Differences between Leadership and Management - Essay Example

? LEADERSHIP AND MANAGEMENT Leadership and Management Barker (2001) s, “leadership is a process of energy and not structure. In this way, leadership is different from management. Managers pursue stability while leadership focuses on change” (Barker, 2001, p. 469). This statement highlights fundamental differences between leadership and management. It is equally clear that characteristic, trait theories and empirical studies are crucial approaches used to study leadership as well as differences between leadership and management. Graphic models, data and regression statistics support studies on leadership. Barker (2001) finds that management and leadership are two diverse topics. The statement by Barker shows that leadership and management cannot be used in an interchangeable manner because of their diverse nature. The differences between management and leadership show that it is difficult for an individual to become a good leader and manager at the same time. Organizations offer platforms for learning and developing effective management and leadership practices. An individual has the capabilities of navigating the two positions with the right knowledge and experience (Darr, 2011, p. 4). Leaders identify possible areas that require change and pursue them. These changes are facilitated by organizational theories of action that enable employees and followers to map their actions. Leadership begins with an individual’s choice to pursue and begin the process of change. Organizations, groups and teams require effective managers and leaders who can successfully run operations. Leaders and managers influence their employee’s job satisfaction and the operations of a learning organization. This means that leaders influence people’s actions and their abilities to map their actions in order to align with expected outcomes. Though there are some similarities between leadership and management, it is essential to note that striking differences set the two apart. Management and leadership involve influencing employees or constituents. Additionally, power and authority characterize the two positions. Leadership focuses on inspiring and providing vision to people while management is task oriented (Darr, 2011, p. 6). For example, Bill Gates assumes the state of both a leader and a manager though the two fields have different definitions, skill sets and behavioral consistency that contribute to effective leadership and management (Lesinski 2009 p. 45). For example, he motivates the workers by setting the vision of the organization, but also participates in providing operational guidelines as evident in the launch of various products within the company (Su-Chao, and Ming – Shing 2007 p. 156). Differences between Leadership and Management Leadership involves acting on possibilities that can influence an organization. This means that leaders see possibilities, describe the possibilities and plan to pursue the possibilities (Lain & Judy 2001 p. 21). For example, Sir Richard Branson of Virgin Atlantic has assumed the role of a leader by providing a vision that contributes to the growth of the company. This has improved his standing in the society because he seems to understand the needs of the company beyond the management, and administrative roles (Carter 2013 p. 2). Conversely, management occurs as the act of coordinating efforts of people in order to accomplish objectives and goals. For example, the Manager at Bank of America seems to focus on goals stipulated by the administrative entities as well as the vision of stakeholders. He rarely acts on his own since the organization works as a system. Leadership begins with an individual who is willing to act as an agent of change. The main role of a leader is to envision a future and become an agent of change for the achievement of the future. Leadership starts with an individual’s choice to begin the processes of change. According to Dessler (2004), leadership, “is one person influencing another to willingly work towards a predetermined objective”. This means that leadership involves envisioning, maintaining flexibility and thinking strategically (Packard, 2010, p. 5). Leaders must create a work environment that will initiate change and create valuable and viable futures for the society and organization (Darr, 2011, p. 7). Therefore, leadership is a process in which a person influences people to achieve common goals. In organizational activities and business, management occurs as the act of coordinating efforts of people in order to accomplish objectives and goals. A manager relies on resources provided by an organization. The manager must use these resources effectively and efficiently. It is essential to note that management occurs as a function of organizing, planning, staffing and leading (Vorria and Bohoris, 2009, p. 4). A manager controls and directs an organization using structures such as organizational structures. Leadership is a vital variable that affects the performance of an organization while management controls and directs an organization using structures such as organizational structures. Analysis of General Motors especially the introduction of Voltz that is of low cost both highlights a leadership and management attribute. Even though, the leadership thought the idea would lead to accomplishment of the vision, the management failed to execute the strategy leading to high cost and low sales (Woodall, Lienert & Klayman 2012 p. 1). For example, it is clear that the stakeholders who assume a leadership role decided to reach to a certain target market though it is the managers who initiated such ideas. Managers eventually used the structures to control organizational performance. Leadership affects other variables within an organization by influencing organizational performance, climate and culture. Because of leadership’s influence of crucial organizational processes, it functions as a critical factor in the coordination and alignment of organizational processes. This differs from management that relies on structures such as organizational structures to organize, plan, staff and lead an organization. Leadership focuses on the performance of people, processes and systems (Packard, 2010, p. 6). Most importantly, leadership focuses on the effectiveness of achieving desired goals or outcomes (Burgoyne, Hirsh and Williams, 2008, p. 5). A leader identifies contingency factors in the staff and considers staff characteristics using leader-member processes in order to shape organizational culture and climate (Northouse and Peterguy, 1999, p. 4). Other factors such as client characteristics and program capacity are crucial because they affect ultimate outcomes. Management is dependent on skills, competencies, manipulating of human capital. Leaders influence program capacity by using evidence-based practices during the design of a program. An example is E-bay whose operational process was dependent on a gap identified in consumer wants by its leader and founder, Pierre Omidyar (Gitlin 2011 p. 1). This set the stage for market research that has made the company valuable and sought after by workers and consumers. Additionally, leaders provide systems for interaction in which followers question right and wrong (Burgoyne, Hirsh and Williams, 2008, p. 7). Leadership occurs as a process of energy rather than structures. Leaders should have the energy to collaborate with partners as apparent in the actions of Bill Gates. He does not have all the tools and strategies for handling issues alone. Therefore, leaders should collaborate with other agencies and individuals that have similar visions and goals. The energies in leadership are crucial for building alliances and relationships as evident in the alliances between Microsoft, Orion and other software industries such as Sun Microsystems (Microsoft 2004 p. 1). Leaders build networks and spend their energies to maintain these networks. Additionally, leaders must have the abilities to build and manage external relationships (Packard, 2010, p. 5). Leaders build connections by valuing the opinions of other people and listening to fundaments from constituents. Leaders have the ambition and energy to ensure that objectives are achieved (Burgoyne, Hirsh and Williams, 2008, p. 5). This differs from the approaches used by management in building connections. Management relies on the manipulation of human resources, markets and customers Leadership describes position and process. Management and leadership provide positions of responsibility. They both exercise management and leadership in their roles. The similarities between management and leadership include completing tasks, accomplishing agendas, creating networks and relationships. Microsoft’s leadership through Bill Gates has penetrated the entire world through creating networks (Samson & Daft 2011 p. 86). For example, the Melinda and Gates foundation, which is a derivative of Microsoft, creates links in Africa that drives the agenda of the organization. Management and leadership are complete action systems. Management and leadership have their own characteristic activities and distinctive purposes (Storey, 1947, p. 23). Management focuses on consistently producing results and setting objectives. Management accomplishes its goals through structures of budgeting, planning, controlling, problem solving and organizing (Vorria and Bohoris, 2009, p. 6). An example is the management of South West Airlines especially at the departmental levels that focus on boosting the economies of scale in order to meet the demand (Lauer 2010 p. 31). This eventually increases the profit levels. Conversely, leadership creates and supports change and vitalizes an organization through the establishment of direction. It also aligns people, motivates, and inspires them. Management has several benefits such as handling complexities and ensuring efficiency. This allows the organization to meet short-term targets. Leadership Uses Models and Theories While Management Focuses On Skills and Competencies Different models and theories of leadership have contributed to the historical development of the field. Early studies on leadership focused on traits. Leadership theories and studies imply that traits of leadership are innate characteristics (Packard, 2010, p. 5). Management responsibilities are task oriented; hence, management is developed. Management skills and competencies are developed through academics and experiences. Therefore, a manager must have skills that will enable them to harness the competencies of employees. Management relies on skills, while leadership relies on traits. Effective management relies on three skills, conceptual, human and technical skills. Studies on group dynamics show that leadership depends on interpersonal skills and the behaviors of people during the completion of a task (Lunenburg, 2011, p. 4). Notions on leadership styles emanated and evolved around the study of these elements. This means that there are different leadership styles such as participative, autocratic and directive leadership. Effective management relies on three skills, conceptual, human and technical skills (Vorria and Bohoris, 2009, p. 4). The trait approach indicates that early discussions on leadership focused on innate traits that conferred leadership. Additional research has led to the emergence of new perspectives on the characters of a leader. Recent studies show that effective leadership is dependent on traits such as self-confidence, intelligence, integrity, determination and sociability (Packard, 2010, p. 5). Additional research shows that several traits lead to effective leadership. These include high energy levels that enable tolerance for stress, internal locus of control and self-confidence (Lunenburg, 2011, p. 6). This traits show that leadership relies on the energy levels of the leader. Energy enables the leader to have emotional stability, personal integrity and maturity. Combinations of these traits influence leadership effectiveness. The skills approach to leadership shows that leadership abilities and competencies can be developed. Leadership traits are innate in an individual. However, management can be learned academically or through experiences. Leadership development programs focus on the skills approach of leadership. The skills approach to leadership focus on the identification of specific competencies that are essential in a leadership (Lunenburg, 2011, p. 4). Leadership skills and competencies refer to a combination of skills, attributes and knowledge that collectively facilitate the performance of a job. The development of leadership abilities is based on relevant critical reflection skills and practices. The contingency theory of leadership suggests that leadership does not have a single approach for achieving goals and objectives. According to this theory, different behaviors are crucial for leadership in different situations. The decision approach of the contingency theory requires leaders to consider different variables during decision-making. The leader should consider different factors such as the importance of the decision, amount of relevant information available and the structure of the problem. These assessments enable the leader to approach the issue based on a range of leadership styles such as consultative or autocratic leadership (Packard, 2010, p. 8). The path-goal model of the contingency theory suggests that leaders should assess the characteristics of followers and tasks, and then demonstrate effective working conditions to the followers. A charismatic leader who demonstrates confidence and competence illustrates current leadership styles. An example of a charismatic leader is Bill Gates because he has instilled a broader and bigger plan amongst the employees and managers. This is because they represent the organization fully in different functions by outlining the mandate and role of different processes when improving functions. Additionally, the leader communicates high expectations and articulates goals. Charismatic leaders inspire followers to focus on the mission and vision of the leader. Additionally, they develop trust and inspire followers to take risks and sacrifice for the course of the vision (Vorria and Bohoris, 2009, p. 2). Charismatic leaders may misuse power and make followers inappropriately depend on the leader. Transactional and Transformational Leadership is highly popular and shows that leadership is not dependent on structures, but on changing following. Transactional leadership involves an exchange process in which the leader and follower agree to provide elements that will facilitate the accommodation of each other’s needs. Transformational leadership motivates and transforms followers (Vorria and Bohoris, 2009, p. 6). Transformational leadership makes followers aware of the outcomes of the tasks and the importance of the task. This leadership induces followers to transcend their interest for the organization’s sake. Transactional leadership has contingent rewards and management by exception components. The contingent reward component occurs as a valued reward given to individuals for high performance and appropriate behaviors. Transactional leaders identify the levels of motivation of followers and give them contingent rewards to increase their motivation (Vorria and Bohoris, 2009, p. 4). Management by exception means that the leader utilizes the abilities of followers to work under minimum supervision. Visionary leadership harnesses the energy of the leader and followers in realizing a vision. In this case, a vision occurs as an attractive, credible, inspiring and realistic future for an organization, team or individual. The vision should be challenging for the followers and leaders in order to ensure a concentration of energies towards the realization of an inspiring future. Visionary leaders have the abilities to articulate compelling and clear visions (Vorria and Bohoris, 2009, p. 8). They provide clarity and meaning for the vision and focus employees on ongoing basis. Visionary leaders learn about the vision of their followers and align their vision to the mission and vision of the organization or team. The leader builds follower’s vision into an organizational vision. According to Baker (2001), strategic leadership relies on energy and focuses on change. These are the crucial factors for strategic leadership. Strategic leadership approaches use the energies and tools in transformational, charismatic and visionary leadership models. Activities associated with strategic leadership include creating and communicating visions, making strategic decisions, developing organizational structures, controls, and processes and managing multiple constituencies (Packard, 2010, p. 6). These activities do not rely on structures such as organizational structures used in management. It is essential to note that leadership involves the ability to learn, social intelligence and ability to change. Management Styles Management involves manipulating human capital found in an enterprise with an aim of contributing to the enterprise’s success. An example of a distinct manager is Sir Alex Ferguson of Manchester United who had the ability apply human motivation in order to manipulate the outcome of a system or success progress of the system (Andrews, 2013 p. 82). Management uses communication, humans and positive enterprise endeavors (Vorria and Bohoris, 2009, p. 5). A manager must have the capabilities to use tools such as plans, motivational psychological tools, measurements, economic measures and goals. This leads to a functional view of management as the measurement of quantities, meeting goals and adjusting plans (Marchington, Wilkinson and Lorrie 2001 p. 21). Management is a structural function that uses forecasting, organizing, planning, coordinating, commanding and controlling. Every organization has a responsibility of managing its people, technology, processes and systems in order to maximize effectiveness. In commerce, management has a role of ensuring that different stakeholders are satisfied (Vorria and Bohoris, 2009, p. 6). This involves making profits, providing rewarding employment opportunities and creating value through production. In both profit and non-profit organizations, management occurs as a structure that involves board of directors and senior management teams. Conclusion Leadership relies on energy, unlike management that relies on structure although both processes entail influencing employees or constituents. For example, Bill Gates and Richard Branson are leaders of Microsoft and Virgin Atlantic respectively who focus on inspiring, providing vision and acting on possibilities. This has allowed them to provide a clearer vision for their subordinates who represent the organization with zeal and authority. Management is task oriented as evident in the role of the previous manager at Manchester United who was able to harness the competencies of players to attain the organization’s objectives. Interestingly, managers could also become leaders and vice versa. The prominent examples include Bill Gates based on his ability to see possibilities, describe the possibilities, plan to pursue the possibilities and control personnel. It is crucial to acknowledge that leadership rarely acts without evidence as apparent in EBay, where the leader Pierre Omidyar identified a distinct need and provided a vision. List of References Andrews, D 2013 Manchester United: A Thematic Study, New York, Routledge Carter, J 2013 Marketing Plan Example: Virgin Atlantic Little Red, GRIN Verlag Dessler, G 2012, Supervision and leadership in a changing world, Boston, Prentice Hall. Barker, R 2001, the Nature of Leadership, Human Relations, 54, (4). 469-494. Burgoyne, J. Hirsh, W and Williams, S 2008, the Development Of Management And Leadership Capability and Its Contribution To Performance: The Evidence, The Prospects And The Research Need, Lancaster University. Darr, K 2011, Introduction to Management and Leadership Concepts, Principles and Practices, Jones and Bartlett Learning. Gitlin, 2011, eBay: the company and its founder, Edina, MN, ABDO Pub. Lauer, C 2010, Southwest Airlines. Santa Barbara, Calif, Greenwood. 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