Introduction to Management The Importance of Business Management Entrepreneurship

Bellringer: write a sentence for each term (10 minutes) Management Senior management Middle management Supervisory management Role Conceptual skills Human relations skills Technical skills Principle Glass ceiling

Bellringer (5 minutes) Write a paragraph explaining how a police officer who directs traffic may be like a manager.

Homework Complete the Student Assessment Packet by the end of Chapter 1. (75 points)

What is management? The process of deciding how best to use a business’s resources to produce goods or provide services

Supervisory Management Levels of Management Senior Management Middle Management Supervisory Management Highest level Establishes goals or objectives Decides what actions are necessary to meet goals Decides how to use company resources Chairperson of board, COO, CEO, senior VPs Not involved in day-to-day problems Set the direction Responsible for meeting goals senior management sets Department heads, district managers Sets goals for specific areas of the business Lowest level Make sure day-to-day operations of business run smoothly In charge of the people Forepersons, crew leaders, store managers

The Management Pyramid Top Management Middle Management Supervisory Management Have students to write in the positions for each level

The Management Process Several ways to examine how management works 1 way: divide the tasks managers perform into categories 2nd way: look at the roles different types of managers play in a company A role is a set of behaviors associated with a particular job. 3rd way: look at the skills managers need to do their jobs

Management Tasks Planning Organizing Staffing Leading Controlling

Planning A manager decides on company goals and the actions the company must take to meet them. Ex: CEO who sets a goal of increasing sales by 10 percent in the next year by developing a new software program

Organizing A manager groups related activities together and assigns employees to perform them. Ex: Manager sets up a team of employees to restock an aisle in a supermarket

Staffing A manager decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people. Ex: Restaurant manager’s staffing duties (interviewing/training)

Leading A manager provides the guidance employees need to perform their tasks. Ex: holding regular staff meetings (keeping communication open)

Controlling A manager measures how the business performs to ensure that financial goals are being met Ex: analyzing accounting records and to make changes if financial standards are not being met

Which level spends most of its time controlling? Shade in the chart according to how much time is spent performing the tasks according to the management level Planning Organizing Staffing Leading Controlling Top Management Middle Management Supervisory Management Which level spends most of its time controlling?

Management Roles Interpersonal Information-Related Decision-Making

Interpersonal Roles Figurehead: serves as official representative of the organization or unit Relationship Builder: interacts with peers and with people outside the organization to gain information Leader: guides and motivates staff and acts as a positive influence in the workplace

Information-Related Roles Monitor: receives and collects information Communicator: distributes information within the organization Spokesperson: distributes information outside the organization

Decision-Making Roles Entrepreneur: initiates change Disturbance Handler: decides how conflicts between subordinates should be resolved and steps in when a subordinate suddenly leaves or an important customer is lost Resource Director: decides how the organization will use its resources Negotiator: decides to negotiate major contracts with other organizations or individuals

Which management level spends more time on . . . Resolving conflicts? Representing the company in its relations with people outside the company? Determining a company’s culture (way of thinking and acting)? In 1992, when new management took over Sears, morale was low. Senior Mgmt made almost all decisions, employees felt powerless. New CEO created an open atmosphere (town meetings) and empowered managers at all levels with freedom to make decisions.

Management Skills Conceptual Human relations Technical

Conceptual Skills Help managers understand how different parts of a business relate to one another and to the business as a whole Ex: decision making, planning, and organizing

Human Relations Skills Needed to understand and work well with people Ex: interviewing job applicants, forming partnerships with other businesses, resolving conflicts

Technical Skills Specific abilities that people use to perform their jobs Ex: operating a word processing program, designing a brochure, training people to use a new budgeting system

Let’s Write! Which skills would a manager need to develop a company advertisement? Elaborate.

Principles of Management A basic truth or law. Because controlled management experiments are so difficult to carry out, most management principles are developed through observation and deduction. Deduction: process of drawing a general conclusion from specific examples

Principles of Management Example A researcher may observe that employees in 15 companies work more efficiently when supervisor treats them well. Deduction . . . A pleasant work environment contributes to productivity. This conclusion might then become a management principle.

Management Principles More likely to change than physical principles Likely to be interpreted differently by different people Guides to action rather than rigid laws Followed most of the time

Principles change. “All employees need to arrive at work at the same time.” Now . . . Flexible schedules or “flex time” or work at home “People who work in offices need to dress a certain way.” Now . . . Many allow casual dress

Women and Minorities in Management Problems women and minorities have had winning promotions to senior management positions gave rise to the term glass ceiling. Invisible barrier that prevents women and minorities from moving up in the world of business

Class Discussion Why do you think there has been a glass ceiling for women and minorities in business management?

Lights, Camera, Action! Video: Sheryl-Sandberg

Research Assignment (70 points) On the Internet, research a female or minority CEO. At the top of the document provide their photo with their name right above it. Underneath the photo, provide the company, when the person started the position, their background in the field, and contributions to the company thus far. Site your source in the footer of your document.

Small Group Assessment Activity Imagine you manage a small, retail business and are looking for a new salesperson. What qualities would you look for and what questions would you ask in an interview? Explain if a person who does a job well but has poor “people” skills would make a good manager.

FACT AND IDEA REVIEW For Dots!

Small Group Assessment Activity Should a manager fire a well-liked employee who is not performing well or keep the employee in order not to upset the other workers? Explain. You spend 20% of an 8-hour day planning, 7.5% organizing, 7.5% staffing, 50% lading, and 15% controlling. How much time do you spend on each management function?

Case Analysis TechCo, a software company, tried letting some employees “telecommute,” or work at home. The company’s experience was not a good one, so senior management disallowed telecommuting. Janet Jefferon, team leader for a new software, broke her leg. She can work, but needs to remain home for two weeks. Management does not want to change its policy, but Janet is the product expert. What should TechCo do? If Janet telecommutes, will management be breaking a principle? Explain your answer.

Bellringer: write a sentence for each term (10 minutes) Professional manager Entrepreneur Small business

What Is an Entrepreneur? Professional Manager Entrepreneurs Paid to perform management functions within a company Do not own the business Ex: senior, middle, and supervisory managers Launch and run their own businesses Much riskier than being a professional manager Tend to be more independent than managers May have less formal education Start with an idea for creating or modifying a product/service they believe in

Entrepreneurs . . . Some are sole proprietors: run their businesses single handedly Ex: medicine, dentistry, accounting, store owners Some are partnerships: one or more partners may supply the money while another runs the business Some choose to incorporate (or become a corporation) to avoid being held personally liable for financial losses. Some choose to own franchises

Entrepreneurs in Large and Medium-Sized Businesses Dell Inc. CEO and Founder Michael Dell Entrepreneurship within a large or medium-sized company is sometimes called intrapreneurship. Intrapreneurs take risks, but not with their own investments

The Importance of Small Businesses A small business is a company that is independently owned and operated. The Small Business Administration (SBA), the government agency that lends money to small businesses, considers a business small if it has fewer than 100 employees. More than 99% of businesses in US are small businesses Employ millions of workers and sell billions of dollars of products and services

The Importance of Small Businesses Tend to produce more innovations than larger businesses Intel, Apple, Microsoft began small

FACT AND IDEA REVIEW For Dots!

3 O’Clock Appointment: Critical Thinking (5 minutes) Why are entrepreneurs important to the economy? What would happen if no one wanted to be an entrepreneur? How do companies benefit when managers think more like entrepreneurs?

Case Analysis Craftings is a medium-size furniture distribution company specializing in children’s bedroom sets. The firm has done well in the last ten years, but recently senior managers have noticed that sales have not been increasing. The managers believe that the problem boils down to too many firms selling the same kind of furniture? What can Craftings do to increase sales?