chapter 7

1. chapter7 Management, Leadership, and Team Building

2. Chapter Objectives • Compare and contrast the core differences of management and leadership. • Describe steps taken to build an effective business team. • List and critique the potential pitfalls or lessons learned in management by other small businesses. (continued)

3. Chapter Objectives (continued) • Apply the recommended practices to the task of building, training, and rewarding your business team. • Identify choices available when you choose to enhance your management and leadership knowledge and related skills and abilities.

4. Leadership The personality ethicsuggested it was one’s attitude, not behavior, that inspired success, and this ethic was founded on a belief of positive mental attitude. In contrast to each of these ideas, Stephen Covey advocates that leaders need to understand universal principles of effectiveness, and he highlights how vital it is for leaders to first personally manage themselves if they are to enjoy any hope of outstanding success in their work environments.

5. Stephen Covey Business leadership means that managers need to “put first things first,” which implies that before leading others, you need to be clear on your own values, abilities, and strengths and be seen as trustworthy.

6. Mintzberg “I use the words management and leadership interchangeably. It has become fashionable to distinguish them. Leadership is supposed to be something bigger, more important. I reject this distinction, simply because managers have to lead and leaders have to manage. Management without leadership is sterile; leadership without management is disconnected and encourages hubris. We should not be ceding management to leadership.”

7. Eight Managerial Duties

8. Staff Training: Environmental Code of the Slopes • Respect wildlife. • Properly dispose of waste. • Encourage employee and guest carpooling. • Use washable utensils in cafeterias. • Support cleanup days. • Turn off lights and machines when leaving rooms for long periods. • Establish an extensive education and recycling program. • Encourage guests to help protect the environment. • Provide feedback on how to improve the company’s environmental performance.

9. Csikszentmihalyi Creativity provides a person with one of the most exciting models for living. (continued)

10. Csikszentmihalyi (continued) Each of us is born with two contradictory sets of instructions: • A conservative tendency made up of instincts for self-preservation, self-aggrandizement, and saving energy • An expansive tendency made up of instincts for exploring, for enjoying novelty and risk The curiosity that leads to creativity belongs to the latter set. (continued)

11. Csikszentmihalyi (continued) We need both these programs. Whereas the first tendency requires little encouragement or support from outside to motivate behavior, the second can wilt if it is not cultivated. If too few opportunities for curiosity are available, if too many obstacles are placed in the way of risk and exploration, the motivation to engage in creative behavior is easily extinguished.

12. Why New Businesses Fail The top three reasons are: • Poor cash flow management skills • Starting out with too little money • Lack of a well-developed business plan

13. Dangers and Risk of a Franchise • Proven versus unproven franchisors • Market saturation • Inadequate marketing • False expectations

14. Your Business Team • A small number of people • Complementary customer knowledge and technical skills specific to your type of business • Committed to your business concept • Hold themselves mutually accountable to their defined responsibilities • Adhere to your standards of operation

15. Your Organizational Chart: Common Functions • Operations • Finance • Marketing and sales • Legal and risk management • Administration • Human resources

16. Sample Organizational Chartfor a Pool Management Company

17. Sample Organizational Chart for a Resort

18. Sample Organizational Chart for a Bike Shop

19. Position Description Each position in the organizational chart will have a job description that delineates these points: • Identifies assigned duties • Describes responsibilities • Outlines the reporting and working relationships between the individual and other team members Once this is completed, the next step is an analysis of the job to be performed.

20. Position Analysis: Factors to Consider • Amount of work • Working conditions • Search strategy • Start date • See also table 7.2 in the text (page 148)

21. The Recruitment Process

22. Hiring Cautions Recruitment practices vary slightly, but you cannot gather information or discriminate based on these factors: • Nationality or race • Age or gender • Ethnicity • Religion • Disability • Pregnancy

23. Employment Criteria: Distinguishing an Employee From an IndependentContractor • Work is task or project driven. • Worker sets own hours. • Pay is by the job, not by the hour. • Worker provides own equipment, tools. • Contractors must normally have their own workers’ compensation insurance and file their own taxes. • There is a written contract.

24. Contract Components for an Independent Contractor • Employee compensation • Method of payment • Ownership: trade secrets and client lists • Holds employer harmless • Termination at will of either party • Arbitration, attorney’s fees, and settlement costs • Role of employee • Best effort required • Noncompete clause • When they must report • Must adhere to employee policy manual • Satisfactory performance or termination by company

25. Exploring Your Capability • Blake Mouton Managerial Grid • Myers-Briggs Type Indicator • True Colors