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LEADERSHIP AND MANAGEMENT TWO SIDES OF THE SAME COIN

Introduction

1. All men are sheep. They need a shepherd. A hunger for creative and compelling leadership has been one of the most universal cravings of our times. Recent history is replete with leaders who strode across cultural, intellectual and political horizons. Their followers loved and loathed them, marched for them, fought for them, killed and died for them. 2. Leadership is the most important aspect of the human behavior. It gives a positive direction to the use of human resources and brings out the best in a man. It is a natural phenomenon of a mans work life. It is related to the principle of gradation and hierarchy which is the universal order of things created by God and man. One of the ancient definitions says, Any person who is more than ordinarily efficient in carrying successful psychological stimuli to others and is thus effective in conditioning collective response may be called a leader. Leadership is an act of persuading people to cooperate in the achievement of a common objective. The objective might not have been common in the first instance. It is the responsibility of the Leader to make it look so. Field Marshal Bernard Law Montgomery said, Leadership is the will and capacity to rally men and women to a common purpose and the character which inspires confidence. The main emphasis is on the leaders capacity and will, his behavior, in rallying people to the common purpose. The purpose might not have been common to start with, but it devolves upon the leader to ensure that it is perceived as common by the group members. 3. Leadership can therefore be defined as the ability of a person to mobilize and direct the efforts of his group members for solving the group problem by relating himself to the characteristics of the group and sensitising himself to the nature of the problem. Since situations keep changing, therefore, the leader too must keep acquiring new knowledge, new skills and more appropriate attitude for mobilising and directing the efforts of his group members for the achievement of the group goal. The personal and dynamic qualities that a leader must possess are: (a) (b) (c) (d) (e) (f) Courage Social Orientation Mental Ability Motivation Maturity Energy

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Management V/s Leadership 4. Management is defined by the following standards: Planning and Budgeting. Establishing detailed steps and timetables and then allocating necessary resources.
(a)

Organising and Staffing. Establishing some structure for accomplishing the plan, staffing the structure, delegating responsibility and authority, providing and penning policies and procedures and creating methods to monitor implementation.
(b)

Controlling and Problem solving. Monitoring results against identifying deviations and then implementing solutions to problems.
(c)

plans,

5.

Leadership standards are defined as: (a) Establishing Direction. Developing a vision for the developing strategies for producing changes to achieve the vision. future and

(b) Aligning People. Communicating the direction to those whose cooperation is needed to influence the creation of teams and coalitions that understand the vision and strategies. (c) Motivating and Inspiring. Energising people to overcome barriers to change by satisfying basic human needs (achievement, recognition, belonging, self-esteem, sense of control over ones life). 6. Leadership in Defence Forces The effectiveness of the defence services is dependent upon its leadership - its officer corps. It is, therefore, imperative that the military leaders make every effort to keep improving their knowledge and performance on a continuing basis. All human activities require primarily two things for their successful completion - will and skill. The leadership and organisation require these qualities in greater measure than their men, because they have to tackle more complex and difficult problems. Both these qualities of human behaviour are attainable through training. An important aspect of this training, however, is that leaders must keep themselves relating to the changing circumstances within the country and outside. After

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3 all, we know that leadership, like many other behavioral concepts, derives its meaning more from the context than from the content. 7. Leadership is a vital force in organisations today, and effective leadership can spell the difference between success and failure. Japanese auto maker Nissan, for instance, was struggling along just a few years ago and seemed destined to be taken over by another company. But the company brought in Carlos Ghosn for a final shot at turning things around. Ghosn had already demonstrated strong management and leadership abilities at Renault, an Italian company that had bought 33 percent ownership of Nissan. He has subsequently led the firm back to strong profitability and solidified its position as Japans number two auto maker (behind Toyota). Leadership is both a process and a property. As a processfocusing on what leaders actually do leadership is the use of non-coercive influence to shape the group or organisations goals, motivate behavior toward the achievement of those goals, and help define group or organisational culture. As a property, leadership is the set of characteristics attributed to individuals who are perceived to be leaders. Thus leaders are people who can influence the behaviors of others without having to rely on force or people whom others accept as leaders. 8. Relation between Leadership and Management From the above appended statements, it should be clear that leadership and management are related, but they are not the same. A person can be a manager, a leader, both, or neither. Some of the basic distinctions between the two are summarised in Table below. At the left side of the table are four elements that differentiate leadership from management. The two columns show how each element differs when considered from a management and from a leadership point of view. For example, when executing plans, managers focus on monitoring results, comparing them with goals, and correcting deviations. In contrast, the leader focuses on energizing people to overcome bureaucratic hurdles to reach goals. Organisations need both management and leadership if they are to be effective. Leadership is necessary to create change, and management is necessary to achieve orderly results. Management in conjunction with leadership can produce orderly change, and leadership in conjunction with management can keep the organisation properly aligned with its environment. Indeed, perhaps part of the reason why executive compensation has soared in recent years is the belief that management and leadership skills reflect a critical but rare combination that can lead to organisational success.

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4
Activity
Creating an agenda

Management
Planning and Budgeting. Establishing detailed steps and timetables for achieving needed results; allocating the resources necessary to make those needed results happen Organising and Staffing. Establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan, providing policies and procedures to help guide people, and creating methods or systems to monitor implementation

Leadership
Establishing Direction. Developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision

Developing a human network for achieving the agenda

Aligning People. Communicating the direction by words and deeds to everyone whose cooperation may be needed to influence the creation of teams and coalitions that understand the visions and strategies and accept their validity

Executing plans

Controlling and Problem Solving. Monitoring results versus planning in some detail, identifying deviations, and then planning and organising to solve these problems Produces a degree of predictability and order and has the potential to produce consistently major results expected by various stakeholders (for example, for customers, always being on time; for stockholders, being on budget)

Motivating and Inspiring. Energizing people to overcome major political, bureaucratic, and resource barriers by satisfying very basic, but often unfulfilled, human needs

Outcomes

Produces change, often to a dramatic degree, and has the potential to produce extremely useful change (for example, new products that customers want, new approaches to labor relations that help make a firm more competitive)

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9. Power vis--vis Leadership and Management To fully understand leadership or management, it is necessary to understand power. Power is the ability to affect the behavior of others. One can have power without actually using it. For example, a football coach has the power to bench a player who is not performing up to par. The coach seldom has to use this power because players recognize that the power exists and work hard to keep their starting positions. In organisational settings, there are usually five kinds of power: legitimate, reward, coercive, referent, and expert power. 5 (a) Legitimate Power Legitimate power is power granted through the organisational hierarchy; it is the power defined by the organisation to be accorded to people occupying a particular position. A manager can assign tasks to a subordinate, and a subordinate who refuses to do them can be reprimanded or even fired. Such outcomes stem from the managers legitimate power as defined and vested in her or him by the organisation. Legitimate power, then, is authority. All managers have legitimate power over their subordinates. The mere possession of legitimate power, however, does not by itself make someone a leader. Some subordinates follow only orders that are strictly within the letter of organisational rules and policies. If asked to do something not in their job descriptions, they refuse or do a poor job. The manager of such employees is exercising authority but not leadership. (b) Reward Power Reward power is the power to give or withhold rewards. Rewards that a manager may control include salary increases, bonuses, promotion recommendations, praise, recognition, and interesting job assignments. In general, the greater the number of rewards a manager controls and the more important the rewards are to subordinates, the greater is the managers reward power. If the subordinate sees as valuable only the formal organisational rewards provided by the manager, then he or she is not a leader. If the subordinate also wants and appreciates the managers informal rewards, such as praise, gratitude, and recognition, however, then the manager is also exercising leadership. (c) Coercive Power Coercive power is the power to force compliance by means of psychological, emotional, or physical threat. In the past, physical coercion in organisations was relatively common. In most organisations today, however, coercion is limited to verbal reprimands, written reprimands, disciplinary layoffs, fines, demotion, and termination. Some managers occasionally go so far as to use verbal abuse, humiliation, and psychological coercion in an attempt to manipulate subordinates. The more punitive the elements under a managers control and the more important they are to subordinates, the more coercive power the manager possesses. On the other hand, the more a manager uses

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coercive power, the more likely he is to provoke resentment and hostility and the less likely he is to be seen as a leader. (d) Referent Power Compared with legitimate, reward, and coercive power, which are relatively concrete and grounded in objective facets of organisational life, referent power is abstract. It is based on identification, imitation, loyalty, or charisma. Followers may react favorably because they identify in some way with a leader, who may be like them in personality, 6 background, or attitudes. In other situations, followers might choose to imitate a leader with referent power by wearing the same kind of clothes, working the same hours, or espousing the same management philosophy. Referent power may also take the form of charisma, an intangible attribute of the leader that inspires loyalty and enthusiasm. Thus a manager might have referent power, but it is more likely to be associated with leadership. (e) Expert Power Expert power is derived from information or expertise. A manager who knows how to interact with an eccentric but important customer, a scientist who is capable of achieving an important technical breakthrough that no other company has dreamed of, and a secretary who knows how to unravel bureaucratic red tape all have expert power over anyone who needs that information. The more important the information and the fewer the people who have access to it, the greater is the degree of expert power possessed by any one individual. In general, people who are both leaders and managers tend to have a lot of expert power. 10. Successful leaders are individuals with high levels of personal power. Understanding the difference between personal power and granted authority is a significant distinction. Many people have the tendency to use the words authority and power interchangeably; however, these terms refer to two very different aspects of leadership. Authority is the right granted from a person or organization to another to represent or to act in a specified way. For example, a CEO of a company is given the authority by the Board of Directors to run the company. In turn, the CEO places managers in positions of authority over the various divisions, business units, or departments of the organization. Power is the capacity or ability to direct or influence the behavior of others. Former United States President, Dwight D. Eisenhower, captured the essence of this definition when he said, "Leadership is the art of getting someone else to do something you want done because he wants to do it." Everyone possesses the potential to be powerful. Power is a personal talent that you can develop and use to achieve worthwhile goals. It does not depend upon title, rank, position, or authority. It's simply the ability to motivate others to take specific actions. Authority is granted but always has defined limits. Power is earned and can be limitless. Authority is derived through the position. Power is derived from an individual's personal influence,

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which increases effectiveness. Two leaders in exactly the same position of authority can and will have different amounts of power. A person can possess a great deal of power and absolutely no authority. Conversely, someone can have authority and absolutely no power. Leaders who have not earned sufficient power sometimes make the mistake of trying to influence others by overexerting their authority. But excessive use of authority can cause employees to rebel in much the same way that children rebel against restrictive parents. 7 11. Difference between Leadership and Management What is the difference between management and leadership? It is a question that has been asked more than once and also answered in different ways. The biggest difference between managers and leaders is the way they motivate the people who work or follow them, and this sets the tone for most other aspects of what they do. Many people are both. They have management jobs, but they realise that they cannot buy hearts, especially to follow them down a difficult path, and so they act as leaders too. 12. Managers have subordinates while Leaders have followers. Managers work in an authoritarian and transactional way while Leaders have a charismatic and transformational style of working. Managers focus on work whereas Leaders focus on people. Managers seek comfort and Leaders seek risk. Subject Focus Have Horizon Seeks Approa ch Decisio n Power Appeal to Culture Dynami c Persuas ion Style Leader Leading people Followers Long-term Vision Sets direction Facilitates Personal charisma Heart Shapes Proactive Sell Transformational Manager Managing work Subordinates Short-term Objectives Plans detail Makes Formal authority Head Enacts Reactive Tell Transactional

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Exchan ge Likes Wants Risk Rules Conflict Directio n Truth Credit Blame

Excitement for work Striving Achievement Takes Breaks Uses New roads Seeks Gives Takes 8

Money for work Action Results Minimizes Makes Avoids Existing roads Establishes Takes Gives

13. Leadership is a facet of management Leadership is just one of the many assets a successful manager must possess. Care must be taken in distinguishing between the two concepts. The main aim of a manager is to maximise the output of the organisation through administrative implementation. Throughout life, we will be called to play many roles. Two of the most important work roles relate to that of leader and manager. In business and in government, one must be both good at both management and relationship effective as both a manager and a leader. Conclusion 14. Swami Vivekananda writes, Teach yourself, teach everyone, his real nature. Call upon the sleeping soul and see how it awakes. Power will come, glory will come, purity will come, and everything that is excellent will come, when this sleeping soul is roused to self-conscious activity. The days of imitated leadership therefore, are over. The need today is to know ourselves, accept ourselves and act ourselves. The leadership behaviour based on this premise is sure to appeal to our soldiers, sailors and airmen, and thereby prove effective. 15. It is vital for senior individuals in positions of great responsibility to be able to play both roles: the boss who cannot manage will kill an organization just as fast as one who cannot lead. But the person who can do both, are on the path to success.

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