Leadership is an important feature of management in business organizations. Leadership and management are terms which are usually used interchangeably although they are derived from different concepts. Managers perform their duty through administrative implementation while leaders inspire and motivate followers to achieve organizational outcomes. Managers’ administration function is implemented through “organizing, planning, staffing, directing and controlling” responsibilities (Chemer, 2007). Leadership is a factor of the directing function. As such, managers are expected to exercise leadership in their administrative duties. However, effective managers need formal authority in order to administer organizational outcomes. Formal authority cannot be delegated while leadership roles can be integrated with followers’ contribution.
Traditionally, leadership plays a supplementary role to management. For instance, self motivated groups may discharge their duties without the need for a leader whose presence could be interpreted as domineering. Leadership is therefore an asset which promotes managerial effectiveness. Leaders are perceived to be more emotional than managers. Managers follow company policy while leaders respond to their intuition. Leaders and managers may not function properly in the same setting because managers wield much authority and consider others as subordinates (Ali, Taqi, Krishnan, 1997). Since leaders are more inspirational and emotional, they exert greater influence on subordinates than managers. Conflicts normally arise from clashing of administrative functions of a manager and the facilitation role of a leader.
Group members become more aligned with leaders which create conflict of interest with managers. Loyalty issues between managers and leaders arise when leaders celebrate group achievement instead of praising the manager. Managers are therefore directed by a rational formal method while a leader stirs emotions. As far as leadership styles are concerned, managers prefer the transactional management style where subordinates are ordered to work. Managers have subordinates while leaders have followers (Bass, Avolio, Goodheim, 2007). On the other hand, leaders utilize the charismatic transformational style to influence follower action. Managers can also be considered to be risk-averse and tend to pursue organization‘s vision and mission through a comfortable approach. Both leadership and management are important for business success.
Leadership and management skills for business success
Leadership can be conceptualized as “setting example for others to follow” (Bass& Avolio, 2009). The current tough economic times in the global economy have reduced prospects for profit maximization among industries and companies. On the other hand, employees are constantly worried about their jobs and careers. This state of uncertainty lacks predictability creating an atmosphere of anxiety and fear among business managers and employees alike. Business managers should therefore seek to assure their skilled workforce about the future of their careers. Leadership is therefore the only motivation and a source of inspiration for organizations that seek to improve their profit margins while providing necessary tools to subordinates to perform.
Under the current state of uncertainty in economic spheres, leadership is instrumental in “setting the standards of excellence” which followers/subordinates can follow (Arnold et al, 2001). Managers occupy a position of authority in business organization which demands that they enforce company policy and statutes among different cadres of their organization structure. On the other hand, leadership is not a position; it is a product of moral authority which is exemplified through sacrifice and service.
Effective leadership and management skills for business organizations
Political and military leaders are more celebrated than business managers for exercising maturity and providing direction to people in times of crises. Business managers are equally capable of not only exercising managerial control over subordinates but also providing leadership by guiding followers on the right paths of life. According to management theory, administrators are concerned with assigning the right people with proportionate tasks and providing them with right resources to prosper (Ali, Taqi, Krishnan, 1997). On the other hand, leadership entails assigning the right people tasks with higher responsibility. Leaders then provide coaching to followers in order to equip them with the right tools for greater performance.
In addition, leaders recognize outstanding performance and acknowledge achievement. Management ensures that organization culture and structure is stable in accordance with rules and regulations. On the other hand, leadership provides “inspiration, influence, motivation and an atmosphere for creativity” (Avery, 2004). Business success is determined by an existing culture of managerial effectiveness which creates a platform for leadership. Absence of leadership in organizations renders the managerial component of administration ineffective. This is because management alone, within the corporate setting, cannot stimulate rapid growth, intellectual stimulation and creativity within organizations. Essentially, managers are concerned organizational processes which can lead to profit maximization within the structured framework. As such, lack of leadership leads to “morale decline, absence of creativity and diminished competitive advantage” in the global market (Avery, 2004).
Leadership is therefore important in providing inspiration and vision to followers which is then reinforced with empowerment and coaching tools. Managers are effective in providing supervision on group projects towards achievement of organizational objectives. Teamwork explains the relationship between management and leadership for business success and survival of companies. Top management as well as individual employees is responsible for success and survival of their organizations. Leaders in the mainstream society are celebrated because of their ability to sacrifice during crises (Bass& Avolio, 2009).). Responsible individuals can be entrusted with managerial obligations while leadership is an intrinsic characteristic which is stimulated into action through facilitation.
Business organizations can develop potential people to emerge as leaders. Leaders can only be effective if they are surrounded by capable people who can perform assigned duties without too much supervision. Essentially, leaders are at their best in convincing followers to abide by their instructions which promotes effective running of businesses. Vision and mission of an organization is first and foremost the preserve of the top management. Leaders should not just be accompanied by affirmative people but honest persons who can critique points of weakness. Leaders should also be wise enough to weigh consequences of divergent opinions as well as determine the viability of proposed solutions. An important quality of leadership is selflessness which enables leaders to sacrifice much of their time dedicated to running successful business organizations.
Management and leadership training
The current state of uncertainty in the global economy demand that managers are equipped with necessary leadership skills which can improve their potential to handle crises. Academic programs on managerial leadership explore areas such as “team building, change management and leading under pressure” (Bass, 2005). Participants are exposed to various case studies and workshops which train them on real life situations in which different leadership styles are assessed and proposals for improving managerial leadership explored. On the other hand, mentorship in leadership issues can be done through on-job training at workplace. The interaction of a mentor with managers epitomizes prospects for leadership skill acquisition.
The intersection between “doing things right” and “doing the right thing” is exhibited from the relationship that exists between management and leadership respectively. Successful business organizations are those which have developed proper management structures for harnessing the asset of leadership into operation. Business managers need to understand different contexts through leadership can enrich managerial outcomes. The old notion in management where administrative implementation of company policies and processes was carried out with an iron fist is being replaced with a new paradigm characterized by a concerted approach. Both leadership and management demand that vision and mission is understood in the entire business organization.
Managers are quite instrumental in directing and planning the process of implementing vision and mission within organizations. Leaders as well facilitate the process of communicating vision and mission of business organization to followers. Vision and mission are designed and communicated from the top management to bottom lines and not vice versa. The current hostile trend in global economic processes demands that managerial hierarchy is demystified to allow for greater interaction between managers and subordinates (Avolio& Goodheim, 2007). Leadership, as an asset to business organizations, is the only resource which can restore hope among worried employees about their future careers while it assures shareholders about value for their investments.
Leadership in perspective
Leadership plays a crucial role in organizations and society. Leadership has many definitions in different contexts. Basically, leadership is understood to mean the process through which an individual influence on others causes them to direct their efforts towards a common purpose. Leaders influence the contribution and support of followers towards solving a common problem. The role of leadership in business organization is determined by the benefits that are obtained from the command and control wielded by a leader on followers. The concept of leadership is often in conflict with practicing leadership (Beck& Yeager, 2001). The application of leadership in various contexts in life such as health, education and business management is quite differentiated. Business organizations depend on leadership and management for planning, implementing and evaluating organizational objectives.
Management refers to planning various sections of an organization in order to establish a culture of cooperation on activities which promote realization of organizational goals. Management therefore incorporates the contribution of different elements of leadership in order to improve its profit margins and competitive advantage in the market. In addition, leadership and management lead to the attainment of project goals and group performance on various tasks. Human resource management derives its success from effective leadership. Trends associated with globalization exemplify the need for strategic planning and innovation in order for business organizations to compete effectively in the expanded international market (Beck& Yeager, 2001). Leaders and managers are therefore expected to develop skills and competencies which promote effective human resource management and innovation.
Human resource management
Human resources are the most important assets that business organizations possess for their operations and functions. Employees are hired in accordance with a standardized criterion which ensures that recruited workers are qualified for tasks at hand. Human resource professionals need to develop quality training programs which supplement recruitment and selection of employees. Employee training and development leads to job satisfaction among employees because they are properly equipped with necessary competencies and skills to perform their duties professionally. Selection and recruitment of employees follows a criterion where job applicants are shortlisted and interviewed.
Qualified candidates are hired on a temporary basis as their performance is periodically evaluated based on confirmed credentials and performance targets. Training of recruited employees facilitates acquisition of skills and competencies which match with job description. Crucial management tools as far as human resource management is concerned lead to employee retention. The cost of maintaining an already existing talented workforce is lower than that of hiring new recruits for further training. Human resource professionals need to evaluate employee training programs in order to confirm that they correspond to international standards in terms of curriculum content and assessment tools. The entire process of recruitment, training and retention of skilled employees facilitates the success of business organizations (Bryman, 2010).
Teams are important tools in modern organizational management. Working teams are instrumental in improving employee performance on various tasks. Teamwork is a skill which business managers must develop in order to realize higher corporate outcomes. A consolidated team of workers creates a sense of common purpose in organizations. Essentially, teams are composed of a collection of individuals with a common purpose. The structure of a team is such that a hierarchical chain of command, dynamic composition of members and group activities prevails (Bass, 2005). Each team has a defined maturation period which is a factor of its common goals and objectives. Flexible teams are most effective in achieving group performance. Flexible teams are composed of members with various talents and potentialities. Tasks are assigned to individuals depending on their competencies and skills. However, individual tasks are executed with team objectives in mind. None of the team members is responsible for group decisions. Instead, team members are collectively engaged in decision making and problem solving.
The approach taken in policy making and conflict resolution is one based on consensus. Transient teams are formed for a short period of time while other teams work together for an extended duration. The hierarchical chain of command is such that team members are facilitated by a charismatic leader whose leadership style is follow-based. The element of shared goal is an important feature of teamwork. The notion of common goal binds the team together as personal interests are overtaken by mutual cooperation. As much as individual team members are expected to demonstrate maximum demonstration of their talents, group goals are promoted over individual aspirations. As the team grows, individual ambitions are pursued for the mutual wellbeing of the group. Synergy defines the nature of relationship that exists between team members held together by common purpose (Ali, Taqi, Krishnan, 1997). Individual contributions foster effective achievement of group objectives.
Leadership is important for a group to transit from the onset of its formation up to maturation. A team is conceived as a unit in a business organization. Since leadership and management are instrumental for effective organizations, they are part and parcel of a working team. Team management is achieved through proper application of appropriate leadership styles. Leadership within teams is exemplified from an attribute of mutual awareness of underlying objectives. Characteristic features of a working team are denoted by manifestation of shared goals and mutual awareness. Leadership within teams facilitates cohesion and proper integration of team members. A team leader is therefore a person of high integrity who acts as a role model for a team. Management of teams demands that appropriate leadership styles are employed in administration of duties. Emotional intelligence, intellectual stimulation and strategic planning are important features of effective management of different units of organizations (Burn, 2002).
Transactional and transformational leadership styles are considered to be the most appropriate in creating harmony and innovation in organizations. Modern management of globalized industries demands that leaders and followers are bound by a realistic contract which defines their terms of engagement and relationships (Bass, Avolio, Goodheim, 2007). Managers should therefore seek for means to motivate workers towards greater task performance. This may include exchanging valuable information between managers and subordinates which acts as a motivating factor for higher performance. Leaders could engage followers in designing realistic performance targets.
Things which can motivate subordinates to perform better include reward, praise and promises. The dynamic nature of globalized markets demands that managers integrate “charisma, intellectual stimulation, inspirational motivation and individual consideration” as part of their defining principles of leadership (Chemer, 2007). Managers should ensure that subordinates are involved fully in designing policies and decisions within organizations. Subordinates become more inspired towards achieving goals which they have contributed in formulating.
Culture describes values, principles and morals which define the way of life in society and organizations. There is a close relationship between organizational performance and leadership. The cultural background of an organization determines its operations and processes which ensure effective task performance and achievement of organizational objectives. Weak organizational culture leads to haphazard approach in executing job operations. Leadership and management mediate cultural awareness in organizations. This is done by the work of managers who lead the rest of the organization in understanding and applying important concepts and principles which define its culture in different activities (Beck& Yeager, 2001). Managers also establish unique code of ethics and work rules which guide new recruits in understanding organizational culture.
Managers are better placed to communicate different features of organization culture to subordinates. Generally speaking, business organizations shall be compelled to explore the benefits of other cultures in order to enrich their own in view of the challenges of globalization. Essentially, globalization allows for international commercial integration where trading participants are free to exchange goods and services without being exposed to strict territorial restrictions (Chemer, 2007). For instance, language is an integral part of culture. Language barrier hinders trading in the international market. As such, bilateral trade between two interested participants from different nationalities demands that translation services have to be sought. Participation in the international market also calls for a thorough appreciation of legal, regulatory and geographical environments. Entry into a foreign market can only be effective if managers utilize their leadership potential to get the big picture from such an undertaking.
Both management and leadership are instrumental for enhancing business success in the current state of uncertainty of the global economy characterized by financial crises. Managers are expected to exercise their administrative authority to get things done. However, leaders communicate vision to followers and empower them to perform. Leaders are inspirational in nature deriving the motivation to guide others from an appreciation of different potentialities of people around them. That notwithstanding, managers and leaders have to work together in order to achieve desired vision and team objectives (Bass, Avolio, Goodheim, 2007). Leaders are effective in stimulating innovation and creativity in business organizations without which business organizations cannot succeed. Business success is therefore dependent on the ability of management exploiting its leadership potential to generate new ideas which help to solve the current economic problems in the world. Business success is denoted by increasing profit margins, job creation and more value for shareholder investments.
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