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MANAGEMENT VS. LEADERSHIP

2008-05-19 12:41:50

Leading should not be considered the same as managing. Business leaders who do

not understand the difference between the functions/roles of leading and

managing are quite likely to misinterpret how they should carry out their

duties to meet organizational goals. While some managers are high-quality

leaders, others only manage resources and don't lead their subordinates.

Leadership is one of the four primary activities that are used to influence

others. As such, it is a subcategory of the management concept that focuses

mainly on behavioral issues and opportunities. Managing is more comprehensive

than leading. It involves dealing with resource issues as well as behavioral

factors. Generally speaking, not all managers are necessarily leaders, yet the

most effective managers, over the long term, are leaders.

Leadership is the process of guiding the behavior of others toward an

organization's goals. Guiding, in this context, means causing individuals to

behave in a particular manner or to follow a specific set of instructions.

Ideally, the behavior exhibited is perfectly aligned with such factors as

organizational goals, culture, policies, procedures, and job specifications.

The main goal of leadership is to get things done through other people, making

it one of the main activities that can enhance the management system. It is

accomplished to a great degree through the use of effective communication.

Because leadership is a prerequisite for business success, to be a successful

business manager one must have a solid understanding of what leadership

includes. Indeed, such issues as the increased capabilities afforded by

enhanced communication technology and the rise of international business have

made leadership even more important in today's business environment. The

following sections describe the major theories underlying the most commonly

accepted management/leadership practices and the concepts they are based on.

In today's business environment, possessing management skills is no longer

sufficient to be successful. Contemporary business practices require that

managers have knowledge and experience regarding the differences between

management and leading and how both activities must be integrated for business

success. Commonly, businesspeople believe that a manager makes sure tasks and

duties are completed, while a leader is sensitive to the needs of people and

what they need to be exceptional employees. Integrating these concepts allows

business managers to apply logic and analytical skills to business activities

and tactics while being sensitive to and working with workers as individuals

with needs and desires related to their work and careers.

LEADERSHIP BASED ON TRAITS

The trait theory of leadership is based on research which implies that the

abilities and dispositions necessary to make a good leader are inborn, not

capable of being developed over time. The central thrust of this research is to

describe leadership as accurately and analytically as possible. The reasoning

is that a description of the full spectrum of managerial leadership traits

would make it possible to easily identify individuals who possess them. An

organization could then hire only those individuals who possess these traits

and thus be assured of always having high-quality leaders.

Current management thoughts, however, suggests that leadership ability cannot

be explained by an individual's inherited characteristics. To the contrary,

business analysts believe that individuals can learn to be good or even

exceptional leaders. Thousands of employees each year complete training to

improve their leadership skills. Corporations and not-for-profit organizations

continue to do this as an investment, which pays dividends.

IDENTIFYING LEADERSHIP BEHAVIORS

Since trait theory proved not to be aligned with leadership skill, researchers

have analyzed other angles to explain leadership success or failure. Rather

than looking at the traits successful leaders supposedly should possess,

researchers began to investigate what good leaders really do. This behavioral

approach was concerned with analyzing how a manager completed a task and

whether the manager focused on such interpersonal skills as providing moral

support and recognizing employees for their successes. Based on these research

efforts, leaders can be accurately described by either their job-centered

behavior or their employee-centered behavior, since this research indicated two

primary dimensions of leader behavior: a work dimension (structure behavior/

job-centered behavior) and a people dimension (consideration behavior/

employee-centered behavior).

WHICH LEADERSHIP STYLES ARE MOST EFFECTIVE?

Caution should be exercised when considering what style of leadership is best.

Research suggests that no single leadership style can be generalized as being

most effective. Organizational situations are so complex that one particular

leadership style may be successful in one situation but totally ineffective in

another.

CONTINGENCY THEORY

Contingency theory, as applied to management/leadership, focuses on what

managers do in practice. Because this theory suggests that how a manager

operates and makes decisions depends upon, or is contingent upon, a set of

circumstances, it is centered on situational analysis. Using contingency

theory, managers read situations with an "if-then" mentality: If this

situational attribute is present, then there is an appropriate response that a

manager should make. This theory takes into consideration human resources and

their interaction with business operations. Managers may take different courses

of action to get the same result based on differences in situational

characteristics. In general, contingency theory suggests that a business leader

needs to outline the conditions or situations in which various management

methods have the best chance of success. This theory thus runs directly counter

to trait theory, discussed earlier. Some of the challenges to successfully

using contingency theory are the need to accurately analyze an actual

situation, then to choose the appropriate strategies and tactics, and finally

to implement these strategies and tactics.

Managers encounter a variety of leadership situations during the course of

their daily activities, each of which may require them to use leadership styles

that vary considerably, depending on the situation. In using the contingency

model, factors of major concern are leader-member relations, task structure,

and the position power of the leader. The leader has to analyze these factors

to determine the most appropriate style of response for meeting overall

work-unit and organizational goals. Leader-member relations refer to the

ongoing degree to which subordinates accept an individual leader or group of

leaders. Task structure refers to the degree to which tasks are clearly or

poorly defined. Position power is the extent to which a leader or group of

leaders has control over the work process, rewards, and punishment. Taking

these factors into consideration, leaders can adjust their style to best match

the context of their decision making and leadership. For those leaders who have

a breadth of leadership styles, knowing when to change styles gives them the

tools to successfully deal with the varying nature of business decision making.

For those leaders who have a limited repertoire of leadership styles, they and

their superiors can use this information to better match work situations with

the styles that a specific leader possesses.

Within this continuum, or range, of leadership behaviors, each type of behavior

also relates to the degree of authority the manager can display, and inversly,

to the level of freedom that is made available to workers. On one end of this

continuum, business leaders exert a high level of control and allow little

employee autonomy; on the opposite end, leaders exert very little control,

instead allowing workers considerable autonomy and self-direction. Thus

leadership behavior as it progresses across the continuum reflects a gradual

change from autocratic to democratic leadership.

In today's business environment there are more complicated contexts and

relationships within which managers and subordinates must work than existed in

previous eras. And as contexts and relationships become increasingly

complicated, it becomes significantly more difficult for leaders to determine

how to lead. In addition, there are major societal and organizational forces

that cause confusion about how to lead.

THEORY X AND THEORY Y

Based on the work of psychologists, organizational theorists, and human

relations specialists in the 1960s and 1970s, two distinct assumptions, called

Theory X and Theory Y, evolved about why and how people work for others. Theory

X posits that people do not like to work and will avoid doing so if the

opportunity presents itself. Because of this, most people need to be coerced

into completing their required job duties and punished if they don't complete

the quantity of work assigned at the level of quality required. Again, because

of their dislike for work, most people do not want responsibility, prefer to be

directed by others, and have little ambition; all they want is job security.

With an almost completely opposite perspective, Theory Y posits that people

like to work and see it as a natural event in their lives. Therefore,

punishment and threats are not the only means of motivating them to complete

work assignments. People are willing to work hard for an organization; indeed,

they will use self-direction and control to work toward goals that are

understandable and communicated clearly. In this theory of human behavior and

motivation, people are seen as seekers of learning and responsibility who are

capable of and willing to be engaged with creative problem-solving activities

that will help the organization reach its goals. According to Theory Y, leaders

need to develop ways to expand the capabilities of their workers so that the

organization can benefit from this significant potential resource.

Although Theory Y has much to offer and is widely followed, many organizations

still use a variety of policies and practices that are based on Theory X

principles. A further development in explaining human work behavior and then

adjusting management/leadership practices to it is Theory Z.

THEORY Z

Probably the most prominent of the theories and practices coming from Japan is

the Theory Z approach, which combines typical practices from the United States

and Japan into a comprehensive system of management/leadership. This system

includes the following principles of best management/leadership practice:

tools of performance.

support of the individual both at work and at home (as regards family issues).

Theory Z has had a marked impact on the manner in which companies are led

today. Theory Z strategies have been instrumental in building stronger working

relationships between subordinates and their leaders because of the increased

level of worker participation in decision making as well as leaders' higher

level of concern for their subordinates.

MANAGERIAL GRID

Business researchers at the University of Texas have developed a

two-dimensional grid theory to explain a leadership style based on a person's

(1) concern for production and (2) concern for people. Each axis on the grid is

a 9-point scale, with 1 meaning low concern and 9 meaning high concern. "Team"

managers, often considered the most effective leaders, have strong concern both

for the people who work for them and for the output of the group/unit. "Country

club" managers are significantly more concerned about their subordinates than

about production output. "Authority-compliance" managers, in contrast, are

singularly focused on meeting production goals. "Middle-of-the-road" managers

attempt to balance people and production concerns in a moderate fashion. And,

finally, "impoverished" managers tend to be virtually bankrupt in both

categories, usually not knowing much or caring much about either. Grid analysis

can be quite useful in helping to determine managers' strengths, weak points,

areas where they might best be utilized, and types of staff development they

might need to progress.

PATH-GOAL LEADERSHIP THEORY

In path-goal leadership theory, the key strategy of the leader is to make

desirable and achievable rewards available to employees. These rewards are

directly related to achieving organizational goals. Basically, the manager

articulates the objectives (the goal) to be accomplished and how these can and

should be completed (the path) to earn rewards. This theory encourages managers

to facilitate job performance by showing employees how their work behaviors

directly affect their receiving desired rewards.

SYSTEMS THEORY AND THE LEADERSHIP/MANAGEMENT FUNCTION

A system is a group of interrelated and dependent components that function

holistically to meet common goals. Systems theory suggests that organizations

operate much like the human biological system, having to deal with entropy,

support synergy, and subsystem interdependence. The law of entropy states that

there are limited resources available and that as they are used/consumed, their

beneficial features are dispersed and are not available to the same degree as

they were originally. The other two considerations in a systems approach are

the achievement of synergy, or the creation of a total value greater than the

value of separate parts, and of subsystem interdependence or the linkage of

components in such a way that synergy can take place.

In the effort to enhance system performance, managers/leaders must consider the

openness and responsiveness of their business organization and the external

environment in which it operates. In this environment, leaders must consider

the four major features of business system theory: inputs, organizational

features, outputs, and feedback. The inputs for most systems include human

labor, information, hard goods, and financing. Organizational features include

the work process, management functions, and production or service technology.

Outputs include employee satisfaction, products or services, customer and

supplier relationships, and profits/losses. In guiding a unit or the whole

organization, business leaders need to consider features of their

organization's system as it interacts with and responds to customers,

suppliers, competitors, and government agencies.

TRANSFORMATIONAL LEADERSHIP

Transformational leadership inspires organizational success by dramatically

affecting workers' attitudes about what an organization should be as well as

their basic values, such as trust, fairness, and reliability. Transformational

leadership, which is similar to charismatic or inspirational leadership,

creates in workers a sense of ownership of the organization, encourages new

ways of solving problems and promotes lifelong learning for all members of the

organization. Although the topic of transformational leadership is both

appealing and exciting, more research is needed to develop insights regarding

how one becomes a successful transformational leader.

CONFLICT MANAGEMENT

Of all the skills that a manager/leader needs, none is more important than

managing the conflicts that inevitably arise in any organization. Conflicts can

arise between members in the same work unit, between the work group and its

leader, between group leaders, and between different work groups. Some of the

most common causes of conflict are communications breakdowns, personality

clashes, power and status differences, goal discrepancies, disputed authority

boundaries, and allocation of resources.

The following processes are among those usually suggested to eliminate, reduce,

and prevent conflict:

personality.

the adversarial parties to view the issue from a different perspective.

down in a never-ending debate to achieve one.

outside person can add objectivity and reduce personality issues.

common understanding of the facts and issues.

There is a widely accepted model for understanding how individuals approach

situations involving conflict resolution. This model is two dimensional. On one

axis is the dimension of cooperativeness; on the other, the dimension of

assertiveness. As discussed earlier, effective leaders vary their style to meet

the needs of a specific situation. Hence, during a conflict situation in which

time is a critical concern, an assertive style is needed to resolve the

conflict so that time is not lost during a drawn-out negotiation process.

Oppositely, when harmony is critical, especially when relationships are new or

in their early stages, a collaborative and cooperative approach to conflict

resolution is needed. This model for conflict resolution fits well with and

supports the notion of contingency and situational leadership.

JAPANESE MANAGEMENT/LEADERSHIP METHODS

In the decades since the end of World War II, business leaders around the world

have marveled at the ability of Japanese managers to motivate and successfully

lead their subordinates to levels of outstanding performance in terms of both

the quantity and quality of production. Therefore, Japanese approaches to

management and leadership have been studied intensely to find similarities and

differences between local practices and theirs. Among the approaches that have

been cited as contributing to Japanese success are the following:

rather than a shorter period of time. This helps workers to feel a close

relationship with the organization and helps build employee ownership of the

organization's success.

of management by leveling the playing field with regard to dress, benefit

packages, support services/amenities, restrooms, stock ownership plans, and so

forth.

This is done by having ceremonies to honor employees, providing housing at

nominal cost to employees, having facilities for social activities that are

sponsored by the organization, offering competitive salaries, and so forth.

relationships between leaders and their subordinates. This includes making sure

that leaders take time to get to know their employees and become cognizant of

their main concerns. Such a relationship can have a marked impact on the extent

to which employees value the organization and their leaders.

Individual accountability is downplayed to the climate that prevails in U.S.

organizations.

categories over the course of their tenure so that they can gain a broader

sense of the nature of all the work that is done in the organization.

and their leaders take the time to assist employees with personal issues and

work opportunities.

individual work groups perform rather than how an individual performs.

Therefore, incentives for individuals are less likely to be effective than

incentives associated with the performance of a work group or of a whole unit.

In addition, Japanese leaders and workers focus much less on monetary rewards

than on esteem and social rewards.

Another major development in the manufacturing and handling of goods was

developed in Japan. This development was kanban, or what we know as the

just-in-time (JIT) inventory and materials handling system. In this system

managers/leaders locate high-quality suppliers within a short distance of their

operations. They also establish specific quality standards and delivery

requirements, as well as materials handling procedures, that these suppliers

are contractually obligated to adhere to.

Although these techniques have proven to be successful in Japan, attempts to

duplicate them in another culture may have disappointing results. The

importance of cultural mores cannot be underestimated. What may work in Japan,

France, or the United States may not work anywhere else simply because of

cultural factors. Yet Japanese management/leadership principles have taught

managers around the world to consider new approaches in order to achieve the

higher standards of organizational effectiveness necessary in today's global

economy. Business leaders around the world are examining their practices in

light of the success that the Japanese and others have had in the areas of

strategy building, organizational development, group/team cooperation, and

establishing competitive advantage.

Posted: 2008380@679.36

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stranger

Situational management

executing existing directions as efficiently as possible.

about acting creatively to to bring about a change of direction regardless of

your formal role. Hence it can be directed up as well as down. Obviously upward

leadership has nothing to do with decision-making style because you cannot

decide unilaterally for your superiors - a career limiting move if you dared

try it!

situation.

arises if you see it as a problem that we can't define one universal style to

apply in all situations.

focuses too exclusively on what the person in charge does.

an initiative to get others to change direction regardless of the source of the

leadership within the group - this is quite a mindshift away from our

traditional way of thinking about leadership as something that a person is or a

way of behaving for the person in charge.

leaders in personality terms - hence leaders are supposedly dynamic and

managers not. The whole style issue arose because of problems with these

personality definitions - that is it was obvious that some leaders are dynamic

while others were not.

in functional terms - leaders serve the function of generating new directions,

managers execute existing directions efficiently. This view then says that how

you influence or motivate people is totally open, not part of the definition of

leadership or management.

situations but that is just a trivial fact of life rather than anything

profound in terms of our basic understanding of what it means to lead or

manage.