Chapter 7
Management and
Leadership
Ms. Baumgartner
Business Essentials
Think About it….
• Who do you know who is a leader?
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Parents
Teachers
Friends
Boss
Preacher/minister
Coach
Team mates
Who is a Manager?
• Management
• The process of accomplishing goals of a company
through effective use of people and resources
• Make things happen in a business
• The entrepreneur who develops the idea for
the business is a manager
The 5 Management Functions
• Planning (analyze info, set goals, make decisions)
• Organizing (identify and arrange work needed to achieve
goals and how to complete it)
• Staffing (find, prepare and pay employees)
• Implementing (direct and lead people to accomplish
planned work)
• Controlling (makes sure the business does it’s part
accomplishing its goals)
3 Levels of Management
• Top Management (EXECUTIVES)
• Set long term plans/directions, held accountable for profitability,
spend time planning and controlling activities (CEO, President, VP)
• Spend most time planning/controlling activities
• Mid-Management (MID-MANAGERS)
• Focus on specific parts of a company
• They spend a lot of time organizing and staffing
(Marketing Mgr, Operations Mgr, Customer Service Mgr)
• Supervisors
• Evaluate work of employees, focus on implementing, usually have
other non-mgt duties
• First level of management; responsible
Management by Others
• Even if you are not a manager, you will still
complete work that seems like a management
function
• You might help train someone new
• Might be asked to be a group leader
• You can develop managerial skills and decide if you
are interested in being a manager someday
Different Management Styles
• Management can be difficult – it’s not always easy
to get along with everyone
• Backgrounds, personalities, experiences
• Managers approach this challenge and other tasks in
different ways based on their management style
• Management style is the way a manager treats and
directs employees
• 2 types (on next slide) for different kinds of managers
Different Management Styles
• There are 2 very different leadership styles often
used by managers:
• Tactical management – manager is directive and
controlling; monitors employees closely
• Strategic management – less directive and involve
employees in decision-making process; work
without direct supervision
• The combined use of tactical and strategic
management known as mixed management
7-1 Assessment Questions
1.
2.
T/F An entrepreneur who starts a new business is not considered to be a
manager
Which of the following is NOT one of the 5 functions of management?
1.
2.
3.
4.
3.
Planning
Implementing
Producing
Controlling
Which level of management spends most of its time completing planning and
controlling activities?
1.
2.
3.
4.
Top management
Mid management
Supervisors
Team management
What is a Leader?
• One of the most important responsibilities is
managing people
• Managers are often good at managing things
but not as good at managing people
• Good leaders are hard to find
The Importance of Leadership
• Managers are responsible for the success or
failure of a business.
• Managers are the people who are responsible
for making sure that resources are used
effectively, so that the business is successful
The Importance of Leadership
• People are the most important resource of a
business
• The cost of hiring, training, and paying
employees is usually 1 of a business’ highest
expenses
• Managers must involve employees and find
ways to meet employee needs as well as
business needs
The Importance of Leadership
• Managers must also be effective leaders
• Leadership is the ability to motivate
individuals and groups to accomplish
important goals
• Leaders must have effective human relations
skills (getting along with others)
The Importance of Leadership
• It takes skills to get people with different
backgrounds and personalities to work well
together
• “Leaders are born and not made”—agree?
• Leaders should possess:
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•
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Understanding
Initiative
Dependability
Objectivity
See Figure 7-2 on pg.157
The Importance of Leadership
• Some people are born leaders, others are able
to learn to lead by doing the following:
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Study leadership (books, courses to take)
Participate in organizations & activities (clubs, teams)
Practice leadership at work (be dependable, honest, helpful)
Observe leaders (in leadership positions at work or school)
Work with a mentor (sibling, teacher, coach to learn from)
Do a self-analysis and ask for feedback (good/bad)
Importance of Human Relations
• Managers and leaders must be able to work well
with others
• Human relations is the way people get along
with each other
• The important human relation skills of managers
are:
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Self-understanding (understand your own strengths and weaknesses)
Understanding others (recognize similarities/differences in people for stronger team)
Communications (can be classified in several ways—next slide)
Team building (combined skills of whole team is better than 1 person alone)
Developing job satisfaction(help people like their job more = happier = better work)
Types of Communication
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Formal: has been established and already approved
Informal: common ways to communicate but not “official”
Internal: occurs between managers, employees or groups
External: occurs between company and customers (outsiders)
Vertical: (move up and down between management and employees)
Horizontal: (communication at the same level—mgr to mgr)
Oral: (spoken communication)
Written: (incl notes, emails, reports, letters)
Influencing People
• Effective leaders must be able to influence
others into making a decision.
• Influence is the ability of a person to affect
the actions of another person or people
• There are several kinds of influence a leader
can use:
Influencing People
• Position influence – the ability to get others to accomplish
tasks because a LEADER says so
• Reward influence – the ability of the leader to give or
withhold rewards (money or job benefits) to get people to
do or not do something
• Expert influence – when group members recognize that
the leader has special expertise in the area
• Identity influence – having personal trust and respect for
the leader—so you listen to what they say
Influencing People
• There are 2 types of influence in an
organization – formal influence and informal
influence
• Formal influence – an elected leader—supposed
to be the leader; in charge because of role
• Informal influence – someone who naturally
emerges as a leader from a group
7-2 Assessment
1.
It is often said that the most important resource of a business is:
1.
2.
3.
4.
2.
3.
Cash
Technology
Customers
People
T/F Research has proven that effective leaders are born, not made
The way people get along with each other is known as
1.
2.
3.
4.
4.
Human relations
Influence
Management style
Communications
A person who is not a manager but is still able to get a group focused and organized is
using
1.
2.
3.
4.
Tactical management
Strategic management
Formal influence
Informal influence
Importance of Ethical Behavior
• Is it okay for an employee to call in sick if they are
not sick?
• Would you cheat on a test to ensure a higher grade?
• Do you believe a mgr should ever lie to an employee
or ignore unsafe working conditions to save money?
• Individuals and organizations develop reputations
based on their actions and the decisions they make.
• You can identify people and businesses that are not
trustworthy vs ones that are
What is Ethical Behavior?
• Ethics are the principles of conduct governing
an individual or a group.
• Ethical business practices: make sure
company is practicing highest level of
conduct within company and with customers
• Ethical behavior is made up of 2 parts:
• actions of individuals
• the results of those actions.
Ethical Behavior (cont.)
Consider these before deciding if something
is ETHICAL or not:
It is lawful?
Is it consistent with company policies?
It does not harm someone while helping
someone else
If the actions and results become public,
will it embarrass the company?
Preparing an Organization to
Make Ethical Decisions
• Mgrs must create an atmosphere where employees
know they are expected to act ethically.
• Employees are supported when making right
decisions.
• Company Mission Statement describes why the
business exists and what it believes in
• Have a statement of core values – the important
principles that will guide decisions and actions of
the company
What Can the Manager Do?
• Managers should always model ethical
behavior….remember actions speak louder
than words!!!!
• Treat each employee with respect
• Reject decisions that would damage the
reputation of the business.
7-3 Assessment
1.
Which of the following is NOT a standard of ethical behavior:
1.
2.
3.
4.
2.
3.
It should be lawful
It should not benefit someone while harming someone else
It should not give the company a competitive advantage
It should not result in embarrassment for the company
T/F Managers are responsible for the ethical actions of businesses
Important principles that guide decisions and actions in a company are:
1.
2.
3.
4.
A mission statement
A business plan
Ethical behavior
Core values
Chapter Assignments
• Chapter 7 Assessmt: 4, 5, 11-24 (Def & Ans)
• Chapter 7 Study Guide
Any Questions?
“A leader is one
who knows the way,
goes the way,
and shows the way.”