Before discussing the concept of Leadership and Management within the Manufacturing Industry, it’s important to define clearly what does Leadership and Management mean, because these two words are often used interchangeably. Most people think there exists no difference between a Manager and a Leader, therefore they think, that the person who seems to be the Leader must be a Manager, or the other way round, every Manager must be a Leader.
In this paper the differences of Leadership and Management is defined. Furhtermore it discusses several management systems as well as several Leadership models. The difference between Leadership and Management is elaborated and discussed.
Management can be seen as the formal structure of an organisation. The main goal is to find a structure, in which the people can work together very effective, to increase productivity. On the other hand Leadership deals with people. It tries to change the behaviour of the superior itself admit a better co-operation between each employee. Therefore the communication and trust between superior and subordinate as well as the communication between subordinates becomes very important. It can be also seen as the informal structure of an organisation. Who are the people who trust people, and are willing to follow?
1 Index
2 Introduction
3 Management
3.1 Definition of Management
3.2 The classical approach
3.3 The human relations approach
3.4 The system approach
4 Leadership
4.1 definitions
4.2 Trait theory of Leadership
4.3 Behavioural Theory of Leadership
4.3.1 Autocratic Leadership
4.3.2 Democratic Leadership
4.3.3 Laissez faire Leadership
4.4 Contingency Theory of Leadership
4.4.1 Fiedler’s contingency theory of leadership
4.4.2 House’s Path-Goal Theory of Leadership
5 Difference between Management and Leadership
6 Discussion about Leadership and Management
7 References
7.1 Books
7.2 Internet sides
2 Introduction
Before discussing the concept of Leadership and Management within the Manufacturing Industry, it’s important to define clearly what does Leadership and Management mean, because these two words are often used interchangeably. Most people think there exists no difference between a Manager and a Leader, therefore they think, that the person who seems to be the Leader must be a Manager, or the other way round, every Manager must be a Leader.
This would be fine, if every Manager is also able to be a Leader, but he also requires formal authority as a Leader, to be effective. He can’t be just a Leader. (ME96, 1997) Therefore it is also possible for subordinates to lead a group, if they have specific talents to lead the Group into a certain direction. This can be often found in smaller Groups. Therefore, not every Leader is also a Manager. Leadership is just a face of Management. Managers must undertake much more functions to be successful. They have, to plan, to organize, to coordinate, to control, and so on. Henri Fayol, has created a model, which includes 5 basic functions, and 14 principles which propose successful management.
Richard Pascale (1990) said "Managers do things right, while leaders do the right thing." This means that managers do things by the book and follow company policy, while leaders follow their own intuition, which may be more benefit for the company. A leader is more emotional than a manager.
3 Management
At first have a closer look, how separate books or organisations define management.
3.1 Definition of Management
- The Collins English Dictionary explains Management as follows:
the members of the executive or administration of an organization or business; 2. managers or employers collectively; 3. the technique, practice, or science of managing or controlling; 4. the skilful or resourceful use of materials, time, etc; 5. the specific treatment of a disease, disorder, etc[1]
- In Campell R. Harvey’s Hypertextual Finance Glossary (2004) can be found under Management:
The people who administer a company, create policies, and provide the support necessary to implement the owners' business objectives.
- Taskey Glossary For Management Papers (2004a) describes Manager and Management as follows:
Manager n. director, administrator, overseer, foreman, supervisor, controller Person conducting a business, person controlling tasks. Managers are concerned with doing things correctly. They strive to perfect procedures, which achieve efficiency. Managers are usually good planners and decision-makers, but their very strong task focus may cause them to overlook group and individual needs.
Management n. administration, control, supervision The administration of a business concern or public undertaking. Management includes the actions of planning, organising, directing, coordinating, controlling and evaluating the use of people, money, materials and facilities to accomplish missions and tasks
- Finally the Glossary of Construction issued by IAPMC (International Association for Professional Management of Construction) (2002) understands for:
Management: Effective utilisation and coordination of resources such as capital, plant, materials, and labour to achieve defined objectives with maximum efficiency.
Manager: A person responsible for directing and running an organisation or project.
There exist a lot of different definitions of Management, but all of them seem to have some points in common. A manager must be able to plan, organise, to direct and motivate, to coordinate and to control, to be able to optimise the use of all different kinds of resources. These points seems to be the most important functions of Management, and have developed during the last two centuries in three main approaches, and are also the most important points in the model of Henri Fayol. Mullins (2002a) has described these main steps as follows:
3.2 The classical approach
Writers such as Taylor, Fayol, Urwick, Mooney and Reiley, and Brech carried out this approach. The most important point in this approach is a well-structured organisation through a clear hierarchy of management and formal organisational relationships. It is important to understand how the organisation works, and how its methods of working can be improved. Attention is given to the work itself, a clear definition of duties and responsibility is very important, which leads to specialisation and coordination.
The classical approach has been often criticised, because it doesn’t account personality factors. So people can only take limited control over their work environment because of the inelastic organisational structure. But these principals provide general guidelines to structure an efficient organisation, and can be seen as a starting point in analysing effectiveness of an organisation.
3.3 The human relations approach
During the years of the great depression in the1920s greater attention were focused to the social factors at work to increase productivity. This has happened which some different experiments. The most important one were the Hawthorne experiments. The results of these experiments were the importance of work groups and Leadership, communications output restrictions, motivation and job design. So humanising the work organisation will create productivity, because a satisfied worker is a productive worker.
An other important point, which was found out in these experiments was the power of informal group work. An informal structure will always be present within the formal structure, and have a strong influence on the motivation of the employees.
Important persons of the human relations approach are Maslow which his hierarchy of human needs, and Herzberg with his model of motivation and satisfaction factors. Both of them can be seen as guidelines how to motivate different employees on different stages at the hierarchy, to increase productivity.
3.4 The system approach
In this approach the attention is drawn in analysing the organisations as a system with a number of sub-systems and their relationships. It was found out, that a change in one part will always affect also in other systems as well as in the whole system. Therefore Managers should have a view on their system as well as on the whole organisation, to understand the interrelationship and behaviour of the whole structure.
One of the founder of this approach was the biologist Ludwig von Bertalanffy who published an article named systems theory 1951. Miller and Rice have finally linked the biological organism to the commercial and industrial organisation.
4 Leadership
Also for Leadership exist a number of definitions in different books or organisations.
4.1 definitions
- The Collins English Dictionary explains Management as follows:
leadership (n) 1. The position or function of a leader. 2. the period during which a person occupies the position of leader. 3. a. the ability to lead. b. (as modifier): leadership qualities. 4. the leaders as a group of a party, union, etc
- Taskey Glossary For Management Papers (2004b) describes Leader and Leadership as follows:
Leader n. guide, conductor, pilot, director, pioneer, shepherd
Person who influences and guides the direction, actions, opinions and attitudes of people. Leaders are concerned with doing the right thing. A leader is more concerned with being effective than being constrained by procedures. In addition to being good planners and decision makers, leaders are good communicators and satisfy the needs of groups and individuals.
Leadership n. direction, conduction, guidance; Leadership is the art of creating an environment and influencing people to willingly follow a chosen direction. It requires a clear vision and guides followers along a path that realises the vision. Leadership directly affects the opinions and attitudes of people, leading to changes in individual behaviour then group behaviour. Leadership helps individuals and groups accept uncertainty, because they have confidence that the leader will provide solutions to any problems that may arise
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