Leadership and Management - the Fundament of Organisational Culture

Introduction

This “Difference between leadership and management” essay is constructed to explain how complex organisations work, and their need for leadership and management. In order to explain how these complex organisations work and their need for leadership and management, the theories and practices of both leadership and management will be explained with theories and how those theories are practiced and the effect of those theories within an organisation. Furthermore these theories and practices will be evidenced throughout the essay with examples of real life scenarios in relation with the topic. As well as this other subjects such an organisation culture and mission, vision and value statements will be explained on their usage and effectiveness with an organisation and how they contribute to the management and leadership of an organisation.

Leadership - Theory and Practice

“Leadership is a quality of influencing people, so that the objective are attained willingly and enthusiastically”. Leadership is a proactive way of taking control and leading an organisation and encourages change within an organisation. Some of the different styles of leadership are Distributed leadership, transformational leadership, authentic leadership and transactional leadership. Distributed leadership is a model with the aim of growing more leaders who can use their expertise in order to contribute to the goals of an organisation. An example of distributed leadership can be foreseen within organisations such as the NHS who distribute leadership and grow leaders, such as doctors, to contribute their skills and employ the leadership role through different areas of the NHS and the different jobs within the NHS. Transformational leadership is when a leader sets clear goals and objectives and inspires and motivates team members to create positive changes within an organisation in order for the organisations objectives to be met. This type of leadership style can increase team morale and chemistry leading to rapid innovation within the organisation, a good leader using this type of leadership typically rewards and supports positive changes in the organisation. An example of Transformational leadership can be viewed from the actions of Reed Hastings who due to innovation, introduced streaming services to Netflix instead of DVD rentals. His gamble paid off as Netflix has amassed over 190 million subscribers to its services. Authentic leadership is a style of leadership that focuses on the leader being authentic 'being yourself'. Employees believe authenticity leads to more trust, improved relationships, higher levels of productivity and a positive work environment. An example of authentic leadership can be found within the business phenomenon Steve Jobs who experienced many successes in his life but also had failures and struggles in his life, from dropping out of college to being booted out of Apple. Transactional Leadership is a leadership in which values order and structure within the organisation, it largely depends on self-motivated who work well in structured and ordered environment. Transactional leadership is often found within large companies, military operations and large projects as they require rules and regulations to ensure that objectives are met on time. Transactional leadership is not a good fit for organisations that require creativity and innovation. These styles and models of leadership all have in common the goal to make positive change within an organisation through influence, rather than managing the activities of the organisation like management, this is done through encouraging change within the organisation and inspiring people into making change and to better themselves as well as the organisation.

Management - Theory and Practice

Management is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organisations strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources. One example that management of an organisation may use to be able to successfully do this can be seen through the use of talent management. Talent management is a constant process that involves attracting and attaining high-quality employees, developing their skills and motivating them to improve personal performance. The purpose behind this is to create a high motivated workforce who will stay with the organisation in the long term. This allows management to optimise the quality and reduce turnover of staff to ensure that objectives can be more easily met. Another example that management may use to achieve objectives can be seen through Change management. Change management is the methods and manners which an organisation describes, which will implement change within its both internal and external processes. Including preparing and supporting employees, establishing the important steps needed for change and monitoring change before and after change has occurred to ensure success. It allows for management ensure success in achieving set goals as it allows for managers to measure the success of a change that been implemented within the organisation and understand where it can be improved and changed further to ensure more success in achieving its objectives. Another great way of managing an organisation to ensure objectives are met can be seen through the use of quality management systems (QMS). Quality management systems or QMS, is formalised system that records procedures, processes and responsibilities for achieving policies and objectives. A QMS helps coordinate and direct an organisation's activities to improve its effectiveness and efficiency of an organisation on a daily basis. Due to this QMS allows for an organisation to achieve their objectives faster and more effectively. Another great way for an organisation to be managed is through the distributed management. Distributed management is a method that allows workers to work together over the web at any time in order to achieve objectives. It allows for managers to distribute work for each employee or team within an organisation. Although due to the functions of management be centralised within an organisation the work that can be produced by employees is limited. All of these styles of management all relate back to managing the activities and tasks of an organisation and imposing rules and regulations over employees. In comparison with leadership, management manages the tasks and workload of employees heavily in comparison to leadership which motivates employees to work harder and be more innovative to ensure objectives are met within an organisation.

Factors That Create and Develop Organisational Culture

“Organisation Culture is the set of underlying beliefs, values, principles and ways of interacting within an organisation…Organisational Culture defines what every employee’s behaviour should be and how they should interact with the rest of the organisation”.(BT Editors, n.d.). One of the main factors that influences organisational culture is individual working. Employees contribute largely to the culture of an organisation due to their mentalities, attitudes and interests. One example of this is employees hired from a military background, these employees are more likely to be strict when working such as arriving to work on time and following instructions and guidelines of an organisation, which creates a strict culture within the organisation allowing the organisation to effectively impose rules on its workforce. Another factor is management and its handling of employees. This factor determines whether employees value the organisation or not. For example an organisation that dictates decisions can lead to employees treating the organisation as a source of money and a short term solution which can lead to an unproductive workplace. In the other hand if an organisation allows employees to feel involved with the growth of the organisation then employees are going to see the organisation more valuably and see work placement there as a long term solution. Another important factor that influences organisational culture is the goals and objectives of an organisation. For example event management companies often expect employees to be alert, attentive and fast working in order for employees to effectively and efficiently complete tasks and organise events correctly to the exact standard and changing needs of the consumer. One way an organisation may recognise its culture is through Schein's three levels of organisational culture. This model represents the factors in which help create, identify and cement the culture of an organisation. The model has three levels of culture: Assumptions, Espoused Values and Observable Artefacts. The artefacts levels much contains the tangible and visible elements of the business such as dress codes and structure. Espoused Values concerns of standard, values and rules of conduct. Finally Assumptions is the unconscious, taken for granted beliefs about the organisation and its work purpose.

Explanation of Organisational Statements

An organisational statement identifies the objectives of an organisation and helps define what they intend to achieve. It provides in insight to the outside world of what the organisations goals and objectives. Organisational statement are very common with large companies and organisations and are typically inspirational and aspirational and encourages stakeholders, customers and employees to think about what direction the organisation is heading in. One example of an organisation that has an organisational statement is Ikea. Ikeas organisational statement is as follows, “To create a better everyday life for the many people”. This vision goes beyond home furnishing. We want to have a positive impact on the world 'from the communities where we source our raw materials to the way our products help our customers live a more sustainable life at home'. This organisational statement by Ikea is clear, concise, inspiring and future-orientated as it sets out the future objective of the organisation and where they plan to be in the future rather than stating what the company is presently engaged in. Ikea also possesses a mission statement, 'to offer a wide range of well-designed functional home products at prices so low that as many people as possible will be able to afford them', which has the purpose of explaining, in simple and concise terms its purpose of being. Ikea's Vison statement, “To Create a better everyday life for the many people”, is a statement that the organisation intends to be experienced by the people the organisation interacts with.

Role of Management in Communication

The role of management in communicating organisational strategy is to accomplish the objectives of an organisation. This done by the management by creating a plan that defines the objectives and when the objectives will be achieved and how the will be achieved. Management then communicates this plan to the rest of the organisation. One effective theory that can be used to do this is administrative management theory. This theory outlines that a manager must possess 6 primary responsibilities: Organise, command, control, coordinate, plan, forecast. It’s believed that with these primary responsibilities that a manager will be able to guide employees to completing tasks and working together and individually more effectively. This overall allows for management to communication organisational strategy within the organisation more effectively as effective communication allows for coordination between different areas of the organisation which is important when setting an objective for the whole organisation, as well was it also allows managers to provide more leadership and direction for employees making it easier for managers to assign jobs that will help direct an organisation towards in stated objectives outlined in the organisational strategy plan as well as follow the plan in how it was going to achieve its objectives. Organisational Strategy is important to an organisation as it involves the development and long term strategy for the business. Therefor the importance of communicating this effectively weighs heavily on the managers of an organisation, further raising the importance of effective communication of the managers.

Conclusion

MLO3 has been addressed through the explanation of administrative management theory which has stated some of the different roles that a manager must ensue in order to effectively communicate a strategy plan to individuals and teams within an organisation to ensure that objectives can be met efficiently. MLO4 has been be strongly addressed, as each factor stated with the essay has been explained on how each factor influences culture followed by examples for each factor. It has also been addressed through the mentioning of Scheins three levels of organisational structure. MLO5 has been effectively addressed through the example of Ikea, the reasoning of Ikea's mission, vision and value statements has been directly explained as well as the reasoning for any type of mission, vision or value statement within any organisation. MLO1 has been significantly explained, as the core differences in the ways that management and leadership work and the different styles that both processes can take have been directly exampled and explained in depth showing the contrast in and differences between both processes. MLO2 has been addressed within the reflective log at the end of the essay which has explained the key concepts, relevant literature and implications for management practice followed by a list of examples for each given issue stated within the table.

Bibliography

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