Unit A: Principles of Business

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Essential Standard 2.00

Understand business organization and management.

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Objective 2.02

Understand leadership and management.

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Topics

Management

Leadership

Human Resource Management

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Management

Essential Question: What are the classifications of management functions, levels, and styles?

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Management

Describe the role of a manager

• Managers are responsible for management of a business to accomplish goals by effectively using people and other resources.

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Five Functions of Management

• Planning

To analyze information , set goals based on information, and make decisions to accomplish the goals

• Organizing

To arrange resources in order to accomplish the goals of the business

• Staffing

To obtain, train, and compensate employees to accomplish the goals of the business

Five Functions of Management

• Implementing

To direct and lead people to accomplish the goals of the business

• Controlling

To determine whether a business is accomplishing its goals that were set in the planning stage.

Management continued

Levels of management

• Top

Executives who are responsible for the overall direction of the business

• Mid-Management

Specialists responsible for a specific part of the business

• Supervisors

First level of management in the business

Responsible for the routine work of employees

• Management by others

Other employees who are not managers, may serve as leaders for a group of employees

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Management Style

What is management style?

• The way a manager directs employees to accomplish the goals of the business.

Describe the different types of management styles:

• Tactical

Directed and controlling

Typically, use for inexperienced employees or during a crisis

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Management Style

• Strategic

Less directed with employees helping with decision making

Typically, used with trusted and/or experienced employees

• Mixed

Combination of both tactical and strategic

Leadership

Essential Question: What are the classifications of leadership styles?

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Leadership

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

What characteristics do a good leader possess?

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Leadership continued

How many did you name?

Intelligence

Judgment

Objectivity

Initiative

Dependability

Understanding

Cooperation

Honesty

Courage

Confidence

Stability

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Leadership continued

Leadership styles

Autocratic

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

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Leadership continued

Democratic

 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

Open or Laissez-fare

 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

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Human Resources

Manager

Essential Question: What are the classifications of human resources management activities?

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Human Resources Management

What is 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.

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Human Resources Management

The functions of human resources management:

• Planning and staffing

• Managing compensation and benefits

• Managing performance of employees

Human Resources Management continued

Planning and job staffing

• 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

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Human Resources Management

 continued

Planning and 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

New employee orientation

• Paperwork

• Training

• Mentor

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Human Resources Management continued

Managing compensations and 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 perfomance based pay

• Employee benefits

Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc.

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Human Resources Management

 continued

Managing performance of employees

• Employee evaluation

Objective evaluations of emplyees’ 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

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