Leadership & Management Styles & approaches

This blog focuses on compare the similarities and differences between management and leadership in the organisation. The first thing people should figure out the definition of management and leadership. According to Mullins (2010) said that management is getting work done through the efforts of other people. “Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives.” (Yukl, 2010) “Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.” (Northouse,2012)

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The similarities and differences between management and leadership

A good manager must be a good leader because they are serving in a management role in the organisation. Sometimes, they have the same functions in the organisation, for example good management is effective leadership. But in fact, management and leadership that are not the same thing, they are linked each other.

• Manager focuses on manage work while leaders focuses on leading people. According to Nayar (2013) said that Management consists of controlling a group to achieve the goal and leadership refers to an individual’s ability to impact and motivate organisation success.
• Manager maintains the company operation, leader pays attention to develop it.
• Manager in charge of manage the company, leader plays an innovator in the company.
• Managers have subordinates and leaders have followers. Manager focuses on power, they have subordinate to work together and leader concern the influence of the company.
• Manager focuses on short-term objectives and leader focuses on long-term vision of the company. Manager gives the vision of the company and then leaders create a shared vision of what can be.

There is a video explained the difference between leadership and management by David Williams, who is chairman and CEO  of Merkle.

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Figure 1: Douglas McGregor Management Attitudes & Behaviours (1960)

                   Theory X, Theory Y and Theory Z.

In terms of the most effective approach to manage the work, according to McGregor Management Attitudes & Behaviours, there are three management styles, which are Theory X, Theory Y and Theory Z.

1. Theory X refers to individual work style, employees are very lazy, they dislike the work and avoid responsibility. So employees need to be controlled, directed or threatened with punishment to get them to make an effort. (Gitman, 2008)
2. Theory Y propounded by William Ouchi and it means employee as work is a natural activity, employee can be self-directed and self-controlled. They also can be motivated using positive incentives. (Gitman, 2008)
3. Theory Z focuses on long –term employment, slow career development, group decision-making and individual responsibility. It concerns for employee’s whole life, including their family. (Gitman,2008)

`However, Theory Z pays more attention to company philosophy, employee development and corporate culture. Most of Japanese company used it and Theory Z also combination of a strict American management style. (Ghuman,2010) It is a effective leadership style for most of companies. Theory Z not only pays attention to employee welfare including their family, but also cares their personal development, provide professional training for employees that can increase employee’s loyalty for company.

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Examples:

Theory Z base on the Japanese management style and recognized a number of U.S company, such as P&G, IBM and Hewlett-Packard, they are all follow Theory Z leadership style. (Bass,1990) These company all pay attention to long-term employment and values emphasizing cooperation and teamwork. In terms of management policies that implement slow promotion and rotation of jobs, rather than personal work style, individual decision-making. (Bass,1990)

Another example is Toyota that is a Japanese motor corporation from 1937 by Kiichiro Toyoda. Toyota has long-term employment, group decision-making, teamwork work style and long-range employee development. The company always concern for the individual rises above work-related issues. Therefore Toyota’s employee loyalty is very high, lower turnover. But no single American or Japanese theory completely describes the distinctiveness of Toyota’s leadership approach. Depending on the organisational state that will decide which theory to select based on their needs. (Marksberry,2013)

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In conclusion, the best approach may vary according to circumstance and individual characteristics. (CMI,2013) It is disagreed by author because of individual work style have not fit the global environment that is a traditional management style. However, in the 21th century, company needs diverse team in order to increase productivity and employee loyalty, every employee could work together and group decision-making.

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References:

Bass.B.M (1990) “Bass&Stodill’s Handbook of Leadership: Theory, Research, and Managerial Applications.” NY: The Free Press.

Gitman. L (2008) “The future of business: The essentials.” USA: Thomson Higher Education.

Ghuman.K (2010) “Management.” New Delhi: Tata McGraw Hill Education Private Limited.

Marksberr.P (2013) “The Modern Theory of the Toyota Production System: A system inquiry of the world’s most emulated and profitable management system.” U.S: CRC Press.

Mullins.L.J (2010) “Management and Organisational Behaviour, 9th edn.” Harlow: FT Prentice Hall.

Northouse.P (2012) “Introduction to leadership concepts and practice.” Los Angeles: SAGE.