CHAPTER
7
Management and
Leadership
7-1
Becoming an Entrepreneur
7-2
Small Business Basics
7-3
Starting a Small Business
SLIDE 1
7-1 Management Functions and
Styles
Goals
1. Define
the five functions of management
2. Describe
the levels of management in
businesses and organizations
3. 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
business

Implementing – 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?
 planning
 organizing
 staffing
 implementing
 controlling
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 operation

Work with a companies business plan once it is approved
Management Levels


Supervisors

The first level of management in a business

Responsible for the day-to-day work of a small group of
employees
Management by Others

Employees plan and organize their work

Hiring 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 Management

A 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 well
Strategic 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 Leadership
Goals
1.
Describe the need for leadership skills and the
characteristics of an effective leader
2.
Identify the human relation skills needed by
manager and leaders
3.
Recognize 4 types of leadership influence
What is Leadership

The ability to motivate individuals and groups to
accomplish important goals

Need for Leadership

Expected to find ways to meet employee needs as well as
business needs.

Mangers must be effective leaders
Characteristics of an
Effective Leader

Understanding

Stability

Initiative

Cooperation

Dependability

Honesty

Judgment

Courage

Objectivity

Communication

Confidence

Intelligence
Preparing to be a Leader

Study Leadership


Participate in Organization Activities


Books/Courses on the subject of leadership can help you
understand what it takes to be a leader
Clubs, teams, and organization need leaders and offer a
variety of opportunities
Practice Leadership at Work

Develop leadership skills as you help customers, complete
work assignments, take initiative to solve problems
Preparing to be a Leader

Observe Leaders


Work with a mentor


Everyday you can observe people in leadership positions in
your school or community.
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 feedback

Find 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 other

Self Understanding


Leaders 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 People

Kinds 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 influence

Informal – 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
1. Justify
the need for ethical management
2. 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 groups
 The
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.