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Compare and Contrast Leadership and Management 1

Compare and Contrast Leadership and Management Cassie Amundson Minnesota School of Business

I am currently managing a group of 25 which is my largest team yet. I will need to do a lot of planning and proving myself to continue to rise up the corporate ladder as there are many managers all trying for this job. . I plan to apply for the next level up after a year at my current job. I choose human resources as the job I desire requires dealing with many difficult staffing situations as well as some tough decisions. I have been with my company for 7 years. then his managers job. I work some very long hours and sometimes weekends but I am willing to do this to continue to grow and have a better chance of obtaining the job of my dreams. Once I graduate in 2011 I plan to attend graduate school at the University Of Minnesota Carlson School Of Business. I will achieve my MBA which will help me obtain further management positions within the company.Compare and Contrast Leadership and Management 2 Career Aspirations My goal is to obtain a position with my current company as a senior vice president of operations for the Mortgage Division. and finally the job of my dreams! Career Planning I am already working on my education by attending school for business management with focus on human resources. I have been in three different departments all giving me the experience to help me achieve my goal. The way things work at my company they tend to promote from the level below so that means I would need to obtain my managers job first. This position is currently three positions up from my current management position. I have been in areas that deal directly with customers and then the last three years I have been moving up the ladder in management.

Compare and Contrast Leadership and Management 3 I also spend time volunteering for two organizations. I have read and reviewed the code of ethics in my company and I reference it as much as possible within my team to prevent any unethical actions. this is a key ability to have for the job I desire. They underwrite loans for internal employees. This also helps with my writing abilities but it also provides me internal satisfaction of knowing I am doing a good thing for others. “The unethical and illegal actions of a single employee or small group of employees can tarnish the ethical reputation of a whole company”. One is writing letter to newspapers. and other elected officials about hot topics for the organization I work with. I want to make sure that everything I do reflects a positive light on my company. My other volunteer job is an article writer for a magazine to help a missing children’s organization. I think that the personal satisfaction I achieve with this helps me maintain a positive attitude in my day to day activities. 2008). (Don Hellriegel. I think that this is an admirable quality to have and my company looks highly on donating and helping smaller organizations especially ones with causes such as this one. Management Practices: Shaping Ethical Conduct I have been learning more about hiring and different legal and regulatory influences with my new job dealing with hiring and termination of employees. The people I manage have a hard job and ethics is a huge part of it. This allows me to improve my writing skills as well as my ability to persuade other. . congress.

When I am the one that has to make a tough call or ethical judgment I try to use a combined approach using the justice approach. and competitive rivalry in the industry. This position is required to make all the major changes so it would be important to have them aligned with the company’s vision and values as well as our mission statement. Understanding and knowing my companies policies and stances on tough issues is another key thing to have for the position that I desire. The rates today are some of the best they have been in years. I can focus on ways to continue to keep a competitive edge. bargaining power of buyers. I can see from Porters 5 force analysis that the five major things you need to ensure that you are looking at when talking about competitive forces are: threat of new entrants. the moral rights approach and the utilitarian approach. I do this to ensure that I am looking at all aspects of the problem or decision rather than just looking at it in one light I try to look at it from multiple angles. Management Practices: Identifying Competitive Forces in the Industry By learning more about the competition and new entrants in this course I have been applying that to my current day to day activities.Compare and Contrast Leadership and Management 4 When you know the person that you are making a decision on it can sometimes be tempting to help them out so we discuss ethics quite frequently to keep it in the back of their minds. . (Industry Handbook: Porters 5 Forces Analysis) Being in the mortgage business the main three we see are new entrants. threat of substitutions. I have signed up to receive many online updates and changes that apply to my company and the work that we do in the mortgage industry. and competitive rivalry within the industry. bargaining power of buyers. bargaining power of suppliers.

This reflects their buying power. New Entrants was a problem we have seen in the past. people were pointing fingers and the productivity was horrible because everyone was spending a lot of time complaining and no time looking for ways to make things better.Compare and Contrast Leadership and Management 5 The market is a buyer’s market and this means that if we are not competitive with our offers our buyers will go elsewhere to obtain a loan. 2008) The first thing I noticed was that the morale was very low. I diagnosed the environment. Now that morale is higher I have also worked on some tactical planning that has a year timeline. (Don Hellriegel. developed goals short term and long term. This new plan dedicates employees to specific duties and after the year is up we should be a running like a well oiled machine. I implemented some changes after researching what was going on and after two weeks the attitudes started to change and the morale started to improve. created strategies that I felt would work and then put them into place. . This has come to an end after the government stepped in but it is a potential problem we could see again in the future and something to watch out for. In 2005 it seemed like everyone was opening up a mortgage company due to the inflated market in the US. This is especially important in my area since all the loans we do are for people in the industry that know who has a better offer. In my current position these items are not that important as my manager always filters this information down to us but for me to obtain his job I need to understand all of these things which is why I have subscribed to many of the online newsletters. decided on a mission. I soon realized that there were many things that could be done much better. Management Practices: Strategic Planning I just started in a new area of my current company doing the same job but with new people.

2008) There will need to be innovative decisions made on a frequent basis. In the job that I desire there is a need to make many decisions at an organizational level. I feel that the current planning that I am doing in my position will help me get a better understanding of what works and what doesn’t especially when it comes to announcing change and dealing with resistance to change from employees. I currently make many routine decisions but I do a lot of adaptive decisions. There is a fine line between thinking outside the box and making an unethical decision. and effective leadership particularly” (Mind Tools). Leadership Practices: Decision Making Decision making is a skill that is used daily in the position that I currently hold as well as all upper management positions. Do we approve the loan based on the circumstances? This is the question I get all day every day. “Good decision making is an essential skill for career success generally. Continue improvement is defined as “approaching the challenge of product and process enhancements as an ongoing effort to increase the levels of quality and excellence”. You need to look at a much larger picture to put a change into effect and you also need to look at how each department works differently and how the change would affect everyone differently as well. These decisions need to create continuous improvement. (Don Hellriegel. My job is related to making decisions every day.Compare and Contrast Leadership and Management 6 Strategic planning will be even more important in the vice president position as it has a span of control over 15 different divisions of the business. . These decisions are “based on the discovery. I have to look at the problem of the loan and then have to look for a decision that is often outside the box to make things work.

In addition there are many formal controls set forth by the company such as “rules. Stakeholder control plays a part in my organization as well. We have an analyst that does all the projections of all sorts of different aspects of how the company is working and then this documentation is presented to him. (Don Hellriegel. 2008) These types of decisions will be made when changing trends in the industry are identified or the customer base shifts or their attitude changes. (Don Hellriegel. 2008) The vice president of mortgage deals a lot with the monitoring piece of control. and records for preventing or corrections deviations from plans for achieving desired goals”. Leadership Practice: Control Stakeholders play a large part in control.Compare and Contrast Leadership and Management 7 identification. He makes the decision on how we . many of which are employees play a huge role in the control of the organizations decisions. Stakeholders play a large part in our corporation so co-optation could be a great way to keep them happy in the major decision making process. procedures. When higher level decisions do need to be made it is best to ensure that the stakeholder’s opinions are taken into account. and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alterative solutions”. Our company is federally funded which means that we have to follow basic federal regulations however the majority of our decision making is left up to the management staff. Our stakeholders. Depending on the level of the problem it can be dealt with from senior management or filtered down to the lower level managers such as myself.

Most changes in my organization are incremental which means they are “ongoing process of evolution over time. Our company is very mechanistic in which our “use of rules and procedures. It is better to be proactive not reactive however sometimes change happens so quickly that you must react. during which many small adjustments occur routinely”. . To do this you must assess the environment and problems you can see within the organization.Compare and Contrast Leadership and Management 8 should deal with any problems and then communicates this information down the line to the lower level management which then filters it down to the employees. Once the budget is set for the year then it must be reviewed and possibly restructured based on the company’s performance. (Don Hellriegel. We also offer quite a bit of incentive compensation annually for senior management and monthly for lower level employees. (Don Hellriegel. Another main item of control that is used in the senior management position is budgetary control. tightly written job descriptions. especially when you are in a senior management position. top-down authority. and other formal methods for preventing and corrections deviations from desired behaviors and results”. 2008) We also run into market controls such as rates and programs offered by the government that we must follow. The position I desire requires you to understand the degree of change and deal with any radical changes in a quick and effective manner. Understanding and gauging the budget based on projections each year is a major function of this position. 2008) Guiding change requires that you understand the timing. Leadership Practice: Guiding Change and Innovation Changes in an organization are inevitable. It is important to try and anticipate change to avoid reactive changes.

Comparing Management and Leadership Management and leadership practices described about do have some common bonds. The control in a business can lead to problems with competitive forces if it the business is not controlled properly. My personal belief is that the best way to deal with change is to be proactive when you can be. Let people know about the change. Competitive forces can also create the need for change. All of these management practices and leadership practices can be tied to one another in at least one way. If a . Guiding change can be mishandled which can affect planning and competitive forces in the industry. Shaping ethical conduct can also include decision making. Decision making creates the ideas for change and change can be done due to strategic planning or changes in the competition. One way to deal with resistance or cynicism is team building. when competitive forces come into play and you are working with your stakeholders sometimes ethical decision making can be overlooked for the overall success of the business or even the satisfaction of the shareholders. The same goes for organizational or job re design. the pro’s and con’s of the change and why it is being implemented. Contrasting Management and Leadership On the other hand. People will fear change and worry about their best interest. It is best to be clear in communicating the change to avoid misunderstanding.Compare and Contrast Leadership and Management 9 It is also important to anticipate resistance. If you do need to make a reactive change it is also best to explain the need for the change as well as why it was not anticipated. It is important to understand that to most people change is hard and will be resisted. Once the change has been put in place it must be monitored. your decision should be ethical and by making ethical decisions you gain respect.

When change is necessary I will ensure that I am proactive about making the change as well as positive about the change to help avoid as much resistance as possible. which will help others ideas of ethics. These forces can work together but they can also work against each other depending on how they are handled. . Conclusion My career goals of becoming a vice president will require strong management practices as well as strong leadership practices. I will continue to make ethical decision. I will continue to make decisions based on what is best for my employees and the company. When making these decisions I will make sure that they coincide with our vision and values statements as well as the company’s mission.Compare and Contrast Leadership and Management 10 change is handled improperly it can cause a downward spiral in the community which can lead to people going to the competition. I feel that by using all the practices of leadership and management described above I will excel in my current position as well as leverage myself into a better position that will continue my growth at my company. I will monitor the competition as well as the industry changes. When changes are made in the company I will understand why because I will have the knowledge of what is going on in the industry and the competition. My current activities and interests will help me continue to educate myself and become a stronger leader. I currently am a manager but it requires a leader to really run a division.

Industry Handbook: Porters 5 Forces Analysis. 2010.htm .). OH: Thomson South-Western. S. (n. from Investopedia: http://www. from Mind Tools: http://www.investopedia.com/pages/main/newMN_TED. Mason.Compare and Contrast Leadership and Management 11 References Don Hellriegel. E. Retrieved June 18. 2010. Decision Making Techniques.mindtools.d.d.asp Mind Tools. Retrieved June 18. (n.com/features/industryhandbook/porter. Managing A Compentency-Based Approach. (2008).).