to meet them. 3.Entrepreneurship within a large or medium-sized company is called intrapreneurship. Intrapreneurs take risks but not with their own investments, but with the investments of the company. You work as if you owned the place!

The Importance of Small Business 1.Small business – a company which is independently owned and operated. 2.Examples of a small business include: flower shop, nursery, bike shop, sporting good store, furniture stores 3.Small businesses can serve local areas as well as customers all over the world – with websites! 4.SBA-Small Business Administration – a government agency that lends money to small businesses. Business has fewer than 100 employees.

5. 98% of businesses in the US are small businesses. They employ millions of workers and sell billions of dollars of products and services. Is this changing? Why? 6. The three high-tech companies in the country which started off as a small business were Intel, Apple and Microsoft. BIG BOX – IN MA & PA – OUT