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Management and Leadership Differentiation
Both management and leadership involve unique approaches to guiding employees within organizations. While both emphasize teamwork, they communicate different messages to teams. Management relies on intimidation, rigid systems, and defined roles to oversee company operations, which can inhibit employee personal growth. Effective managers may not possess natural leadership abilities but can develop them over time (Bateman, 2009).
The distinction between management and leadership is surprisingly based on less organizational structure and more on managerial techniques. It may seem obvious that individuals with strong leadership skills often rise to positions of power.
Managers typically use a single style of communication and control, while leaders tend to have an open and honest communication style that stands out.
Leaders are characterized as charismatic and inspiring individuals with a passion and vision. They use a transformational strategy that motivates supporters beyond just extrinsic rewards. On the other hand, managers may lead a department using transactional resources, focusing on producing results within a certain time frame and budgetary constraints.
Transactional leaders view management as a series of transactions using their powers to give commands and exchange rewards for services rendered, without exciting, transforming, empowering, or inspiring people like transformational leaders do.
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This contrast between leaders and managers is evident in companies like Starbucks Coffee Company.Within the hierarchy of Starbuck's organization, there are several managers, but only a select few can be considered genuine leaders. Leadership within the company's culture is a key factor to consider.
Both organizational leaders and managers play vital roles in maintaining a strong organizational culture as organizations evolve in response to external factors.
While managers provide daily direction and supervision to employees, leaders focus on overseeing cultural changes that help organizations adapt to their environment.
Strategic leadership is important for organizational leaders as it gives purpose and meaning to the organization, helping to anticipate future challenges and opportunities. In business, culture is closely connected with the organization.Organization culture is a crucial theory where the organization and its goals are put into practice by the members of a company who share it (Bateman & Snell, 2009).
Starbucks employees' appearance and customer interactions are key in molding the organization's culture. The effectiveness of a company's culture is influenced by how well employees understand its mission, goals, practices, and priorities (Bateman & Snell, 2009). Leaders have the power to shape culture through their actions, visibility, and acknowledgment of employees who adopt new values. CEO Howard Schultz recognizes the difficulties leaders encounter in staying competitive in a dynamic market. To navigate uncertain shifts, leaders must encourage creativity, explore new markets, and envision positive changes for Starbucks.
Encouraging communication and diversity in the workplace are crucial for leaders looking to establish a strong organizational culture. In modern organizations, promoting workforce diversity is essential as corporate biases can hinder business growth. Discrimination among employees can lead to factions within an organization, undermining teamwork that relies on diversity. Business leaders must understand the importance of managing a diverse workforce and attracting a varied customer base (Bateman & Snell, 2009). For example, Starbucks has implemented initiatives to promote diversity in its workplace, emphasizing inclusivity and individuality among its partners.
Starbucks Coffee (2010) emphasizes the importance of demonstrating respect and dignity towards others, which can enhance organizational culture. Benchmarking is another effective strategy for improving organizational culture by adopting best practices from other companies. Companies like Ford, Hewlett Packard, and Anheuser-Busch have utilized benchmarking to enhance efficiency and competitiveness (Bateman & Snell, 2009). For instance, a hospital in London improved its patient transfer procedures by comparing them with those of a top-performing organization.
Italy's Formula One racing team discovered that their pit crew operated with precision thanks to guidance from a human factors engineer pinpointing subtle errors. The crew followed a structured hierarchy, adhered to specific roles, maintained silence, and prepared for all scenarios. Great Ormond Hospital's doctors adapted these methods for their cardiac surgery team, resulting in a 42% decrease in technical mistakes (Bateman & Snell, 2009).
Conclusion Today’s organizations utilize management or leadership as part of their company structure. While both management and leadership involve team-based environments, leadership focuses on protecting team members, directing their careers, and managing cultural changes. Organizational leaders should fulfill their unique responsibilities through strategic leadership, which emphasizes managerial methods over organizational structure. Leaders can approach managing culture in various ways. Organizational culture is a key concept that influences the practices and goals of a company, which are shared by its members (Bateman, 2009). Two recommendations to improve organizational culture are promoting communication and diversity in the workplace, and utilizing benchmarking as a strategy.
References
Bateman, T. S., & Snell, S. A. (2009). Leading and Collaborating in a Competitive World 8e. Retrieved from www.ecampus.phoenix.edu.
Starbucks Coffee. (2010). Diversity. Retrieved from http://www.starbuck.com/career-center/career-diversity
Management vs. Leadership: A Cultural Perspective. (2020, Jun 02). Retrieved from https://studymoose.com/mgt-330-management-and-leadership-new-essay
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