Topic 4.1 · Management and Leadership
Management and Leadership
The functions of management, leadership and communication skills, why businesses hire diverse competencies, and how they compensate, motivate and retain employees.
Learning objectives
- 4.1.ADescribe the function of management.
- 4.1.BIdentify and demonstrate effective leadership and business communication skills.
- 4.1.CExplain why businesses need to hire and develop employees with a variety of core competencies.
- 4.1.DExplain how businesses compensate, motivate, and seek to retain high-quality employees.
Objective statements © College Board, quoted from the Course and Exam Description.
Management is the process of planning, organizing, leading and evaluating how a business uses its human, financial and physical resources to meet goals. It happens at every level, from executives to supervisors. Department managers coordinate their teams so the work stays aligned with the business's vision and mission.
| Function | What it looks like |
|---|---|
| Planning | Setting goals and deciding how to reach them |
| Organizing | Assigning people, money and equipment to tasks |
| Leading | Motivating and directing people |
| Evaluating | Measuring results and adjusting |
Leadership and communication
Leaders work with supervisors, colleagues, employees, lenders, investors, customers and the public, so they need to:
- Articulate the vision and mission
- Build productive teams
- Negotiate conflicts
- Motivate people
Motivated employees are more productive, more likely to stay, and build better relationships with customers and coworkers, all of which improve performance. Strong communicators express ideas clearly, persuade, , and respond well to feedback.
Key terms
- Management
- Planning, organizing, leading and evaluating the use of human, financial and physical resources to meet goals.
- Leadership skills
- Articulating vision and mission, building productive teams, negotiating conflict and motivating people.
- Communication skills
- Expressing ideas clearly, persuading, listening empathetically, and interpreting and responding to feedback.
- Hourly wage
- Pay per hour worked.
- Salary
- A fixed annual amount, divided into pay periods.
- Commission
- Pay based on a percentage of sales made.
- Piece rate
- Pay per unit produced.
- Profit sharing
- Employees receive a share of business profits.
- Benefits
- Non-wage compensation such as health insurance contributions, retirement plans, disability insurance, tuition reimbursement and paid time off.
- Retention
- Keeping valuable employees. It is usually cheaper than recruiting and training replacements.
Want to track your progress?
Sign in to mark lessons complete, earn XP and resume where you left off.
Sign in