Leadership or Management?

Last updated Dec 7, 2022 Edit

• Business

Leaders: Inspire people, build relationships, take risks and have followers.

Managers: Enact the plan, use their authority, manage risks, have subordinates

Both are closely linked and one person may have to do both roles.

Management is doing things right; leadership is doing the right things - Peter Drucker

Senior Management:

• Board of Directors
• Set corporate objectives and strategic direction
• Board is responsible for shareholders; led by the CEO

Middle Management:

• Accountable to senior management
• Run business functions and departments

Junior Management:

• Supervisory role, accountable to middle management
• Monitor and control day-to-day tasks, and manage teams of workers

Why is this happening?

• Changes in society’s values
• Better educated workforce
• Focus on need for soft HR skills
• Changing workplace organisation
• Greater workplace legislation
• Pressure for greater employee involvement

The “Blake Mouton Managerial Grid” shows how management styles differ between the balance between a concern for people and concern for results.

Produce or Perish Management is also called Task Management.

Laissez-faire style; minimal effort on management; looking to avoid blame for errors.

Low concern for people and task

Focus on creating safe, comfortable working environment with minimal conflict.

High concern for people, low concern for task

Autocratic style, consistent with McGregor Theory X. Workers have to complete tasks - nothing else.

Low concern for people, high concern for task.

Staff closely involved in decision-making and feel valued; consistent with McGregor Theory Y.

High concern for both people and task.

Compromises made to achieve acceptable performance; thought to be the less effective leadership style.

Medium concern for people and task.

Good decisions should be made with consideration towards stakeholders.

Business