2. Entrepreneurs, Managers, and Employees
Chapter Three
Entrepreneurs, Managers, and Employees
© The McGraw-Hill Companies, Inc., All Rights Reserved.
McGraw-Hill/Irwin
Introduction to Business

3. Learning Objectives
Describe the nature of entrepreneurship and the kinds of entrepreneurial opportunities that can increase the profitability of business commerce, occupations, and organizations.
Identify how the process of creative destruction leads to the emergence of new companies, the decline of established companies and raises a society’s standard of living.
Appreciate the problems involved in aligning the interests of a manager with those of a company’s owners.

4. Learning Objectives
Distinguish the three different levels of managers and understand the different roles they perform to increase efficiency, effectiveness, and profitability.
Differentiate between two main approaches employees can take to their jobs and the way their performance affects their long-term career prospects.

5. The Role of the Entrepreneur
Forms of Entrepreneurial Opportunities
Why Be an Entrepreneur?
Entrepreneurship as “Creative Destruction”

6. Forms of Entrepreneurial Opportunities
Commercial
First mover advantage
Occupational
Organizational
Intrapreneurship

7. Risks of Entrepreneurship
Entrepreneurs often overestimate their ability to create new products
Entrepreneurs underestimate how difficult it is to reach prospective customers
Entrepreneurs may not realize how much ready cash is needed to see a small business through its critical “birth” period

8. The Role of Management
The Agency Problem: The Separation of Ownership from Control
Levels of Managers
Types of Managers
Profitability: Efficiency and Effectiveness
Managerial Functions

9. The Agency Problem
Delegate
Agency problem
Managers
Stock options

10. Levels of Managers Board of directors Chief executive officer
Top managers
Middle managers
First-line managers

11. Profitability: Efficiency and Effectiveness

12. Managerial Functions Planning Organizing Leading Controlling
Organizational culture
Leading
Cross-functional team
Controlling
Benchmarking

13. The Role of the Employee
What is Appropriate Employee Behavior?
Role

14. Career Management Stage 1: Preparing for Work
Stage 2: Entering the Workforce
Stage 3: Early Career
Stage 4: Midcareer
Stage 5: Late Career

15. Career Management
Mentor