What Leader Do

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Definition of management
Management is a universal phenomenon. It is a very popular and widely used term. All organizations - business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”. Definition of leadership

It is a process by which one person influences the thoughts, attitudes, of others. Leader s set a direction for the rest of us. They help us visualize what we might achieve. They encourage us and inspire us. Without leadership a group of human beings quickly degenerate into argument and conflict because we things in different ways and learn toward different solutions. Leadership helps to point us in the same direction and harness our efforts.

The difference between management and leadership

Management

❖ Management is about coping with complexity.

❖ Companies manage complexity by planning and budgeting.

❖ It develops the capacity to achieve its plan by organizing and staffing.

❖ Finally management ensures plan accomplishment by controlling and problem solving.

Leadership

❖ Leadership is about coping with change.

❖ Leading an organization begins by setting a direction.

❖ The equivalent leadership activity is aligning people.

❖ For leadership, achieving a vision requires motivating and inspiring people.

Setting a Direction Versus Planning and Budgeting

Planning and Budgeting

❖ They are the activity of managers

❖ They are deductive in nature

❖ They produce orderly results, not change

❖ They help managers to manage complexity

Functions:

❖ Setting targets or goals for future

❖ Establishing detailed steps for achieving targets

❖ Allocating resources to accomplish plans

Setting Direction

❖ It is the activity of leaders

❖ It is inductive in nature

❖ It does not produce plans

❖ It describes business, technology or corporate culture in terms of what it should become over the long term

Function:

❖ Developing a vision for future

❖ Developing strategies to achieve that vision

❖ Articulating a feasible way of achieving goal

Vision and Strategies

❖ Nor do visions and strategies have to be brilliantly innovative. Effective visions have almost mundane quality, consisting ideas that are already known.

❖ Crucial about vision is not its originality but how well it serves the interests of important constituencies.

❖ It can be translated into a realistic competitive strategy. One of the most common mistakes is to embrace long term planning as a panacea for lacking of direction. Long term planning is always time consuming as whenever something unexpected happens, plans have to be re-done. So it is important to limit the time frame.

Setting direction and Planning and Budgeting

❖ Planning works best not as a substitute for direction setting but as a complement to it

❖ A competent planning process serves as a useful reality check on direction setting activities.

❖ A competent direction setting process provides a focus in which planning can be realistically carried out.

❖ A competent direction setting process helps clarify what kind of planning is essential and what kind is irrelevant.

Planning and Budgeting and Human resource Management

The HRM will need to show that careful planning...
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