Case Study: Enterprise Rent-A-Car
Management principles and practices 1
Case Study: Enterprise Rent-A-Car
Question
1
G
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].