Leadership & Management

Management Defined | Functions of Business | Functions of Management | Management Levels | Management Styles | Decision Making Process | Vision ~ Mission ~ Values | Leadership | Human Relations | Review/Resources

Management Defined

What is Management? Management is the process of accomplishing the goals of an organization through the effective use of people and other resources. It is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. Management also includes recording and storing facts and information for later use or for others within the organization. Management functions are not limited to managers and supervisors.

At the annual Peter Brojde Leadership Lecture, Karl Moore talks with Sir Richard Branson in front of a full house of over 800 McGill students, faculty, and alumni.

Functions of Business

key functions of buisnessA business function is a process or operation that is performed routinely to carry out a part of the mission of an organization. Every business performs five key functions that provide stability and support continuing growth of the business. The business functions all work together to create and operate a business. Without any of the essential functions, a business would cease being a business and failure would be the result.

Try to image a business operating without one of the key functions. Business need to sell and market their product or service. They need to keep track of the finances and pay their bills. They have to deliver or create the product and they need people to do it. And where would a business be without leadership? All of the functions need each other for a business to operate successful and in the black (generating a profit).

A change in one or a need in one department can affect other departments with the business. For example, a furniture maker's sales have been decreasing so the accounting and finance department have noticed the drop in sales. If the products are too-high priced than more efficient procedure will have to be implemented. This will involve management and production and a new marketing plan may be required. Accounting and finance will have to closely monitor the effects that the new efforts have on profits.

The Functions of Management

wheel of function

A Manager's work is organized in five separate functions. Those functions are Planning, Organizing, Staffing, Directing/Implementing, and Controlling. The functions of management are a process where each function builds on the others. Managers must first plan. Then they organize based on the plan. Then they can lead others to carry out the plan and then finally they are able to evaluate the effectiveness of the plan.

Planning. Planning involves analyzing information, setting goals for the company, and making decisions about what needs to be done in the future. The manager must plan on marketing and promotions strategy, business policies, pricing, staffing and many other issues that affect the business firm. Managers decide on the courses of actions the business need to take and how it should be done.

Organizing. Organizing is the identification and arranging the work and resources needed to achieve the goals that have been set. Business is all about people; handling, influencing and persuading them. Managers know the importance of having an outstanding human resource. Thus, they must exert effort in finding the best person for the job at hand. Organizing includes long and stressful screening and sometimes bargaining processes.

Staffing. Staffing includes all of the activities involved in obtaining, preparing, and compensating the employees. This includes hiring and firing. Staffing is 'putting people to jobs.' A manager must spend time evaluating his or her workforce needs, discovering where employees need to be added, trained, or removed, and then making those changes so that the organization can continue business as usual.

Directing. Directing, sometimes referred to as implementing, is the effort to direct and lead people to accomplish the planned work of the organization. Directing is nothing but guiding and leading the people in an organization. It is a complex function of management that ensures the employees work effectively and efficiently.

Controlling. Controlling determines to what extent the business is accomplishing the goals it set out to reach in the planning stage. Managers must make sure that plans are carried, problems are solved and the needs of the company and customers are dealt accordingly. Managers are also keen on the progress of the business and they must ensure that the company is on the right track.

Sometimes the functions of staffing and directing are combined into the same category.

Assignment: Wheel of Function

Directions: Students will name the 5 functions of management and give a brief explanation and description of each. Download the Wheel of Function Project to get started. Upload your finished product in itsLearning by either taking quality pictures of your wheel or submitted the digital wheel.

Management Levels

Managers make things happen in business. Managers are responsible for the success and failure of a business. Many different positions within a business may not include the name manager but do have the same responsibilities:

Every manager has specific job duties, but every manager must complete similar tasks, no matter what the size or type of business. Managers’ work is organized in five separate functions. Those functions are Planning, Organizing, Staffing, Directly/Implementing, and Controlling.

Unless a business is very small, management generally falls into a hierarchy with different responsibilities. The roles and responsibilities a particular manager has correlates to their position in the organization.

Top Management. The first level of management is called top-level management. Executives are top-level managers with responsibilities for the direction and success of the entire business. They set the company’s long term direction and plans. They are held accountable for the profits of the company. Executives spend a majority of their time on planning and controlling activities.

Mid-Managers. The second layer of management is called middle-level management. This level of manager report to top management and serve as the head of major departments and their specialized units. Middle managers serve as a liaison between top managers and the rest of the organization from a very unique standpoint. Mid-managers are specialists with responsibilities for specific company operations. Examples of mid-managers are marketing managers, human resource managers, and customer service manager. They follow the plans set forth by the Executives. Most of their time is devoted to organizing, staffing, and implementing functions.

Supervisors. The third and final layer of management is called low-level management. Low-level managers work most closely with the greater workforce and hold a much more interpersonal role than any of the other levels of management. Supervisors are the first level of management in a business. They are responsible for managing a group of employees on a day-to-day basis. Supervisors often evaluate the performance of employees based on their work. They spend most of their time implementing the plans of Executives.

Management Styles

Choosing the right style of management is so important and influential to an organization's success. With 75% of employed people surveyed suggesting they left their last job because of the manager, not the position itself. Put simply, people leave managers not companies. Management is not easy. Getting people of different backgrounds, personalities and experiences to work together is a challenge. Managers must choose the style that works best for their personality, their profession, and their employees' personalities. Management style is the way a manager treats and involves their employees.

Tactical Management. Tactical Management is a style in which the manager is directive and controlling. The manager will make the major decisions and stay in close contact with employees while they are working. This style is beneficial to a manager overseeing inexperienced employees or a group of new employees who do not know the manager’s style.

Strategic Management. Strategic Management is a style in which managers are less directive and involve the employees in decision making. A manager using Strategic Management will trust employees to work without direct supervision and will seek their advice. This style is often used with experienced, long term employees or employees who know their work process in-depth.

Mixed Management. Mixed Management is the combination of both the Tactical and Strategic management styles. Effective managers must be able to work with both management styles, as employees are always changing, but some will stay for years. This helps eliminate frustration from employees on both sides.

Assignment: Question for Thought 3.1

Directions: Which type of management style would you prefer your manager to have? Why? Compose a short essay (~150 words) answering those questions. Place your essay directly in the itsLearning textbox (do not attach a separate document). Be sure to proofread your essay.

Assignment: Is Management for Me?

Directions: Examine the pros and cons of taking a management path in your career. Read the article Is Management for Me?. Compose a short essay (~250 words) explaining why management is for you or is not for you. Cite two examples from the article to support your reasons. Place your essay in the itsLearning textbox (do not attach a separate document). Be sure to proofread.

Decision Making Process

decisionsA decision is a choice between two or more alternatives. If you only have one alternative, you do not have a decision. Webster’s Dictionary adds some richness to the idea of choice by introducing the idea of uncertainty. It has this to say about the word "decide", the root of "decision".

rational decision making processWhen making decisions in business situations, first analyze the problem and then use the information to make informed decisions using the decision making process.

Steps in the Decision Making Process

Assignment: Decision Making Activity

Directions: You are part of a team of Vice Presidents at MonsterMan, Inc. The CEO (Chief Executive Officer) and CFO (Chief Financial Officer) have come to the conclusion that in order for the company to keep from going under (out of business) cuts in expenses have to be made. One of these expenses is the company’s Salary Expense, meaning that you will have to lay some employees off. Your group needs to decide who to lay off from the employees listed below. The CFO has calculated that the company needs to cut at least $100,000 in salary expenses. The CEO wants to know why you chose these employees. Who will you lay off? WHY? What are the reasons to support your decision? Download the assignment from itsLearning.

Vision, Mission & Values

vision, mission, goal setting

A mission statement is a key tool that can be as important as your business plan. It captures, in a few succinct sentences, the essence of a business's goals and the philosophies underlying them. The mission statement signals what the business is all about to its customers, employees, suppliers and the community.

Red Cross mission statement

The mission statement reflects every facet of the business: the range and nature of the products it offer, pricing, quality, service, marketplace position, growth potential, use of technology, and the relationships with customers, employees, suppliers, competitors and the community. "Mission statement help clarify what business you are in, your goals and your objectives," says Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies.

Read some of the mission statements of established companies at Missionstatement.com.

Do you have a vision of where your company will be in three years? In five? 10? Vision Statements define the organizations purpose like a mission statement, however a mission statement is today and a vision statement is tomorrow. Vision statements do so in terms of the organization's values rather than bottom line measures. . The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, the vision statement shapes customers' understanding of why they should work with the organization.

Rite Aid Corportation's core valuesCreating a Company Vision.

Values are guiding beliefs about how things should be done. Core Values are the important principles that will guide decisions and actions in the company.

Assignment: Mission & Vision Statements

Directions: It is time to do a little bit of investigating. Use your research skills to find the websites for at least five companies (of any size). Locate their mission statement and vision statement. Explain how the mission statement tells what the company does "today" and the vision statement tells what the company wants to do in the future. Download the comparison chart from itsLearning and use it to submit your findings.


Click on the picture to watch the video

If you are a manager, you might think that all you will need to do the job successfully are some natural leadership qualities. As a leader, manager or supervisor, your goal is to get your department or group working together like a team. Your results will be better if your group is cohesive, communicating effectively and working towards the same goal. Trust, better ideas, increased productivity, and success are just a few reasons why teamwork is important. Everyone--the team members, your organization and you--is a winner when the team works together.

Not all managers are leaders and not all leaders are managers. Manager becomes a manager by virtue of her or her position within a company. Management is about efficiency and getting results through systems, processes, procedures, controls and structure. They carry out the management functions of the business and subordinates do as they are instructed according to the chain of command. Individual can become a leader because the basis of leadership is on personal qualities. A leader will show passion and personal investment in the success of his or her followers reaching their goals. People are willing to follow the leader because of who he or she is and what the leader stands for. Others will follow leaders because they are visionary, change-savvy, creative, agile and adaptive.

Steve Jobs' Management and Leadership Speech

Watch the personal Interview with Steve Jobs about his management style. Managing people. Leadership. Steve Jobs talks about managing an organization. Steve Jobs talks about managing people within an organization. Leadership qualities. Leadership skills. Steve Jobs leadership traits. Build an organization which eventually builds itself, success is the result of Passion & People around you. Management lessons. Life advice. Steve Jobs' life. Steve Jobs' autobiography. Steve Jobs' creativity, ideas, advice. Steve Jobs explains the rules of success. Steve Jobs summary of mindset. Get inside Steve Jobs' mind.

Simon Sinek: How Great Leaders Inspire Action

Simon Sinek presents a simple but powerful model for how leaders inspire action, starting with a golden circle and the question "Why?" His examples include Apple, Martin Luther King, and the Wright brothers -- and as a counterpoint Tivo, which (until a recent court victory that tripled its stock price) appeared to be struggling.

Click on the picture to watch the video

You don't have to be a manager to be a leader or to learn leadership skills. Steps to learning leadership skills:

Assignment: Managers & Employees discussion board

Directions: Managers are responsible for the actions of their employees. Should you be held responsible if your employee does something that harms the business? Post your response to the discussion board in itsLearning. Read the posts from other class members and respond to at least one other post.

Assignment: Question for Thought 3.2

Directions: What characteristics do great leaders have? Why are these characteristics important to being a leader? Compose a short essay (150-200 words) answering those questions. In addition, support your responses with at least one citation of the three leadership videos in the lesson (Kerstin Plehure, Steve Jobs, and Simon Sinek). Place your essay directly in the itsLearning textbox (do not attach a separate document). Be sure to proofread your essay.

Human Relations

Human relations is the way people get along with one another. Studies show that managers spend around 60% of their time interacting with other people at work. Managers must be able to get along with others and help employees learn how to get along with others. The five most important human relations skills are:

Self Understanding. To be able to meet the expectations of others, leaders must first understand their own strengths and weaknesses. A manager cannot always make the popular choice, he sometimes has to be the bad guy, but he also cannot seem unpredictable. A leader must understand why he or she makes the decisions they do, what about them caused them to make that choice, and understand why they were effective.

Understanding Others. chart with company business planA leader must be able to recognize the strengths and similarities of his employees that will help them work well together, as well as the weaknesses and differences that may cause them not to be successful as a group. A leader cannot treat everyone the same, but he must attempt to involve each person in a way that is beneficial.

Communication. Leaders or managers must be skilled in several types of communication, including:

Team Building. The combined skills of a group or team will always produce greater results than one person working individually. If group members do not get along the team cannot be effective. Managers must help people with conflicts see how to work well together and the benefits of doing so.

Developing Job Satisfaction. The environment a manager creates influences a worker’s job satisfaction greatly. Sources of displeasure at work include assignments employees do not like, poor working conditions, and lack of recognition.

In addition to the five human relation skills, managers must be aware that they influence others. Effective leaders must be able to influence others, or be able to affect the actions of others. Leaders are able to create several types of influence:

What happens when a teacher assigns a project and the groups get together for the first time? Usually a leader will emerge. Someone will take charge. There may a leader with informal influence. Information influence is when one or two people emerge from a group as leaders and help get things organized. Other times, a leader is assignment. Formal Influence is when a person is elected as the leader of the group by his or her peers.

Ethical Management

Ethics are the principles of conduct governing an individual or a group. Ethical business practices ensure that the highest standards of conduct are observed in a company’s relationships with everyone. Managers are responsible for the ethical actions of a business. The two components of ethical behavior are:Business woman with open book

Ethical behavior meets several standards:

Assignment: Question for Thought 3.3

Directions: Human Relations Strengths & Weaknesses. To demonstrate self understanding, write a brief summary, no more than one page, of what you believe are your skills when working with others. What do you believe are your human relations strengths? Weaknesses? What are some situations where you get along with others in a group? When do you not get along with them? Why do you believe you act this way? Place your essay directly in the itsLearning textbox (do not attach a separate document). Be sure to proofread your essay.

Assignment: Functions of Management & Leadership Worksheet

Directions: Complete the worksheet in itsLearning. After you complete the worksheet you will be ready to take the assessment.

Future Business Leaders of America

Student organizations in Career and Technical education provide students an opportunity to learn about the importance of core values, leadership development, and career possibilities. Future Business Leaders of America-Phi Beta Lambda, Inc. (FBLA-PBL) is the largest career student business organization in the world. Each year, FBLA-PBL helps over 230,000 members prepare for careers in business. FBLA-PBL inspires and prepares students to become community-minded business leaders in a global society through relevant career preparation and leadership experiences.

If you are interested in developing leadership, communication, and team skills, or simply looking for an organization to meet and network with others at the local, state and national levels, then FBLA-PBL is the organization for you.

Read more about FBLA-PBL at https://www.fbla-pbl.org/ and about Georgia FBLA at http://georgiafbla.org/.

Mrs. Rush has been an FBLA adviser for over 20 years. If you are not a member of FBLA, you should check out the FBLA at your base school and see how you can get involve.


Quiz created by Shannon Anderson-Rush with GoConqr

If you are having problems viewing this page, opening videos, or accessing the URLs, the direct links are posted below. All assignments are submitted in itsLearning. If you have having problems, contact Mrs. Rush through the itsLearning email client.


Peter Brojde Leadership Lecture: http://www.youtube.com/watch?v=DCXOnloZyYk

Female Leadership video: http://www.youtube.com/watch?v=c_qAs_b1zYM

Steve Jobs' Management Style video: http://www.youtube.com/watch?v=spSCnp4VjXw

Simon Sinek: How Great Leaders Inspire Action video: http://www.youtube.com/watch?v=qp0HIF3SfI4

Transcript: http://mrsrush.net/ibt/management/index.pdf


"How to Write Your Mission Statement", Entrepreneur: http://www.entrepreneur.com/article/65230#

"Mission Statements and Vision Statement", Mind Tools: http://www.mindtools.com/pages/article/newLDR_90.htm

Transcript of this lesson