Business Management

The Scope of ManagementWhat is management?

What are the specific tasks and responsibilities of management?

What is Management?DEFINITION

TASKS / RESPONSIBILITIES

Ensuring that the business works

Making sure people want your products

Making sure business is running well – prices, profit, customer service

Process – multiple steps & keeps going

QualityPricingCustomer’s needs Imports / exportsMarketingNeed for product

Today’s Objectives We will describe management roles,

functions, and skills.

What is Management? List a word that comes to mind when you hear the

word “management”.

Four Functions of ManagementPlanningOrganizingImplementingControlling

PlanningAnalyzing information and making decisions about what needs to be done

OrganizingDetermining how

plans can be accomplished most effectively

Arranging resources to complete work

Includes staffing

ImplementingCarrying out the

plansHelping employees

to work effectivelyMore day-to-day

management activities

ControllingEvaluating

results to determine if the company’s objectives have been accomplished as planned

Management SkillsWhat are the skills used to efficiently

channel resources and resolve conflict?What types of skills do you think

managers should have?

Skills Managers NeedCommunication SkillsHuman Relations

SkillsTeamwork SkillsProblem-Solving SkillsOrganizational Skills

SummaryWhat is management?What are the Functions of Management?

It is the responsibility of the business owner & managers to define the goals of the company and shape its purpose. Consider the vision & mission statements of some of today’s biggest companies.

Business Management

Last Class . . . We described management roles,

functions, and skills

Today’s Objectives We will identify benefits and limitations of a

variety of leadership and management styles.

We will analyze leadership & management styles in a variety of business situations.

We will compare self-assessment of personal traits with those common to effective managers in various work environments.

Think About It…What makes a good manager?Are managers & leaders the same thing?Think of a good manager/leader you have

worked with. What were some of their attributes that made them good?

What’s the difference?Management Leadership

The skills used to efficiently channel resources and resolve conflict.

The skills that motivate others to accomplish common goals.

How do you become a leader?Let’s consider leadership theories . . .Someone may become a leader by:AuthorityPowerCharisma

AuthorityThis type of leader has

been given the right to achieve the objectives or goals of an organization.This leader’s power is

obtained via appointment.Managers are the

appointed leaders of a business.

PowerThis type of leader has

extensive knowledge or expertise in the field.This leader’s power is

derived from respect.Experts in finance, for

example, are the respected leaders of their field.

CharismaThis type of leader is

able to bring others together and motivate them, usually for a cause.

This leader’s power is derived from emotion.

Many successful activities earned the spotlight because of their charisma.

Regardless of how someone obtained their leadership, each leader demonstrates characteristics of a leadership style.

What’s your style? Take the survey!

http://psychology.about.com/library/quiz/bl-leadershipquiz.htm?utm_term=leadership%20skills%20test%20online&utm_content=p1-main-1-title&utm_medium=sem&utm_source=google&utm_campaign=adid-4fc7815b-7dc2-48e3-8086-e9cf4cf40814-0-ab_gsb_ocode-12559&ad=semD&an=google_s&am=broad&q=leadership%20skills%20test%20online&dqi=leadership%2520assessment%2520test&o=12559&l=sem&qsrc=999&askid=4fc7815b-7dc2-48e3-8086-e9cf4cf40814-0-ab_gsb

Leadership Styles SurveyAll leadership styles are good – one is not

more important or better than another. It is important to understand leadership

styles in order to be able to work with all personality types effectively.

In your group, come up with 3 attributes of your group’s leadership style and a famous person who might share the same style.

Autocratic

Characterized by giving clear and precise directions as to what is to be done.Considered “classic”

leadership.Managers retain as much

power and decision-making as possible.

Using Autocratic LeadershipMost Effective When . . . Should Not Use When . . .

New, untrained staff

Detailed orders and instructions

Limited time to make a decision

Manager’s power is challenged by staff

Staff becomes tense, fearful, or resentful

Staff expects their opinions to be heard

Low staff morale or productivity

High turnover and absenteeism

DemocraticCharacterized by

encouraging workers to share their ideasAllows employees to

make some decisions or give inputKeeps staff informed

about everything that affects their work

Using Democratic LeadershipMost Effective When . . . Should Not Use When . . .

Want to provide opportunities for staff to develop

Want to encourage job satisfaction

Large, complex problems Changes must be made

or problems solved that affect the staff

Want to encourage team building and participation

Not enough time to get everyone’s input

Easier or more cost-effective for the manager to make the decision

Can’t afford mistakes

Staff safety is a critical concern

OpenAlso known as Laissez-

Faire leadershipCharacterized by giving

little or no direction to the employeesEmployees are trusted to

make decisions and resolve problems on their own.

Using Open LeadershipMost Effective When . . . Should Not Use When . . .

Staff is highly skilled, experience, and educated

Staff have pride in their work and the drive to be successful

Outside experts or consultants are used

Staff is trustworthy

Staff feels insecure that the manager is not accessible

Manager cannot provide regular feedback

Manager is unable to thank staff

Manager does not understand his/her own responsibilities

Leadership Style Variations

SituationalA good leader

changes intuitively between styles according to the people they work with and the current situation at hand.Select a style that

best fits the circumstances of the moment!

Given the four situations on your worksheet, decide which style of leadership (autocratic, democratic, or open) would be most effective.

SummaryManagement vs. LeadershipLeadership TheoriesHow does someone become a leader?

Leadership Styles