Preparing and
Planning to
Manage
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Chapter 14
Preparing and Planning to Manage
Preparing and
Planning to Manage
14.1
Entrepreneur or Manager?
14.2
Management Styles and Skills
2
Preparing and Planning to Manage
14.1
Discuss the difference between the
entrepreneurial role and the management
role of a new business owner.
Identify the key management functions.
List and explain the key elements in a
positive business climate.
Section 14.1 Entrepreneur or Manager?
3
Preparing and Planning to Manage
14.1
To be successful in a new business, an
entrepreneur must perform management functions
and establish a positive working climate.
Section 14.1 Entrepreneur or Manager?
4
Preparing and Planning to Manage
14.1
manager
planning
strategic plans
tactical plans
operational plans
organizing
directing
Section 14.1 Entrepreneur or Manager?
controlling
quality control program
climate
image
team building
communication
5
Preparing and Planning to Manage
Managers, Leadership,
and Teamwork
Each person in a business is a valuable resource.
Everyone works together toward a common goal.
Section 14.1 Entrepreneur or Manager?
6
Preparing and Planning to Manage
Entrepreneur and Manager
Once you open your
business, you wear two
hats: that of an
entrepreneur and that of a
manager.
Section 14.1 Entrepreneur or Manager?
manager a person who
is responsible for
directing and controlling
the work and personnel
of a business, or a
particular department
within a business
7
Preparing and Planning to Manage
Performing Management
Functions
When managers are managing, they use a
series of activities called management functions
to achieve their objectives.
planning
organizing
directing
controlling
Section 14.1 Entrepreneur or Manager?
8
Preparing and Planning to Manage
Planning
The first step in managing
is planning, determining
your business’s objectives
and how you are going to
reach them.
Section 14.1 Entrepreneur or Manager?
planning the act of
setting goals, developing
strategies, and outlining
tasks and timelines to
meet those goals
9
Preparing and Planning to Manage
Planning
The three levels of planning are:
strategic plans
tactical plans
operational plans
Section 14.1 Entrepreneur or Manager?
10
Preparing and Planning to Manage
Planning
Strategic plans are longterm plans that do not
usually include a specific
target date.
Section 14.1 Entrepreneur or Manager?
strategic plans longrange objectives based
on long-term goals used
to map out a business
for three to five years
11
Preparing and Planning to Manage
Planning
Tactical plans are
medium-range plans that
help ensure that you
accomplish specific
objectives to meet your
plans.
Section 14.1 Entrepreneur or Manager?
tactical plans
midrange objectives that
focus on a period of one
year or less, built on
specific objectives with
target dates
12
Preparing and Planning to Manage
Planning
Operational plans are
short-term plans that bring
tactical plans to life.
Section 14.1 Entrepreneur or Manager?
operational plans
short-term objectives
that help achieve tactical
plans, including policies,
rules and regulations,
and budgets for day-today operations
13
Preparing and Planning to Manage
Organizing
Organizing people,
equipment, materials, and
other resources is an
essential part of managing.
Section 14.1 Entrepreneur or Manager?
organizing the
grouping of resources in
combinations that will
help you reach your
objectives
14
Preparing and Planning to Manage
Directing
Directing the efforts of
your people and resources
will help your company
accomplish its planned
objectives.
Section 14.1 Entrepreneur or Manager?
directing the process of
guiding and supervising
employees, often one-onone, while they work
15
Preparing and Planning to Manage
Controlling
The final step in managing,
controlling, helps you take
corrective action if things
are not working out as
planned.
Section 14.1 Entrepreneur or Manager?
controlling the process
of comparing expected
results (objectives) with
actual performance
16
Preparing and Planning to Manage
Controlling
A quality control program
can prevent problems.
Section 14.1 Entrepreneur or Manager?
quality control program
a set of measures built
into the production
process to make sure that
products or services meet
certain standards and
performance requirements
17
Preparing and Planning to Manage
Establishing a
Positive Climate
The climate that exists in a
new business is linked to
the tone the manager sets.
Section 14.1 Entrepreneur or Manager?
climate the prevailing
atmosphere or attitude in a
business
18
Preparing and Planning to Manage
Establishing a
Positive Climate
The three elements of a positive business
climate are:
image
team building
communication
Section 14.1 Entrepreneur or Manager?
19
Preparing and Planning to Manage
Image
To begin building a positive
business climate,
strengthen your company’s
image with customers and
in the community.
Section 14.1 Entrepreneur or Manager?
image the mental picture
and feelings people have
when thinking about a
business or its products or
services
20
Preparing and Planning to Manage
Team Building
Team building contributes
to a positive climate by
allowing employees to
pursue common goals.
Section 14.1 Entrepreneur or Manager?
team building the act of
encouraging teamwork
through activities designed
to foster respect, trust,
cooperation, camaraderie,
and communication
among employees
21
Preparing and Planning to Manage
Communication
Effective staff
communication takes
place in an atmosphere of
respect and trust.
Section 14.1 Entrepreneur or Manager?
communication the
process of exchanging
information
22
Preparing and Planning to Manage
14.1
1. Discuss the difference between the
entrepreneurial role and the management
role of a new business owner.
In the entrepreneurial role, the emphasis is on
starting the business. The management role
focuses on growing and expanding the business
and involves coordinating the people, processes,
and resources.
Section 14.1 Entrepreneur or Manager?
23
Preparing and Planning to Manage
14.1
2. Identify the key management functions.
The key management functions are planning,
organizing, directing, and controlling.
Section 14.1 Entrepreneur or Manager?
24
Preparing and Planning to Manage
14.1
3. List and explain the key elements in a
positive business climate.
The key elements in a positive business climate are
image (the mental picture and feelings people have
when they think about the business), team building
(activities designed to encourage teamwork), and
communication (the process of exchanging
information).
Section 14.1 Entrepreneur or Manager?
25
Preparing and Planning to Manage
14.2
Name the three basic management styles.
List the skills needed for managing.
Explain the principles of management
excellence.
Section 14.2 Management Styles and Skills
26
Preparing and Planning to Manage
14.2
To manage successfully and excel in leadership
situations, you must establish a management style
and draw on a specific set of skills.
Section 14.2 Management Styles and Skills
27
Preparing and Planning to Manage
14.2
situational management
human relations
nonverbal communication
networking
Section 14.2 Management Styles and Skills
time management
conceptual skills
cooperative advertising
advertising agency
28
Preparing and Planning to Manage
Adopting a
Management Style
Management style is the manner in which you
approach your management responsibilities.
Section 14.2 Management Styles and Skills
29
Preparing and Planning to Manage
Adopting a
Management Style
The three styles of management are:
power-oriented
routine-oriented
achievement-oriented
Section 14.2 Management Styles and Skills
30
Preparing and Planning to Manage
Adopting a
Management Style
Good managers use
situational management
as a supplement to their
basic approach.
Section 14.2 Management Styles and Skills
situational management
the style of adapting the
management approach to
particular circumstances
31
Preparing and Planning to Manage
Developing
Management Skills
To manage activities successfully, you must draw
on a specific set of skills.
These skills can be gained through education and
training and improved with practice and
experience.
Section 14.2 Management Styles and Skills
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Developing Management Skills
Fundamental Management Skills
human relations
communication
networking
math
problem solving and decision making
technical
time management
conceptual
Section 14.2 Management Styles and Skills
33
Preparing and Planning to Manage
Human Relations
Human relations skills,
considered the most
important of the
management skills, are
tied closely to
communication skills.
Section 14.2 Management Styles and Skills
human relations the
study of how people
relate to each other
34
Preparing and Planning to Manage
Communication
Nonverbal communication
is one of the communication
skills essential to effective
planning, organizing,
directing, and controlling.
Section 14.2 Management Styles and Skills
nonverbal
communication
communication not
involving words,
transmitted through
actions and behaviors,
such as facial
expressions, gestures,
posture, and eye contact
35
Preparing and Planning to Manage
Networking
You can use business
networking to discuss
mutual opportunities, solve
problems, and share or
maximize resources.
Section 14.2 Management Styles and Skills
networking the process
of building and
maintaining informal
relationships with people
whose friendship could
bring business
opportunities
36
Preparing and Planning to Manage
Time Management
Time management can
help managers because at
any given time, managers
may have several objectives
to accomplish.
Section 14.2 Management Styles and Skills
time management the
process of allocating time
effectively
37
Preparing and Planning to Manage
Time Management
Time management techniques include:
Set and prioritize goals.
Delegate work when possible.
Plan to spend specific blocks of time on specific
activities.
Schedule activities on a planning calendar.
Schedule most important work for times you do your
best work.
Group activities for most efficient use of time.
Handle or eliminate interruptions.
Section 14.2 Management Styles and Skills
38
Preparing and Planning to Manage
Conceptual Skills
As a small business
owner/manager, your
conceptual skills enable
you to appreciate how dayto-day decisions affect your
business’s future.
Section 14.2 Management Styles and Skills
conceptual skills skills
that enable a manager to
understand concepts,
ideas, and principles
39
Principles of Management Excellence
Take action.
Keep operations under control.
Listen to customers.
Keep organization simple, flexible, efficient.
Encourage employees to act independently
Keep business focused on what it does best.
Stress respect.
Instill commitment to values and objectives.
Section 14.2 Management Styles and Skills
40
Preparing and Planning to Manage
14.2
1. Name the three basic management styles
The three basic management styles are poweroriented, routine-oriented, and achievementoriented.
Section 14.2 Management Styles and Skills
41
Preparing and Planning to Manage
14.2
2. List the skills needed for managing.
The skills needed for managing are human
relations, communication, networking, math,
problem solving and decision making, technical,
time management, and conceptual.
Section 14.2 Management Styles and Skills
42
Preparing and Planning to Manage
14.2
3. Explain the principles of management
excellence.
The principles of management excellence are take action rather than
overanalyze plans; listen to customers and put yourself in their shoes;
encourage employees to act independently, be innovative, and treat the
business as if it were their own; stress respect for the individual; instill
commitment to values and objectives by staying in touch with employees;
keep the business focused on what it does best; keep the organization
simple, flexible, and efficient and do not overstaff; and keep operations
under control and keep an eye on detail.
Section 14.2 Management Styles and Skills
43
Preparing and Planning to Manage
Managing a
Virtual Workforce
Technology has made it easier for businesses to have
workers who work out of the office.
Virtual office can help a company save money as workers
telecommute, have e-meetings, and use instant messaging.
Section 14.2 Management Styles and Skills
44
Preparing and Planning to Manage
Tech Terms
e-meeting
a meeting that takes place online or via a telephone conference call
groupware
software designed to be used by more than one person at more than
one location
Section 14.2 Management Styles and Skills
45
Preparing and Planning to Manage
Tech Terms
instant messaging
a software application that allows real-time communication between
two or more people through a network
telecommute
to work outside an office on a computer linked to the workplace via a
modem
Section 14.2 Management Styles and Skills
46
End of
Preparing and
Planning to
Manage
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