Leadership and Management

Leaders versus Managers

Understanding the distinction between leaders and managers is essential for effective organizational performance. Leaders use social influence to maximize the efforts of others toward achieving goals, while managers are responsible for controlling or administering parts of an organization, including supervising and managing people.

• Leaders:

  • Motivate people through communication and collaboration

  • Share a vision and set agreed-upon goals

  • Use motivational techniques and incentives

  • Develop policies and 'walk the talk'

• Managers:

  • Oversee processes such as hiring, budgeting, and establishing procedures

  • Plan work, establish teams, and set objectives

  • Structure the organization and develop job descriptions

  • Monitor performance and plan training

Can you be both? Yes, effective organizational leaders often blend leadership and management skills.

Managers’ Roles Are Evolving

• Managers are increasingly responsible for human, natural, physical, and financial resources.

• Modern managers guide, train, support, motivate, and coach employees.

• Emphasis is on teamwork, cooperation, and seeing employees as partners.

• Workforces are more diverse and independent.

• Managers must be skilled communicators, team players, planners, organizers, motivators, and leaders.

• Additional info: Technology and global events (e.g., the pandemic) continue to reshape managerial roles.

Core Functions of Leaders and Managers

Planning

• Setting organizational goals

• Developing strategies to reach those goals

• Determining resources needed

• Setting precise standards

Leading

• Directing and motivating employees

• Giving assignments and explaining routines

• Clarifying policies and providing feedback

Organizing

• Allocating resources and assigning tasks

• Establishing procedures and structuring the organization

• Recruiting, selecting, training, and developing employees

Controlling

• Measuring results against objectives

• Monitoring performance and taking corrective action when necessary

Planning and Decision Making

Vision, Values, and Mission

• Vision: An all-encompassing explanation of why the company exists and its direction.

• Values: Fundamental beliefs guiding business decisions.

• Mission Statement: Outlines the fundamental purposes of an organization.

Example (Walt Disney):

• Vision: "To be one of the world’s leading producers and providers of entertainment and information."

• Mission: "To entertain, inform and inspire people around the globe through the power of unparalleled storytelling."

• Values: "Optimism, innovation, decency, quality, community, and storytelling."

Sample Vision Statements

Sample Mission Statements

• Patagonia: "We’re in business to save our home planet"

• Google: "To organize the world’s information and make it universally accessible and useful"

• TED: "Spread ideas"

• Cambrian Credit Union: "To enable our members to achieve financial well-being"

Goals and Objectives in Planning and Decision Making

• Goals: Broad, long-term accomplishments an organization wishes to attain.

• Objectives: Specific, measurable, short-term statements detailing how to achieve goals.

• SMART Principle: Specific, Measurable, Attainable, Relevant, Time-based

• Goal Example: Improve sales performance by 10% each year.

• Objective Example: Show a 20% increase in women managers by doing X, Y, and Z.

Personal Example of Goals & Objectives

• Personal Goal: Get eight hours of sleep every night.

  • Objectives: Stop drinking caffeine in the afternoon, set alarms, avoid exercising before bed.

• Professional Goal: Improve presentation skills.

  • Objectives: Watch a video course, practice presenting, give a mock presentation and ask for feedback.

The Rule of 3 in Business Planning

Levels and Tools of Planning

Different Levels of Planning

SWOT Analysis

Understanding SWOT

• Strengths (internal): Market leadership, core competencies, cost advantages

• Weaknesses (internal): Lack of strategic direction, narrow product line

• Opportunities (external): New customer groups, market growth, technology transfer

• Threats (external): Economic downturns, competition, changing regulations

Example Application: Starbucks SWOT analysis (students are encouraged to identify strengths, weaknesses, opportunities, and threats for Starbucks).

Skills for Effective Leadership and Management

Key Skills

• Technical skills: Ability to perform tasks in a specific discipline

• Human relations skills: Communication and motivation

• Conceptual skills: Ability to see the organization as a whole

• Emotional intelligence, communication, delegation, motivation, integrity, flexibility

Relative Importance of Skills at Different Management Levels

Organizational Structures

Four Key Types of Organizational Structures

• Functional: Organized by business function (e.g., marketing, finance)

• Divisional: Organized by product or geography

• Matrix: Combines functional and divisional structures

• Flat: Fewer management layers, more employee autonomy

Leadership Styles

• Autocratic: Manager makes decisions without consulting others

• Participative (Democratic): Managers and employees make decisions together

• Free-rein: Managers set objectives, employees decide how to achieve them

• Transformational: Leaders inspire and motivate to achieve a vision

• Transactional: Leaders assign tasks and reward completion

Leadership styles have evolved from autocratic to more participative and transformational approaches, reflecting changes in workforce expectations and organizational needs.

The Control Process

1. Establish clear standards

2. Monitor and record performance

3. Compare results against standards

4. Communicate results

5. If needed, take corrective action

Feedback is essential to ensure standards are realistic and to drive continuous improvement.

Control by Managing Knowledge

• Knowledge management: Finding, organizing, and sharing information so employees can do their best work.

• Managers must determine which knowledge is important and what is not.

• Knowledge can be captured in 'knowledge management systems.'