Essential Standard 2.00 Understand business organization and management. 1

Objective 2.02 Understand leadership and management. 2

Topics Management Management Leadership Leadership Human Resource Management Human Resource Management 3

Management 4

Management The role of a manager Managers are responsible for management of a business to accomplish goals by effectively using people and other resources. Managers are responsible for management of a business to accomplish goals by effectively using people and other resources. 5

Management The five functions of management: Planning Planning To analyze information, set goals based on information, and make decisions to accomplish the goals To analyze information, set goals based on information, and make decisions to accomplish the goals Organizing Organizing To arrange resources in order to accomplish the goals of the business To arrange resources in order to accomplish the goals of the business 6

Management The five functions of management: Staffing Staffing To obtain, train, and compensate employees to accomplish the goals of the business To obtain, train, and compensate employees to accomplish the goals of the business Implementing Implementing To direct and lead people to accomplish the goals of the business To direct and lead people to accomplish the goals of the business Controlling Controlling To determine whether a business is accomplishing its goals that were set in the planning stage. To determine whether a business is accomplishing its goals that were set in the planning stage. 7

Management continued The different levels of management The different levels of management Top Top Mid-management Mid-management Supervisors Supervisors Management by others Management by others 8

Management continued Management levels: Top Top Executives who are responsible for the overall direction of the business Executives who are responsible for the overall direction of the business Mid-Management Mid-Management Specialists responsible for a specific part of the business Specialists responsible for a specific part of the business 9

Management continued Management levels: Supervisors Supervisors First level of management in the business First level of management in the business Responsible for the routine work of employees Responsible for the routine work of employees Management by others Management by others Other employees who are not managers, may serve as leaders for a group of employees Other employees who are not managers, may serve as leaders for a group of employees 10

Management continued Management style Management style The way a manager directs employees to accomplish the goals of the business. The way a manager directs employees to accomplish the goals of the business. 11

Management continued Types of management styles: Types of management styles: Tactical Tactical Directed and controlling Directed and controlling Typically, use for inexperienced employees or during a crisis Typically, use for inexperienced employees or during a crisis Strategic Strategic Less directed with employees helping with decision making Less directed with employees helping with decision making Typically, used with trusted and/or experienced employees Typically, used with trusted and/or experienced employees Mixed Mixed Combination of both tactical and strategic Combination of both tactical and strategic 12

Management Organizer Directions: Provide responses for the listed items. Describe the role of a manager: Functions of ManagementDescription Planning Organizing Staffing Implementing Controlling Levels of ManagementDescription (Include examples when possible) Top Mid-Management Supervisors Management by others

Management Styles TacticalStrategicMixed Description When to use

Five Functions of Management Activity Directions: Provide responses for the listed items. Case Study: Your DECA/FBLA chapter is ready to begin planning the annual community service event. The past events have been successful in exceeding its financial goal. There are ten other students working with you. Determine one to three activities that must take place for each of the five functions of management in order to continue this event’s success. Be prepared to share your responses. Individual responsesGroup responses Planning Organizing Staffing Implementing Controlling

Across 2. Company executives of (2 words) 5. First level of management 7. Tactical and strategic style 8. Analyzing of information, set goals, and make decisions 9. Arrangement of resources in order to meet goals Down 1. Determines to what extent the business is accomplishing goals 2. Directed and controlling style of management 3. Directing and leading people 4. Employees help with decision making 5. Obtaining, training, and compensating employees 6. Specialists in a specific are of the business (with hyphen)

Leadership 18

Leadership Leadership Leadership The ability to motivate others to effectively accomplish goals of the business. The ability to motivate others to effectively accomplish goals of the business. 19

Leadership continued Characteristics a good leader possess Intelligence Intelligence Judgment Judgment Objectivity Objectivity Initiative Initiative Dependability Dependability Understanding Understanding Cooperation Cooperation Honesty Honesty Courage Courage Confidence Confidence Stability Stability 20

Leadership continued Styles of leadership Autocratic leader Autocratic leader Democratic leader Democratic leader Open or Laissez-fare leader Open or Laissez-fare leader 21

Leadership continued Autocratic leader Autocratic leader Used when a leader needs to give direct, clear, and precise orders and makes decisions Used when a leader needs to give direct, clear, and precise orders and makes decisions Situations to use style: Situations to use style: During an emergency During an emergency To direct the work of inexperienced employees To direct the work of inexperienced employees 22

Leadership continued Democratic leader Democratic leader One who includes employees in making decisions One who includes employees in making decisions Situations to use style: Situations to use style: To monitor quality of work of employees To monitor quality of work of employees To direct the work of employees working as a team To direct the work of employees working as a team 23

Leadership continued Open or Laissez-fare leader Open or Laissez-fare leader One who gives little or no direction to employees One who gives little or no direction to employees Situation to use style: Situation to use style: To monitor achievements and communicate regularly with employees To monitor achievements and communicate regularly with employees To direct the work of experienced and trained employees To direct the work of experienced and trained employees 24

Human Resources Manager 25

Human Resources Management The role of human resources managers Human resources managers uses the management process of managing employees who collectively contribute to the achievement of the objectives of the business. Human resources managers uses the management process of managing employees who collectively contribute to the achievement of the objectives of the business. 26

Human Resources Management The functions of human resources management Planning and staffing Planning and staffing Includes planning and job analysis, recruiting and hiring Includes planning and job analysis, recruiting and hiring Managing compensation and benefits Managing compensation and benefits Includes compensation methods and employee benefits Includes compensation methods and employee benefits Managing performance of employees Managing performance of employees Includes employee evaluation and promotions, transfers, and termination. Includes employee evaluation and promotions, transfers, and termination. 27

Human Resources Management continued The two main parts of planning and job analysis The two main parts of planning and job analysis Classification of employees and determining job requirements. Classification of employees and determining job requirements. 28

Human Resources Management continued Employees classifications Employees classifications Permanent Permanent Long term commitment Long term commitment Temporary Temporary Hired for a specific time/job Hired for a specific time/job Full Time Full Time 30 or more hours per week (usually 40+ hours) 30 or more hours per week (usually 40+ hours) Part Time Part Time Short work week Short work week 29

Human Resources Management continued Human resource managers use job analysis to determine all the duties for a particular job Human resource managers use job analysis to determine all the duties for a particular job 30

The two main parts of recruiting and hiring employees The two main parts of recruiting and hiring employees The application process and new employee orientation. The application process and new employee orientation. Human Resources Management continued 31

The application process The application process Reviewing applications/resumes Reviewing applications/resumes Interviewing applicants Interviewing applicants Checking references of applicants Checking references of applicants Making a job offer to applicants Making a job offer to applicants Human Resources Management continued 32

New employee orientation includes New employee orientation includes Paperwork Paperwork Training Training Mentor Mentor Possible probationary period Possible probationary period Human Resources Management continued 33

The two main parts of managing compensations and benefits The two main parts of managing compensations and benefits Determining compensation type and benefits Determining compensation type and benefits Human Resources Management continued 34

Compensation types Compensation types Time Wage – Direct payment per hour Time Wage – Direct payment per hour Salary – Direct payment per week, bi-weekly, or monthly Salary – Direct payment per week, bi-weekly, or monthly Commission – Percentage of sales Commission – Percentage of sales Piece Rate – Payment per unit produced Piece Rate – Payment per unit produced Base plus incentive – Direct payment plus performance based pay Base plus incentive – Direct payment plus performance based pay Human Resources Management continued 35

Employee benefits Employee benefits Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. Human Resources Management continued 36

The two main parts of managing performance of employees The two main parts of managing performance of employees Employee evaluation and employee movement within the company (promotion, transfer, or termination) Employee evaluation and employee movement within the company (promotion, transfer, or termination) Human Resources Management continued 37

Employee evaluation Employee evaluation Objective evaluations of employees’ quality of work. Objective evaluations of employees’ quality of work. Managers and employees are trained on evaluation procedures. Managers and employees are trained on evaluation procedures. Identifies strengths and weaknesses. Identifies strengths and weaknesses. Post-conference tells employee the results. Post-conference tells employee the results. Human Resources Management continued 38

Employee transition throughout a company Employee transition throughout a company Promotion Promotion Advancement of an employee to a position with greater responsibility Advancement of an employee to a position with greater responsibility Transfer Transfer Assignment of the employee to a job in another area with similar responsibility Assignment of the employee to a job in another area with similar responsibility Termination Termination Ends employment relationship Ends employment relationship Human Resources Management continued 39