1. Understand the nature of business
2.02 Understand the leadership and management.

2. Management
Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

3. 5 Functions of Management
Planning
Organizing
Staffing
Implementing
Controlling

4. Planning The planning function involves… Analyzing information
Setting goals
Making decisions to accomplish the goals

5. Organizing The organizing function involves…
Identifying the work & resources needed to achieve the goals of the business that have been set in the planning stage.

6. Staffing The staffing function includes the activities involved in…
Obtaining the employees
Training the employees
Compensating the employees

7. Implementing
The implementing function involves directing and leading people in order to accomplish the goals set out in the planning stage.

8. Controlling
The controlling function is used to determine whether a business is accomplishing its goals that were set in the planning stage.

9. Levels of Management Top Management Mid-management Supervisors
Management by others

10. Top Management Executives are top-level managers
Responsible for the direction and the success of the business (controlling)
Set long-term goals (planning)
Held accountable for profitability & success
Examples:
CEO (Chief Executive Officer
President

11. Mid-Management Mid-managers are specialists
Responsible for specific parts of the business
Devoted to the organizing, staffing, and implementing functions
Examples
Marketing Manager
Information Technology Manager
Customer Service Manager

12. Supervisors First level of management
Responsible for the routine work of a group of employees
Evaluate the work of the employees
Implement the plans set forth by executives and mid-managers

13. Management by others
Other employees who are not managers, may serve as leaders for a group of employees

14. Management Styles
The management style is the way a manager treats and involves employees
Tactical
Strategic
Mixed

15. Tactical Directive and controlling Manager makes the major decisions
Stays in close contact with employees while they work
Typically, use for inexperienced employees or during a crisis

16. Strategic Less directive with employees
Involves team members with decision making
Typically, used with trusted and/or experienced employees
Limited direct supervision

17. Mixed Combination of both tactical and strategic
Effective managers can use both styles in order to accommodate different types of employees

18. Leadership Styles
Leadership is the ability to motivate individuals and groups to accomplish important goals.
What type of traits should a leader possess?

19. Leadership Traits Intelligence Judgment Objectivity Initiative
Dependability
Understanding
Cooperation
Honesty
Courage
Confidence
Stability

20. Leadership Styles Autocratic Leader Democratic Leader
Open or Laissez-faire leader

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

22. Democratic Leader One who includes employees in making decisions
Situations to use style:
To monitor quality of work of employees
To direct the work of employees working as a team

23. Open/Laissez-faire Leader
One who gives little or no direction to employees
Situation to use style:
To monitor achievements and communicate regularly with employees
To direct the work of experienced and trained employees

24. Human Resources Managers
Human resources managers use the management process of managing employees to achieve the objectives of a business.

25. Human Resources Management Activities
Planning, staffing, recruiting, & hiring
Managing compensation and benefits
Managing performance of employees

26. Planning, Staffing, Recruiting, Hiring
Classifying employees
Permanent
Long term commitment
Temporary
Hired for a specific time/job
Full Time
30 or more hours per week (usually 40+ hours)
Part Time
Short work week

27. Planning, Staffing, Recruiting, Hiring
Planning & Job Staffing
Determining job requirements:
The use of job analysis to determine all the duties for a particular job
Recruiting and hiring employees
The application process
Reviewing applications/resumes
Interviewing applicants
Checking references of applicants
Making a job offer to applicants

28. Planning, Staffing, Recruiting, Hiring
New employee orientation
Paperwork
Training
Mentor

29. Managing Compensation & Benefits
Compensation method
Time Wage – Direct payment per hour
Salary – Direct payment per week, bi-weekly, or monthly
Commission – Percentage of sales
Piece Rate – Payment per unit produced
Base plus incentive – Direct payment plus performance based pay
Employee benefits
Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc.

30. Managing performance of employees
Employee evaluation
Objective evaluations of employees’ quality of work
Promotion
Advancement of an employee to a position with greater responsibility
Transfer
Assignment of the employee to a job in another area with similar responsibility
Termination
Ends employment relationship