Case Study Enterprise Rent a Car

Topics: Maslow's hierarchy of needs, Leadership, Abraham Maslow Pages: 9 (2224 words) Published: October 2, 2010
Management Principles and Practices 1
Case Study: Enterprise Rent-A-Car
Management principles and practices 1
Case Study: Enterprise Rent-A-Car


reat companies require effective managers and leaders to guarantee success. But what are the differences between management and leadership?

The market is changing so rapidly that products and services that successfully met consumer tastes and needs a few years ago are obsolete today. Proactive leadership must constantly monitor environmental change, particularly customer buying habits and motives, and provide the force necessary to organise resources in the right direction[1].

Former HP CEO & President Carly Fiorina described in a Stanford University lecture the difference between leadership and management is “…leadership as changing the order of things and management as the production of acceptable results within known constraints and conditions. Management is not leadership.”[2]

These ‘constraints and conditions’ are the disciplines and what makes up the structure of a successful organisation. The Oxford definition of constraint is “strict control over the way you behave or are allowed to behave”[3] whilst condition is “the circumstances or situation in which people live, work or do things”[4]. Hence management power comes from organisational structure, as it promotes these constraints and conditions “…as stability, order and problem solving within the structure…”[5] which consequently should produce ‘acceptable results’.

Individuals with leadership ability initiates changes however it is an innate or acquired ability (whether conditioned internally in the workplace or externally) that can be possessed by anyone in the company especially senior staff & managers within the organisation.

Management is an official authority commanding different hierarchies in the organisation. Leadership power on the other hand comes from less tangible factors, such as values, interests, and other personal attributes[6]. Leadership is an individual’s attribute to influence their peers to achieve business objectives & possibly inspire changes to these objectives.

To meet business objectives it is fundamental for management to have control & organisational skills. Entities require a diversity of skills to fulfill managerial criteria. They include:

• Plan and organize people and resources
• Set and monitor budgets
• Control operations or services in order to meet customers’ needs[7]

These criteria are essential in meeting business objectives at all hierarchies of the organisation.

In terms of leadership, staff with these qualities motivates their subordinates or colleagues and decides the direction of their team, department or even the overall organisation. Leaders have a tendency to shape the outcome of meetings by influencing their peers or are looked upon for decision-making.

There is a closer correlation between a leader and manager than there are differences in most instances. This is illustrated with Enterprise General Manager who leads a regional group of City Managers; City Managers are leaders of their front-line management employees. Andy Taylor, the current Enterprise Chairman and CEO, was a manager for his father Jack Taylor. He carried out the processes and systems his father set up. Today, Andy leads and manages the business[8].


ost organisations face the challenge of a competitive market; hence businesses and corporations have to attain high level of customer service to remain competitive. Key personnel such as Management Accountants & Internal Auditors might assist managers develop cost processes and service benchmarks for staff to adhere to in order to achieve their business objectives. During these instances, management has to be firm, express their decision to their subordinates and have them work within the introduced process.

In a demanding industry, managers have to adopt an...
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