*Management style
There are various style of management nowadays. But there are 4 types
of management that has been using over decades and centuries: Participative theories, Persuasive, Autocratic and Democratic. There are assumptions that if people involve into decisionmaking, people would understand more what they are doing and they do as it is their works. Moreover, people are less competitive and have chances to help each other to
do their goals. After a period, Participative theories had been divided into 2 styles: Lewin’s style and Likert’s style of Leadership. For more specific about Lewin’s style, he and his colleagues did an experiment and found out 3 styles : Autocratic, Democratic and LaissezFaire. As I mentioned above, Bill Gates has been using Autocratic style – which means he makes decision himself without any other references; depend too much on the leader; decrease motivation of subordinates. After realize the weakness of Autocratic, leader began using Democratic style – where subordinates and employees can give their opinions to their leader. This style has more society component than Autocratic style; because this style has the process of consultation before making decision; or they can proof that their opinion and ideal are right instead of making decision alone. (DuBrin 2012)
*Leadership style
As I mentioned above, leader takes an important part in every level of managers and every functions. The leadership takes an essential role to focus on relationship oriented approach
in order to aim for employee retention and to improve the moral of the employees and training their responsibilities on the leaders and managers. Moreover the employees can be motivated by employees towards their work and improve the image of the organization but
it can result in the loss of productivity of the organization as the employees will be not under any pressure.
Bill Clinton, Donald Trump, Walt Disney are the outstanding image for leadership with different style of leadership. With Bill Clinton, he uses style of Charismatic leadership, which means he uses charm to get the admiration for the followers, shows concern for their people and looks after people’s need. Or with Walt Disney, his style is Transformational leadership, which concerns on motivates and empower his followers.
To know more specific about style of leader, we must know its theory about common style
of leadership include transactional leadership and transformational leadership. According to Business dictionary, transaction is the act of trading (or transacting) in and between group (when we are doing commercial activities). As its theory, we can infer that transactional leadership is a style of leadership that the leader use both reward and punishment on their subordinates to enhance compliances. Transactional leadership was introduced to world in
1947 by Max Weber; moreover, it was developing in 1981 by Bernard M. Bass (an American scholar in the fields of leadership studies and organizational behaviour). This style of leadership focuses on the basic management process of controlling, organizing, and short term planning. Transactional leadership is often uses by manager because of its characteristic: it focuses on short-term goals; support laws and rules ompliance; people with style of Transactional leadership would like to make the things right and not flexible;... (DuBrin 2012)
“A leader who helps organizations and people make positive changes in the way they do things”. (DuBrin, 2012).
A Transformational leadership is defined as a style that the leader would commit to organization to make a revolutionary change. Examples of famous people who using Transformational Leadership style: Warren Buffet (CEO of Berkshire Hathaway), Nelson Mandela (Ex-President of South Africa). People who use Transformational
Leadership style often has these characteristics: have a strong faith about morality; they’d like to honor humanitarian ideals; are long-life learners; courage and can deal with complex situation;... (DuBrin 2012)
P2. Examine examples of how the role of a leader and the function of a manager apply in different situational contexts :
In fact, leadership and management are two separate and complementary modes of action. Each type has its own specific functions and activities, and they are all necessary to create
a successful administrator when the business environment is increasingly complex and easy to change.
Good leadership but poor management is no different (or sometimes worse) poor
leadership and good management.
The functions of managers and the role of leaders makes the organization work in the desired direction towards the fulfillment of the objectives of the organization. There are various functions of management as well as different traits and style of leadership which help in the proper functioning of the functions of management. Toyota Plc, is facing the situation where the prices of the fuel, material and equipment are increasing on a rapid phase and in such situation it the effective implementation of the functions of management and the skills of leaders to plan and implement such strategies which can handle the cost of manufacture to increase the sales and revenue of the company.
There are several theories of management which implied with the leadership skills make the company grow its operations. The operational management department of Toyota Plc,
focuses on the management theories and combine the efforts of leaders to cut down the cost of manufacture.
The contemporary theory of management is applied by Toyota Plc, to deal with the current situation of the increased cost of the purchase and production. The managers can plan the strategies such as selection of suppliers who can provide the raw material at lower cost. The leaders in Toyota Plc, use their trait to motivate the employees to adopt advance technologies in order to lower the cost of manufacturing and eliminate the resistance to change among the employees through creating an environment of trust with the effective communication skills.
Management by objective is the theory which focuses on the combined efforts of the managers and the employees for the accomplishment of the goals. The managers work with the employees and set the standards of the performance and the leaders delegate the duties to the employees so that they are motivated to perform their task best. Classical management theory is applied in Toyota Plc, where the managers make the policies to enhance the productivity. The managers have developed the strategy known as KAIZEN in which the efforts of the management and staff are continuous to improve the production activities and here the participative style of leadership can be applied so that the input of both the workers and managers in the decision regarding reducing the cost and improve the production.
Behavioral theory of management is applied in Toyota Plc and the managers follow the policies which take into consideration the skills and abilities of the employees and the leaders use the transformational style of leadership where the leaders communicate with the employees and the policies are defined to the employees in an effective way (McCann, 2011).
Contingency theory focuses the change in the strategies according to the changes in the situations. The leaders play an important role in which they influence the employees to bring changes in the operations in order to meet the challenges prevailing in the market. The managers of Toyota Plc considered the reasons of the increased cost of manufacture and applied the theory to implement some changes in the operational activities to bring down the high prices of the materials and equipment received from the suppliers and according they changed the policies of the company in production and operation department.
Functional difference: Managing is dealing with trouble, and Leadership is dealing with change
Managing is the job of dealing with troubles.
The rules and methods of management are mostly created to solve the chaos and
disorganization that are likely to occur in large organizations appearing in the twentieth century. And undeniable results, good business management can create order and
consistency in terms of personnel, production and revenue growth.
In contrast, leadership is the job of coping with change.
The more volatile the business environment and the more intense the competition
becomes, the more important leadership is. That's because companies cannot stay the same when the technology revolution is booming, resources are scarce, talent is more difficult to choose where to join, ... business direction in a different direction to ensure effective business.
This difference can be considered like two manners in the military. A peacetime army will have a leader at the highest level, and throughout the system, only need good governance and management. But a wartime army requires good leadership at all levels, but cannot
"manage the soldiers" outside the battlefield.
What are the three different functions that lead to three distinctive activities between Management and Leadership?
Whether managers or leaders, they need to complete three tasks: decide what to do,
establish human networks and relationships that serve the goals and ensure that those people complete their work well.
# 1.
# 1. Companies will manage problems first by planning - setting future goals (usually in the next month, quarter or year), developing detailed steps to accomplish goals, then assign personnel to implement those plans.
On the contrary, leading an organization to change in a beneficial way begins with orienting
- building a vision (often in the distant future) and changing strategies to make that vision a reality.
# 2. Management enhances the ability to implement the plan by organizing and staffing - creating an organizational structure and job positions to meet the
requirements of the plan, the work assignment and monitor implementation.
On the contrary, leadership focuses on regulating people, that is, exchanging new
directions with individuals who are capable of doing so.
# 3. Finally, management ensures the completion of the plan through control and problem solving - using reports, meetings and tools to determine the standard deviation between results and plans and then finding solution
For leaders, creating a vision must be through motivating and inspiring people - by evoking their needs, values and emotions.
Let's compare each of the above specific activities in turn.