Preparing and Planning to Manage

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Chapter 14

Preparing and Planning to Manage

Preparing and Planning to Manage

14.1

Entrepreneur or Manager?
Management Styles and Skills

14.2

Preparing and Planning to Manage

14.1

Discuss the difference between the entrepreneurial role and the management role of a new business owner. Identify the key management functions. List and explain the key elements in a positive business climate.

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To be successful in a new business, an entrepreneur must perform management functions and establish a positive working climate.

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14.1

manager planning strategic plans tactical plans operational plans organizing directing

controlling quality control program climate image team building communication

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Managers, Leadership, and Teamwork

Each person in a business is a valuable resource.
Everyone works together toward a common goal.

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Entrepreneur and Manager

Once you open your business, you wear two hats: that of an entrepreneur and that of a manager.
manager a person who is responsible for directing and controlling the work and personnel of a business, or a particular department within a business

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Performing Management Functions

When managers are managing, they use a series of activities called management functions to achieve their objectives.
planning organizing

directing

controlling

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Planning
The first step in managing is planning, determining your businesss objectives and how you are going to reach them.
planning the act of setting goals, developing strategies, and outlining tasks and timelines to meet those goals

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Planning
The three levels of planning are:
strategic plans tactical plans operational plans

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Planning
Strategic plans are longterm plans that do not usually include a specific target date.
strategic plans longrange objectives based on long-term goals used to map out a business for three to five years

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Planning
Tactical plans are medium-range plans that help ensure that you accomplish specific objectives to meet your plans.
tactical plans midrange objectives that focus on a period of one year or less, built on specific objectives with target dates

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Planning
Operational plans are short-term plans that bring tactical plans to life.
operational plans short-term objectives that help achieve tactical plans, including policies, rules and regulations, and budgets for day-today operations

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Organizing
Organizing people, equipment, materials, and other resources is an essential part of managing.
organizing the grouping of resources in combinations that will help you reach your objectives

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Directing
Directing the efforts of your people and resources will help your company accomplish its planned objectives.
directing the process of guiding and supervising employees, often one-onone, while they work

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Controlling
The final step in managing, controlling, helps you take corrective action if things are not working out as planned.
controlling the process of comparing expected results (objectives) with actual performance

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Preparing and Planning to Manage

Controlling
A quality control program can prevent problems.
quality control program a set of measures built into the production process to make sure that products or services meet certain standards and performance requirements

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Preparing and Planning to Manage

Establishing a Positive Climate

The climate that exists in a new business is linked to the tone the manager sets.
climate the prevailing atmosphere or attitude in a business

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Establishing a Positive Climate

The three elements of a positive business climate are: image team building communication

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Image
To begin building a positive business climate, strengthen your companys image with customers and in the community.
image the mental picture and feelings people have when thinking about a business or its products or services

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Team Building
Team building contributes to a positive climate by allowing employees to pursue common goals.
team building the act of encouraging teamwork through activities designed to foster respect, trust, cooperation, camaraderie, and communication among employees

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Preparing and Planning to Manage

Communication
Effective staff communication takes place in an atmosphere of respect and trust.
communication the process of exchanging information

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Preparing and Planning to Manage

14.1

1. Discuss the difference between the entrepreneurial role and the management role of a new business owner.
In the entrepreneurial role, the emphasis is on starting the business. The management role focuses on growing and expanding the business and involves coordinating the people, processes, and resources.
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Preparing and Planning to Manage

14.1

2. Identify the key management functions.

The key management functions are planning, organizing, directing, and controlling.

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Preparing and Planning to Manage

14.1

3. List and explain the key elements in a positive business climate.

The key elements in a positive business climate are image (the mental picture and feelings people have when they think about the business), team building (activities designed to encourage teamwork), and communication (the process of exchanging information).
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14.2

Name the three basic management styles. List the skills needed for managing. Explain the principles of management excellence.

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Preparing and Planning to Manage

14.2

To manage successfully and excel in leadership situations, you must establish a management style and draw on a specific set of skills.

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14.2

situational management human relations nonverbal communication networking

time management conceptual skills cooperative advertising advertising agency

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Adopting a Management Style

Management style is the manner in which you approach your management responsibilities.

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Adopting a Management Style

The three styles of management are:
power-oriented routine-oriented achievement-oriented

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Adopting a Management Style

Good managers use situational management as a supplement to their basic approach.
situational management the style of adapting the management approach to particular circumstances

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Preparing and Planning to Manage

Developing Management Skills

To manage activities successfully, you must draw on a specific set of skills. These skills can be gained through education and training and improved with practice and experience.

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Developing Management Skills

Fundamental Management Skills
human relations communication networking

math
problem solving and decision making technical time management conceptual
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Human Relations
Human relations skills, considered the most important of the management skills, are tied closely to communication skills.
human relations the study of how people relate to each other

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Communication
Nonverbal communication is one of the communication skills essential to effective planning, organizing, directing, and controlling.
nonverbal communication communication not involving words, transmitted through actions and behaviors, such as facial expressions, gestures, posture, and eye contact

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Networking
You can use business networking to discuss mutual opportunities, solve problems, and share or maximize resources.
networking the process of building and maintaining informal relationships with people whose friendship could bring business opportunities

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Time Management
Time management can help managers because at any given time, managers may have several objectives to accomplish.
time management the process of allocating time effectively

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Time Management
Time management techniques include:
Set and prioritize goals. Delegate work when possible. Plan to spend specific blocks of time on specific activities. Schedule activities on a planning calendar. Schedule most important work for times you do your best work. Group activities for most efficient use of time. Handle or eliminate interruptions.
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Conceptual Skills
As a small business owner/manager, your conceptual skills enable you to appreciate how dayto-day decisions affect your businesss future.
conceptual skills skills that enable a manager to understand concepts, ideas, and principles

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Principles of Management Excellence

Take action. Keep operations under control. Listen to customers. Keep organization simple, flexible, efficient. Encourage employees to act independently

Keep business focused on what it does best.

Stress respect. Instill commitment to values and objectives.
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Preparing and Planning to Manage

14.2

1. Name the three basic management styles

The three basic management styles are poweroriented, routine-oriented, and achievementoriented.

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Preparing and Planning to Manage

14.2

2. List the skills needed for managing.

The skills needed for managing are human relations, communication, networking, math, problem solving and decision making, technical, time management, and conceptual.

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14.2

3. Explain the principles of management excellence.

The principles of management excellence are take action rather than overanalyze plans; listen to customers and put yourself in their shoes; encourage employees to act independently, be innovative, and treat the business as if it were their own; stress respect for the individual; instill commitment to values and objectives by staying in touch with employees; keep the business focused on what it does best; keep the organization simple, flexible, and efficient and do not overstaff; and keep operations under control and keep an eye on detail.

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Preparing and Planning to Manage

Managing a Virtual Workforce

Technology has made it easier for businesses to have workers who work out of the office. Virtual office can help a company save money as workers telecommute, have e-meetings, and use instant messaging.

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Tech Terms
e-meeting a meeting that takes place online or via a telephone conference call groupware software designed to be used by more than one person at more than one location

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Tech Terms
instant messaging a software application that allows real-time communication between two or more people through a network telecommute to work outside an office on a computer linked to the workplace via a modem

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Preparing and Planning to Manage

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