Concept of Leadership and Management

von: Andreas Leitner

1 Index

2 Introduction 1

3 Management 1

3.1 Definition of Management 1
3.2 The classical approach 3
3.3 The human relations approach 3
3.4 The system approach 4

4 Leadership 4

4.1 definitions 4
4.2 Trait theory of Leadership 6
4.3 Behavioural Theory of Leadership 6

4.3.1 Autocratic Leadership 6
4.3.2 Democratic Leadership 6
4.3.3 Laissez faire Leadership 7

4.4 Contingency Theory of Leadership 7

4.4.1 Fiedler’s contingency theory of leadership 7
4.4.2 House’s Path-Goal Theory of Leadership 7

5 Difference between Management and Leadership 8

6 Discussion about Leadership and Management 9

7 References I

7.1 Books I
7.2 Internet sides I

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
- 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

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