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Importance of leadership
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Introduction
A significant and controversial question is how management is different from leadership. Some view the two as essentially the same; however, in increasingly complex and dynamic businesses, a need for greater specialization requires that we recognize that they are different. Managers and leaders are essentially two different functions and they serve two different purposes within organizations. Leaders promote new directions while management implements existing processes as efficiently as possible (McCrimmon, 2007). Managers and leaders are both essential in organizations and must be separate components that work together.
Leaders do not need to know how to manage, but managers need to know how to lead. This analysis will provide a background on leadership theory, in the process defining leadership and management, and discussing trait approach, contingency theory, and leader-exchange theory.
Background
Robbins and Judge (2013) define leadership as the ability to “influence others towards the achievement of a vision or a set of goals” (p. 368). “Leadership involves influence, it occurs among people, those people intentionally desire significant changes, and the changes reflect purposes shared by leaders and followers” (Daft, 2011, p. 5). Therefore, leadership includes the influence of people, of both leaders and followers, to bring about change toward a desirable future (Daft, 2011).
“Management can be defined as the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing, and controlling organizational resources” (Daft, 2011, p. 15). Management is a set of well-known processes that ensure an organization has the resources to predictably perform well (Kot...
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...Simpson, R. B. (2007). Classic Readings in Organizational Behavior (4th ed.). Belmont, CA: Cengage Learning.
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Leadership is a communication process of a leader and individuals in which the leaders behavior or attitude directs individuals towards any goal effectively. It is widely believed that leadership creates the vital link between organizational effectiveness and people’s performance at an organizational level (Avolio, 1999; McGrath and MacMillan, 2000). The effectiveness of an organization depends upon the leader having an effective leadership style in order to effectively reach the goal of the organization; with it being one of the key driving forces for improving a firm’s performance. Scholars suggest that effective leadership behaviors can facilitate the improvement of performance when organizations face problems (McGrath and MacMillan, 2000). To effectively achieve leadership of individuals and organizational outcomes, four theories can be used; Fiedler’s Contingency Model, Hersey and Blanchard’s Situational Leadership Model, Vroom & Yetton Participative Leadership Model, and House & Dessler Path-Goal Theory.
Leadership directly impacts an organization's bottom line, employee satisfaction, and turnover; it can impact how the organization is viewed by society and in particular its marketing audience. This is particularly significant during a downturn in economic markets. Organizations must meet budgetary controls, and need to communicate...
Robbins , Stephen P. and Judge, Timothy, A. Organizational Behavior. Upper Saddle River, New Jersey. Prentice Hall. Pearson Custom Publishing. 2008 Print
Robbins, S. P., & Judge, T. A. (2007). Organizational Behavior (12th ed.). Upper Saddle River, New Jersey, United States of America: Pearson Prentise Hall.
Presently many of us have learned that managers are primarily administrators who have learned to write business plans, utilize their resources and keep track of progress. We must learn that we are not limited by job title, and that means we can utilize our management skills in any position that we are in. We must also know that we can use our leadership skills in the same situations. On the other hand we have also learned that leaders are people who have an impact on those that surround them. The main difference that separates these two roles is that management is a function that must be utilized in any type of business, and leadership is the relationship that the leader has with his followers, which in turn can motivate and energize the organization.
pp. 146-170. Kreitner, R., & Kinicki, A., (2004). Organizational Behavior (6th ed.). New York: McGraw-Hill/Irwin.
Kinicki, A., & Kreitner, R. (2009). Organizational behavior: Key concepts, skills and best practices (customized 4th ed.). New York, NY: McGraw-Hill Irwin.
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McShane, S.L., Olekalns, M. & Travaglione, A. 2013, Organizational Behavior: Emerging Knowledge, Global Insights 4th ed., McGraw-Hill, Sydney.
Ivancevich, J., Konopaske, R. & Matteson, M. (2011). Organizational Behavior and Management. NewYork, NY: McGraw Hill.
Robbins, S. P., & Judge, T. A. (2011). Organizational behavior (14 ed.). Upper Saddle River, NJ: Pearson.
An organization is often viewed as systems and management is often defined as human action that facilitate any organization , in other words management is said to be a distinct process that comprises of planning , organizing , actuating and controlling. It is practiced in order to accomplish pre determined objectives. (George R. Terry) Leadership is another facet that accelerates the further process of management , it is one of the key components of direction which is further termed as an asset required for successful management of an organization. Management and leadership are two different notions that are interchangeable but having different approaches with a similar outlooks. Management as a whole is a process that is having main focus on completion of task efficiently at minimal cost. The main aim of a management is to direct all the activities related to an organization towards accomplishment of targeted goals. On the flip side leadership is said to be more directed towards vision and inspiration, it is often regarded as an influential process in an organization that is carried on by an individual which has a focus on achieving the targeted goal that is recognized and benchmarked by the management. In today’s 21st century both effective mangers as well as efficient leader play a vital role.
The contemporary era is the time with constant changes and new demands. In view of this point, we can't put unitary leadership into real work. Accordingly, the term of "contingency leadership theory" (also namely "situational leadership") is given rise to by those situational factors. This theory notes that managers can vary their styles to suit different circumstances.
Robbins, S. P., & Judge, T. A. (2011). Organizational behavior (14 ed.). Upper Saddle River, NJ: Pearson.
Stephen P. Robbins and Timothy A. Judge in "Organizational Behavior", 12th ed. Upper Saddle River, New Jersey, 2005, p. 407