Understand the nature of business

2.02 Understand Management vs Leadership.

Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

Management

PlanningOrganizingStaffingImplementingControlling

5 Functions of Management

The planning function

◦Analyze information◦Set goals◦Make decisions to accomplish the goals

Planning

◦Identifying the work & resources needed to achieve the goals of the planning stage.

Organizing

The staffing function includes …

◦Recruiting employees◦Training employees◦Paying employees

Staffing

◦Directing and leading people to accomplish the goals of the planning stage.

Implementing

Is the business accomplishing its goals set in the planning stage?

What changes need to bemade? (Restart Cycle)

Controlling

Levels of Management

Management style is the way a manager treats and involves employees

◦Tactical◦Strategic◦Mixed

Management Styles

Directive and controlling Manager makes major decisions Constant monitoring of employees Typically, use for inexperienced employees or during a crisis

Tactical

Limited direct supervision

Team members do decision making

Typically, used with trusted and/or experienced employees

Strategic

Combination of both tactical and strategic

Effective managers can use both styles in order to accommodate different types of employees

Mixed

What is Leadership?

Is It:Leadership is the ability to motivate individuals and groups to accomplish important goals.

Leadership

Intelligence Judgment Objectivity Initiative Dependability Understanding Cooperation Honesty Courage Confidence Stability

Leadership Traits

Autocratic LeaderDemocratic LeaderOpen or Laissez-faire leader

Leadership Styles

The leader needs to give direct, clear, and precise orders and makes decisions

Situations to use style:◦ During an emergency ◦ To direct the work of

inexperienced employees

Autocratic Leader

One who includes employees in making decisions

Situations to use style: ◦To monitor quality of work of employees

◦To direct the work of employees working as a team

Democratic Leader

One who gives little or no direction to employees

Situation to use style:◦To monitor achievements and communicate regularly with employees

◦To direct the work of experienced and trained employees

Open/Laissez-faire Leader

Planning, staffing Recruiting, & hiring Managing compensation and benefits Managing performance of employees

Human Resources Management How Do You Want to Get Paid?

Planning & Staffing◦ Classifying employees

Permanent (W2) Temporary (Contract) Full Time

30 or more hours per week (usually 40+ hours)

Part Time Less than 30 hours per week Limited or no benefits

Planning, Staffing, Recruiting, Hiring

Planning & Job Staffing◦ Determining job requirements:

Determine all the duties for a particular job

Recruiting and hiring employees Reviewing applications/resumes Interviewing applicants Checking references of applicants Making a job offer to applicants

Planning, Staffing, Recruiting, Hiring

Recruiting & Hiring◦ New employee orientation

Paperwork Training Mentor

Planning, Staffing, Recruiting, Hiring

Compensation method◦ Hourly Wage – Direct payment per hour Time and Half for Over Time

◦ Salary – Set payment Yearly (No OT)

◦ Commission – Percentage of sales◦ Piece Rate – Pay per unit produced◦ Base plus incentive – Direct payment plus

performance pay.

Managing Compensation & Benefits

Employee benefits◦ Other items given to employee for

working. ◦ For example, health insurance,

vacation time, sick time, dental insurance, etc.

Managing Compensation & Benefits

Retirement

What is a 401k Plan?What is a Pension Plan?

Why would a company want to keep paying you after you retire

and no longer work there?

Managing Compensation & Benefits