Question

Answer ALL questions below. [60 marks] Question One Much debate exists within the literature about leadership and management. Kotter (1990:103) argues that management and leadership are “two distinctive and complementary systems of action” and that the former involves coping with complexity, while the latter involves coping with change. 1.1 Discuss in detail, with the use of examples, the fundamental differences between the concept of leadership versus management. 1.2 Evaluate in detail, with the use of practical examples, the advantages and disadvantages of a transformational leader. 1.3 Discuss in detail, with the use of practical examples, FOUR (4) management styles and the potential impact each style may have on a business. PROJECT GUIDELINES:  Font Arial, size 12; Justified; 1.5 line spacing  Length of answers should be appropriate to the mark allocation  A maximum 10 pages  A minimum of 6 sources to be referenced  This assessment should be written in context of clarity and application of relevant theory END OF PAPER

Answer 1

Answer

Leadership and management are two distinctive and complementary systems of action while leadership is coping with complexities and management is coping with change. Lets first understand the basic term meanings first

Leadership: it is the art of making people follow in order to reach the goal through motivation. Leadership means to inspire people and help them with the right direction.

Management: means a set of principles with respect to planning, organizing, directing and controlling of all the resources so as to achieve the organizational goals.

As we can the term meaning we can see both work towards achievement of organizational goals, though they are distinctive but are complementary systems in business operations.

Both leadership and management are inseparable and complementary to each other. In fact, the qualities of a leader require managerial skills and managers are required to have leadership skills some times. In organization we can see both, managers who are handling the departments very efficiently and the leaders leading their groups towards achieving team goals. Both are essential for the smoothing functioning in the organization.

Leaders always think about the improvement, be it work to be done, how it is done but managers main focus is on execution part, the specific process to be followed. Leaders play a role of mentors, they believe in making sure the people learn the job very well, while managers have to be meticulous, they are good at spotting things people missed, mistakes etc. managers strive for success where as leaders turn them to challenges and inspire people to take them up.

As we know the differences now it is clear that Leadership and management are two distinctive and complementary systems. It is clearly seen that they may be similar as some traits overlap but the very essence of perspective and working differs. Thus, making them very different from each other.

· Fundamental difference between leadership and management

Let’s see some of the points below which indicate how leadership and management differ from each other

1. As leaders inspire people to perform tasks, managers are good at controlling their team to complete tasks. Managers works on control and demand respect whereas leaders work on trust and command respect.

2. Management is the set of principles in organization functioning but leadership is about influencing people. Both work towards achievement of goals but leaders focus on people who deliver the process that leads to work happening, to managers directly focusing on work happening.

3. Leadership is the role, to guide, inspire and bring in positive change where as manager is job to implement organizational principles.

4. Measure of success: leaders measure it by growth in people, organization satisfaction levels vision achieved whereas managers measure it by work done, profits gained and goals accomplished.

5. Leaders think about different ways of motivating people like through self-growth, challenging work and through training, mentoring, rewarding. leaders understand compensation or pay is a satisfier not a motivator, whereas managers believe as employees are motivated if they are compensated well.

6. Leaders praise the development and drive people where are managers look for problems and solving them.

7. Managers see people as a set of skills hired to do a particular work, while leaders see beyond that and try to activate for a larger vision.

8. Leaders have power to influence them where as managers have power to rule them

9. Leaders think about encouraging change whereas managers think about bringing stability

10. Leaders main strategy is to be proactive while managers are reactive

11. It’s must for leaders to be visionary where mostly managers work on short range perspective.

12. Leaders formulate principles and guidelines whereas managers work on policies and procedures.

· Advantages and disadvantages of a transformational leader.

Transformational leadership is the style of leadership where in the leader focus on creating change that will help in building a good future for the organization through employee motivation to bring in innovation.

Characteristics of transformational leaders are

1. Making sure work environment is ethical and has clear value, priorities and work culture.

2. Aids in building encouraging environment and trust, cooperation among team members.

3. Open and honest communication among people Is ensured by transformational leaders

4. Encourage win-win situation by motivation and development, growth and positive environment.

Advantages:

1. Reduction in employee turnover: awesome work environment and encouraging superiors fosters wonderful work environment which place a vital role in employee retention. Reducing the costs of hiring employees again and again.

2. Raised productivity: employee see more than work to be done and go for that extra mile to achieve goals in given time so that there is an increased in productivity.

3. Change is welcomed: transformational leaders aren’t afraid of changes and very well know how to bring in positive changes to improve the efficiency of the employees.

4. Visions: with the implementation of positive changes, formulating new visions is easy for this leadership style.

5. Transforming work into challenges create enthusiasm among employees.

6. Focus on continuous improvement and development.

7. Transformational leaders know how to handle low morale situations and make the work environment better.

8. Focus is on understanding and fostering relationships so the synergy is formed.

Disadvantages:

1. Transformational leaders look for positive change may sometimes lead to negative outcomes, Adolf hitler one of the good examples of negative transformational leadership.

2. If there is no well-defined communication and sharing of vision isn’t done properly than this type of leadership will not be successful in achieving goals.

3. Followers shave to agree, if not the situation becomes quite difficult to handle.

4. Challenging work may make employee work extensively and can cause burnout, which is discouraging some times.

5. Individual needs are often compromised focusing only on team needs. Another demotivating factor.

· 4 management styles and its impact on business with examples.

1. Visionary

Management focus on vision formulation, sharing and striving to accomplish it through motivation. Once the vision is shared it gives its employees freedom to work and formulated strategy on accomplishing the vision. Its impact on business is that focus being accomplishing visions makes it easier to achieve goals.

2. Democratic

In this management style, managers let the employees be part of decision-making process. Since employees are so involved, they have very good influence and makes sure there is boost in morale, team vision is clear to all and fosters healthy and trusting relationship among team.

Impact on business is that teams here are highly performing, cooperative and good coordination among teams.

3. Transformational: in this type of management style focus is on innovation. As they believe change is the way of growth and are very open for new ideas and approaches. Employees are often pushed out of their regular comfort zone to find new ways of accomplishing goals.

Impact on business is that change handling is easy for such teams, makes employees highly adaptable and innovations make organizations trending in the industry.

4. Coaching: managers apply this style to coach and lead employees for long term professional development. Here employee job satisfaction levels are high as it focuses on employee individual growth needs.

Impact on business is high employee satisfaction and increased individual performance leading to work done perfectly as a team member. Leading to overall efficiency and increased productivity.