Essential Standard 2 00 Understand business organization and

Essential Standard 2. 00 Understand business organization and management. 1

Objective 2. 02 Understand leadership and management. 2

Topics • Management • Leadership • Human Resource Management 3

Management 4

Management What is the role of a manager? Managers are responsible for management of a business to accomplish goals by effectively using people and other resources. Describe the five functions of management: Planning To analyze information, set goals based on information, and make decisions to accomplish the goals Organizing To arrange resources in order to accomplish the goals of the business Staffing To obtain, train, and compensate employees to accomplish the goals of the business Implementing To direct and lead people to accomplish the goals of the business Controlling To determine whether a business is accomplishing its goals that were set in the planning stage. 5

Management continued What are the different levels of management? Top Mid-management Supervisors Management by others Describe each level: Top Executives who are responsible for the overall direction of the business Mid-Management Specialists responsible for a specific part of the business Supervisors First level of management in the business Responsible for the routine work of employees Management by others Other employees who are not managers, may serve as leaders for a group of employees 6

Management continued What is management style? The way a manager directs employees to accomplish the goals of the business. Describe the different types of management styles: Tactical Directed and controlling Typically, use for inexperienced employees or during a crisis Strategic Less directed with employees helping with decision making Typically, used with trusted and/or experienced employees Mixed Combination of both tactical and strategic 7

Leadership 8

Leadership What is leadership? The ability to motivate others to effectively accomplish goals of the business. What characteristics to a good leader possess? (Have students name these. The entire list is on the next slide. ) 9

Leadership continued How many did you name? • Intelligence • Judgment • Objectivity • Initiative • Dependability • Understanding • Cooperation • Honesty • Courage • Confidence • Stability 10

Leadership continued What are the different styles of leadership? Leadership styles What is an autocratic leader? Used when a 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 What is a democratic 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 What is an open or Laissez-fare 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 11

Human Resources Manager 12

Human Resources Management What is the role of human resources managers? Human resources managers uses the management process of managing employees who collectively contribute to the achievement of the objectives of the business. What are the functions of human resources management? What is included in each function of human resource management? The functions of human resources management: Planning and staffing – includes planning and job analysis, recruiting and hiring Managing compensation and benefits – includes compensation methods and employee benefits Managing performance of employees – includes employee evaluation and promotions, transfers, and termination. 13

Human Resources Management continued What are the two main parts of planning and job analysis? Classification of employees and determining job requirements. How can employees be classified? Permanent Long term commitment Temporary Hired for a specific time/job Full Time 30 or more hours per week (usually 40+ hours) Part Time Short work week How does a human resource manager determine job requirements? The use of job analysis to determine all the duties for a particular job 14

Human Resources Management continued What are the two main parts of recruiting and hiring employees? The application process and new employee orientation. What is included in the application process? Reviewing applications/resumes Interviewing applicants Checking references of applicants Making a job offer to applicants What is included in new employee orientation? Paperwork Training Mentor Possible probationary period 15

Human Resources Management continued What are the two main parts of managing compensations and benefits? Determining compensation type and benefits What are the different types of compensation? Compensation types Time Wage – Direct payment per hour Salary – Direct payment per week, bi-weekly, or monthly Commission – Percentage of sales Piece Rate – Payment per unit produced Base plus incentive – Direct payment plus performance based pay What are some employee benefits that may be available? Employee benefits Other items given to employee for working. For example, health insurance, vacation time, sick time, dental insurance, etc. 16

Human Resources Management continued What are the two main parts of managing performance of employees? Employee evaluation and employee movement within the company (promotion, transfer, or termination) What is included in employee evaluation? Objective evaluations of employees’ quality of work. Managers and employees are trained on evaluation procedures. Identifies strengths and weaknesses. Postconference tells employee the results. How may an employee transition throughout the company? Promotion Advancement of an employee to a position with greater responsibility Transfer Assignment of the employee to a job in another area with similar responsibility Termination Ends employment relationship 17