© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE Management Functions and Styles Leadership Ethical Management 7 C H A P T E R Management and Leadership

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 2 ROLE AND WORK OF MANAGERS ●Who is a manager? ●What do managers do? ●Planning ●Organizing ●Staffing ●Implementing ●Controlling

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 3 MANAGEMENT LEVELS ●Top management ●Middle management ●Supervisors ●Management by others

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 4 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 5 MANAGEMENT STYLES ●Tactical management ●Strategic management ●Mixed management

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 6 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 7 WHAT IS LEADERSHIP? ●Ability to motivate individuals and groups to accomplish important goals ●Need for leadership ●Leadership characteristics

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 8 CHARACTERISTICS OF EFFECTIVE LEADERS ●Understanding ●Initiative ●Dependability ●Judgment ●Objectivity ●Confidence ●Stability ●Cooperation ●Honesty ●Courage ●Communication ●Intelligence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 9 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

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 10 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 11 IMPORTANCE OF HUMAN RELATIONS ●Human relations skills ●Self-understanding ●Understanding others ●Communication ●Team building ●Developing job satisfaction

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 12 Checkpoint ●Why do managers and leaders need effective human relations skills? ●Managers and leaders need effective human relations skills because much of their success depends on their ability to get along well with all of the people with whom they work and build effective work groups.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 13 INFLUENCING PEOPLE ●Kinds of influence ●Position influence ●Reward influence ●Expert influence ●Identity influence ●Formal and informal influence

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 14 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 15 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 16 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.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 17 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. ●Resources are used efficiently with consideration of the effect on people and the environment.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 18 Checkpoint ●What are the two parts of ethical behavior? ●The actions of individuals and groups ●The results of those actions

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 19 INCREASING ETHICAL BEHAVIOR THROUGH LEADERSHIP ●Preparing the organization ●Modeling ethical behavior

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 7 SLIDE 20 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.