Leadership and Management

Leadership and management are two essential activities in any organization. In this respect, leadership comes closely with the direction and motivation of people in the given vision, while management closely relates to the direction and control of resources in view of certain goals. Sometimes the terms can be used synonymously, leadership and management are two different entities that both play different and important parts in any organization (Paais et al., 2020).

The purpose of this research is to identify the conceptual definitions of leadership and management, examine their main attributes and understand how they enhance organizational performance. It will also cover a leadership and management plan and the various approaches that define the organizational culture. In addition, the paper will discuss practices that can be used to encourage teams to perform better and realize organizational goals. The information provided in this paper will be accompanied by theoretical frameworks and real-life examples from various companies.

Differentiating Leadership and Management

Definition of Leadership

Leadership may be defined as the art of directing a course of action that influences the achievement of given targets. It is about defining what you want in a course and hence charting a course towards the achievement of that goal (Benmira and Agboola, 2021). A leader applies his or her ability to change individuals and groups, to communicate with others, and to manage interpersonal relationships. Leadership is more interested in the human aspect of any organization, working on advancing ideas that can create value and inspire people. Management is the one to steers the team, and overall direction and inspires confidence and passion, as well as indicates the means to overcome a specific task.

Definition of Management

Management is a planned work of arranged human and material resources with well-defined goals to accomplish organizational goals. And it means the proper arrangement of the work, establishing procedures and controlling tasks, which must be performed, to support organizational objectives. Managers work to implement plans, acquire, and organize resources, coordinate activities, and supervise and monitor the performance of workers and organizations. Management typically focuses on predictability, control, and output, to guarantee that each organisational resource is maximally utilised to achieve prescribed goals (?Pattanayak, 2020). In other words, leadership is about getting human beings to do what is required while management is about making sure that the organizations systems are in place and functioning properly to accomplish those requirements.

Leadership vs. Management

Leadership and management are two different concepts classified by the field they cover and the function they perform in an organization. While Management is more focused on organizational change, creativity, and the direction to be taken in future. Managers and supervisors look for the next talent, for new opportunities, for ways to encourage folks to move out of their comfort zones and for ways to create a culture of innovation (Renz et al., 2024). Whereas, management means to retain the status and follow the set pattern of the organization structure. Managers make order of working of an organization and working of each process, compliance with procedures, and the right usage of resources so that objectives can be met.

Leadership and management are interconnected concepts with differences in practical implementation for organizational performance. Managers are always concerned with how to guide people through change and how to manage change and its implications. They are willing to take a gamble and push new ideas forward while changing the nature of their thinking of teams and managers ensure that these changes happen by arranging people, time, and resources (Cardon and Rey, 2022). Its main focus is on process, or the proper functioning of the organization and its machinery to meet the objectives set by the top management.

For example, in a large organization facing a significant change process, a manager might suggest a new plan for such a company to penetrate a new market or incorporate new technologies. This role would be to ensure that the team is motivated, bring enthusiasm to the vision and ensure everyone is working towards achieving that vision. On the other side, a manager would use this vision and make it real by deciding where to get resources, when to do what, and who will do what. The manager makes sure that the vision is communicated in such a way that it is actionable and implemented as such Leadership is about the act of change and development while management is about the process of change and development (?Quinn et al., 2020).

Contribution to Organizational Effectiveness

Management is central to the ability to develop creativity, flexibility, and commitment during the execution of the project. Being able to foster innovation and flexibility, leadership guarantees that everyone in the team can come up with recommendations and expectations. Special emphasis is placed on the motivation of employees to work more actively and to extend their job requirements by focusing on transformational leadership that encourages employees to act according to their organizational goals (Shafi et al., 2020). Management plays a significant role in the reliability and continuity of the performance results of an organizational functioning. They ensure that organisational goals are matched with certain operative goals through well-coordinated planning, organising, and controlling. Supervisors guarantee that resources such as money, people, and other physical assets are effectively used, timelines are met and the organization is stable and in order. Thus, having processes and evaluating performance, management ensures compliance with both short-term and long-term objectives to retain the established structure of management.

When leadership and management exist in an organization the two complement each other and can work towards long-term success. Where leadership entails the generation of ideas as well as the drive to encourage people to work towards the achievement of these ideas, then management entails the policies required to ensure this task is accomplished. Altogether, they establish harmony where high value is set on creativity and innovative activity, and at the same time, high value is set on organizational goals and rational use of resources. It also guarantees that organisations can achieve short-term success and long-term growth and performance (Barney et al., 2021).

Principles of management

Historical reviews show that management principles have changed through contributions over the years. Frederick Taylor’s Scientific Management was about optimising tasks and creating the regular structure that can be seen in assembly lines and in software today. Henri Fayol was able to outline five key operations which form the basis of management to this day and they include planning, organising, commanding, coordinating, and controlling. Max Weber came up with bureaucratic management, applying structures and authority which is useful in the large firms (Muslim and Simanjuntak, 2024). These theories are the building blocks of the current practises and have merged with today’s sociopolitical leadership practises such as transformational and transactional leadership. This integration gives an understanding of how tradition principles are applied to current problems and promote innovation while keeping operations efficient within organisations (Robbins and Coulter, 2009).

Effects of Leadership and Management on the Culture of an Organisation

Overview of Leadership Styles

Transformational leadership is acknowledged as one of the most successful and popular trends of leadership. It often focuses on rewarding these employees to get desired results by making the two coincide. Transformational leadership involves offering people a vision and helping them to embrace that vision to achieve more than they had planned. Corporate leaders in question are concerned with employee engagement, incentive creation, as well as overall employee satisfaction. Since transformational leaders can develop emotional bonding and trust with their team members, they can elicit a higher amount of commitment from their people (Jaroliya and Gyanchandani, 2022).

While, transactional leadership focuses more on roles, tasks, and rewards that are well understood in an organization. This style is best described as a system of reinforcing that encourages the workers through, external rewards such as bonuses or promotions based on their performances. Under this approach, there may be consequences for non-compliance with the set standards. Transactional leaders are mostly concerned with the accomplishment of tasks, and hence, they use reward power. Management Styles (Abdelwahed et al., 2023).

It is now clear that organizational culture is shaped by different management styles. The autocratic management style of work organization means that all important decisions are made by the manager. This may make the organizational environment very strict and organized, but it greatly reduces innovation and interest. The democratic system of management leadership involves workers in decision-making processes, as a result, there will be satisfaction and creativity among employees. Laissez-faire leaders offer little guidance and let their subordinates make most of the decisions making it effective for skilled workers but ineffective in a team that is not very mature (Sharma, 2022).

Cultural Impacts

The style adopted in leadership and management determines the organisational culture in a firm. Transformational leadership promotes change-oriented and promotes the idea of employee motivation and creativity (Akanji et al., 2020). The autocratic management system may foster an ultra-organizational culture where employees may be limited in the roles they can perform. Organisational culture refers to organisational norms, values and beliefs that are in a company, and leadership has an important responsibility in developing them.

For instance, democratic leadership will lead to communication and innovative practices within a given company. People are expected to bring their suggestions to work, which fosters group work and ensures that innovations are achieved. On the other hand, traditional companies that apply the autocratic leadership approach can retain a highly ordered framework with a well-defined hierarchy but lack employee motivation (Taufiq and Hidayat, 2022).

Practices for Motivating Team

Supporting Organizational Success

Effective leadership and management practices in organizations foster development and organizational goals achievement of employees. Smart goals are one of the strategies that have been shown to be quite helpful in the process Some of the ways include, When the goals are set in a proper manner, people at the organizational top and middle levels can guarantee that everyone in the company has the same objectives to achieve (Yanamandra et al., 2022).

Motivating and Inspiring Teams

Emotional intelligence is one of the crucial competencies in leadership because it enables leaders to mobilise employees. People with good Emotional Intelligence skills are likely to have good control over their temper and their subordinates, as well as create a good atmosphere in the workplace (Gómez-Leal et al., 2022). The other common driver of behaviour is the use of employee recognition programs which are award-based motivators that can be used to motivate employees and encourage superior performance through the offer of a promise of bonus, recognition, or promotion.

Examples of Successful Practices

An example of a company that has the inspiration of teams is a company that has made employee engagement its culture. In communication, the management of the company supports decentralised communication, self-responsibility, and a reward system hence the employees feel valued and committed to the company. This has a significant positive impact on levels of employee contentedness and staff turnover, customer retention and organizational performance.

Conclusion

Leadership and management, even though are two distinct processes, work hand in hand in an organization. Leadership is all about vision, motivation, and change, whereas management is all about order, direction and routine. Ideally, both are important in any organization, especially when coordinated properly and properly deployed. This research has established that leadership and management have profound implications for organizational culture. The data showed that leadership with the use of transformational leadership and democratic management approaches creates involvement and motivation, and by the same token innovation as well as the use of autocratic and transactional management schemas increases mechanical efficiency yet discourages creation (Paais et al., 2020).

To be effective organizations should embrace leadership and management practices for employees, -tools that will enhance the performance of the teams. Organizations should encourage their employees, uphold good leadership by coming up with clear goals and objectives, encourage the use of emotional intelligence, and understand the concept of motivation by acknowledging the achievements of employees in every task that has been accomplished.

References

Abdelwahed et al., (2023) ‘Predicting employee performance through transactional leadership and entrepreneur's passion among the employees of Pakistan.’, Asia Pacific Management Review, 28(1), pp.60-68., [online] 28(1), pp.60–68. doi: https://doi.org/10.1016/j.apmrv.2022.03.001.

Akanji et al., (2020) ‘The influence of organisational culture on leadership style in higher education institutions.’, Personnel Review, 49(3), pp.709-732., [online] 49(3), pp.709–732. doi: https://doi.org/10.1108//PR.

Barney et al., (2021) ‘Resource-based theory and the value creation framework.’, Journal of Management, 47(7), pp.1936-1955.

Benmira, S. and Agboola, M., (2021) ‘Evolution of leadership theory.’, BMJ leader, pp.leader-2020., [online] p.leader-000296. doi: https://doi.org/10.1136/leader-2020-000296.

Cardona, P. and Rey, C., (2022) ‘Management by missions: Connecting people to strategy through purpose (p. 156).’, Springer Nature. [online] Springer eBooks. Springer Nature. doi: https://doi.org/10.1007/978-3-030-83780-8.

Gómez-Leal et al., (2022) ‘The relationship between emotional intelligence and leadership in school leaders: A systematic review.’, Cambridge Journal of Education, 52(1), pp.1-21.. [online] doi:https://doi.org/10.1080//0305764X.2021.1927987.

Jaroliya, D. and Gyanchandani, R., (2022) ‘Transformational leadership style: a boost or hindrance to team performance in IT sector.’, Vilakshan-XIMB Journal of Management, 19(1), pp.87-105., [online] 19(1), pp.87–105. doi: https://doi.org/10.1108//XJM.

Muslim, B. and Simanjuntak, D.N., (2024). Pengaruh Penilaian Kinerja Dan Loyalitas SDM Terhadap Promosi Jabatan Pada PT BPR Hitamajaya Argamandiri. Jurnal Multidisiplin Ilmu Akademik, 1(2), pp.81-93. [online] 1(2), pp.81–93. doi: https://doi.org/10.61722/jmia.v1i2.2662.

Paais et al., (2020) ‘Effect of motivation, leadership, and organizational culture on satisfaction and employee performance.’, The journal of asian finance, economics and business, 7(8), pp.577-588.

?Pattanayak, B., (2020) ‘Human resource management.’, PHI Learning Pvt. Ltd..

?Quinn et al., (2020) ‘Becoming a master manager: A competing values approach.’, John Wiley & Sons.

Renz et al., (2024) ‘The Jossey-Bass handbook of nonprofit leadership and management.’, John Wiley & Sons.

Robbins, S.P. and Coulter, M.K., (2009). Management. Pearson Education India.

Saputra, F., 2021. Leadership, communication, and work motivation in determining the success of professional organizations. Journal of Law, Politic and Humanities, 1(2), pp.59-70., [online] 1(2), pp.59–70. doi: https://doi.org/10.38035/jlph.v1i2.54.

Shafi et al., (2020) ‘The effects of transformational leadership on employee creativity: Moderating role of intrinsic motivation.’, Asia Pacific Management Review, 25(3), pp.166-176.[online] 25(3), pp.166–176. doi: https://doi.org/10.1016/j.apmrv.2019.12.002.

Sharma, V., (2022) ‘A pragmatic study on management with autocratic approach and consequential impact on profitability of the organization.’, In Electronic Systems and Intelligent Computing: Proceedings of ESIC 2021 (pp. 121-130). Singapore: Springer Nature Singapore. [online] pp.121–130. doi: https://doi.org/10.1007/978-981-16-9488-2_10.

Taufiq, M. and Hidayat, R., (2022) ‘The Constraining Dynamics to Promote the Inclusive Village Governance in an Autocratic Leadership Setting.’, Journal of Governance and Local Politics (JGLP), 4(1), pp.55-69. [online] 4(1), pp.55–69. doi: https://doi.org/10.47650/jglp.v4i1.442.

Yanamandra et al., (2022) ‘Empirical investigation of mediating role of six sigma approach in rationalizing the COQ in service organizations.’, Operations and Supply Chain Management: An International Journal, 15(1), pp.122-135.[online] doi: https://research.skylineuniversity.ac.ae/id/eprint/210/1/81.pdf.

An Introduction to Leadership and Management

Table of Contents

Introduction