Chapter 7
Management
and Leadership
7-1 Management
7-2 Leadership
7-3 Ethical Management
Introduction to Business
© Thomson South-Western
ROLE AND WORK OF MANAGERS
 Who is a manager?
 Management is the process of
accomplishing the goals of an
organization through the effective use
of people and other resources.
 Managers make things happen
Chapter 7
Slide 2
Introduction to Business
© Thomson South-Western
 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 of the activities
involved in obtaining, preparing, and
compensating the employees of a
business.
Chapter 7
Slide 3
Introduction to Business
© Thomson South-Western
 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 to reach in the planning stage.
Duties for specific management functions are
assigned to each manager. Often, due to the
size of a business, several managers may
have individual responsibilities within just one
function.
The management functions are usually divided
among the owners of a partnership.
Chapter 7
Slide 4
Introduction to Business
© Thomson South-Western
MANAGEMENT LEVELS
 Top management –
Executives are top-level managers
with responsibilities for the direction
and success of the entire business.
Held accountable for $$$.
 Job titles include:
chief executive officer, president, chief
operating officer and vice president
Chapter 7
Slide 5
Introduction to Business
© Thomson South-Western
 Mid-management – are specialists with
responsibilities for specific parts of a
company’s operations.
 Examples: marketing manager, customer service
manager, human resources manager, etc.
 Supervisors – are the first level of
management in a business. Responsible for
the work of a group of employees. Plan the
day-to-day work of employees.
 Supervisors spend most of their time
implementing the plans of executives and midmanagers.
Chapter 7
Slide 6
Introduction to Business
© Thomson South-Western
 Management by others – employees
who are not managers complete work
that seems to be a part of one of the
management functions. Employees
plan and organize their work and may
take part in hiring and training.
 Managers are responsible for the work
of others and have authority over those
employees. Without that authority and
responsibility, the work of an employee
is not considered part of management.
Chapter 7
Slide 7
Introduction to Business
© Thomson South-Western
MANAGEMENT STYLES
is the way a manager treats
and involves employees.
Chapter 7
Slide 8
Introduction to Business
© Thomson South-Western
Tactical Management Style
 Managers may be faced with a crises
or under tight time pressure. They
feel they don’t have time to let the
group decide how to complete the task.
 Manager is more directive and controlling.
 Makes major decisions and stays in close
contact with employees to make sure work
is done well.
Chapter 7
Slide 9
Introduction to Business
© Thomson South-Western
Strategic management
 A management style best to use
when the work is routine with a few
new changes.
 Time to bring team together to help plan
work assignment, team members will
prefer being involved in the decisionmaking process.
 Less directive
 Involve employees in decision-making
Chapter 7
Slide 10
Introduction to Business
© Thomson South-Western
 Mixed management
 Combined use of tactical and strategic
management
Chapter 7
Slide 11
Introduction to Business
© Thomson South-Western
WHAT IS A LEADER?
 Leadership is the ability to motivate
individuals and groups to accomplish
important goals.
Chapter 7
Slide 12
Introduction to Business
© Thomson South-Western
Characteristics of Effective Leaders
 Understanding – respecting the feelings and needs of
the people they work with.
 Initiative – having the ambition and motivation to get
work done without being asked.
 Dependability – following through on commitments.
 Judgment – making decisions carefully.
 Objectivity – looking at all sides of an issue before
making a decision.
 Confidence – being willing to make decisions and take
responsibility for the results.
Chapter 7
Slide 13
Introduction to Business
© Thomson South-Western
 Stability – not being too emotional or
unpredictable.
 Cooperation – working well with others,
recognizing others’ strength, and helping to
develop effective group relationships.
 Honesty – being ethical in decision-making
and treatment of others.
 Courage – willing to take reasonable risks
and make unpopular decisions.
 Communication – able to listen, speak, and
write effectively
 Intelligence – having the knowledge and
understanding needed to perform well.
Chapter 7
Slide 14
Introduction to Business
© Thomson South-Western
Preparing to Be a Leader
 Study leadership
 Participate in organizations and
activities
 Practice leadership at work
 Observe leaders
 Work with a mentor
 Do a self-analysis and ask for feedback
Chapter 7
Slide 15
Introduction to Business
© Thomson South-Western
IMPORTANCE OF
HUMAN RELATIONS
 Human relations skills
 Self understanding
 Understanding others – the leader will
not treat everyone alike, but will attempt to
involve each person in the way that is
most beneficial to the business and that
employee.
Chapter 7
Slide 16
Introduction to Business
© Thomson South-Western
 Communication
 Formal/informal  Internal or external
 Vertical or horizontal – vertical is
management to employee, horizontal –
employee to employee or manager to manager.
 Oral or written
 Team building
 Developing job satisfaction
Chapter 7
Slide 17
Introduction to Business
© Thomson South-Western
INFLUENCING PEOPLE
Influence enables a person to
affect actions of others.
 Kinds of influence
 Position influence – employee responds to
leaders request
 Reward influence - $ or job benefits, praise
 Expert influence – leader has expertise in area,
look up to this leader
 Identity influence – personal trust and respect
members have for the leader. If the leader is well
liked and is thought to have the best interests of
the group in mind, members are likely to support
the leader.
Chapter 7
Slide 18
Introduction to Business
© Thomson South-Western
 Formal and informal influence
 Informal influence – usually one or two
people emerge as leaders to help get the
group focused and organized. The
leadership role is not part of a formal
structure.
 Formal influence – there are bylaws that
call for the election of officers. The
personal elected has formal influence
because the leadership position is part of
the organization’s structure.
Chapter 7
Slide 19
Introduction to Business
© Thomson South-Western
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.
Chapter 7
Slide 20
Introduction to Business
© Thomson South-Western
WHAT IS ETHICAL BEHAVIOR?
Ethical behavior is not just the decisions and
actions of a company’s executives and managers.
It involves the actions of every employee.
 It is lawful.
 It is consistent with company values
and policies.
 It does not harm some while
benefiting others.
 If the actions and results become
public, it will not embarrass the
company.
Chapter 7
Slide 21
Introduction to Business
© Thomson South-Western
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.
 Company works to protect the environment
and conserve natural resources.
 Core values – are the important principles that
will guide decisions and actions in the company.
Chapter 7
Slide 22
Introduction to Business
© Thomson South-Western
INCREASING ETHICAL BEHAVIOR
THROUGH LEADERSHIP
 Preparing the organization
 Modeling ethical behavior – The most
important action leaders can take to
emphasize the importance of ethical
behavior in an organization is to
always act ethically.
Chapter 7
Slide 23
Introduction to Business
© Thomson South-Western