1. Management & Leadership
Chapter 7
Management & Leadership

2. 7-1 Management Functions & Styles
ROLES & WORK OF MANAGERS
Who is a manager?
Management – the process of accomplishing the goals of an organization through the effective use of people and other resources.
Entrepreneur – develops the idea for a new business is a manager
Executive – makes final decisions
Supervisors – responsible for a small number of employees

3. 7-1 Management Functions & Styles
ROLES & WORK OF MANAGERS
What do Managers Do?
Planning – involves analyzing information, setting goals, and making decisions about what needs to be done.
Organizing – means identifying and arranging the work and resources needed to achieve the goals that have been set.
Staffing – includes all the activities involved in obtaining, preparing & compensating the people who work for a business.

4. 7-1 Management Functions & Styles
ROLES & WORK OF MANAGERS
What do Managers Do?
Implementing – is the effort to direct and lead people to accomplish the planned work of the organization.
Controlling – determines to what extent the business is accomplishing the goals it set out reach in the planning stage.

5. 7-1 Management Functions & Styles
MANAGEMENT LEVELS
Top Management
Executives – top-level managers with responsibilities for the direction and success of the entire business.
They set long-term direction and plans
Held accountable for the profitability and success of the business
Spend time planning and controlling activities
Responsible for the work of all other managers

6. 7-1 Management Functions & Styles
MANAGEMENT LEVELS
Middle Management
Middle Manages – specialists with responsibilities for specific parts of a company’s operations
Ex: Marketing and Human Resources Managers
Works with company’s business plan (once approved)
Time is devoted to organizing, staffing & implementing functions

7. 7-1 Management Functions & Styles
MANAGEMENT LEVELS
Supervisors
Supervisors– first level of management in a business
Responsible for the day-to-day work of a small group of employees
Spend their time implementing the plans of executives and middle managers
Make sure that needed resources are available and used wisely

8. 7-1 Management Functions & Styles
MANAGEMENT STYLES
Management Styles – the way a manager works with and involves employees.
Tactical Management
Strategic Management
Mixed Management

9. 7-1 Management Functions & Styles
MANAGEMENT STYLES
Tactical Management
A style in which the manager is more directive and controlling
The manager will make major decisions

10. 7-1 Management Functions & Styles
MANAGEMENT STYLES
Strategic Management
A style in which managers are more collaborative and involve employees in decision making
The manager expects the employees to work without direct supervision and will seek their input on important decisions

11. 7-1 Management Functions & Styles
MANAGEMENT STYLES
Mixed Management
The combined use of tactical and strategic
WHEN?
Some employees will become frustrated because they feel their managers do not trust them
Some managers believe they need to be directive and controlling in order to make sure that work was completed

12. 7-1 Management Functions & Styles
CHOOSING A MANAGEMENT STYLE
Be a tactical manager when…
Be a strategic manager when…
Working with part-time or temporary employees
Employees are skilled and experienced
Working with employees who lack motivation for a new task
The work is routine with few new challenges
Working under tight time pressures
Employees are doing work they enjoy
Assigning a new task for which employees are not experienced
The manager wants to improve group relationships
Employees prefer not to be involved in decision-making
Employees are willing to take responsibility for planning their work

13. 7-2 Leadership What is Leadership? Need for Leadership
The cost of hiring, training, and paying employees is usually one of the largest expenses for a business.
Leadership – the ability to motivate individuals and groups to accomplish important goals.

14. 7-2 Leadership Understanding Cooperation Initiative Honesty
What is Leadership?
Leadership Characteristics
Understanding
Cooperation
Initiative
Honesty
Dependability
Courage
Judgement
Communication
Objectivity
Intelligence
Confidence
Stability

15. 7-2 Leadership What is Leadership? Preparing to Be a Leader
Study Leadership
Participate in organizations & activities
Practice leadership at work
Observe leaders
Work with a mentor
Do a self-analysis and ask for feedback

16. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations – the way people get along with each other
Human Relations Skills
Self-understanding
Understanding others
Communication
Team building
Developing job satisfaction

17. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Self-understanding
To be able to meet the expectations of others, leaders must their own strengths and weaknesses.
Study how you get along with others
Recognize the ways you communicate and work with others individually and in groups
Recognize how you make decisions (learn which were effective and which were not)

18. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Understanding Others
Recognize similarities and differences to help develop a stronger team
Get to know each person’s skills and abilities as well as strengths and weaknesses
Don’t treat everyone alike, attempt to involve each person in the way this is most beneficial to the business

19. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Communication
Formal or informal – Formal (approved ways for information to move between managers, employees, customers) Informal (unofficial ways that information moves through an organization)
Internal or external – Internal (occurs between managers, employees & work groups) External ( occurs between people inside the organization and people outside the organization – customers, suppliers, other businesses)

20. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Communication
Vertical or horizontal – Vertical (between manager and employee) Horizontal (employee to employee or manager to manager)
Oral or written – Oral (spoken directly or using technology) Written (notes, letters, reports, text or graphics)

21. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Team Building
The combined skills of the people in an effective team are greater than that of individuals working alone.
If there are problems in the team and members cannot get along, the team will not be effective.

22. Importance of Human Relations
7-2 Leadership
Importance of Human Relations
Human Relations Skills
Developing Job Satisfaction
Managers can influence how employees feel about their jobs on a daily basis
Sources of dissatisfaction: assignments employees don’t like, difficult working conditions, ineffective communication, lack of recognition
Employees appreciate it when a manager pays attention to the needs and concerns of individual employees

23. 7-2 Leadership Influencing People Kinds of Influence
Influence – enables a person to affect the actions of others
Kinds of Influence
Position Influence – the ability to get others to accomplish tasks because of the position the leader holds
Reward Influence – results from the leader’s ability to give or withhold rewards (wages or benefits)
Expert Influence – when group members recognize and appreciate a leader’s expertise in a specific area
Identity Influence – stems from the personal trust and respect members have for the leader

24. 7-2 Leadership Influencing People Formal and Informal Influence
Formal Influence – power based on a leader’s position within the formal structure of an organization
Informal Influence – power resulting from the personal characteristics of a leader rather than the formal structure of an organization

25. Importance of Ethical Behavior
7-3 Ethical Management
Importance of Ethical Behavior
What is Ethical Behavior
Ethical Business practices – ensure that appropriate standards of conduct are maintained by everyone who is part of a business and with anyone affected by the business.

26. Importance of Ethical Behavior
7-3 Ethical Management
Importance of Ethical Behavior
What is Ethical Behavior
Ethical behavior is made up of two parts: the decisions and actions of individuals and groups and the results of those actions.

27. Importance of Ethical Behavior
7-3 Ethical Management
Importance of Ethical Behavior
What is Ethical Behavior
Is it lawful?
Is it consistent with company values and policies?
Is it not intended to harm some so that others can benefit?
If the actions and results become public, will the company be embarrassed?

28. Importance of Ethical Behavior
7-3 Ethical Management
Importance of Ethical Behavior
What is Ethical Behavior
Is it lawful?
Is it consistent with company values and policies?
Is it not intended to harm some so that others can benefit?
If the actions and results become public, will the company be embarrassed?

29. Increasing Ethical Behavior Through Leadership
7-3 Ethical Management
Increasing Ethical Behavior Through Leadership
Preparing the Organization
Core values – the important principles that will guide decisions and actions in the company.

30. Increasing Ethical Behavior Through Leadership
7-3 Ethical Management
Increasing Ethical Behavior Through Leadership
Modeling Ethical Behavior
If employees read the core values of a company but do not see managers living up to those values, it will be clear that ethics are not important.