SLIDE 1 7 -1 Becoming an Entrepreneur - PowerPoint Presentation

SLIDE 1 7 -1 Becoming an Entrepreneur 7-2 Small Business Basics 7-3 Starting a Small Business 7 C H A P T E R Management and Leadership

7-1 Management Functions and StylesGoals Define the five functions of management Describe the levels of management in businesses and organizations Discuss how and when to use the two management styles

Role and 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.What do Managers Do?Planning – analyzing information, setting goals, and making decisions about what needs to be done. Organizing – Identifying and arranging the work and resources needed to achieve the goals that have been set

Role and Work of Managers What do Managers Do?Staffing – includes all the activities involved in obtaining, preparing, and compensating the people who work for a businessImplementing – 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 to reach in the planning stage.

Checkpoint #1 What are the five management functions?planningorganizingstaffingimplementingcontrolling

Management Levels Top Management Executives are top-level managers with responsibilities for the direction and success if the entire business.Set the long-term direction and plans Spend most of their time on planning and controlling activities Middle Management Middle mangers are specialists with responsibilities for specific parts of a company’s operationWork with a companies business plan once it is approved

Management Levels SupervisorsThe first level of management in a businessResponsible for the day-to-day work of a small group of employees Management by Others Employees plan and organize their workHiring and training of new employees

Checkpoint #2 What are the differences among the three levels of management?Top-level managers are executives with responsibilities for the direction and success of the entire business. Middle managers are specialists with responsibilities for specific parts of a company’s operations. Supervisors are first-level managers who are responsible for the work of a group of employees.

Management Styles Management Style – the way a manager works with and involves employees Two very different styles often used by managers are tactical management and strategic management

Management Styles Tactical ManagementA style in which a manager is more directive and controlling Manager makes the major decisions and stay in close contact with employees while they work to make sure the work is done wellStrategic Management A style in which the mangers are more collaborative and involve employees in decision making.

Checkpoint #3 How is tactical management different from strategic management? The tactical management style is more directive and controlling than the strategic management style. Using tactical management, the manager makes the major decisions and supervises employees closely to make sure the work is done well. In strategic management, managers are less directive and involve employees in decision-making.

7-2 LeadershipGoals Describe the need for leadership skills and the characteristics of an effective leaderIdentify the human relation skills needed by manager and leaders Recognize 4 types of leadership influence

What is LeadershipThe ability to motivate individuals and groups to accomplish important goalsNeed for LeadershipExpected to find ways to meet employee needs as well as business needs. Mangers must be effective leaders

Characteristics of an Effective Leader UnderstandingInitiativeDependabilityJudgmentObjectivityConfidenceStabilityCooperationHonestyCourageCommunicationIntelligence

Preparing to be a Leader Study LeadershipBooks/Courses on the subject of leadership can help you understand what it takes to be a leaderParticipate in Organization Activities Clubs, teams, and organization need leaders and offer a variety of opportunities Practice Leadership at WorkDevelop leadership skills as you help customers, complete work assignments, take initiative to solve problems

Preparing to be a Leader Observe Leaders Everyday you can observe people in leadership positions in your school or community. Work with a mentor Older brother or sister, trusted adult, teacher or coach can help you learn leadership skills and offer direction/progress Do a self-analysis and ask for feedbackFind opportunities to demonstrate leadership characteristics

Checkpoint #4 What are several ways to develop leadership skills?Leadership skills can be developed through studying leadership, participating in organizations and activities, practicing leadership at work, observing leaders, working with a mentor, and doing a self-analysis and asking for feedback.

Importance of Human Relations The way people get along with each otherSelf UnderstandingLeaders must understand their own strengths and weaknesses Understanding Others Leaders recognize that people they work with often are more alike than different Effective leaders get to know each person’s skills and abilities as well as strengths and weaknesses

Importance of Human Relations Communication Formal and Informal Internal and External Vertical and Horizontal Oral or Written Team Building The combined skills of the people in an effective team are greater than that of individuals working alone Developing Job Satisfaction

Checkpoint #5 Why do managers and leaders need effective human relations skills? Managers and leaders need effective human relations skills because much of their success depends on their ability to get along well with all of the people with whom they work and build effective work groups.

Influencing PeopleKinds 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. Expert Influence – exists 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.

Formal and Informal Influence Mangers have formal influence, others have informal influenceInformal – power resulting from the personal characteristics of a leader rather than the formal structure of an organization.Formal – power based on a leader’s position with the formal structure of an organization.

Checkpoint #6 What is the difference between formal and informal influence? Formal influence results from a position that is a part of the organization’s structure.Informal influence results from personal characteristics and is not a formal position in the organization.

7-3 Ethical Management Goals Justify the need for ethical management Identify the role of leaders in increasing ethical behavior

Importance of Ethical Behavior Not everyone has the same belief about what is ethical and what is not ethical. Organizations should develop a clear view of what is acceptable business behavior and what is not.Individuals and organizations develop reputations based on their actions and the decisions they make

What is Ethical Behavior Ethical Business Practices – ensure that appropriate standards of conduct are maintained by everyone who is a part of the business and with anyone affected by the business.It is lawful.It is consistent with company values and policies.It is not intended to harm some so that others can benefit.If the actions and results become public, it will not embarrass the company.

Ethical Management Actions and activities of the business are legal, honest, and ethical. People and other companies treated fairly.Work of the company improves the communities and countries in which it operates.Resources are used efficiently with consideration of the effect on people and the environment.

Checkpoint #7 What are the two parts of ethical behavior?The actions of individuals and groupsThe results of those actions

Increasing Ethical Behavior Through Leadership Preparing the Organization Core Values – the important principles that will guide decisions and actions in the company. Companies provide descriptions and examples to help employees see how the core values can be incorporated throughout the company.Modeling Ethical Behavior

Checkpoint #8 What are the core values of an organization?An organization’s core values are the principles that guide decisions and actions in the company.