POBF 2.02 GUIDED NOTES
NAME Juan Berrocales
Understand the leadership and management nature of business
1. Management is the process of accomplish the goals of an organization through the
effective use of people and other resources.
2. The 5 functions of management are:
a. Planning
b. Organization
c. Staffing
d. Implementing
e. Controlling
3. The planning function involves analyzing information, setting goals and making decisions
to accomplish the goals.
4. The organizing function involves arranging the work and resources needed to achieve
the goals of the business that have been set in the
stage.
5. The staffing function includes the activities involved in obtaining the employees training
the employees and compensating the employees.
6. The implementing function involves directing and leading people in order to accomplish
the goals set out in the
stage.
7. The controlling function is used to determine whether a business is accomplishing its
goals that were set in the planning stage.
8. The levels of management are:
a. Top
b. Mid-management
c. Supervisors
d. Management by others
9. Characteristics of top management are: top level managers are called executives and
they are responsible for the direction and accomplishment of the business (
function), setting
goals (
function) and are
held accountable for
and
. Examples of top
management include CEO (Chief Executive Officer), President
10. Characteristics of mid-management are: mid-managers are specialist who are
responsible for specific parts of the business usually devoted to
, and
functions. Examples: marketing manager,
information technology manager, customer service manager.
11. Characteristics of supervisors: first level of management, responsible for the routine
work of a group of employees, evaluating the work of the employees and implementing
plans set forth by executives and mid-managers.
12. Management by others: other employees who are not managers may serve as leaders
for a group of employees.
13. The management style is the way a manager lead and direct employees
a. Tactical
b. Strategic
c. Mixed
14. Tactical management style is: direct and controlling, manager makes the major
decisions, manager stays in
with employees while they
work, typically used for inexperienced employees or during a crisis.
15. Strategic management style is: less directive with employees, involves
members with
, typically used with trusted
and/or experienced employees, limited direct supervision.
16. Mixed management style is: combination of both tactical and strategic effective
managers can use both styles in order to accommodate different types of working.
17. Leadership is the ability to motivate individuals and groups to accomplish important
goals.
18. List leadership traits: intelligence, judgment, objectivity, initiative , dependability,
understanding, cooperation, honesty, courage, confidence, stability.
19. Three leadership styles are:
a. autocratic Leader
b. democratic Leader
c. laissez-faire Leader
20. Autocratic leadership style is used when a leaders needs to give direct, clear, and
precise orders and makes decisions. For example, during an emergency; to direct the
work of inexperienced employees.
21. Democratic leadership style is used when employees are included in making decisions.
For example, to monitor quality of work of employees; to direct the work of employees
working as a team.
22. Open or laissez-faire leadership style is used when a leader gives little or no direction to
employees. For example, to monitor achievements and communicate regularly with
employees; to direct the work of experienced and trained employees.
23. Human resources managers use the management process of managing employees to
achieve the objective of the business.
24. Human resources management activities include:
a. planning, staffing, recruiting and hiring
b. Managing compensation and benefits
c. Managing performance of employees
25. Planning and staffing includes classifying employees and determining job requirements.
a.
b.
c.
d.
e.
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 (less than 30 hours)
Telecommuting: performing some portion of or the entire job away from the
business
f. Flextime: Allows employees to choose the work hours and days they think will be
most effective
g. The use of job analysis to determine all the duties of a particular job is
determining job requirements.
h. Recruiting employees begins with the new employee orientation process:
reviewing applications/resumes, interviewing applicants, checking references for
applicants and finally making a job offer to applicants.
i. Hiring employees includes new employee orientation: paperwork, training and
providing a mentor.
26. Compensation may occur in various ways such as:
a. Time Wage – direct payment per hour (hourly wage * hours worked)
b. Salary – Direct payment per week, bi-weekly or monthly (the same amount each
pay period
c. Commission – percentage of sales, (x% * employee sales)
d. Price rate – payment per unit produced (rate * # units)
e. Base plus incentive - direct payment plus performance based pay (minimum
amount + (x% * employee sales))
27. Employee benefits are other items given to the employee for working which are offered
(not always paid) by the employer: health insurance, vacation time, sick time, dental
insurance, vision insurance, 401k retirement plan, family leave, etc.
28. Managing the performance of employees takes four forms:
a. Employee evaluation: objective evaluations of employees’ quality of work
b. Promotion: advancement of an employee to a position with greater
responsibility.
c. Transfer: assignment of the employee to a job in another area with
greater responsibility.
d. Termination: ends employment relationship.