10/3/2015 1 Management & Leadership. 2 10/3/2015 Role & Work of Managers Responsibility for the success or failure of a business. Managers receive recognition.

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Management & Leadership

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Role & Work of Managers

Responsibility for the success or failure of a business.

Managers receive recognition & other rewards when a business meets its goals

They are also held accountable when goals are not met

People who want to experience the risks & rewards of business often become managers.

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Management

Process of accomplishing the goals of an organization through the effective use of people & other resources

Managers make things happen in a business

What do Managers Do?

Every manager has specific job duties Must complete similar activities no matter what the size or type

of business. Work can be organized within five functions listed on next page

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Five functions of a manager

1. Planning – analyzing information, setting goals, & making decisions

2. Organizing – identifying & arranging the work & resources needed to achieve the goals that have been set

3. Staffing – obtaining, preparing, & compensating the employees of a business

4. Implementing – effort to direct & lead people to accomplish the planned work of the organization

5. Controlling – determines to what extent the business is accomplishing the goals it set out to reach in the planning stage

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Depending on the size of the business, the managers responsibilities will vary

As a business grows, other employees will be moved into management positions

Managers must make decisions, solve problems, respond to competition, & develop new strategies

The efforts of each manager impact the work of others & the results achieved by the business.

Effective managers motivate employees to do their best work

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Management levels

Unless a business is very small, there will be several managers with responsibilities for leading the business

Most organizations have three levels of managers:

1. Top management (executives)2. Mid-management3. Supervisors

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Top Management

Executives- top-level managers with responsibilities for the direction & success of the entire business.

Set long-term direction & plans

Held accountable for the profitability & success of the business.

Spend most of their time on planning & controlling activities. Study the economy & competition

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Mid-Managers

Specialists with responsibilities for specific parts of a company’s operations

Examples: marketing manager, IT manager, customer service manager, operations manager, & HR manager

Take the company’s business plan & prepare specific plans for their part of the business

Work must be coordinated with other managers

Supervisors

First level of management

Responsible for the work of a group of employees

Play the day-to-day work of the employees they supervise

Make sure that needed resources are available & used wisely

Evaluate the work of their employees & solve problems that occur in their area

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Management by others

Employees that are not managers may complete work that seems to be a managers job

Interviews, training, evaluating quality of work, lead a project

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Management styles

The way a manager treats & involves employees

Sometimes a style is chosen based on the characteristics of the employees being managed

Other times, it is based on the work assignment

Experienced & effective managers can change their management style based on the urgency of the work to be done & the confidence the manager has in the employees

Styles Tactical management Strategic management Mixed management

Tactical management

Manager is more directive & controlling

They will make major decisions & stay in close contact with employees while they work to ensure it’s done well

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Strategic management

Managers are less directive & involve employees in decision making

A manager using a strategic style will trust employees to work without direct supervision & will seek their advice on important decisions

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Mixed management

Combined use of tactical & strategic management

Effective managers are prepared to use both management styles

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Leadership

Ability to motivate individuals & groups to accomplish important goals

When a manager can get individual employees & groups to work well together to accomplish objectives, they are an effective leader

When employees feel that they are not involved in decisions & are not valued by the business, they will not be as committed to the work

People are the most important resource of a business. Cost of hiring training, & paying employees is one of a business’s highest expenses

If employees are not satisfied, they might not perform the work correctly, may not treat customers well, or may quit

These problems cost the company money & may require hiring & training new employees

Managers must involve employees & find ways to meet employee needs as well as business needs.

Characteristics of Effective Leaders

1. Understanding2. Initiative3. Dependability4. Judgment5. Objectivity6. Confidence7. Stability8. Cooperation9. Honesty10. Courage11. Communication12. Intelligence

Preparing to be a leader

You shouldn’t wait until you become a manager to begin developing leadership skills

Study leadership Participate in organizations & activities Practice leadership at work Observe leaders Work with a mentor Do a self-analysis & ask for feedback

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Importance of human relations

The way people get along with each other

Managers & leaders must be able to work well with other people

Human relations largely determines whether a manager is successful or not

Human relations skills Self-understanding Understanding others Communication Team building Developing job satisfaction

Communication

Formal or informal Formal – established & approved by the organization Informal – common but unofficial ways that information moves in an organization

Internal or external Internal – between employees & managers External – w/customers, suppliers, etc.

Vertical or horizontal Vertical – w/people up or down in an organization Horizontal – move across the organization at the same level

Oral or written

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Influencing people

Enables a person to affect the actions of others

Kinds of influence

Position influence - Because of leadership position, managers are able to get others to complete tasks

Reward influence – give or withhold rewards (money/job benefits) Expert influence – workers look to a manager for guidance based

on their experience Identify influence – personal trust & respect members have for

the leader

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Formal & informal influence

Informal- leadership role is not part of a formal structure. People emerge as a leader when placed into groups.

Formal- leadership position is part of the organization’s structure. People get elected as an officer.

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Ethical management

Importance of ethical behavior Individuals & businesses develop reputations based on their

actions & decisions they make

When an individual or company develops that reputation, others will be reluctant to trust them or work with them.

Ethics – principles of conduct governing an individual or group Ethical business practices – ensure that the highest standards of

conduct are observed

Ethical behavior meets several standards:1. It is lawful

2. It is consistent with company values & policies

3. It does not harm some while benefiting others

4. If the actions & results become public, it will not embarrass the company

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Increasing ethical behavior through leadership Leaders must take actions to prevent unethical behavior

It is the managers duty to create an atmosphere in which all employees know they are expected to act ethically

The employees must know they will be supported when they make the right decision

Leaders should make clear that unethical behavior is unacceptable & will be punished it is occurs.