The Difference between Management and Leadership - Essay Example

Leadership vs. Management Introduction While many individuals recognize leadership and management as essentially the same elements, in examining them it’s clear they are markedly different in ways that underscore their significance. Consider, for instance, former General Motors CEO Jack Welch who stated, “The world is full of managers and desperately short of leaders – real leaders” (Welch, 2004). While Welch’s statement certainly carries with it a certain amount of panache and inspiration, it goes without saying that in distinguishing between these two one needs to consider more foundational values. Perhaps a solid starting point is situating these concepts in terms of the general ways they are characterized among business professionals. In this regard, it seems that leadership is understood as a much broader concept than management, occurring in many avenues in myriad different walks of life. Conversely, management is understood as occurring within an organization. In gaining a great understanding of these concepts it helps to examine them in further in terms of their individual characteristics as well as in context. It follows that this essay then examines the concepts of leadership and management as contrasting elements, examines their application within real world contexts, and finally considers how these concepts apply to the field of nursing. Managers One of the distinguishing elements of managers as compared to leaders is that they necessarily have subordinates working under them. One of the key features of managers is the subordinates they have working under them, as it is these individuals that abide by the managers commands out of obligation. Therefore, it has been noted that management is generally a transactional style of leadership, as it necessitates the cooperation of subordinates based on an agreed upon reward (generally a salary) ("Leadership vs. management," 2010). Managers are also characterized by their focus on work or the organization. In nearly all situations managers are managed themselves, so that their primary motivation and concern is with work and this is reflected in their relations with the individuals they manage ("Leadership vs. management," 2010). Research has also demonstrated that managers generally have a stable family background, and as such are highly risk averse in their actions. In addition to these qualities, there are a number of further dichotomies that have been articulated in distinguishing between these concepts. For instance, managers have been identified as focusing on systems and structures, whereas leaders focus on people (Coutts, 2010). In a more rhetorical perspective, managers have been identified as ultimately concerned with the bottom line or company objective, whereas leaders are depicted as ultimately concerned with the horizon, or means of innovation and change (Coutts, 2010). Ultimately, one notes that the thematic difference most researchers have identified between leaders and managers concerns the relative levels of concern with the established company objective vs. examining the potential for future development. Leaders In distinguishing what constitutes a leader it is best understood in terms that contrast leadership with that of management. One of the first such contrasts can be identified in terms of the types of relations managers and leaders have. While it’s been identified that managers have subordinates, leaders have followers ("Leadership vs. management," 2010). This is an important distinction as subordinates are transactionally motivated to abide by the manager’s decisions, while followers voluntarily listen and take actions after the leader’s actions. In these regards, it’s clear that while management and leadership are similar in that they both involve an individual marking precedent for others, leadership is a broader and more desirable trait; this is because leadership involves a more genuine level of acceptance, wherein individuals recognize the virtues of the leader and follow them out of their own agency without financial reward. While managers function out of a transactional leadership style, leaders generally utilize transformational leadership techniques ("Leadership vs. management," 2010). For instance, leaders do not only utilize rewards to lead their followers, but oftentimes promise that in following them the individual may become a better person; it’s no surprise then that leaders generally possess high levels of charisma. It’s also important for leaders to be people oriented individuals, as their ability in this realm is a core element of their leadership potential. Whereas managers are generally risk averse individuals, one of the characteristics of leaders is their willingness to take calculated risks. In these regards, leaders are more highly committed to their vision and are willing to take intelligent risks and overcome substantial obstacles to achieve their objective. Real world occurrences As one might expect there are a wide variety of real-world view points of the question of leadership vs. management. Consider former Fortune 1000 CEO of Christian & Timbers Brian Sullivan who addresses this issue within the business context. Working in an executive placement agency Sullivan has considerable experience in evaluating management and leadership potential. In these regards, Sullivan identifies the key aspects of a leader as the ability to not simply work within the organization’s guidelines, but to be able to move the organization forward in ways that go beyond the company line. Sullivan states that, “The mission of a leader is to reinvent, so that the organization he or she directs continuously become better” (Sullivan, 2006). In these regards, leaders are more iconoclastic than simple managers and work towards instituting new policies and paradigms within the environment. Consider the real world example of the automobile industry. For many years after World War II the ‘Big Three’ American car companies dominated the industry behind enthusiastic consumer support. In the early 1970s there was a gas shortage, with the resulting effect that consumer focused shifted from desiring gas guzzling machines to more economic and fuel efficient cars. During this period the ‘Big Three’ companies continued to manage their corporation efficiently and in-line with the same standards that originally brought them to prominence (Coutts, 2010). Conversely, the Japanese car manufacturers demonstrated significant leadership in the automobile industry through their willingness to explore newfound methods of supply chain management and production, risks that ultimately resulted in them overtaking the American ‘Big Three’ car companies who remained within a strictly management paradigm (Coutts, 2010). Applications in nursing When considering leadership and management in regards to nursing, there are a number of opportunities and challenges within the current healthcare environment. Valentine (2002) conducted a qualitative study that examined the various means and avenues in which new leadership can be applied within a nursing context. She states, “nurses are in a distinct position to influence healthcare policy and legislation. We need nursing leadership to exert that influence and by nurturing both leadership as well as clinical skills” (Valentine 2002). Valentine’s understanding is that there is a critical deficiency in nursing leadership and that while nurses are trained in cutting edge technology, when they ultimately join the work force and bedsides only rarely are they permitted the opportunity to institute leadership qualities. In response to the need for increased leadership by nurses within the healthcare industry, a number of leadership styles and means have been proposed in which nurses can assume more leadership and management responsibilities. One such example calls for new nurses to utilize transformational leadership in regards to established policy in the work environment. Entering the healthcare industry with cutting edge knowledge and training allows new nurses the unique opportunity to evaluate established trends in regards to cutting edge research. From a management perspective, established nurses can encourage young nurses to express their ideas and assume leadership potential in bringing this new insight to the work environment. Laurent (2000) indicates that in workplace situations established nurses can offer direction instead of outright control, ultimately allowing nurses to assume more personal agency in their actions. Conclusion In conclusion, it’s clear that there is a distinct difference between management and leadership. Management refers to adherence to organizational behavior, rules, and leading subordinates largely though a transactional model. Conversely, leadership refers to individuals that gain voluntary followers out of a largely transformational model and are focused on innovation and newfound insight. This is seen within the automobile industry when Japanese car manufacturers demonstrated leadership in developing more efficient vehicles. Finally, it’s shown that leadership can take place within the healthcare environment as new nurses assume greater responsibility in question established, but out-dated, trends; furthermore, established managers can allow them to do so through adopting a less controlling and more directive approach. References Coutts, P. (2010). Leadership vs. management. Retrieved from http://www.telusplanet.net/public/pdcoutts/leadership/LdrVsMngt.htm Laurent, C.L. (2000). A nursing theory for nursing leadership. Journal of Nursing Management, 8, 83-87. Leadership vs. management. (2010). Retrieved from http://changingminds.org/disciplines/leadership/articles/manager_leader.htm Sullivan, B. (2006). Leadership vs. management. Management Issues, 10. Retrieved from http://www.management-issues.com/2006/6/22/opinion/leadership-vs-management.asp Valentine, S. (2002). Nursing leadership and the new nurse. Retrieved from http://juns.nursing.arizona.edu/articles/Fall%202002/Valentine.htm Welch, J. (2004). Jack welch and the ge way: management insights and leadership secrets of the legendary ceo. New York: American Media International. Read More