22
00 INTRODUCE THE CHAPTER Chapter 11 explores types of manage- ment structures, including horizontal and vertical organization, and self-managed work teams. The chapter also looks at the basic management functions of planning, organizing, and controlling with a discus- sion of effective management techniques. BUILD BACKGROUND Ask students to recall times they have worked in groups at work, school, sports, music, or other situations. Have them discuss ways decisions are made by the team, and ask them to consider how that model would work in a business setting. 11 EXPLORE THE PHOTO Market Talk Lead a discussion about vertical and horizontal organization. Draw a vertical line and horizontal line on the chalkboard and have students guess what each management style entails. You might explain that vertical organization entails multiple levels of responsibility with clearly defined responsibilities. In hori- zontal organization, management makes decisions along with teams of workers. Quick Think Three possible benefits might include greater efficiency, increased employee satisfaction, and less supervi- sion by management. Have students describe the vertical management style of your classroom. Ask: How would procedures change if it were managed horizontally? REVIEW THE OBJECTIVES Explain how horizontally organized companies differ from vertically organized companies. Vertical organization refers to a chain-of-command, hierarchical structure where the tasks and responsi- bilities of each level of the organization are clearly defined. In horizontal organization, top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions. Name the three levels of management. top man- agement, middle management, supervisory-level management Explain how a self-managing team functions. Self-managing teams gather information, analyze it, and take collective action. Name the three functions of management. All managers perform certain basic functions of plan- ning, organizing, and controlling. Describe the management techniques used by effective managers. Give clear directions, be consistent, treat employees fairly, be firm when necessary, set a good example, delegate respon- sibility, foster teamwork, be ethical. Explain how to manage employees properly. Managers should provide frequent feedback to employees and formally evaluate them each year. 234 UNIT 4 — SKILLS FOR MARKETING CHAPTER 11 EXPLORE THE PHOTO Market Talk A company brings people together to work in different jobs toward the same goal of business success. How a company organizes its employees determines how well people work together. Managers plan, organize, and control human resources, technology, and materials. Quick Think List three possible benefits of focusing on teams instead of hierarchy. Management Skills Chapter Objectives After reading this chapter, you should be able to: Explain how horizontally organized companies differ from vertically organized companies Name the three levels of management Explain how a self-managing team functions Name the three functions of management Describe the management techniques used by effective managers Explain how to manage employees properly image100/Jupiter Images 234

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00

INTRODUCE THE CHAPTERChapter 11 explores types of manage-ment structures, including horizontal and vertical organization, and self-managed work teams. The chapter also looks at the basic management functions of planning, organizing, and controlling with a discus-sion of effective management techniques.

BUILD BACKGROUNDAsk students to recall times they have worked in groups at work, school, sports, music, or other situations. Have them discuss ways decisions are made by the team, and ask them to consider how that model would work in a business setting.

11

EXPLORE THE PHOTO

Market Talk Lead a discussion about vertical and horizontal organization. Draw a vertical line and horizontal line on the chalkboard and have students guess what each management style entails. You might explain that vertical organization entails multiple levels of responsibility with clearly defi ned responsibilities. In hori-zontal organization, management makes decisions along with teams of workers.

Quick Think Three possible benefi ts might include greater effi ciency, increased employee satisfaction, and less supervi-sion by management.

Have students describe the vertical

management style of your classroom. Ask: How would procedures change if it were managed horizontally?

REVIEW THE OBJECTIVESExplain how horizontally organized companies differ from vertically organized companies. Vertical organization refers to a chain-of-command, hierarchical structure where the tasks and responsi-bilities of each level of the organization

are clearly defi ned. In horizontal organization, top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions.Name the three levels of management. top man-agement, middle management, supervisory-level managementExplain how a self-managing team functions. Self-managing teams gather information, analyze it, and take collective action.Name the three functions of management. All managers perform certain basic functions of plan-ning, organizing, and controlling.

Describe the management techniques used by effective managers. Give clear directions, be consistent, treat employees fairly, be fi rm when necessary, set a good example, delegate respon-sibility, foster teamwork, be ethical.Explain how to manage employees properly. Managers should provide frequent feedback to employees and formally evaluate them each year.

234 UNIT 4 — SKILLS FOR MARKETING

C H A P T E R 11

EXPLORE THE PHOTO

Market Talk A company brings people

together to work in different jobs toward

the same goal of business success. How a

company organizes its employees determines

how well people work together. Managers

plan, organize, and control human resources,

technology, and materials.

Quick Think List three possible benefi ts of

focusing on teams instead of hierarchy.

Management Skills

Chapter ObjectivesAfter reading this chapter, you should be able to:

• Explain how horizontally organized companies differ from vertically organized companies

• Name the three levels of management

• Explain how a self-managing team functions

• Name the three functions of management

• Describe the management techniques used by effective managers

• Explain how to manage employeesproperly

image100/Jupiter Images

234

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For the Teacher TeacherWorks™ Plus

Teacher Resources at glencoe.com

Interactive Chalkboard ExamView® Assessment Suite Fast File Unit 4

For the StudentMarketing Essentials Online Edition

Student Activity Workbook Marketing Math Workbook Marketing Research Project Workbook School-to-Career Activity Workbook Competitive Events Workbook BusinessWeek Reader with Case Studies

Interactive Student EditionStudent Resources at glencoe.com

11

Discuss the performance indicators for the

DECA events listed, so that students understand

how to demonstrate their understanding.

The event acronyms stand for:

AAM: Apparel and Accessories Marketing

Series

ADC: Advertising Campaign Event

ASM: Automotive Services Marketing

Series

BSM: Business Services Marketing Series

EMDM: E-Commerce Management Team

Decision Making Event

FMAL: Food Marketing Series, AL

FMDM: Financial Analysis Management

Team Decision Making Event

FMML: Food Marketing Series, ML

FSRM: Full Service Restaurant Manage-

ment Series

HMDM: Hospitality Services Management

Team Decision Making Event

HRR: Hospitality and Recreation Market-

ing Research Event

MMS: Marketing Management Series

QSRM: Quick Serve Restaurant Manage-

ment Series

RFSM: Restaurant and Food Service

Management Series

RMS: Retail Merchandising Series

SEM: Sports and Entertainment Marketing

Series

SMDM: Sports and Entertainment Marketing

Management Team Decision Making

Event

TMDM: Travel and Tourism Marketing

Management Team Decision Making

Event

TSE: Technical Sales Event

Find timed DECA Prep activities correlated to the Competitive Events Workbook for students and DECA tips for teachers at the Marketing Essentials OLC through glencoe.com.

glencoe.com Chapter 11 — Management Skills 235

DECA Events These acronyms represent DECA com-petitive events that involve concepts in this chapter:AAM ACT*ADC*BLMDM*BMDM*

BSMEMDM*FMALFMDM*FMML*

HLM*HMDM* MMS*QSRM*RFSM*

RMS*SEM* SMDM*TMDM*TSE*

Performance Indicators The performance indicators represent key skills and knowledge. Relating them to the concepts explained in this chapter is your key to success in DECA competitive events. Keep this in mind as you read, and write notes when you fi nd mate-rial that helps you master a key skill. In these DECA competitive events, you should follow these perfor-mance indicators:• Explain the concept of management• Describe the nature of business records• Orient new employees• Develop project plan• Explain the nature of overhead/operating costs• Identify routine activities for maintaining business

facilities and equipment• Describe crucial elements of a quality cultureThe events with an asterisk also include:• Explain the nature of managerial ethics • Describe the role of management in the

achievement of quality Some events include these performance indicators:BMDM Manage projectsEMDM Develop e-commerce project planFMML Orient new employees (management’s role)QSRM Identify resources needed for projectTMDM Select travel suppliers

ROLE PLAY Check your understanding of DECA performance indicators with the DECA activity in this chapter’s review. For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.

235

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SECTION 11.1

BELLRINGER ACTIVITY

To prepare students for reading thissection, divide the class into three groups: one half of the class, and two quarters of the class. Tell them that they have fi ve minutes to design a school fl ag. Afterwards, discuss their work. Ask: Were specifi c people assigned to certain tasks? Was there one overseer who talked to lead-ers of other groups? Explain that in business there are different typesof management.

Preteaching

VOCABULARYKEY TERMS Read the key terms aloud, or ask a volunteer to read them. Ask students to predict the meanings of the terms and phrases.ELL Have students write the key terms in their own language fi rst, then in English.

ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZERModel using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer.

NCLB

NCLB connects academic correlations to book content.

READING GUIDE

Lead students in discussing the benefi ts of having fewer managers in business. Answers might include

faster decision making and closer relationships between managers and workers.

D Develop ConceptsTHE MAIN IDEAAsk a volunteer to give examples of horizontally or vertically managed businesses.

Show students how they can take notes to differentiate between vertical

and horizontal organization.

BEFORE YOU READ

Horizontal or Vertical?

Teams

Horizontal Vertical

Horizontal and

Vertical

236 UNIT 4 — SKILLS FOR MARKETING

Leadership in the 21st Century Business leaders in the United States and around the world

expect many changes in the coming years as a result of globaliza-tion. New leaders come from diverse backgrounds. Global com-petition is creating companies and managers who are united by common goals and ideals.

THE MAIN IDEAThere are two ways of organizing a business: the traditional or vertical organization, with an emphasis on hierarchy, and the horizontal organization with a focus on teams.

GRAPHIC ORGANIZERDraw this chart to take notes on the types of business organization.

OBJECT IVES• Explain how horizontally

organized companies differ from vertically organized companies

• Name the three levels of management

• Explain how a self-managing team functions

KEY TERMS• management

• vertical organization

• top management

• middle management

• supervisory-level management

• horizontal organization

• empowerment

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• resource

• individual

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

ACADEMIC STANDARDSEnglish Language ArtsNCTE 1 Read text to acquire new information.

Social StudiesNCSS 5 Individuals, Groups, and Institutions: social theory as it relates to the ways people and groups organize themselves around common needs, beliefs, and interests

Compare Note

differences between

vertical and horizontal

organization.

READING GUIDE

Predict What are the benefits of having fewer managers in a business?

SECTION 11.1

BEFORE YOU READ

Management Structures

D

NCLB

236

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SECTION 11.1

Discussion Starter

IMPORTANCE OF MANAGEMENTSTRUCTURESHave students consider the following scenario: A shoe factory loses all communication with its managers. Noe-mail, cell phones, or facsimiles canget through. Ask students how long the factory could remain functional under these circumstances.Students should agree that a business, like any team, cannot function without communication from its leadership be-cause it would not know its purpose or role in the company’s plans.

D Develop Concepts

Guided PracticeTypes of Management Structure

1. Have students research theories of motivation, such as Maslow’s Hierar-chy of Needs, McClelland’s Achieve-ment Motivations, and Herzberg’s factors. Ask students to write brief reports on how these theories dem-onstrate vertical organization.

2. Ask students to identify the advan-tages and disadvantages of working on a self-managed work team in horizontal organization.Advantages include shared respon-sibility and greater adaptability. Disadvantages are diffi culty getting along and keeping everyone on goal.

Cultural AdjustmentsDiscussion Ask students if they have ever gone to a foreign Web site. Let them know that there are many foreign versions of American sites, such as Amazon.com in Japan or Nike’s European home page. Ask: What might they expect to fi nd at such sites?

Answer: Students may suggest that businesses may have a hard time being successful if they fail to tailor their marketing approach to the specifi c needs and customs of a local culture.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

Chapter 11 — Management Skills 237glencoe.com

Types of Management StructureManagement can be defined simply as

getting work done through the effort of oth-ers. More often, management is considered the process of reaching goals through the use of human resources, technology, and material resources. To facilitate effective management, businesses are generally organized either verti-cally or horizontally.

Vertical OrganizationFor a long time, the role of management was

to keep an eye on workers. In large, traditional companies, managers reported to higher levels of management. Most managers were respon-sible for the proper operation of a particular department. The up-and-down structure of this kind of organization is called vertical organization. Vertical organization refers

to a chain-of-command, hierarchical structure where the tasks and responsibilities of each level of the organization are clearly defined.

Management Levels In the traditional, vertically organized

company, there are three basic levels of man-agement: top management, middle manage-ment, and supervisory-level management. Those who make decisions that affect the whole company are top management. CEO (chief executive officer), president, COO (chief operating officer), CFO (chief finan-cial officer), and vice president are some top management titles. The functions of top (or senior) management include setting a direc-tion for the company as a whole, identifying resources and methods for meeting goals, and controlling the systems and structures of the company.

Go to the Marketing Essentials OLC through glencoe.com to find a research project about globalization and the Internet.

Cultural AdjustmentsIn 1995, Ranjini Manian founded Global Adjustments, a company that capitalizes on international business both abroadand in India. Global Adjustments offers cross-cultural trainingfor professionals who move to India and for Indian professionalspreparing to travel or relocate abroad. The company is based in Chennai (formerly called Madras) in southern India and counts companies such as Ford India, Citibank, Verizon, Morgan Stanley, Siemens, and BMW among its clients.

Management and Etiquette Tutorials The services for foreign professionals arriving in India range from help with finding a place to live or an office to rent, to advice on respecting the Indian custom of blessing new living or working quarters with a religious ceremony. Also available are courses on history and culture, tours of temples and of an Indian home, and even a tutorial Indian lunch to teach foreigners how to eat with their fingers according to Indian custom. Global Adjustments publishes a monthly newsletter with articles about life and culture in India.

Indian professionals can also prepare to travel abroad through Global Adjustments’ course on Western management style, dining etiquette, and interview and phone skills.

What consequences would a lack of knowledge about local culture havefor a company?

D

237

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SECTION 11.1

CONCEPTSAsk students to explain why vertical or-ganization became popular in the 1980s. Answers may suggest the need for a more effi cient and responsive business model.

KEY TERMSHave students review key terms and use them to create a business memo to employees.

INDEPENDENT REVIEW

L1 Assign and review Chapter 11activities in the Student ActivityWorkbook.

L2 Assign and review Chapter 11activities in the Marketing MathWorkbook.

L3 Assign and review Chapter 11activities in the BusinessWeek Reader with Case Studies.

AFTER YOU READHave students complete the Section 11.1 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 11.1 practice test.

PHOTO GUIDE BRAINSTORMING

Discussion Lead a discussion about the role of brainstorming in business. Ask students to share ways to record and present new ideas.

Caption Answer Self-managing teams may also gather information, analyze it, take action, make decisions, complete tasks, and coordinate their activities with other groups in the company.

Ask students to describe an atmosphere that is conducive to brainstorming.Answers may suggest that the environment have a relaxed and positive atmosphere where people feel free to share ideas.

238 UNIT 4 — SKILLS FOR MARKETING

Middle management implements the decisions of top management. Middle manage-ment plans how the departments under them can work to reach top management’s goals.

In supervisory-level management, managers supervise the activities of employ-ees who carry out the tasks determined by the plans of middle and top management. Super-visors assign duties, monitor day-to-day activ-ities in their department, and evaluate the work of production or service employees.

Horizontal OrganizationBeginning in the 1980s, many companies

downsized in order to increase their efficiency and productivity.

These companies needed more than staff cuts to become more efficient. The answer was a new type of management structure—horizontal organization.

In horizontal organization, top man-agement shares decision making with self-managing teams of workers who set their own goals and make their own decisions.

Self-Managing Teams At the heart of horizontal organization is

a restructuring of the traditional management

hierarchy. Levels of management are elimi-nated, and the number of supervisors is reduced. This is known as flattening the orga-nization. Instead of reporting up a chain of command, employees are organized into teams that manage themselves.

Self-managing teams in a horizontal orga-nization gather information, analyze it, and take collective action. They are responsible for making decisions, completing tasks, and coordinating their activity with other groups in the company.

Encouraging team members to contribute to and take responsibility for the manage-ment process is known as empowerment. Empowerment reinforces team spirit and contributes to company loyalty. It can also increase productivity and profits.

Organization by Process A second characteristic of horizontal

companies is organization by process. Self-managing teams are organized around particu-lar processes, such as developing new products or providing customer support. Teams made up of people with different specializations replace functional divisions, like the finance department or engineering department.

• BRAINSTORMING Brainstorming is an important activity for most self-managing teams.

What else do self-managing teams do?

Jon Feingersh/C

OR

BIS

238

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SECTION 11.1

CULMINATING ACTIVITY

Ask students to complete the following sentences:

• is the process of reach-ing goals through the use of human resources, technology, and material resources. management

• Self-managing teams in a organization gather information, analyze it, and take collective action. horizontal

NCLB

NCLB Activity correlated to Mathematics and Social Studies Standards

PHOTO GUIDE

TEAMWORK

Discussion Have students list teams that would contribute to the introduction of a new building. Teams may include architecture, interior design, engineering, safety, and marketing.

Caption Answer Neither person is manager. A horizontal organization is managed by a team.

Inform students that many buildings are

designed every year, but very few are actually constructed. Have students dis-cuss possible reasons why this might be.

11.1 AFTER YOU READ

Key Terms and Concepts

1. Vertical companies are organized in depart-ments; orders come from management above. Horizontal companies are organized into self-managing teams that set their own goals and make their own decisions.

2. The three levels of management are top management, middle management, and supervisory-level management.

3. Advantages of horizontal organization in-clude increased effi ciency and productivity, less management, employee empowerment, and customer orientation.

Academic Skills 4. $684,969.60; $2,446,320 � 1.12 �

$2,739,878.40; $2,739,878.40 � .25 � $684,969.60

5. Responses might include some analysis of cost, workforce, and transportation.

Find answers at the Marketing Essentials OLC at glencoe.com.

Numbers and Operations:Multiplying by a Percent Greater than 100 Percents greater than 100 represent values greater than one. A per-cent greater than 100 can be converted to a decimal number greater than one. 1. To solve this problem, multiply last

year’s sales by the decimal equiva-lent of 112 percent to determine the dollar amount of total sales goal.

2. Multiply the total sales by the decimal equivalent of 25 percent to determine your division goal.

For help, go to the Math Appendix located at the back of this book.

Chapter 11 — Management Skills 239glencoe.com

Customer Orientation The third characteristic of horizontal

organization concerns the team’s focus. In vertical organizations, workers tend to look to management for direction. In horizontal companies, workers focus on the customer.

For example, you can buy Starbucks coffee beans in Starbucks coffee shops, or you can buy them in grocery stores and supermarkets. Different marketing teams within Starbucks focus on each different type of customer. One team is concerned with the wants and needs of the individual who buys beans in the Starbucks store. Another is concerned with the needs of the supermarket chain. By focus-ing on these different customers instead of on a product or process, managers have direct access to customer feedback. The ideal result is to have satisfied customers, high productiv-ity, large profits, and contented investors.

• TEAMWORK This team is designing a new building.

In a horizontal organization, who is the manager?

Key Terms and Concepts 1. What is the difference between a vertical and a horizontal company? 2. What are the three levels of management in a vertical organization?3. Explain two advantages of horizontal organization.

Academic SkillsMath

4. Your company produces and markets electronic equipment. Sales last year totaled $2,446,320. The company goal is to increase sales by 12 percent this year. Your division goal is to achieve 25 percent of total sales. What is the dollar value of your division goal?

Social Studies

5. An automobile company is considering locating a new assembly plant in your state. The plant would add about 10,000 jobs and require workers of all different education and training levels. What section of the state would you suggest and why?

11.1 AFTER YOU READ

Check your answers at the Marketing Essentials OLC through glencoe.com.

Tom

Ste

war

t/CO

RB

IS

NCLB

239

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READING GUIDE

SECTION 11.2

BELLRINGER ACTIVITY

To prepare for reading this section, place students into teams of three to four and tell them they have been asked to organize a school campus clean-up campaign. Within teams, have them decide how to best change the school’s cleanli-ness. After fi ve minutes, have each group list the steps they took to make their decisions.

Preteaching

VOCABULARYKEY TERMS Read the key terms aloud, or ask a volunteer to read them.ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com

for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZERModel using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer.

NCLB

NCLB connects academic correlations to book content.

Lead students in discussing the interpersonal skills that a manager should have. Skills mentioned may include

communicating and motivating.

D Develop ConceptsTHE MAIN IDEAAsk a volunteer to read the main idea aloud and ask another student to retell it in his or her own words.

Suggest that students think of one business scenario and apply the

various management techniques to it as they read the section.

BEFORE YOU READ

Management

Basic Functions1. Planning 2. 3.

Management Techniques 1. Give clear directions. 5. 2. 6. 3. 7. 4. 8.

240 UNIT 4 — SKILLS FOR MARKETING

What Managers DoManagers make decisions in addition to supervising and

directing the actions of others. Management decisions affect all employees. This means that communicating and motivating people are among the most important of management skills.

Basic Management FunctionsAll managers perform certain basic functions of plan-

ning, organizing, and controlling as outlined in Figure 11.1.

ACADEMIC STANDARDSEnglish Language ArtsNCTE 9 Develop an understanding of diversity in language use across cultures.

Social StudiesNCSS 5 Individuals, Groups, and Institutions: social theory as it relates to the ways people and groups organize themselves around common needs, beliefs, and interests

OBJECT IVES• Name the three functions of

management

• Describe the management techniques used by effective managers

• Explain how to manage employees properly

KEY TERMS• planning

• organizing

• controlling

• mission statement

• remedial action

• exit interview

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• identify

• require

THE MAIN IDEAUnderstanding basic management functions is essential to success in the field of marketing.

GRAPHIC ORGANIZERDraw this chart to write in management functions and techniques.

Practice Consider

how you would use each

effective management

technique that you read

about.

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

SECTION 11.2

Management Functions

Predict What interpersonal skills should a manager have?

BEFORE YOU READ

READING GUIDE

NCLB

D

240

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SECTION 11.2

Discussion Starter

BASIC MANAGEMENT FUNCTIONSAsk students if they have ever had to make a diffi cult decision. Perhaps they made a promise to do one thing and then something better came along. How did they resolve the problem? Have the class come up with a step-by-step process for handling such situations. Then have them compare it to the process outlined on page 242.

Role Play Have students come up with a situation which involves making a decision, then use the decision-making process shown on page 242 to make a decision.

Clarify Inform the class that managers often discuss their situations with other managers. Ask students who they confer with when they have diffi cult choicesto make.

Chapter 11 — Management Skills 241glencoe.com

11.1 Management Functions

Go to the Marketing Essentials OLC throughglencoe.com to find a project on management functions.

• Three Basic Functions Whether a company is organized vertically or horizontally, the management functions remain

the same. Managers plan, organize, and control. Below are the management functions required of the manager, or

owner, of a marketing team developing an ad campaign for a new car. In this case, the company structure is horizontal.

What skills are necessary to be a manager?

Organizing Once the plan is set, the manager

organizes its execution. With input from other

members of the team, the owner delegates

responsibilities, determines schedules, makes

sure that the efforts of the individual team

members are coordinated, and keeps everyone

on track to meet team goals.

Controlling When the project is complete, the

manager should determine its effectiveness. If

it was not successful, the manager must find

out what went wrong.

Planning At the planning stage, the team

develops a plan covering the entire life of

the ad campaign, from market research to

tracking the campaign’s effectiveness. The

manager, or owner, of the team must be sure

that the team’s plans and goals are aligned

with the company’s overall plans.

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Management Functions

Discussion After students read Figure 11.1, have them discuss the three functions of manage-ment. Ask them to come up with examples of the functions for other situations, such as a bakery introducing a new line of cookies or a video game company creating a new line of games.

Caption Answer Skills may include communication, organization, ability to handle multiple tasks, and attention to detail.

For instructions, ideas, and answer guide, go to the Teacher Center at theMarketing Essentials OLC through glencoe.com.

Divide students into groups of three or four and assign them various group-oriented tasks for completion. Have group members take turns acting as the group’s man-ager. Ask students to share what they learned from the exercise.

11.1

241

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SECTION 11.2

CONTINUED

D Develop Concepts

Guided PracticeOrganizing Ask students: If a large company employs hundreds of middle-level managers, thousands of supervisors, and tens of thousands of employees, how do they stay on the same page—that is, keep informed of goals and news? Answers may include regular meetings between managers, a detailed employee guide, a corporate intranet, or a corporate newsletter.

Demonstrate Bring to a class a job orientation or a training manual. Go over its table of contents and ask students to share their experiences of being hired for a job.

Answer planning, organizing, and

controlling

C Critical ThinkingControlling Give students a list of different businesses. They can range from a bookstore to an accounting fi rm to a landscaping service. Have students create a group of employee standards for each, paying attention to productiv-ity, professional conduct, and dress. Ask: How do they differ? What do they have in common?

W Writing SupportDrawing ConclusionsEffective Management

Techniques Have students discuss what is appropriate behavior in the workplace. Ask the class to compile a list of rules and make a guidebook. Examples of topics might include punctuality, respectfulness, and open-mindedness.

Explain Remind students that employ-ees should be encouraged to ask ques-tions while on the job. Give examples of ways supervisors could promote clarifi ca-tion, such as by asking, “Do you have any questions?” or “Is everything clear?”

Online ActivityBusiness and the LawInform students that part of management’s job is to make sure that business records conform to state and federal laws. Have students conduct research on the Internet to fi nd out the guidelines that must be followed by businesses in their state.

242 UNIT 4 — SKILLS FOR MARKETING

Planning involves setting goals for a project and determining how to reach them. Organizing includes establishing a time frame in which to achieve the goal, assign-ing employees to the project, and determin-ing a method for approaching the work. Controlling refers to setting standards and evaluating performance.

All three of these management functions involve making decisions. Following a formal decision-making process can be helpful when making complicated decisions. This process usually includes the following steps:

1. Define the problem.2. Identify the options available.3. Gather information and determine the

consequences of each option.4. Choose the best option.

5. Take action.6. Evaluate the results.

Planning Good management planning is realistic,

comprehensive, and flexible. It includes plans for the short- and long-range uses of people, technology, and material resources.

To be effective, a management plan should be a written statement that identifies resources that can be used to meet a given goal. The plan should be clear and direct. When com-pleted, the plan should be distributed to and discussed with everyone who is involved.

Organizing Organizing is a coordinated effort to reach

a company’s planning goals. It involves assign-ing responsibility, establishing working rela-tionships, hiring staff to carry out the work, and directing the work of employees.

Controlling Controlling is the process of comparing

a plan with actual performance. It involves three activities: setting standards, evaluating performance according to those standards, and solving problems in the evaluation.

Before setting standards, many companies compose a mission statement, which is a brief description of the ultimate goals of a company. A mission statement sum mar izes why a company exists. It identi fies goods or services offered and the target market.

After a company establishes goals in a mission statement, it adopts standards that are consistent with the goals. Here are some examples of standards:

• Financial standards—profit, cash flow, sales • Employee standards—productivity,

professional conduct, dress • Customer satisfaction standards—sales

returns, customer complaints, repeat business, referrals

• Quality control standards—production line checks for defects in materials or workmanship, repair requests, recalls

Managers use standards to evaluate both company and individual performance. When performance does not meet established standards,managers must identify and solve the problem.

Effective Management Techniques

Whether you become a supervisor in a traditionally organized vertical company or a member of a self-managing team, you will need to develop management skills. The most effective management techniques are usually a matter of common sense.

Give Clear Directions Directing others requires good commu-

nication skills. Good communication is neces-sary at every level of management. Even the best employees will not be productive if they do not know what they are expected to do.

A supervisor should give all the direction required for each job and encourage employ-ees to ask questions about instructions.

Be Consistent If you have decided that a job must be

completed in a certain way, make sure that all

Identify What are the three basic functions of management?

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C Critical ThinkingDrawing ConclusionsAnalyze Remind the class that a manager should treat all team members equally. Ask students if this should apply to new employees as well.

SECTION 11.2

CONTINUED

Extended ActivityPersonal StandardsAsk students what types of personal standards they hold themselves to. Categories may include fi nance, work, spirituality, and relationships. How do they enforce these standards? Have students discuss their methods in a one-page expository response.

Always Making It Better

Discussion Have students read the Case Study and discuss the controlling model of Dell Computer. Ask: What are its benefi ts and drawbacks? List student suggestions on the board. Benefi ts might include constant improvement. Drawbacks might include hurting the feelings of certain employees.

Answer: Students may suggest that a management model that hires only from within will not be successful in the long run. It prevents new ideas and energies from entering the business.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

Chapter 11 — Management Skills 243glencoe.com

employees follow this standard. Do not make exceptions unless there is a good reason to do so.

Treat Employees Fairly Whenever possible, do what is best for

your employees. Set reasonable standards of performance and apply those standards to everyone. You do not need to say yes to every employee request. However, you should

always consider the employees’ point of view when making decisions. Listen to suggestions from your employees, and consider acting on them. Take time to explain your reasoning if you believe an employee is wrong. Employees will be more productive when treated fairly.

Be Firm When Necessary Each situation requiring disciplinary action

is different. A friendly suggestion may be all

Always Making It Better

Dell Inc. founder Michael Dell learned about keeping costs low and marketing directly to consumers as a young boy selling stamps to collectors. He began the computer business as a 19-year-old college student, selling out of his Texas condo. In the 20 years before he stepped down as CEO, Dell’s company reached $40 billion a year in sales.

Driven to Improve

Dell’s management has always focused on continuous improve-ment. Many technology companies spend a significant fraction of revenues on research and development, look-ing for the “next big thing.” At Dell the goal has been todo better at what is already being done—sell more, cut costs more, improve quality control. When a project concludes successfully, the person responsible gets alittle praise, followed by a long discussion of how itcould have been done better. This has worked well foremployees who have grown up within the company culture.

Even Management Can Improve

Michael Dell does not exempt himself from the drive to improve. In 2001, he and company president Kevin Rollins discovered that employee perceptions of them were quite negative. Dell and Rollins responded by promising that there would be change, and they invited more input from other managers before they made any decisions. Their honesty and responsiveness had an enormous effect on others in management.

Do you think a management model that depends on filling positions from within the company can be successful in the long run? Why or why not?

Go to the Marketing Essentials OLC through glencoe.com to find a research project on management models.

Yoshikazu Tsuno/Getty Images

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SECTION 11.2

CONTINUED

S Skill PracticeDelegate Responsibility Reinforce to the class that it is often hard for supervi-sors to give up control by delegating. Have students come up with strategies for helping a manager be less controlling. Methods may include surrounding oneself with capable workers, starting training programs, and realizing that accepting help is not a sign of weakness.

R Reading StrategyExplain Preview the following words by reading them in context. Ask students to explain what each word means.

• delegateto entrust authority or power to a person acting as one’s agentor representative

• fosterto help to grow or develop

• specializationa concentrated or limited lineof endeavor

D Develop ConceptsDrawing ConclusionsHuman Resources Inform students that employees in human resources have access to information that other work-ers do not have. For example, human resources will keep on fi le an employee’s personal information, performance evaluations, and disciplinary actions. Ask students what type of person should be working in human resources.Answers may include someone who is tactful, keeps a secret, and knows boundaries. Extended Activity

Inform students that current employees may refer job applicants and are often rewarded if the applicant gets the job. Ask students why current employees are a good source of referrals.

244 UNIT 4 — SKILLS FOR MARKETING

that is necessary to get most employees on the right track. Others may not respond to the friendly approach, and you may have to be direct and firm. Give whatever directions are appropriate, and be certain the employee understands what you expect.

Sometimes employee problems are caused by the inappropriate behavior of one employee toward another. In this case, have a discussion with the employees to solve the problem. Lis-ten to what both parties have to say and be reasonable but firm.

Set a Good Example Set a good example in everything you do

on the job. Doing this one simple thing will make your supervisory job much easier.

Delegate Responsibility Some supervisors and middle managers do

too much work themselves. If a manager is taking work home almost every night, it usu-ally means resources are not being managed well. The manager is probably not delegating enough tasks to others, even though there are capable employees with lighter workloads who would be willing to do more.

As a supervisor, never try to do everything yourself. Organize your work responsibilities, and then decide which ones you can delegate to others. Decide which employee can best handle each task. Take time to teach employ-ees how to do new tasks. Follow up by moni-toring and evaluating the tasks that have been delegated. This will allow you more time to concentrate on the most important tasks.

Foster Teamwork As mentioned earlier, teamwork is espe-

cially important in horizontally organized companies. As a manager or group owner, you can foster teamwork in a number of ways. Encourage team members to step outside their areas of specialization and learn about other aspects of the process for which they are responsible. Try to promote honest discussion before decisions are made. Listen respectfully to the comments and opinions of other team members, and encourage others in the group to do likewise. Respond to the comments and

concerns of team members to develop a feel-ing of trust. Treat all team members equally. A team will not succeed if some members are treated unfairly.

Be Ethical Ethical behavior involves understanding

how your actions affect others and striving to make honest and just decisions. Management is responsible for promoting ethical behavior by example.

Employee MotivationMotivating employees is a key skill for any

manager. The more people feel that they are appreciated, the harder they work. Managers should provide frequent feedback to employ-ees and formally evaluate them each year. Identifying long-term goals and rewarding employees who help meet them are impor-tant ways to motivate those you manage.

Rewards It is important to reward smart work, not

busy work. A person who looks busy may not necessarily be getting the work done. To get results, reward results.

Identify those workers who value not only speed but quality. Ask them to suggest ways to improve job performance.

Enthusiastic long-term employees are the key to success in most companies. Reward loy-alty by investing in continuing education for employees and promoting from within.

Encourage Creativity A reasonable amount of conformity is nec-

essary in every company in order to maintain standards, but do not let conformity stifle cre-ativity. Encourage employees to be creative, and remind them that they will not be penal-ized for mistakes. Sometimes, it is necessary to take risks when avoiding conformity.

Human ResourcesWithout effective managers, team mem-

bers, and employees, the best technology and material resources would be of little value to a business.

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CONTINUED

SECTION 00.00

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D Develop ConceptsRecruiting Discuss with students why current employees are good candidates for job vacancies.Answers may include that workers are already familiar with the business and its culture; it encourages them to work hard, and shows them that their work is recognized and rewarded.

S Skill PracticeIndependent Practice

L1 Ask students to explain the costs of hiring employees. Answers may include wages, insurance, and training.

L2 If a manager makes $12 per hour and clerks make $7 per hour, how much would it cost a tea shop to have one man-ager and three clerks work 8-hour shifts during a day?$264; ($12 � 8) � ($7 � 8 � 3) � $96 � $168 � $264

L3 If the cost of employees for a tea shop is $264 per day and the shop makes $2.50 profi t off each drink, how many drinks must be sold to pay for the cost of employees in one day? 106 drinks; $264 � $2.50 � 105.6ELL Have students translate the verbal problems into their own language fi rst, and then into an equation.

SECTION 11.2

CONTINUED

Virtual BusinessIntroduce the concept of business turn-around to students using Knowledge Matters’ Virtual Business Retailing visual simulation, Turnaround. In this simulation, students take over the management of a business with specifi c problems and work as a team to restore the business to profi tability.

Keys to Managing a Web Site

Discussion After students have read Net Marketing, lead a discussion about online payment methods. Let them know that many customers who shop online usually use credit cards, but some systems enable shoppers to create accounts and pay by alternative means. For example, PayPal allows the use of money orders and electronic checks.

Answer: Accept all reasonable answers that refl ect relevant features of an online store Web site. Examples could include background information about the business, and product descriptions and prices.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

Chapter 11 — Management Skills 245glencoe.com

Current Employees Most employees welcome the opportu-

nity for a promotion, and many are happy with a lateral move, or transfer. Notices of job openings should be posted where all employees can see them. The notice should include the job title and duties, qualifica-tions, contact name, and sometimes the salary. Current employees are also a good source for referrals.

Walk-Ins Some applicants simply walk into the

human resources office and ask to be considered for one or more types of jobs. If walk-ins are accepted, they usually complete an application form and may be given infor-mation on jobs that might soon become available. They might also take the compa-ny’s employment tests.

Most companies have a human resources (HR) department that handles recruitment, hiring and firing, training, and other personnel matters. Employee personnel records are gen-erally maintained in a file within the human resources office. These include records related to an employee’s hiring, participation in train-ing programs, performance evaluations, disci-plinary action, and commendations.

RecruitingRecruiting is the process of locating a pool of

applicants and selecting employees from this group. Prospective employees can be recruited from a number of different sources, depending on the type of job opening. Sources include current employees, walk-in applicants, media advertising, state employment services, pub-lic and private employment agencies, schools, and the Internet.

Keys to Managing a Web Site

Creating an informative and user-friendly Web site is just the first step to an effective online enterprise. Tracking, managing, and promoting that site and its contents can be a bit trickier, but down the line are equally as important. To assist online businesses, large and small, in achieving the most comprehensive online experience, there are several companies that spe-cialize in customized Internet solutions. One such company, Iserv, began its operation as an Internet Service Provider (ISP) in the Midwest in 1995. Today it offers a completely integrated software system that enables anyone to create, deploy, and manage a full feature Web site.

Web-Site Tools and FeaturesAmong the many tools that Iserv pro-

vides are tips to create and optimize a site, and to submit keywords to top search en-gines. It assists in creating automated on-line sales campaigns, including digital gift certificates, special promotions, surveys, referrals, and discount coupons. Interac-tive features allow users to give feedback and track hits to the site. Whether target-ing online or offline advertising, Iserv helps streamline and track results.

If you were setting up an online store, what features would be important to include within the site?

Go to the Marketing Essentials OLC through glencoe.com for an activity on managing a Web site.

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SECTION 11.2

CONTINUED

D Develop Concepts

Guided PracticeRecruiting Have students act as hu-man resources managers for a large auto dealer that is recruiting new mechanics. Ask: What are some ways they can use the Internet?Answers may include posting a noticeon the auto dealer site, sending e-mails to colleagues, or using an online job board or a newspaper’s classifi eds section to advertise the positions.

Extend Ask students why they think a state employment offi ce would help job-seekers fi nd openings.Answers may suggest that employed indi-viduals contribute to the state economy.

C Critical ThinkingDrawing ConclusionsAnalyze Inform students that commercial radio stations in America are increasingly becoming owned by a handful of large companies. Ask students to consider what role managers might have on the diversity and quality of music being played on the air.

AD GUIDE • ABILITY, NOT DISABILITY

Discussion Lead a discussion about why employers might not hire people with disabilities. Reasons may include that the workplace is not properly equipped for those workers or that some workers feel uncomfortable around people with disabilities.

Caption Answer No. The U.S. Equal Employment Opportunity Commission enforces and regulates laws that prohibit discriminating on the basis of race, religion, gender, national origin, age, sexual orientation, or disability.

Ask students what the National Organization on Disability might do for job seekerswith disabilities.

246 UNIT 4 — SKILLS FOR MARKETING

Media Advertising Most companies use media advertis-

ing, in newspapers and on the Internet, to recruit applicants. Blind advertisements that do not disclose the name of the company are usually not very effective. The nature of the job and required qualifications should be clearly indicated in an advertisement.

State Employment Services State employment offices provide pre-

screening and testing of prospective applicants. Both state offices and private employment agencies try to match listings of applicants with job openings. State or public agency ser-vices are free, but private agencies charge a fee when an applicant is hired.

Schools High schools can be a good source for jobs

that do not require specialized skills. Voca-tional and technical schools are sources for applicants who have learned a variety of spe-cialized skills. Colleges are the recruiting field for applicants with higher-level skills.

Discrimination and the Law Laws that prohibit discrimination govern

both employers and recruitment agencies. Theselaws apply even before an employee is hired, soit is important to avoid discriminatory remarks and actions in all recruiting efforts. Federal law prohibits employers from discriminat-ing on the basis of race, color, religion, gen-der, national origin, age, sexual orientation, or

• ABILITY, NOT DISABILITY Unemployment is one of the most profound issues facing the disability community. Only 32 percent of Americanswith disabilities aged 18 to 64 are working, but two-thirds of those who are unemployed would rather be working.

Do you think it is legal to avoid hiring a disabled job applicant? Explain.

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PHOTO GUIDE • THE INTERVIEW

Discussion Lead a discussion about the purpose of a job interview. Ask: Can the interviewer truly know whether an applicant can perform well on the job?

Caption Answer Answers might include that in order to ensure fairness, a manager should prepare to interview every applicant in the same way.

D Develop ConceptsHiring New Employees Have students break into pairs and role-play the interviewing process for a job of their choice. Start by having students develop a list of questions and appropriate tests, then have them take turns interviewing each other.

C Critical ThinkingPreparing for the Interview Have students look online for lists of common interview questions and other tips for preparing for the interview. Ask them to work in groups of three to four and make guidelines for effective job interviews to present to the class.

SECTION 11.2

CONTINUED

Ask students who have jobs about their experiences with job interviews. Ask: Did they make any mistakes during their interview?

Chapter 11 — Management Skills 247

disability. The U.S. Equal Employment Oppor-tunity Commission enforces and regulates these laws.

Hiring New EmployeesFor the employer, the purpose of the inter-

view is to determine whether an individual has the skills and abilities to perform well on the job.

It is a good idea to conduct at least two interviews with applicants who seem well-qualified. It is also a good idea to have at least two people interview final applicants. Pre-pare interview questions in advance. Ask only questions that are job related. If you are inter-viewing more than one applicant for the same job, ask each of them exactly the same ques-tions in exactly the same order. You will need to allow the applicant to ask questions, too.

It is the interviewer’s responsibility to explain such things as wages and benefits.

When the time comes for managers to interview job applicants, they should check to make sure that they will be following all the laws that govern the hiring process. They should remember which kinds of questions are illegal or unacceptable.

Before hiring an applicant, most employ-ers do some pre-employment testing. This may include some type of aptitude test to predict how well an applicant would be able to perform certain tasks. Some companies give personality tests, and many companies will ask prospective employees to be tested for illegal drug use.

Orientation andTraining Programs

Orienting new employees includes more than simply training them for their positions. It is important to make new employees feel valued and welcome and to familiarize them with the working environment.

Orientation may take as little as a couple of hours or as long as a few days. It commonly includes the following:

• Tour of the company and introduction to coworkers

• Discussion of the company’s history, mission, and values

• Description of what the company does • Training on use and routine maintenance

of equipment, such as cash registers and computers

• Information on locations of facilities • Information about payroll, benefits, and

company policies

All new employees need on-the-job train-ing. As a supervisor, you may train new employees yourself or delegate this task to an experienced employee. Make sure that all job duties are explained and that new employees understand how to complete them.

Scheduling EmployeesEmployee scheduling is the process of

determining which employees should work at

• THE INTERVIEW For the company, the purpose of a job interview is to determine whether an applicant can perform well on the job.

As a manager, how would you prepare to interview several applicants for the same job?

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INDEPENDENT REVIEW

L1 Assign and review Chapter 11 activities in the Student Activity Workbook.

L2 Assign and review Chapter 11 activities in the Marketing MathWorkbook.

L3 Assign and review Chapter 11 activities in the BusinessWeek Reader with Case Studies.

SECTION 11.2

CONCEPTSAsk students to explain what managers do.Managers make decisions in additionto supervising and directing the actions

of others.

KEY TERMSHave students review key terms, spellings, and defi nitions in small groups. Ask them to write sentences using each.

AFTER YOU READHave students complete the Section 11.2 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 11.2 practice test.

Extended ActivityThe Importance of Customer

SatisfactionAsk students to list reasons why customer satisfaction will be a top priority and manage-ment will become more diverse in the future. Students might say that customer satisfaction will be key as technology and transportation give consumers options, and management will become more diverse to refl ect the population and global market.

248 UNIT 4 — SKILLS FOR MARKETING

what times. Very small companies can handle the scheduling of employees quite simply without any special computer program. Today, though, most companies use some type of computer scheduling.

Handling Complaints and Grievances

Employee complaints or grievances should be taken just as seriously as customer com-plaints. Most employee complaints fall into one of three categories: complaints about other employees, complaints about the quality of the company’s product or service, or complaints about their own work situation. Complaints about other employees should be handled with care and discretion. Conflicts in the workplace can damage morale and productivity.

Some employees do, indeed, care enough about the quality of the company’s products or services to bring problems to the attentionof management. The complaining employee should be kept informed at every step. If the complaint proves justified, the employee should be rewarded.

Complaints involving the employee’s work situation are usually fairly easy to resolve when the issue is salary. Every com-pany should have a pay range for each job and a way to deviate from this range for truly outstanding work. For other work situation complaints, gather the facts, report the find-ings to the complaining employee, make your decision, and clearly explain to the employee the reasons and nature of your decision.

AssessingEmployee Performance

Assessment enables a manager to develop better workers and a more efficient and profit-able company.

In many companies, newly hired employ-ees are placed on probation for a period of three to six months. Near the end of the pro-bationary period, the employee is evaluated. If performance is satisfactory, the employee’s status is changed to permanent. Usually, all

employees are evaluated yearly. In many companies, the employee completes a self-evaluation form, and the supervisor completes the same form on the employee. Then a meet-ing is scheduled so that the supervisor and the employee can compare and discuss any differences in their completed forms.

Remedial ActionWhenever a supervisor notices that an

employee’s performance or behavior is sub-standard, it is the supervisor’s responsibil-ity to discuss the matter with the employee. Sometimes, remedial action is necessary. Remedial action is a means of encourag-ing appropriate workplace behavior in order to improve employee performance. Two approaches to remedial action are preventive discipline and corrective discipline.

Preventive Discipline Preventive discipline focuses on manag-

ing employees in a way that prevents behav-ior that might require directly disciplining an employee. Its intent is to encourage employ-ees to follow the rules. Preventive techniques might include involving employees in setting standards, encouraging employees to meet standards, and communicating standards clearly. Providing training programs for self-discipline and having a method for control-ling absences are also helpful.

Corrective Discipline In some cases, corrective discipline is nec-

essary. Corrective counseling is sometimes effective. This involves a discussion between the employee and a human resources coun-selor about the problem and what must be done to correct it. When this fails, more severe forms of remedial action are required. This usually begins with an oral warning and an explanation of what will be required. Next is a written warning to the employee with a copy for the employee’s personnel file. If the problem is not resolved, the third action is suspension from work without pay. The sus-pension usually lasts from one to five days

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CULMINATING ACTIVITIES1. Have students role play managers of a newly formed sporting goods or sports clothing manufacturer. Have them writea mission statement for the company, making sure it mentions the productsand services offered and identifying a target market.

2. Ask students to recall and provideanswers to the following questions:

• What is the difference betweenpreventive discipline and corrective discipline?Preventive discipline focuses on managing employees in a way that prevents behavior that might require disciplining an employee. Corrective discipline is action taken after an employee has broken rules.

• What are some sources of prospective employees?Sources include current employees, walk-ins, media advertising, state employment services, public and pri-vate employment agencies, schools, and the Internet.

SECTION 11.2

NCLB

NCLB Activity correlated to Mathematics and English Language Arts Standards

11.2 AFTER YOU READ

Key Terms and Concepts

1. The basic functions of management are planning, organizing, and controlling.

2. Delegating means giving jobs or duties to other people to do, rather than trying to do it all yourself.

3. The purpose of assessing employee perfor-mance is to develop better workers and a more effective and profi table company.

Academic Skills 4. $96,525; $13.75/hour � .075

� $1.03125/hour; $1.03125 � 1,800 hours/week � $1,856.25/week; $1,856.25 � 52 weeks/year � $96,525

5. Reports should demonstrate an under-standing of ethical policies regarding work-ing conditions.

Find answers at the Marketing Essentials OLC through glencoe.com.

Numbers and Operations:Computation Fluent computation requires a logical sequence of steps.1. To solve this problem, multiply the

hourly wage by the decimal equiva-lent of 7.5 percent to find the in-crease in wages the employees want.

2. Multiply the number of employees by the number of hours worked a week, 40, to determine the total number of hours worked by all the employees.

3. Multiply the total number hours work-ed by the increase in pay to determine the weekly cost to the company.

4. Multiply the increased weekly cost to the company by the total number of weeks in a year to determine the yearly cost to the company.

For help, go to the Math Appendix located at the back of this book.

Chapter 11 — Management Skills 249glencoe.com

and comes with a warning that if the problem is not corrected, the employee may be fired.

Dismissing EmployeesMost companies have to face the task of

firing an employee for poor performance or bad behavior. Before this decision is made, certain procedures must be followed. A super-visor or manager must give the employee verbal and written warnings that her perfor-mance or behavior is not acceptable. These warnings should be included on the employ-ee’s performance assessment form in the per-sonnel file. The employee may be placed on probation and given time to change.

When a decision is made to dismiss a worker, a letter of dismissal should be written, along with separate checks for final salary and severance pay.

The Exit InterviewWhen an employee leaves the company, the

human resources department will typically arrange an exit interview. An exit interview provides the opportunity for both the employee and manager to obtain valuable feedback. Exit interviews are often conducted with human resources personnel rather than the employee’s supervisor. An employee always has the right not to participate in an exit interview.

An employee who is leaving voluntarily may have feedback on overall work conditions that could help the company retain workers in the future.

If the employee is being dismissed, the rea-son should be discussed in the exit interview. Usually, an employee will be entitled to advance notice of termination. As a manager, you must decide whether to have the employee continue working or leave immediately.

Check your answers at the Marketing Essentials OLC through glencoe.com.

Key Terms and Concepts 1. What are the basic functions of management? 2. What does it mean to delegate responsibility?3. What is the purpose of assessing employee

performance?

11.2 AFTER YOU READ

Academic SkillsMath

4. Retail store clerks are negotiating with their company management for a 7.5 percent increase in their hourly wage. The average hourly wage of a clerk is $13.75. The company has 45 clerks who each work a 40-hour week, 50 weeks per year. The clerks receive a two-week paid vacation each year. What would the pay raise cost per year?

English Language Arts

5. Choose a clothing store whose products you purchase or like. Do research and write about ethical policies the company follows in terms of working conditions for employees.

NCLB

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A marketing career is based on relation-ships, and marketers should have good social skills in order to establish and maintain relationships.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

Lifelong Learning

CAREER INFORMATION Have students go to the Marketing Essentials OLC through glencoe.com and fi nd the Chapter 11 Careers page and click on the link for the American Market-ing Association’s Career Strategies and Tips. Ask students to read one article, and summarize the article.

INTERPERSONAL SKILLSThe ability to communicate well is an essential skill for managers, who must ensure that their employees work together to achieve goals. Many compa-nies offer communication skills work-shops for workers; individuals can fi nd resources on how to improve their skills online, in books, and from their human resources department.

PrimarySourceAsk students to go to the Marketing Essentials OLC through glencoe.com and fi nd Chapter 11 Resources. Ask them to click on the link for the American Market-ing Association’s marketing dictionary and read the defi nitions of the terms they fi nd that are related to management skills.

Test-Taking StrategiesSuggest that students create their own chapter tests as a way to review the chapter. They will revisit the content in the process, and they can take each other’s tests for further review.

250250250 UNIT 4 — SKILLS FOR MARKETING glencoe.com

Courses communications, music, management

Degrees High school, BA

Positions such as this one can begin virtually anywhere within an organization; Reed suggests that individuals seek out new ways to make themselves valuable to the company.

Growth about as fast as average for the next ten years

Source: Occupational Outlook Handbook

Strong interpersonal skills, an outgoing personality, tenacity, and a strong work ethic

Go to the Marketing Essentials OLC through glencoe.com for a career-related activity.

Why do you think “the art of the schmooze” is important in a marketing career?

DAN REEDMUSIC DIRECTOR/OPERATIONS MANAGERWXPN-FM

What do you do at work?

I am the music director andoperations manager of WXPN in Philadelphia, a non-commercial radio station. I’m also the talent coordinator of the “World Café,” a daily syndicated music show. I’m responsible for all of the contact with the music industry, including new music

acquisition, relationships with management and labels, booking artists, and special events coordination. Everything I do is geared toward marketing because if there isn’t an audience, there isn’t a radio station or show. The biggest creative part of my job is understanding the audience and making sure that they know what we’re doing—that’s marketing in its purest form.

What skills are most important to you?

I was fortunate enough to attend a high school that had aradio station, so my early, mistake-ridden, trial-and-error training came in 10th, 11th, and 12th grades. I also worked at my college radio station. Besides about 16 years in the radio business, I also worked for fi ve years in the concert business, which has become invaluable experience. Contacts are important—the art of the “schmooze” should be considered. Get real world experience—a degree is fi ne, but hardcore work experience is paramount.

What is your key to success?

I work hard, and I let my opinions be heard. Any media or marketing organization runs on ideas, so always be thinking. I’ve tried to make people believe in me and my work ethic, and I’ve never backed off tough decisions. Having a sense of humor is very important—I think that laughter has allowed me to disarm many a detractor.

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See the Glossary at the back of this book for defi nitions of Key Terms. Academic Vocabu-lary defi nitions are on the book’s OLC.

1. A sample answer might read:Key Terms Management can be defi ned simply as getting work done through the effort of others.Academic Vocabulary Resource a source of supply or support.

Ask volunteers to read each of these sum-maries aloud and rephrase the concepts in their own words.

2. In horizontal organizations, thetraditional hierarchy of management is fl attened and replaced by teams that manage themselves.

3. top management, middle man-agement, and supervisory-level management

4. Self-managing teams set their own goals and make their own decisions. They are organized by process and are customer oriented.

5. planning, organizing, and controlling

6. giving clear directions; training new employees; being fi rm when necessary; setting a good example; delegating responsibility; fostering teamwork; and motivating employees

7. Methods include provide frequent feedback to employees and formally evaluate them each year.

8. A human resource department handles recruitment, hiring and fi ring, training, records an employee’s hiring, participation in training programs, performance evaluations, disciplinary action, and commendations.

9. current employees; walk-in applicants; media advertising; state employ-ment services; public and private employment agencies; schools; and the Internet

10. Orientation and training programs help new employees feel valued and welcome, familiarize employees with the working environment, and help new employees understand how to complete their duties.

11. If a supervisor notices that an employee’s performance or behavior is substandard, the employer can take the preventive or corrective discipline approach in order to improve employee performance.

CHAPTER 11 REVIEW

Chapter 11 — Management Skills 251

C H A P T E R 11 R E V I E W

SECTION 11.1• The global marketplace will infl uence the kind of leadership companies will need in the future.

• Businesses are organized in one of two ways: vertically or horizontally.

• Traditional, vertically organized companies have three levels of management: top

management, middle management, and supervisory-level management.

• Horizontal companies have top and middle management. Horizontally organized companies

have self-managed teams that set their own goals and make their own decisions.

SECTION 11.2• Basic management functions are planning, organizing, and controlling.

• Effective management techniques involve properly training employees, letting them know

what is expected of them, and treating them fairly.

• In case of poor performance or unacceptable behavior, the employee should receive

warnings, which should be included in the employee’s personnel fi le. A letter of dismissal

should be given to the employee at dismissal time, along with the fi nal salary amount due.

Key Terms• management (p. 237)• vertical organization (p. 237)• top management (p. 237)• middle management (p. 238)• supervisory-level management

(p. 238)• horizontal organization (p. 238)

• empowerment (p. 238)• planning (p. 240)• organizing (p. 242)• controlling (p. 242)• mission statement (p. 242)• remedial action (p. 248)• exit interview (p. 249)

Academic Vocabulary• resource (p. 237)• individual (p. 239)• identify (p. 242)• require (p. 242)

1. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence.

2. How do horizontally organized and traditionally

organized companies differ? (11.1)

3. Name three levels of management. (11.1)

4. How does a self-managing team function?

(11.1)

5. List the three functions of management. (11.2)

6. What management techniques are used by

effective managers? (11.2)

7. What methods motivate employees? (11.2)

8. What does a human resources (HR)

department do? (11.2)

9. What sources are used to recruit employees?

(11.2)

10. Why are orientation and training programs

important? (11.2)

11. When is remedial action necessary? (11.2)

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12. Workplace Skills Possible options for Angela may

include speaking with Lou, speaking with other team members, or speak-ing with the personnel department.

13. Technology Applications Summaries and Web addresses will

vary but should demonstrate an understanding of what makes the job a management opportunity.

Formative AssessmentFormative assessment is an essential component of classroom work. This type of assessment provides information that is then used as feedback to modify teaching and meet student needs.

L1 Have students write down the functions of management.

L2 Have students compare horizontal management to vertical management.L3 Have students explain why horizontal management is more effective than vertical manage-ment in the modern fi eld of marketing.

If the results of this formative assessment seem low, consider the following activity:

Read each of the key terms aloud. Have students defi ne the key terms and use them in a sentence.

CHAPTER 11 REVIEW

14. Math Practice 132 square feet; 16 feet � 6 cubi-

cles � 96 square feet; 96 square feet � (3 � 12) square feet hallway space � 132 square feet

15. Science Accept all reasonable reports that

include relevant biographical and scientifi c information on at least one Renaissance scientist and exact fi elds of science. Examples could include astronomer Nicolaus Coper-nicus or René Descartes, a scientist and a mathematician, respectively.

16. Rewarding Job

Performance Rewards programs will vary; students

should give reasons for their opinions on material and nonmaterial rewards.

17. Develop a Mission

Statement Mission statements should describe

the ultimate goals of the company.

252 UNIT 4 — SKILLS FOR MARKETING

12. Workplace Skills Working in Teams Angela is a member of a

six-person team. One of the team members,

Lou, often arrives at work late. The other team

members seem not to notice. Angela feels the

quality of Lou’s work is being affected by his

late arrival. What should she do?

13. Technology ApplicationsInternet Job Ads Use the Internet to

fi nd recruiting sites. Locate an ad for a

management opportunity in marketing. Use a

word processing program to write a summary

of your fi ndings, including the qualifi cations

necessary to apply for the job. Also include

the Web address of the site.

14. Math Practice Plan Offi ce Space Calculate the square feet

of space required to organize an offi ce area

to accommodate six employees. Each cubicle

will be 16 square feet. Plan for three cubicles

on each side (for a total of six cubicles) and a

3-foot wide hallway down the middle.

Geometry: Calculating Area

The formula for area is length times width.

Area is always measured in square units,

such as square feet, for example.

For help, go to the Math Appendix located at the back of this book.

15. Science History of Science Managers work in all

fi elds of endeavor, including science and

scientifi c research. In today’s world, most

science work takes place in colleges and

universities. Research the history of science

during the Renaissance in Europe from about

the end of the 14th century to about 1600. List

one or two famous scientists from this period,

identify their accomplishments, and describe

how they got funds to do research.

16. Rewarding Job Performance

A material reward for a job well done might

include a raise, bonus, or promotion. Do

you think nonmaterial rewards such as

praise and public recognition motivate and

encourage employees as much as fi nancial

compensation? Explain your answer. What

other types of reward might an employer use

to motivate and encourage employees? List a

few examples and explain why you think they

would be applicable to work situations.

17. Develop a Mission Statement Assume that you are the manager of a new

independent retail music store with seven

employees.

Activity Use a word processing program to

create a mission statement explaining the

goals of your business.

C H A P T E R 11 R E V I E W

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The students should be evaluated on the performance indicators noted in the role play. For another DECA role play, go to the Competitive Events Workbook or the Student Activity Workbook, or go to the Marketing Essentials OLC through glencoe.com.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

DECA Advisors CornerYour DECA chapter can serve your community by conducting an Operation Holiday Help project in the fall. This project provides training and employment for all students in your school who want to work during the holiday season. Contact members of your local retail business community and/or your local Chamber of Commerce to get them involved in the project.

18. Does the Company Benefi t?

All reports should show student understanding of the benefi ts and drawbacks of telecommuting.

CHAPTER 11 REVIEW

STANDARDIZED TEST PRACTICE

ANSWERS

1. C 2. T

TEST-TAKING TIPSWhen your students have a standardized test coming up, these last-minute tips and strate-gies will help students relax and do their best.

Test Format Help your students become familiar with the format of the specifi c test they are going to take by practicing with test items that imitate the actual test items.

Test Timing Have your students take one or more timed practice tests so that they become comfortable with the test format.

MINI-QUIZRead these sentences to the students and have them volunteer the missing word(s).

1. managers supervise the activity of employees who carry out the tasks determined by the plans of middle and top management. (Supervisory-level)

2. In management, top management shares decision making with self-managing teams of workers. (horizontal)

3. is the process of compar-ing what you planned with actual performance. (Controlling)

For an expanded chapter quiz, go to Chapter 11 in the TeacherWorks™ Plus DVD and to Chapter 11 in the ExamView® Assessment Suite.

Chapter 11 — Management Skills 253glencoe.com

18. Does the Company Benefit? You and several coworkers would prefer

to work at home and avoid the commute

to the offi ce. Browse the Web to research

the advantages and disadvantages for the

company of having employees work from

their homes.

Use a word processing program to write a

one-page report that could serve as a basis

for a discussion with company management.

Role PlayBookstore OwnerSituation Assume the role of employee of

an independently owned bookstore located

in a busy mall. The bookstore has been

successfully competing with the national

chains. One reason for its success is the

packaging for purchases. The bookstore owner

(judge) has commissioned local artists to

create designs for the paper and plastic carrier

bags. Because of the costs, the canvas bags

are only given with purchases of $75 or more.

The storeowner (judge) has noticed that the

canvas bags are being given to customers

when they request them, regardless of the

amount of the sale. The storeowner (judge)

has asked for your ideas to address this

situation with the store employees.

Activity You are to present your ideas for the

staff meeting to the storeowner (judge).

Evaluation You will be evaluated on how well

you meet the following performance indicators:

• Explain employee’s role in expense control.

• Explain the nature of overhead/

operating costs.

• Explain the concept

of competition.

• Identify factors

affecting a bus-

iness’s profi t.

• Participate in

staff meeting.

For more information and DECA Prep practice, go to the Marketing Essentials

OLC through glencoe.com.

1. Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.

How much would a $6.75 hourly wage be if it is increased by 8.5 percent? (Round answers to the nearest cent.)

A $7.80 B $6.84 C $7.32 D $6.95

2. Directions Choose either True or False as the answer. Write the letter for the answer on a separate piece of paper.

Management is simply getting work done through the effort of others.

T F

C H A P T E R 11 R E V I E W

STANDARDIZED TEST PRACTICE

When studying from a textbook, read the chapter summaries. They do a good job of summarizing important points.

Test-Taking Tip

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254

Virtual TravelAsk students to research the viability of technological alternatives to travel, such as teleconfer-ences and online chat rooms. Have them list the benefi ts and drawbacks related to each tech-nological or travel alternative and present them in a one- or two-page report. Remind students to consult recent copies of business and technology online periodicals, newspapers, or trade journals that discuss the virtual business world’s advances. Ask students to include in their reports situations they believe require face-to-face meetings, and therefore travel, and situations when travel alternatives are an option. Have them explain their reasoning.

SET-UPDiscuss the basic background to make sure students understand the simulation. Have students discuss the challenges they have experienced traveling, whether it is packing the proper amount of clothing for a weekend trip or navigating in areas where they may not know the language.

PROCEDURESYou may want to list procedures on the board and talk about any questions the students might have. Remind the students that a suggested outline for their project is available at the Marketing Essentials OLC through glencoe.com.

TIME MANAGEMENTSet goals, block schedules, and mile-stones. Assign interim deadlines for each step of the project.

ASSESSMENTThe rubrics for evaluation of the written, oral, and computer presentations are available at the Marketing Essentials OLC through glencoe.com.

FPO

A SIMULATED SPORTS AND ENTERTAINMENT MARKETING EVENT

BASIC BACKGROUND Cameo Creations recently began expanding

its operations internationally and has found that its staff is ill-prepared for the rigors of travel and

the expertise needed to conduct business abroad. There are many outside consultants and seminars, but the company prefers to train in-house. It wants your firm to propose an interactive training pro-gram in a technology for new employees.

Working Abroad Some topics that were dis-cussed during the initial interview with Cameo Creations executives include: cross-cultural dif-ferences in management, communication and interpersonal relations; safety when traveling abroad; foreign currency conversion; jet lag; and technology needed to conduct business in foreign countries, e.g., the right type of cell phone or bringing a power adapter for laptop computers.

YOUR OBJECTIVE Your objective is to design a reusable train-

ing program for Cameo Creations’ employees that travel abroad and to convince company executives that your proposal meets their needs.

Include current information on technology and the tools that facilitate international business.

SKILLS NEEDED Preview the project and brainstorm a list

of skills you will need to complete it. Describe how you might apply them. Some skills might include:

Academic Skills reading, writing, math, world languages, and social studies

Basic Skills speaking, listen-ing, thinking, and interpersonal skills

Technology Skills word processing, presentation, telecommunications, and Internet skills

ASSIGNMENT AND STRATEGY • Conduct research Re-

search the topics the cli-ent wants included in its training program. Research consulting companies that provide cross-cultural work-shops to see what top-ics they cover. Interview global business travelers

Design a Program for Savvy Business Travelers

254 UNIT 4 — SKILLS FOR MARKETING

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Explain to students that portfolios provide evidence of their knowledge and skills in working with data, people, and concepts. Developing a portfolio can be a valuable career tool. Point out the importance of using high-quality paper and printouts for making a good impression. Encourage students to check the portfolio information available at the Marketing Essentials OLC through glencoe.com.

Peer ReviewFellow students who share common interests can serve as reviewers of the fi nal portfolios. This review can be completed through the use of a checklist. Go to the Marketing Essentials OLC through glencoe.com to fi nd a suggested checklist.

Unit Review

Now that students have completed the chapters in Unit 4, ask them to review their answers to the Analyze the Ad ques-tions on page 148. Would they answer them differently? Why or why not?

Have students consider the skills covered by this unit and ask them to list which ones are their strengths or weaknesses. Ask them to consider how they can strengthen or develop the skills. Then have students write a three-paragraph essay about the skills that they can bring into a marketing-related profession.

STEP AHEADHave students consider the skills needed to succeed in marketing. Ask them: How do the same skills relate to selling?

Internship Wrap-UpAsk students to write a two-page memo explaining why regular and continuous training is important for both employees and employers. Have them explain the benefi ts to the employer and the employee.

4

255

1

glencoe.com

Option 1 Internship Report Once you have completed your Marketing Internship project and presentation, include your written outline and a few printouts of key slides from your oral presentation in your Marketing Portfolio.

Option 2 Design Business Seminars Typical business seminars include selling techniques, management skills, customer service, communications skills, and computer training. Create a new kind of seminar and explain why it could succeed. Decide where it will be offered and what the fee will be. Describe the presenters and draw up an outline. Come up with a plan to promote it. Prepare a written report and an oral presentation using word processing and presentation software. See a suggested outline and key evaluation points at the Marketing Essentials OLC through glencoe.com.

and review business magazines, such as Busi-nessWeek, Sales and Marketing Management, and Forbes, and the magazines’ Web sites.

• Design a training program Select one foreign country or region of the world for your proposal. Outline the topics covered in this program and explain why you would include them. Describe the interactive activities for participants. Decide on a length and schedule for the program, and method of evaluation. List the computer equipment and software needed.

• What your project should include Prepare a scenario that can be used for role-playing exer-cises to train participants in interpersonal skills when doing business abroad. Include a sample test to evaluate a participant at the end of the training program. Prepare a flyer that outlines the program’s major topics.

YOUR REPORT Use a word processing program and presen tation

software to prepare a double-spaced report and an oral presentation for your supervisors. See a suggested outline and key evaluation points at the Marketing Essentials OLC through glencoe.com.

Go to the Marketing Essentials OLC through glencoe.com to review employee training concepts that relate to DECA events.

Unit 4 Thematic Project — Marketing Internship 255