Leadership and Management Theories - Enron - Case Study Example

The paper 'Leadership and Management Theories - Enron" is a good example of a management case study. This essay is about two issues: theories of management and leadership and the application of these theories within the context of a contemporary organization. With regard to the theories of management and leadership, a critical evaluation of the two approaches to management – classical and human relations – is presented. This critical evaluation of classical and human relations theories of management forms the first part of the essay. The second part of the essay is about an application of the different principles of management and leadership within the context of a contemporary organization. The organization that is referred to here is Enron. The different ways in which different principles of leadership theories were applied to the company are presented.

PART A: CRITICAL EVALUATION OF LITERATURE

Management and Leadership

It is important to understand the meanings of these two terms: management and leadership. This is because the two concepts are distinct in terms of what they imply in theory and practice. In general, it is difficult to define what exactly management is. Basically, management is a collection of functions which are usually carried out within the context of an organization in order to ensure that the aims and objectives of the organization are accomplished (Nieuwenhhuizen et al. 2008, p. 40). Hence, management is seen as one of the two key processes that are required to enable organizations to function, the other one being the actual processes that are undertaken to produce goods and services.

The importance of management to the success of organizations can be summed in the form of the core functions that management is expected to play in organizations. Basically, management has four main functions within organizations: controlling, leading, planning and organizing (Alipour et al. 2013, p. 36; Daft 2013, p. 8; Eze, 2015, n.pag). All these functions have specific roles to play to ensure that organizations survive and achieve their overall aims and objectives. For example, the planning function of management refers to all the activities that are undertaken to identify and set specific objectives for the organization (Cieslinska 2007, pp. 3-4). Managers devote a considerable amount of the resources that are at their disposal to the process of setting goals for the entire organization. The goal-setting process usually takes into consideration the short- and long-term needs of the organization. It is based on the goals that are set that the different employees of the organization work.

The other three functions of management, apart from planning, also serve important roles in organizations. For example, the control function of management serves to ensure that all the activities and processes that have been planned are implemented according to those plans (Daft 2013, p. 8). Therefore, it is based on the control function that managers are able to allocate resources and manage the manner in which tasks are actually carried out within organizations. Similarly, the organizing function is necessary because it provides the basis upon which managers in organizations mobilize employees into teams and allocate resources that help them to accomplish specific tasks. Lastly, managers within organizations are charged with the responsibility of leading the rest of the employees in the organizations. This leading function of management is important because it provides a framework within which managers are able to influence the behavior and activities of employees so that the employees work towards achieving specific objectives that are desired.