Management and Leadership

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Management and Leadership Paper
“Leadership and management must go hand in hand. They are not the same thing. But they are necessarily linked, and complementary. Any effort to separate the two is likely to cause more problems than it solves” (Murray, 2010). This paper will differentiate between leadership power and management. At Frito Lay leaders and managers play an important role in maintaining healthy organizational culture. This paper will also evaluate the affect of globalization and management at Frito Lay. The roles of both managers and leaders are vital for an organization. The unique processes and qualities of a leader set him or her apart from being just a manager. A manager works with the structure, organization, staffing, and monitoring of daily activities. On the other hand, a leader sets the direction or helps create the vision of an organization. A leader also keeps people focused by inspiring them to achieve the vision of the organization (Bateman & Snell, 2009). Managers are concerned with short-term profit and loss whereas leaders promote innovation and the attainment of long-term goals. Managers supervise subordinates and leaders motivate and inspire to focus toward the vision of the organization and overcome obstacles in reaching goals. “Central to effective leadership is power—the ability to influence other people” (Bateman & Snell, 2009, p. 439). Power is defined as the ability to influence others. There are five sources of power essential to effective leadership. Legitimate power is the authority to tell others what to do. Supervisors exercise more legitimate power over their subordinates rather than their peers. For example, at Frito Lay, a shift resource or supervisor in the production department has authority to give orders to packers and machine operators. This same shift resource will not have effective legitimate power over his peers or his boss. A leader who has reward power is one who controls the valued rewards and can gain compliance by those wishing to receive the reward or recognition. Rewards are usually monetary in forms of raises or bonuses based on performance reviews. At Frito Lay, reward power is divisional. The leaders in the manufacturing division at plant have less reward power as most employees in this division receive the same salary increase annually. However, on the administrative division at the same plant, salary increases are solely based on performance. Leaders in these departments have more reward power over their subordinates that are working throughout the year to improve their personnel development reports (PDR’s). This report is reviewed annually by management for salary increases for the individual employee. Another potential source of power in an organization is coercive power. This source of power is defined as leaders possessing control over punishment and in which people comply by avoiding the actions that lead to punishments (Bateman & Snell, 2009. An example of coercive power exercised is by Frito Lay’s human resources department. This department tracks an employees’ attendance through a point system and disciplinary action or punishment is initiated at three points and possible termination of employment can occur at seven points. This type of deterrent behavior control helps leaders to influence offending employees to abide by the policies of the organization. Referent power is another source of power in a leader who makes a follower want to be just like the leader. This type of leader has admirable characteristics, is charismatic, and his or her followers have a desire to be just like the leader. People comply with referent power because of the appealing personal characteristics of this type of leader. The current CEO of PepsiCo, a subsidiary of Frito Lay Indra Nooyi has been leading the conglomerate for over a decade. She has restructured the company’s global strategies and since taking over increased the company’s annual...
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