Leadership vs Management – Analysis

The Role Of Management Through The Century

The traditional role of a manager is primarily to ‘control’ their subordinates.  The success of a managed project depends upon several factors listed below:

• Motivation of staff
• Resources (financial and non-financial) allocated to the task
• Expertise and competence of the staff
• Productivity and efficiency
• Soundness of project plan
• Uncontrollable external factors

Highlighted in bold are those factors that most managers are charged with control over. Often budgeting and strategic planning for an operation is completed at a higher level of management, and thus isn’t always a controllable factor.

In the Fordism era, managers were charged with maximising efficiency of the large staff numbers in manufacturing plants, and the Ford management style was created. Under this theory, staff were given a minimum number of separate tasks and were shown precisely how to do each job so they became an expert in a tiny area. This encouraged operational efficiency, and was used alongside financial incentives to motivate employees to work.

As times have changed, Fordism now appears out-dated. Management experts in the modern day recommend soft (difficult-to-measure) goals alongside the obvious desire to maximise profits. Such ‘soft’ goals could include the following:

• High employee retention rates
• Increased employee participation
• Fundraising for charities
• Reducing the environmental impact of business activities
• Focusing on training top quality individuals

Such goals cannot be achieved with the same old fashioned management styles that dominated factories in the 1920′s, and hence several new theories have been put forward that now better reflect the way society expects managers to behave.

The Role Of Leadership Through The Century

While the role of managers has undoubtedly been made far more complex throughout the last century, the role of the business leader has stayed remarkably similar. This is in part due to the fact that while businesses have been intensely competing for low-level staff as unemployment has hit all-time lows during the 1900′s, demand for top level jobs has remained unsurprisingly solid. This has meant that while businesses have had to adapt and offer a more attractive work environment for new employees, the treatment of business leaders and senior management has hardly changed at all. Boardrooms have always been tense places.

The role of a leader is to create the top level organisational strategies and coordinate senior management in their efforts to implement the companies long term plan. As a figurehead, leaders also are required to liaise with the press and employees alike – promoting their company to both their customers and workers.

Leadership Vs Management

The leadership management comparison can be split into several areas of difference.

1. Leadership Style

Leaders use a transformational or democratic leadership style. This involves inspiring and empowering collegues, whereas managers tend to lean towards an autocratic managing style which allows them to retain most of the authority and decision making power in a business unit. In short, a leader allows people to make effective decisions, and managers attempt to make them.

2. Time focus

While it can be observed that especially among Fortune 500 companies, a CEO has a shorter expected lifespan than general manager at company, leaders still embrace a more long term time horizon. In comparison, managers are given tight targets to meet each quarter which causes them to live in a short term perspective. This can be detrimental to organisational goals but is deemed to carry more benefits than drawbacks in the current economic climate.

3. Nature of relationship with colleagues

It is said that managers have subordinates, while leaders have followers. What this displays is that people who obey managers act like unwilling tools at their disposal, whereas followers of leaders are willing and intrinsically motivated.

4. Risk Adversity

Leaders; especially entrepreneurial leaders, enjoy risk. Risk brings rewards if approached in a successful way. However for a manager, the upsides of accepting risk are minimal. A flat salary or limited bonus package ensures that managers will be more worried about losing their job or respect, than they would appreciate the limited benefits of succeeding. A manager certainly wishes for a more comfortable job than an true leader.

 

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The Ultimate Guide to Transformational Leadership

You may be looking for: The Ultimate Leadership Guide.

Transformational leadership is leading by motivating. Transformational leaders provide extraordinary motivation by appealing to followers’ ideals and moral values and inspiring them to think about problems in new ways. These followers have felt trust, admiration, loyalty, and respect for them and were motivated to do more than they thought they could, or would do. In essence, transformational leaders make tomorrow’s dreams a reality for their followers.

Perhaps the most important characteristic that transformational users possess is their ability to create a vision that binds people to each other. Dr. Martin Luther King’s famous “I have a Dream” speech galvanized a generation to support the civil rights movement in the United States. But transformational leaders must have more than just a vision, “They also have to know which path to follow in order to attain it.” The followers are attracted to the vision and the leader has to have the plan to energize them to reach it.

All excellent transformational leaders regularly invest in themselves. Leaders have often sought out useful leadership books and learning material that will help them along the path to happiness and leadership. These days, many e-courses tend to be rather disappointing, but I’m pleased to recommend one e-course that is still respected by leadership professionals such as myself: The 11 Forgotten Laws. It’s generally seen as an essential and core ‘crash course’ in the laws and secrets you need to know to further your leadership & career and even help find happiness in other areas of your life. Its an excellent base upon which you can build your personal development.

Vision plays a crucial role and leaders who are totally committed to their vision and course of action are often called charismatic. Charismatic leaders have an unshakable belief in their mission, are confident for their success and have the ability/talent to convey these certainties to their followers. They are in turn, awarded with unquestioned loyalty and obedience.

In our society, we carry a common notion of the leader as a person with the vision, who then gets people to buy in, to align themselves with that vision. This notion is bankrupt and dangerous, because the leaders who have done well for their communities and organizations are not the ones who came up with the vision. If we picture them as the conductor of the orchestra, they are good at embodying the soul of the music. These leaders are good at articulating the transcendent values of the organization or the community. A leader’s vision has to have accuracy and not just appeal and imagination. Articulating a vision for an organization or community has to start with an awful lot of listening, a lot of stimulating of debate and conversation, to distill, to capture the values. It has to start, as well, with carefully diagnosing the current problematic environment to which one needs to adapt.

When changes in the environment occur slowly, usually managers fail to recognize them as threats to their organizations. To become aware of environmental changes, transformational leaders have to frame their vision by providing employees with a new purpose for working. Framing is a process through which leaders define the group’s purpose in highly meaningful terms. In organizations, framing often involves identifying the core values and purpose that should guide employees. For example, at Walt Disney the core purpose is simply “to make people happy.”

It’s certainly true that most excellent leaders regularly invest in themselves. Leaders have often sought out useful books and learning material that will help them along the path to happiness and leadership. These days, many e-courses tend to be rather disappointing, but I’m pleased to recommend one e-course that is still respected by leadership professionals such as myself: The 11 Forgotten Laws. It’s generally seen as an essential and core ‘crash course’ in the laws and secrets you need to know to further your leadership & career and even help find happiness in other areas of your life. Its an excellent base upon which you can build your personal development.

Impression management involves an attempt to  control the impressions that others form about the leader through behaviors that make the leader more attractive and appealing to others. Impression sounds manipulative and sometimes is. On the other hand, it is also a natural and sincere expression that reveals to followers an alignment between the vision and the person. Integrity, for effective leaders is just that. Revealing how the message the followers hear is related to the personal experiences of the messenger. Telling a story or stating a clear example, can become a particularly effective way to manage impressions-according to some it is the essence of charisma.

With or without the authority, exercising leadership is risky and difficult. Instead of providing answers as a means of direction, sometimes the best you can do is provide questions, or face people with the hard facts, instead of protecting people from change. Often you need to make them feel the pinch of reality, otherwise why should they undergo a painful adaptive learning process? But, people often resist doing adaptive work and painful learning. They resist in a number of typical ways. If you want to lead others, you need to understand how to counteract these types of resistance.

Transformational leaders are more effective when the company is new or when its survival is threatened. The poorly structured problems that these organizations face call for leaders with vision, confidence, and determination. Such leaders must influence others to join enthusiastically in tem efforts and arouse their feelings about what they are attempting to do.