MANAGEMENT, LEADERSHIP, & ETHICAL PRACTICES. UNIT 4• OPERATING A SMALL BUSINESS EFFECTIVELY. Class Name Instructor Name Date, Semester. Learning Objectives After this lecture, you should be able to complete the following Learning Outcomes.
After this lecture, you should be able to complete the following Learning Outcomes
1. Identify leadership styles.2. Describe the 10 basic tasks handled by managers.3. Develop your organizational culture.4. Determine your organizational structure.5. Understand the functions of human resourcesmanagement.6. Pursue ethical leadership to build an ethicalorganization.7. Incorporate social responsibility into your company.
The Entrepreneur as Leader
Leader – a person who gets things done through influence, by guiding or inspiring others to voluntarily participate in a cause or project.
Leadership – comes from self-esteem applied to knowledge, skills, and abilities.
Leadership Styles That Work
Pro: effective in disasters or with employees who need forceful management
Con: hurts employee morale, creativity
Authoritative—leader sets goal, leads team – “come with me”
Pro: works well if leader is expert
Con: not good if leader is not an expert & is trying to lead people who are
Affiliative—puts people first
Pro: gets employees on board
Con: can fail to give adequate direction
Leadership Styles (cont.)
Democratic—gives employees strong voice in company
Pro: builds morale
Con: can result in endless meetings & stagnation
Pacesetting—sets high standards, challenges employees to meet them
Pro: great when employees are self motivated
Con: can overwhelm less committed employees
Coaching—focuses on helping employees learn & grow
Pro: good with new employees
Con: can create resistance among long-term employees
How Entrepreneurs Pay Themselves
Manage Your Time Wisely
Set realistic goals.
Don’t spend too much time on e-mail.
Avoid letting your attention get caught up in portable electronic devices, such as blackberries and iPhones.
Schedule sit-down meetings only when they will be more efficient than others, less time-consuming, methods of communication.
Only accept meeting invitations where your presence is required in order for progress to occur.
Delegate responsibility and authority, and trust your team to do the right things and do them correctly.
Remember to allow yourself downtime, play-time, and creative thinking time.
Sample Pert Chart
Business Management: Building a Team
What Do Manages Do?
Adding Employees to Your Business
Recruitment – the process of finding and hiring employees.
Possible ways to bring good employees into the business:
Bring them in as partners.
Hire experts to accomplish specific tasks on a contractual or hourly basis.
Hire someone as a part-time or full-time regular employee.
Defining the job
Posting & advertising the job
Screening resumes and/or applications
Recruitment Process (cont.)
Job Profile – the identification of the knowledge, skills, and abilities required to perform the specific tasks of an employment position.
Position Description – the knowledge, skills, and abilities from the job profile, as well as the required reporting and working relationships, and what the position’s goals and objectives will be.
Interview Guide – a document to assist in question development regarding an individual’s knowledge, skills, abilities, and interests.
Behavioral Interview – a dialogue designed to determine the fit of a prospective employee with the requirements of a position, using prior-experience examples.
Job Offer Letter – a formal, written invitation extended by an employer to a candidate selected for hiring that states the basic employment terms; starting date, position, and salary.
Growing Your Team
Executive or Retained Searches
Creating and Managing Organizational Culture
The culture of an organization is the shared beliefs, values, and attitudes among employees – also referred to as “how things are done around here.”
The culture that you create for your business should be a strategically developed translation of your vision and mission into norms, values, and of work environment you want the company to have.
Determining Organizational Structure
Line Organization – a structure where each person reports to a single supervisor.
Line and Staff Organization – a structure that includes the line organization, plus staff specialists (such as lawyers) who assist management.
Span of Control – the number of direct reports to a manager or supervisor.
Chain of Command – hierarchy of communication and authority.
Getting the Best Out of Your Employees
Guidelines to be a good employer:
Human Resources Fundamentals
Human Resources – the segment of a business that hires, trains, and develops a company’s employees.
HR Department Areas:
Human Resources Fundamentals (Cont.)
Labor Law and HR Compliance:
Human Resources Fundamentals (cont.)
Performance Appraisal – the formal process used to evaluate and support employee performance.
Firing and Laying Off Employees
Sometimes you hire someone and it just does not work out, even after repeated attempts to fix the problem.
Firing and Laying Off Employees (cont.)
Sometimes you may have to lay off employees.
Severance – pay that is continued for a limited time upon separation from a company.
Ethical Leadership and Ethical Organizations
Ethics – a system of moral conduct and judgment that helps determine right and wrong.
An Ethical Perspective:
Establishing Ethical Standards
Code of Ethics – a statement of the values of a company.
Code of Conduct – a set of official standards of employee behavior for a company.
Code of Ethics and Business Conduct – a combination of a written statement of values with official standards of employee behavior.
Ethical Relativism- the belief that ethical standards are open to interpretation.
Ethical dilemma – a circumstance in which there is a conflict of ethical values, which thus muddies decision making.
Corporate Ethical Scandals
In 2002 these companies were found to have published false financial statements, inflating their earnings & misleading investors.
Stock investors and employees who had put retirement funds in company stock lost millions.
These scandals were failures of corporate governance: the companies did not have rules & safeguards in place to prevent executives from lying, cheating, & stealing.
- Tax Evasion – the deliberate avoidance of an obligation to pay taxes; may lead to penalties or imprisonment.
- Advisory Board or Advisory Council- a group that provides advice and counsel, but does not have the responsibilities of a board of directors.
Doing the Right Thing in Addition to Doing Things Right.
Balancing the Needs of Owners, Customers, and Employees.
Social Responsibility & Ethics
Corporate Social Responsibility – the ethical obligation of a company to its community.
Social Entrepreneurship – the sale of products or services on a for-profit basis to benefit a social purpose.
In-kind Donation – contribution of products or services that may include time, rather than cash.
Social Responsibility & Ethics (cont.)
Leading with Integrity and By Example
Encourage Your Employees to Be Socially Responsible
Sustainable – scenario in which current needs are met while preserving future resources.
advisory board or council
chain of command
code of conduct
code of ethics
code of ethics and business conduct
corporate social responsibility
job offer letter
line and staff organization
span of control