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14
Preparing and
Planning to Manage
Section
14.1
Entrepreneur or Manager?
Section
14.2
Management Styles and Skills
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Section Objectives
•
•
•
Describe the difference between the entrepreneurial role and
the management role of a new business owner.
Identify the management functions.
List and explain the key elements in a positive business climate.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
The Main Idea
To be successful in a new business, an entrepreneur must perform
management functions, establish a positive working climate, and
maintain an entrepreneurial perspective.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Content Vocabulary
manager
planning
strategic plans
tactical plans
operational plans
organizing
directing
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
controlling
quality control program
climate
image
team building
communication
SECTION
14.1
Entrepreneur or
Manager?
Managers, Leadership, and Teamwork
Each person in a business is a valuable resource.
Everyone works together toward a common goal.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Entrepreneur and Manager
Once you open your
business, you wear two
hats: that of an
entrepreneur and that of a
manager.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
manager
a person who is responsible for
directing and controlling the work
and personnel of a business, or a
particular department within a
business
SECTION
14.1
Entrepreneur or
Manager?
Performing Management Functions
When managers are managing, they use a series of activities
called management functions to achieve their objectives.
planning
organizing
directing
controlling
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Planning
The first step in managing
is planning, determining
your business’s objectives
and how you are going to
reach them.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
planning
the act of setting goals,
developing strategies, and
outlining tasks and timelines to
meet those goals
SECTION
14.1
Entrepreneur or
Manager?
Planning
The three levels of planning are:
•
•
•
strategic plans
tactical plans
operational plans
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Planning
Strategic plans are longterm plans that do not
usually include a specific
target date.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
strategic plans
long-range objectives based on
long-term goals used to map out a
business for three to five years
SECTION
14.1
Entrepreneur or
Manager?
Planning
Tactical plans are mediumrange plans that help
ensure that you accomplish
specific objectives to meet
your plans.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
tactical plans
midrange objectives that focus on
a period of one to three years,
built on specific objectives with
target dates
SECTION
14.1
Entrepreneur or
Manager?
Planning
Operational plans are
short-term plans that bring
tactical plans to life.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
operational plans
short-term objectives that help
achieve tactical plans, including
policies, rules and regulations,
and budgets for day-to-day
operations
SECTION
14.1
Entrepreneur or
Manager?
Organizing
Organizing people,
equipment, materials, and
other resources is an
essential part of managing.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
organizing
the grouping of resources in
combinations that will help you
reach your objectives
SECTION
14.1
Entrepreneur or
Manager?
Directing
Directing the efforts of your
people and resources will
help your company
accomplish its planned
objectives.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
directing
the process of guiding and
supervising employees, often oneon-one, while they work
SECTION
14.1
Entrepreneur or
Manager?
Controlling
The final step in managing,
controlling, helps you take
corrective action if things
are not working out as
planned.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
controlling
the process of comparing
expected results (objectives) with
actual performance
SECTION
14.1
Entrepreneur or
Manager?
Controlling
A quality control program
can prevent problems.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
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
SECTION
14.1
Entrepreneur or
Manager?
Establishing a Positive Climate
The climate that exists in a
new business is linked to
the tone the manager sets.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
climate
the prevailing atmosphere or
attitude in a business
SECTION
14.1
Entrepreneur or
Manager?
Establishing a Positive Climate
The three elements of a positive business climate are:
•
•
•
image
team building
communication
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
Image
To begin building a positive
business climate,
strengthen your company’s
image with customers and
in the community.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
image
the mental picture and feelings
people have when thinking about
a business or its products or
services
SECTION
14.1
Entrepreneur or
Manager?
Team Building
Team building contributes
to a positive climate by
allowing employees to
pursue common goals.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
team building
the act of encouraging teamwork
through activities designed to
foster respect, trust, cooperation,
camaraderie, and communication
among employees
SECTION
14.1
Entrepreneur or
Manager?
Communication
Effective staff
communication takes
place in an atmosphere of
respect and trust.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
communication
the process of exchanging
information
SECTION
14.1
Entrepreneur or
Manager?
After You Read
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.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
After You Read
2.
Identify the key management functions.
The key management functions are planning, organizing, directing,
and controlling.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.1
Entrepreneur or
Manager?
After You Read
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).
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
Section Objectives
•
•
•
Name the three basic management styles.
List the skills needed for managing.
Explain the principles of management excellence.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
The Main Idea
To manage successfully and excel in leadership situations, you must
establish a management style and draw on a specific set of skills.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
Content Vocabulary
situational management
human relations
nonverbal communication
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
networking
time management
conceptual skills
SECTION
14.2
Management
Styles and Skills
Adopting a Management Style
Management style is the manner in which you approach your
management responsibilities.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
Adopting a Management Style
The three styles of management are:
•
•
•
power-oriented
routine-oriented
achievement-oriented
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
Adopting a Management Style
Good managers use
situational management
as a supplement to their
basic approach.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
situational management
the style of adapting the
management approach to
particular circumstances
SECTION
14.2
Management
Styles and Skills
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.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
Developing Management Skills
Fundamental Management Skills
human relations
communication
networking
math
problem solving and decision making
technical
time management
conceptual
32
SECTION
14.2
Management
Styles and Skills
Human Relations
Human relations skills,
considered the most
important of the
management skills, are tied
closely to communication
skills.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
human relations
the study of how people relate to
each other
SECTION
14.2
Management
Styles and Skills
Communication
Nonverbal communication
is one of the communication
skills essential to effective
planning, organizing,
directing, and controlling.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
nonverbal communication
communication not involving
words, transmitted through
actions and behaviors, such as
facial expressions, gestures,
posture, and eye contact
SECTION
14.2
Management
Styles and Skills
Networking
You can use business
networking to discuss
mutual opportunities, solve
problems, and share or
maximize resources.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
networking
the process of building and
maintaining informal relationships
with people whose friendship
could bring business opportunities
SECTION
14.2
Management
Styles and Skills
Time Management
Time management can
help managers because at
any given time, managers
may have several
objectives to accomplish.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
time management
the process of allocating time
effectively
SECTION
14.2
Management
Styles and Skills
Time Management
Here are some useful time management techniques:
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Set and prioritize your goals.
Delegate work to others whenever possible.
Plan to spend specific blocks of time on specific activities that help you
achieve your goals.
Schedule your activities on a planning calendar.
Schedule your most important work for times when you do your best work.
Group your activities for the most efficient use of time.
Handle or eliminate interruptions so they take up as little time as possible.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
Conceptual Skills
As a small business
owner/manager, your
conceptual skills enable
you to appreciate how dayto-day decisions affect your
business’s future.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
conceptual skills
skills that enable a manager to
understand concepts, ideas, and
principles
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.
39
SECTION
14.2
Management
Styles and Skills
After You Read
1.
Name the three basic management styles.
The three basic management styles are power-oriented, routineoriented, and achievement-oriented.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
After You Read
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.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
SECTION
14.2
Management
Styles and Skills
After You Read
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.
Chapter 14 Preparing and Planning to Manage
Glencoe Entrepreneurship: Building a Business
14
Preparing and
Planning to Manage
End of
Chapter 14
Section
Section
14.1
14.2
Preparing and
Entrepreneur or Manager?
Planning to
Management Styles Manage
and Skills
Glencoe Entrepreneurship: Building a Business