Professional Documents
Culture Documents
Module No. 2
Management
AIMEE J. GOH
DIANA RUTH C. COCHING
CHRISTY S. ORDAS
INTRODUCTION
What is Management?
is the specific organ of all kinds of organizations since they all need to utilize
their limited resources most efficiently and effectively for the achievement
of their goals. It is the most vital force in the successful performance of all
kinds of organized activities.
Chapter 1. Management
A. LEARNING OUTCOMES
B. TIME ALLOTMENT
C. DISCUSSION
M
To
anaging is one of the most important activities of human life.
and scientific institutions. Management thought has its origin in ancient times. It
developed gradually along with other socio-economic developments. The contributors
to management though are many. They include Management philosophers,
management practitioners, and scholars. Modem management is based on the solid
foundations laid down by management thinkers from the early historical period.
The evolution of management can be divided into two parts – The early
management approach and the modern management approach.
1. Psychological development
2. Scientific management
3. Administrative management and
4. Human relations movement
Frederik Winslow Taylor (1856 – 1915) has been considered to be the father
of scientific management. He conducted a series of experiments and
promoted the development of management thought through his
experiments and writings.
✓ The development of 'One best way" of doing a job. This suggests the task of
finding out the best method for achieving the objectives of a given job. The
standards are decided scientifically for Jobs and incentive wages were paid for
all production above this standard. Here, job analysis and standardization of
tools, equipment, machinery, etc. are required.
✓ Scientific selection of workers and their development through proper training.
✓ The scientific approach by management. The management has to develop a true
science in all fields of work activity through scientific investigation and
experiments.
✓ Close co-operation of managers and workers (labor-management relations) for
better results and understanding.
✓ Elimination of conflict between methods and men. The workers are likely to
resist new methods. This can be avoided by providing them an opportunity to
earn more wages.
The time and motion study of scientific management had created awareness of
using the right tools and minimizing waste movements while performing work.
Further, scientific management also insisted on the scientific selection of workers and
made the management realize the training needs to do a job. The scientific
management suggested the work design, that is, one best way of doing a job. Scientific
management had developed a rational approach to solving the problems of an
organization and contributed to the professionalization of management.
But Taylor’s concept of monitory benefits to motivate workers did not fetch the
expected results. Taylor’s time and motion study was not accepted as entirely scientific
because there is no “one best way” of doing a job. Separation of ‘planning’ and ‘doing’
functions coupled with greater specialization led to greater monotony of work.
3. Administrative Management
Principles of Management:
i Division of work
ii Authority and responsibility
iii Discipline
iv Unity of command
v Unity of direction
vi Subordination of individual interest to general interest
vii Union is strength
viii Initiative
ix Equity
x Scalar chain
xi Order
xii Stability of tenure of personnel
xiii Remuneration and
xiv Centralization
theories did not consider or focus on the human side of the organization. Hence there
was a need to focus on the human side.
Mayo discussed the factors that cause a change in human behavior. He concluded
that the cause of an increase in the productivity of the workers is not a single factor
like rest pauses or changing working hours but a combination of these and several
other factors such as less restrictive supervision, giving autonomy to workers, allowing
the formation of small cohesive groups of workers and so on. Today, as a result of the
efforts of Mayo and his associates, the managers in different organizations recognize
that workers' performance is related to psychological, sociological, and physical
factors. Thus, the Hawthorne Study was an important landmark to study the behavior
of workers and their relationship to the job, their fellow workers, and the organization.
It proved that informal workgroups and the opportunity to be heard and participate in
decision-making have an important impact on the productivity of the workers.
Both the approaches (of Taylor and Mayo) are supplementary in the present
management thought. At present, stress is on scientific management principles as well
as on the human approach to management. Efforts are being made to create a
favorable organizational climate for achieving organizational goals. Taylor's approach
is comparatively old and was popular in the early decades of the 19th century the
human relations approach (suggested by Elton Mayo) is comparatively new and got
popularity by the 1930s.
Systems Approach
A system that interacts with the outside environment is called an open system
and a system that works within a closed boundary is called a closed system.
The systems approach rightly points out the role of 'synergy' in management.
Each subsystem derives strength by its association and interaction with other
subsystems. As a result, the overall outcome is more than the total of individual
contributions. The other contribution of systems theory is its treatment of the
organization as an open system. The Organization exhibits a 'holistic' character.
CONCEPT OF MANAGEMENT
So, Management can be defined as a process of getting things done to achieve goals
effectively and efficiently. Some important terms in this definition are:
However, it's not enough just to be efficient. Management is also concerned with
being effective, completing activities so that organizational goals are attained.
Effectiveness is often described as doing the right things that are, those work
activities that will help the organization reach its goals. However, efficiency is
concerned with the means of getting things done; effectiveness is concerned with the
ends, or attainment of organizational goals. Nevertheless, management is concerned,
then, not only with getting activities completed and meeting organizational goals but
also with doing so as efficiently as possible. In successful organizations, high efficiency
and high effectiveness typically go hand in hand. Poor management is most often due
to both inefficiency and ineffectiveness or effectiveness achieved through inefficiency
(Robins, De Cenzo & Coulter, 2013)
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
But, Planning, Organizing, Staffing, Directing, and Controlling are widely recognized
functions of management.
1. Planning
Planning is future-oriented and determines an organization’s direction. It is a
rational and systematic way of making decisions today that will affect the future
of the organization. It is a kind of organized foresight as well as corrective
hindsight. It involves predicting the future as well as attempting to control the
events. It involves the ability to foresee the effects of current actions in the long
run in the future.
2. Organizing
Organizing requires a formal structure of authority and the direction and flow
of such authority through which work subdivisions are defined, arranged, and
coordinated so that each part relates to the other part in a united and coherent.
manner so as to attain the prescribed objectives.
1 Identifying the tasks that must be performed and grouping them whenever
necessary.
2 Assigning these tasks to the personnel while defining their authority and
responsibility.
3 Delegating this authority to these personnel.
4 Establishing a relationship between authority and responsibility.
5 Coordinating these activities.
3. Staffing
Staffing function involves selecting, placing, training, developing,
compensating, and evaluating (the performance appraisal) personnel. Since the
human element is the most vital factor in the process of management, it is
important to recruit the right personnel.
This function is even more critically important since people differ in their
intelligence, knowledge, skills, experience, physical condition, age, and attitudes,
and this complicates the function. Hence, management must understand, in
addition to the technical and operational competence, the sociological and
psychological structure of the workforce. Staffing is considered an important
function that makes provision for manpower to fill different positions. It involves
building the human organization by filling and keep filling the staff. This is done
by identifying workforce requirements, taking inventory of people available,
recruiting new staff, selecting, placing, promoting, appraising, planning their
careers, and training the staff to accomplish their tasks effectively and efficiently.
This involves:
o Finding the right person for the right job.
o Selecting the personnel.
o Placement, training, and developing new skills required for present and future
jobs.
o Creating new positions.
o Apprising the staff and planning their growth and promotions etc.
4. Directing
Directing is the managerial function that initiates action: issuing directives,
assignments, and instructions; building an effective group of subordinates who are
motivated to do what must be done; explaining procedures; issuing orders, and
making sure that mistakes are corrected. The directing function is concerned with
leadership, communication, motivation, and supervision so that the personnel
performs their activities in the most efficient manner possible, to achieve the desired
goals.
Leading and motivating work together in the directing function. Leading “is the
process of influencing people to work toward a common goal [and] motivating is the
process of providing reasons for people to work in the best interests of an
organization.
The leadership element involves issuing instructions and guiding the
subordinates about procedures and methods. The communication must be open
both ways so that the information can be passed on to the subordinates and the
feedback received from them. Motivation is very important since highly motivated
people show excellent performance with less direction from superiors. Supervising
subordinates would lead to continuous progress reports as well as assure the
superiors that the directions are being properly carried out.
5. Controlling
The function of control consists of those activities that are undertaken
to ensure that the events do not deviate from the pre-arranged plans. The activities
consist of establishing standards for work performance, measuring performance
and comparing it to these set standards, and taking corrective actions as and when
needed, to correct any deviations.
All these five functions of management are closely interrelated. However, these
functions are highly indistinguishable and virtually unrecognizable on the job. It is
necessary, though, to put each function separately into focus and deal with it.
With the accomplishment of this function, the “Management Cycle” is said to be
complete.
Management Cycle
There are four levels in the chain of command: top managers, middle
managers, lower managers, and the rank and file.
Team Leaders- oftentimes team leaders are selected in larger units. A team leader
is a special kind of manager who may be appointed to manage a particular task or
activity. The team leader reports to a first-line or middle manager. Responsibilities of
the team leader include developing timelines, making specific work assignments,
providing needed training to team members, communicating clear instructions, and
generally ensuring that the team is operating at peak efficiency. Once the task is
complete, the team leader position may be eliminated, and a new team may be formed
to complete a different task.
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Roles of Managers
Interpersonal Roles
They are the public Motivates personnel’s, Lead both by example when
face of the negotiating salaries, and they actively participate in the
management team encourages innovation and tasks assigned to their workers
and represent the creativity. and by modeling the policies
organization. and work ethics of the
organization.
2. Informational Roles
These include Monitor, Disseminator, and Spokesperson role.
Informational Roles
The voice of the Middle managers must skillfully determine The informational role of first-
organization has to be what information from top management line managers is primarily one
aware that even should be shared with others, how it should be of disseminating what they have
personal opinions will interpreted, and how it should be presented. been given and helping the
reflect (for Similarly, they must weigh the value of the
personnel to see how their
better or worse) on the information they receive from first-line
contributions further
organization. managers and personnel to decide what to
forward to top management. If transmitted organizational goals. They have
information tends to be untrue or trivial, then a responsibility to see that the
the manager will be viewed as a nonreliable personnel understand what they
source and his or her opinions discounted. need to be successful in their
jobs.
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Managerial Skills
1. Technical
2. Human
3. Conceptual
Technical
Conceptual Skills
These involve the skills managers present in terms of the knowledge and ability
for abstract thinking and formulating ideas. The manager can see an entire concept,
analyze and diagnose a problem, and find creative solutions. This helps the manager
to effectively predict hurdles their department or the organization may face.
2. Communication
Possessing great communication skills is crucial for a manager. It can determine
how well information is shared throughout a team, ensuring that the group acts as a
unified workforce. How well a manager communicates with the rest of his/her team
also determines how well outlined procedures can be followed, how well the tasks
and activities can be completed, and thus, how successful an organization will be.
3. Decision-making
Another vital management skill is decision-making. Managers make numerous
decisions, whether knowingly or not, and making decisions is a key component of a
manager’s success. Making proper and right decisions results in the success of the
organization, while poor or bad decisions may lead to failure or poor performance.
For the organization to run effectively and smoothly, clear and right decisions
should be made. Managers must be accountable for every decision that they make
and also be willing to take responsibility for the results of their decisions. A good
manager needs to possess great decision-making skills, as it often dictates his/her
success in achieving organizational objectives.
4. Delegation
Delegation is another key management skill. Delegation is the act of passing on
work-related tasks and/or authority to other personnels or subordinates. It involves
the process of allowing your tasks or those of your personnels to be reassigned or
reallocated to other personnels depending on current workloads. A manager with
good delegation skills can effectively and efficiently reassign tasks and give authority
to the right personnels. When delegation is carried out effectively, it helps facilitate
efficient task completion.
5. Problem-solving
Problem-solving is another essential skill. A good manager must have the ability
to tackle and solve the frequent problems that can arise in a typical workday.
Problem solving in management involves identifying a certain problem or situation
and then finding the best way to handle the problem and get the best solution. It is
the ability to sort things out even when the prevailing conditions are not right. When
a manager has great problem-solving skills, it differentiates him/her from the rest of
the team and gives subordinates confidence in his/her managerial skills.
6. Motivating
The ability to motivate is another important skill in an organization. Motivation
helps bring forth a desired behavior or response from the personnel or certain
stakeholders. There are numerous motivation tactics that managers can use and
choosing the right ones can depend on characteristics such as company and team
culture, team personalities, and more. There are two primary types of motivation
that a manager can use. These are intrinsic and extrinsic motivations.
Bottom Line
It simply means that management is a phase that will never stop because the
organization remains. Managers would always force themselves to tackle tasks,
goals, and problems at a certain point in time.
knowledge. Being systematic means being orderly and unbiased. All the scientific
information collected first as raw data is finally arranged in order and analyzed with
the help of statistical tools. Science is also cumulative in that what is discovered is
added to that which has been found before. We learn from past mistakes and go in
the right direction in the future. Based on the above discussions of science, it can be
accepted that management is also a science.
One of the features which indicate that science and management are the same
is the universal acceptance of scientific principles. In other words, scientific laws are
the same in every case and in every part of the world. On the other hand,
management has its fundamental principles that are universally accepted and
implemented in every situation or enterprise. An example of that is the Unity of
Command Principle.
The relationship between cause and effect is a further trait that distinguishes
management and science as one. The relation between cause and effect is vitally
important in scientific principles. Heating the metal, for example, can cause it to
expand. The cause is the heat applied while the effect is the one felt by the expansion.
The same happens in administration. For example, it has been proven that there will
be ineffectiveness in organizations where there is no compromise between authority
and accountability.
Management as a Profession
Management as a Group
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
We may add some more elements to the management process. Such elements are:
1. Motivating
2. Co-coordinating
3. Staffing
4. Communicating
The elements in the management process are actually the basic functions of
management these functions constitute the management process in practice.
Management process is in fact, management in practice. This process suggests what
a manager is supposed to, do, or the basic functions that he has to perform while
managing the job assigned to him.
Luther Gullic gave a new formula to suggest the elements of the Management
Process i.e. basic functions of management. According to him, the management
process may be indicated by the word "PODSCORB”. Here, ‘P' states for 'planning'.
"O" for 'organising', "D" for 'directing', "S" for 'Staffing', "CO" for 'Coordinating, "R"
for 'Reporting' and "B" for 'Budgeting'. Gullic coined the word "PODSCORB" to
suggest seven functions of management.
The figure below shows the management process and the elements
involved:
A. LEARNING OUTCOMES
B. TIME ALLOTMENT
Three (3) hours (2 meetings)
C. DISCUSSION
The vision is the dream of the organization. It’s what the organization considers
to be the ideal conditions for the community; that is, how things would look if the
organization absolutely, beautifully addressed the issue that is important to them. It
could be a world without war, a country with no crime, or a society where all men,
regardless of gender or racial background, are treated as equals. Whatever the dream
of the organization is, one or -more vision statements, which are short phrases or
sentences that express the aspirations of the organization for the future, may well
communicate it. In creating a statement of purpose, the organization clarifies the
values and guiding principles, first for the organization itself and then for the greater
community.
Leaders should emphasize the current statement of the mission to employees which
clarifies the organization’s active and key, measurable goals.
Just like the statement of mission, a statement of vision helps to define the
intent of the organization. Statements of vision guide organizational action and help
inspire. Strategic plans may include a promotional campaign that may include a
statement of vision to encourage stakeholders to partner with the organization as well.
A vision statement is a vision of the future with hope and a positive outlook. It
describes the organization’s inspirational, long-term plan for what it will be able to do,
who it will help, and how the organization will then be perceived. For now, it’s often
out of reach, but not so far out of reach as to be unattainable. The vision statement
gives everyone a description of what they’re working on.
1. These statements can help your organization focus on what’s important. Although
your organization knows what you’re trying to do to improve your community, it’s
easy to lose sight of this when dealing with day-to-day organizational difficulties.
Your vision and mission statement remind the members of what is important.
2. Vision and mission statements offer a snapshot of what the group is and what it
aims to do for other people and organizations. If the statement of vision and
purpose is readily accessible, people know about the organization without having
to dig hard for the details. Instead, those with common interests should take the
time to learn more. This flexibility is very useful when hiring other individuals and
organizations to support the initiative.
3. Statements of vision and mission concentrate the members on their shared goals.
Not only can the statements themselves act as a daily reminder of the
organization’s value, but the method of creating them also encourages people to
see the organization as “theirs.” Creating these statements builds trust as
participants can more fully believe in something if they have a hand in creating it.
Developing a clear vision and mission statements are two of the most critical
activities that the organization can tackle, as such statements influence almost
everything else, they do. When the personnel understand more clearly what the
community is trying to do and why they are in a prime position to create proposals that
will catch the ideas. When they look at possible claims, try to keep them broad and
enduring.
Wide-ranging vision and mission statements allow for a sense of continuity with
the past, values, and specific aims of a community. Also, statements of vision and
mission built up to last should drive efforts today and tomorrow.
The method of writing the statement of purpose for your organization is close
to creating your statement of vision. The same method of brainstorming will help you
to build the possibilities for your mission statement. you’ll want to establish a common
mission statement for your work as opposed to a vision statement.
1. Could this explain what your organization is going to do, and why is it going to?
2. Is it concise (one sentence)?
3. Was it outcome-oriented?
4. Is it reflective of the organization’s priorities and people who might get
involved?
After the organization’s leaders have formed a vision and mission statement,
the next step will be to know what other group members think of them before they use
the statements.
BEHAVIORAL MANAGEMENT
Past experiences precede behavior in time and can result in actions or decrease
the likelihood of a behavior occurring. Behavioral events that organize behavior in time
(i.e. consequent events) also increase or decrease the probability that the behavior will
continue once it occurs, or that it will occur again in the future.
A Shift in Theories
Long before theorists started writing about employee happiness and good
working conditions, management found classical leadership to be the most important
to the success of an organization, with its primary interest in high productivity and
performance. Later, concern for job satisfaction and fair working conditions
established the basis for the theory of behavioral management.
MANAGEMENT BY EXAMPLE
The concept of leading others by dictation or order may seem like a fairly
daunting task to many managers. Most managers don’t want to feel like they’re
babysitting or bossing their staff members around, but they also find it best to show
their workers how they want to behave and how they’d prefer their daily tasks to be
done. That all comes down to the often-challenging task of leading by example.
Leading by example not only holds managers to strict expectations but also
requires many interpersonal communication skills. Those who lead by example must
be capable of establishing good human relationships with those they need. This can be
a challenge for any leaders, particularly those who are not exactly born leaders of
natural origin.
Avoid Criticizing
Complaining or judging others can not only discourage team members from
receiving the inspiration they need, but it can also show these team members that
criticism and complaining are appropriate on the job. Those who lead by example must
do their utmost to eliminate negativity from their lives and their approach to
leadership altogether. Negativity can only generate more negativity, so it must be
eliminated early. The more optimistic a person will be, the more optimistic their work
environment can be every day.
It’s so important for managers to take the time to develop genuine relationships
with their workers so they can gain that respect. It involves getting to know them and
becoming interested in other people and what they have to say and focusing on
maintaining and developing the relationship, so the two parties have a sense of
confidence.
When managers do not take the time to build meaningful relationships with
their workers then the idea of example management will never work. So, to get workers
to imitate their bosses, they need to admire them and take care of them.
Not only does this involve listening to the words that workers need to use, but
it also means picking up on their thoughts and paying attention to what they are trying
to communicate.
It’s much easier for an employee to follow the lead of a superior who sits in
their office all day and doesn’t know how everyday operations work. Getting involved
and being very interested in how the organization works will only benefit managers
who are trying to appeal to their workers and who are trying to set a precedent on how
their workers want to work. To any manager, so to speak, getting their hands dirty is
one of the best ways to start cultivating a better relationship with their employees and
start managing by example. Once team members see their supervisors do the job and
get into the action, they are much more likely to look for direction from these
supervisors and emulate their behavior.
Humility is Key
Taking a leadership approach needs a great sense of modesty. Not only does
this mean trying to relate to workers and fostering a sense of harmony between team
members, but it also means treating all team members with a positive attitude.
Managers ought to treat others the way they would like to be treated, never take
anything for granted, and give the benefit of the doubt to individuals. Even if a member
of a team does not perform to the expectations of the manager, this does not mean they
have not tried. Most people don’t go into preparing for their workday to do a terrible
job. Having insight and modesty will also help managers see the broader picture and
see where their workers come from as they lead others by their example.
The formation of values is the union of our personal experiences and the
particular society in which we are entwined. In childhood, values are placed by our
families and reinforced by community and life experiences. For example, our parents
placed on us the importance of kindness and reinforced it during early childhood.
The value system is first considered for understanding every society. The value
system implies the culture’s purposes and goals, which their wisest people have
identified and treated as absolute and primary. In the context of its value system,
therefore, the values and knowledge of every society happen to be preserved.
1. Development of Employees
Managers should use the value system to grow their workers in an all-
around way. Values help with vision. Those help in the creation of employee or
worker awareness and moral growth.
2. Motivation
Values will work inside you to awaken your secret talents. With bravery
and confidence, you have it in you to go ahead and realize your full potential.
Inspiring one’s self and inspiring others in organizations to campaign for ethical
and right values. Values offer the best encouragement to remain motivated all
the time, irrespective of how de-motivating and overwhelming things are.
3. Underlie Managerial Behavior
The study of values is central to the interpretation of management and
organizational behavior, which underlies managerial behavior’s value
orientations.
4. Determine behavior values are fundamental and define actions
within the organization to a large extent. Therefore, through employee
behavior, the manager will introduce an improvement in the way desired.
7. Promote leadership
Managers are people who exercise their ‘leadership by values. They can
be effective leaders by practicing the spiritual values in their managing Jobs.
8. Bring creativity
Managers will remain innovative by examination of many ethical
principles in unpredictable and ever-changing times. Some traditional ideals
tend to improve cognitive capacity resulting in a different way of
understanding those challenges and circumstances.
9. Managing in Borderless
Management is no longer limited to a national entity but is complete
without boundaries. Administrators have a greater responsibility than ever
before. Consequently, value-based management has become a key
requirement. Owing to the need for social and ethical standards,
administrators must follow not just rules.
10. Guide to life, profession, and character
Moral, ethical, and professional values determine the character of
employees and managers. They guide their profession and life. Value can
become the basis for the behavior of its members.
The ideals in the workplace are the guiding principles that are most important
to you about the way you work. You use these deeply held values to distinguish between
right and wrong ways of working and they help you make crucial career choices and
decisions. Some examples of workplace values include:
o Being accountable
o Making a difference
o Focusing on detail
o Delivering quality
o Being completely honest
o Keeping promises
o Being reliable
o Being positive
o Meeting deadlines
o Helping others
o Being a great team member
The ideals of the workplace set the tone for the atmosphere of the organization and it
defines what the organization cares about as a whole. The beliefs of the people must match
those. When this happens, people understand each other, for the right reasons, everybody does
the right things, and this shared intention and understanding allows people to develop a better
working relationship.
so, that we contemplate and argue the differences between the two functions.
To begin by clarifying the distinction between managers and leaders, the readers
frequently confuse the two, although they are not necessarily the same. Managers are
appointed. They have legitimate power that allows them to reward and punish. Their
ability to influence is founded upon the formal authority inherent in their positions. In
contrast, leaders as distinguished from a manager, may either be appointed or emerge
from within a group.
Leaders can influence others to perform beyond the actions dictated by formal authority.
Should managers be leaders? Conversely, should all leaders be managers? Since no one
yet has been able to demonstrate through research or logical argument that leadership
ability is a handicap to a manager, we can state that all managers should ideally be leaders.
Not all leaders necessarily have the capabilities in managerial functions; hence, not all
should hold managerial positions.
The fact that individual leaders can influence others, and more to tell whether he
or she can also plan, organize, control, direct, and organize. Given that all managers
should be leaders; then there is a need to pursue the subject from a managerial
perspective. Therefore, leaders mean those who can influence others, and who possess
managerial authority.
A. LEARNING OUTCOMES
B. TIME ALLOTMENT
Three (3) hours (2 meetings)
C. DISCUSSION
Many people, by the way, are both. They have management jobs, but they realize
that you cannot buy hearts, especially to follow them down a difficult path, and so act as
leaders too.
By definition, managers have subordinates - unless their title is honorary and given
as a mark of seniority, in which case the title is a contradiction and their power over others
is other than formal authority.
Managers have a position of authority vested in them by the organization, and their
subordinates work for them and largely do as they are told. Management style is
transactional, in that the manager tells the subordinate what to do, and the subordinate
does this not because they are required to do and as expected from them.
Managers are asked to get things done (they are subordinates too), and they naturally
pass on this work focus to their subordinates.
Seek comfort
This leads them to be relatively risk-averse and they will seek to avoid conflict where
possible. In terms of people, they generally like to run a 'happy ship'.
Leaders do not have subordinates - at least not when they are leading. Many
organizational leaders do have subordinates, but only because they are also managers.
But when they want to lead, they have to give up formal authoritarian control, because to
lead is to have followers, and the following is always a voluntary activity.
Telling people what to do does not inspire them to follow a manager. They have to
appeal to them, showing how following them will lead to their hearts' desire. They just
want to follow the leader enough to stop what they are doing and perhaps walk into danger
and situations that they would not normally consider risking.
Leaders with stronger charisma find it easier to attract people to their cause. As a
part of their persuasion, they typically promise transformational benefits, such that their
followers will not just receive extrinsic rewards but will somehow become better people.
People focus
Although many leaders have a charismatic style to some extent, this does not
require a loud personality. They are always good with people, and quiet styles that give
credit to others (and take the blame on themselves) are very effective at creating the
loyalty that great leaders engender.
Although leaders are good with people, this does not mean they are friendly with
them. To keep the mystique of leadership, they often retain a degree of separation and
aloofness.
This does not mean that leaders do not pay attention to tasks they are often very
achievement-focused. What they do realize, however, is the importance of enthusing
others to work towards their vision.
Seek risk
In the same study that showed managers as risk-averse, leaders appeared as risk-
seeking, although they are not blind thrill-seekers. When pursuing their vision, they
consider it natural to encounter problems and hurdles that must be overcome along the way.
They are thus comfortable with risk and will see routes that others avoid as potential
opportunities for advantage and will happily break rules to get things done.
This table summarizes the above (and more) and gives a sense of the differences
between being a leader and being a manager. This is, of course, an illustrative
characterization, and there is a whole spectrum between either end of these scales along
which each role can range. And many people lead and manage at the same time, and so
may display a combination of behaviors.
Subject Leader Manager
Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Horizon Long-term Short-term
Seeks Vision Objectives
Approach Sets direction Plans detail
Decision Facilitates Makes
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Culture Shapes Enacts
Dynamic Proactive Reactive
Persuasion Sell Tell
Style Transformational Transactional
Exchange Excitement for work Money for work
Likes Striving Action
Wants Achievement Results
Risk Takes Minimizes
Rules Breaks Makes
Conflict Uses Avoids
Direction New roads Existing roads
Truth Seeks Establishes
Concern What is right Being right
Credit Gives Takes
Blame Takes Blames
Though managers and leaders are often grouped into the same category, there are
fundamental differences in how they achieve, motivate people, and contribute to the bigger
vision of an organization. Be cognizant that just because someone is a manager, it doesn't
We’ve used the word “leader” and we’ve used the word “manager.” As stated, you may
think they’re interchangeable, but they aren’t. They are different.
Abraham Zaleznik, Harvard Business School Professor Emeritus, was the first to
write about the differences between leaders and managers. His article, “Managers and
Leaders: Are They Different?” challenged the traditional view of management, which
centered on organizational structure and processes.[1] Organizations, at the time, developed
managers with a focus on process and control. Zaleznik argued that these same organizations
were missing the opportunity to develop leaders by concentrating on this because they were
really two different types of people.
Zaleznik charged that the approach of the typical organization was omitting essential
leadership elements of inspiration, vision, and human passion from their concept and
development of people. He went on to define a manager as someone who seeks order,
control, and rapid resolution of problems. A leader, he went on to say, is more like an artist,
and “tolerates chaos and lack of structure.” Organizations were too often not creating an
environment where leaders could flourish.
In Zaleznik’s view, both leaders and managers contribute to the organization. Leaders
contribute by advocating change and new approaches and do so by gaining the commitment
of employees. Managers contribute by advocating stability and the status quo, exercising
authority, carrying out responsibility, and determining how work will get accomplished.
• Zaleznik proposed that managers were results-driven, and leaders were creative artists.
• Kotter proposed that leaders navigated change and managers navigated complexity.
• Researcher Warren Bennis said, “Managers are people who do things right, and leaders
are people who do right things.” And the organizations need both.
Leader-Managers
The late business management guru Peter Drucker said, “The task is to lead
people and the goal is to make productive the specific strengths and knowledge of
every individual.” Such is the leader managers in charge at every level in the
organization
• Have a Vision
Create momentum around your vision and the company’s vision—and encourage
your department leaders to do the same. Your job as a leader is to tie that vision to the
goals and beliefs of your employees. And, because leaders create other leaders, you
encourage your managers to do the same with their smaller teams.
• Employees often follow the examples of leaders who display integrity and strength in
their interactions. The leader-manager often has to make unpopular decisions, and
when he or she does, an explanation of the reasoning behind that decision can help the
leader earn the respect of employees.
• Accomplish Goals Accomplishing goals is the central concern of the work they’re doing.
Without accomplishing tasks, there is no productivity. If employees are motivated and
excited about the work they’re doing, the leader manager should be well on his or her
way to guiding the team’s accomplishments. This is where a hybrid of managerial skill
and leadership traits moves into action.
• Innovate New Solutions
Obstacles and roadblocks are commonplace in all organizations. Leaders
embrace risks and understand that they must be taken to grow. Leaders embrace
change.
Managers, on the other hand, like routine and the status quo. As a leader-manager,
you will need to assess the roadblocks you see and innovate new solutions to overcome
them. Some may work and some may not.
At different times every organization has to cope with the external environment
that prevails. This world poses a series of external obstacles that are hard to control, these
factors will impact significantly how well a manager performs. Organizations need to
respond to environmental changes with speed and efficiency to ensure survival. Below
are some of the key challenges which have an impact on the job of managing:
2. Challenges on Globalization
The digital revolution took the whole world back together. The use of
satellites to communicate information has rapidly improved things. The main
component of industry, culture and economic globalization is the opportunity
and freedom to communicate with practically anyone, anywhere, anywhere.
The same must be used productively by managers in achieving the mission,
vision, goals, and objectives of the organization.