Management vs. leadership

Revision as of 12:20, 4 April 2023

Abstract

Management and leadership are both critical in achieving the desired results in any project. The two concepts are sometimes misunderstood as being the same and are commonly confused for one another. It is understandable since they share several common characteristics, but in fact management and leadership are two separate concepts. Management focuses on processes and procedures to achieve project objectives. That includes planning, organizing and monitoring the work. A manager is responsible for ensuring that the work gets done within budget and on schedule. On the other hand, leadership focuses on people and activities involved with the project team. That involves creating vision and strategy, and inspiring and guiding the project team towards the vision. A leader is a visionary who motivates and influences others to achieve project objectives. Effective leaders must be good managers, and effective managers must be good leaders. Understanding the differences between the two concepts is essential for anyone seeking to excel in a leadership or management role. Excellent project managers possess a combination of both leadership and management skills. The balance may vary depending on the circumstances but combining qualities of both allows project managers to organize and monitor the undertaking project as well as motivating their teams to succeed ^[1].

Management

Definition

The simplest definition of management is "making things happen" ^[2]. More specific, management is the process of determining what has to be done and then completing it with the best possible use of available resources. It focuses on the actions managers take to put work into action. Bringing about, accomplishing, having charge of or responsibility for, and conducting anything are all definitions of managing. Management involves setting objectives and identifying the necessary resources such as people, finances, work systems, and technology. They furthermore assign the resources to scheduled actions and make sure that the planned actions happen as expected to accomplish predetermined objectives ^[3].

In the context of project management, PRINCE2 defines management as the planning, assigning tasks, monitoring and regulating every element of the project, motivating those who are involved, and meeting the project objectives within the projected performance metrics for factors such as time, cost, quality, scope, benefits and risk ^[4]. The definition of project management from PMBOK guide is applying knowledge, skills, tools, and procedures to project activities in order to achieve project requirements. Project management is the process of directing project work to produce the desired results. Project teams might use a variety of techniques to produce the desired results. Moreover, project manager is the individual chosen by the performing company to lead the project team and be in charge of attaining the project's goals ^[1].

Functions

Figure 1: Project management functions (own figure, based on Ref ^[4])

The functions of management to execute any project can be divided into a number of separate processes. However, the main management functions have been defined by PRINCE2 as the following four managerial elements: plan, delegate, monitor and control.

1. Plan: Develop a plan that aligns with the company's objectives and goals. This includes assigning employee resources and delegating responsibilities, while also establishing achievable timelines and performance standards. Planning involves both independent work, such as assigning tasks, setting priorities, and creating timelines, as well as effective communication ^[5].
2. Delegate: This involves assigning responsibility for particular tasks to team members. Identifying the most suitable employees or teams for particular tasks, and ensuring that everyone is working on tasks that are best suited to their skills and expertise. Effective delegation requires clear communication, setting clear expectations, and ensuring team members have the necessary resources and support to carry out their assigned tasks. ^[6].
3. Monitor: This involves keeping track of projects metrics, progress and associated tasks to guarantee timely and budget friendly completion of the project , while also adhering to project requirements and standards. Additionally, it involves identifying and addressing any roadblocks or issues that may emerge during project execution. ^[7].
4. Control: In order to guarantee that all of the previously mentioned functions are contributing to the success of a company, it is important for managers to regularly oversee employee performance, work quality, and the effectiveness and dependability of finished projects. Management control are focused on ensuring that the company's end objectives are being adequately achieved and making any needed modifications if they are not ^[5].

Competences

To achieve the above mentioned functions effectively, management requires a wide range of skills, behaviours and qualities. Managerial competencies include some actions and qualities that will result in successful performance. These competencies are often defined in competency frameworks and profiles used by organizations for recruitment, training, development, and performance evaluation. Additionally, competency frameworks can provide managers with specific guidelines on the expected behaviours. Key competencies for effective management include attributes such as achievement orientation, business awareness, communication, customer focus, developing others, leadership, planning, teamwork and problem-solving ^[8].

Management is the practice of ensuring that tasks are completed efficiently and is about doing the things right. Some of the qualities required to achieve this include being rational, consultative, persistent, tough minded, analytical, structured, deliberate, authoritative and the capability of stabilizing situations through the use of position power ^[9].

Leadership

Definition

We are quite knowledgeable about management, but less so about leadership. Several specialists have tried to define this concept and there are more than 400 definitions of leadership. There are numerous perspectives on leadership as well as numerous interpretations of what it means. Simple definitions of leadership include "getting others to follow" and "getting people to do things voluntarily." Leadership can also be defined more narrowly, such as "the use of authority in decision-making." It might be used due to personal expertise or wisdom, or as a function of one's position. Leadership can be viewed as either a behavioural category or as a personality trait. Another way to look at it is from the perspective of the leaders and their capacity to influence others to perform effectively ^[2].

The following definition is from the Handbook of Management and Leadership by Michael Armstrong: “Leadership is about inspiring individuals to give of their best to achieve a desired result, gaining their commitment and motivating them to achieve defined goals.” ^[3].

According to PMBOK guide, leadership is one of the principles that a project manager should acquire to support the needs of the team and the individuals. Project success is facilitated by effective leadership. Better outcomes may result from a project environment that emphasizes vision, creativity, inspiration, enthusiasm, encouragement, and empathy. These characteristics are frequently connected to leadership. Leadership is the attitude, skill, character, and behaviours needed to influence those on the project team and outside it to achieve the desired results ^[1].

PRINCE2 states that it is not possible to define leadership in a method, despite being the utmost importance in project management. Leadership styles differ greatly, and what works in one circumstance may not be suitable in another. This is supported by how easy it is to think of examples of successful leaders who have used a variety of leadership styles, from authoritarian to collaborative ^[4].

Functions

The function of leadership involves several key elements. PMBOK provides four primary activities that are associated with leadership, which are establishing and maintaining vision, critical thinking, motivation and interpersonal skills ^[1].

• Establishing and Maintaining Vision: It is important for the project team members to understand the purpose of the project in order for them to be willing to devote their time and energy in the proper direction. This purpose is summarized in the project vision, which outlines an inspiring but realistic view of the desired future results. The vision also serves as a motivator and helps to inspire passion and meaning for a project's intended objective. A leader should establish and maintain a shared vision to keeps everyone working towards the same goal.

• Critical Thinking: A leader should possess critical thinking. This involves using logical and evidence-based reasoning to identify biases, determine the root cause of issues and addressing challenging problems like ambiguity and complexity. It can require an open mind, conceptual imagination and intuition.

• Motivation: This includes understanding what motivates the team members as well as keeping them dedicated to the project and its goals. Motivation might come from within (intrinsic) or from outside (extrinsic). To get the greatest performance out of each team member is is important to understand each individual's motivating factor and tailor the motivational strategies based on personal preferences.

• Interpersonal skills: This involves awareness of own emotions, empathy for those of others, and the capability to behave in a way that is suitable for the situation in order to establish good communication, teamwork, and leadership.

Competences

To efficiently carry out the various functions and activities of leadership specific competencies are needed. However, leadership competences such as skills, behaviour and qualities is something that can be practised. Any team member in a project can grow leadership skill. It is something that can be learned and developed so that it helps the project and its stakeholders while also helping the individual's career ^[1].

Leadership is about doing the right things. To achieve this, leaders should possess certain qualities such as being visionary, passionate, creative, flexible, inspiring, innovative, courageous, imaginative, experimental and initiating change through personal power ^[9].

Styles

Leadership can be categorized into different types of styles and leaders can employ one or a mix of leadership styles based on the team and circumstances. The following are the five of the best-known and most widely implemented leadership styles:

Laissez Faire: Involves delegating responsibility and initiative to team members. The term "let them do" is often associated with this style. A style based on trust, autonomy, and freedom.

Democratic: Involves a leader who values input from their team members and includes them in the decision-making process. The term “what’s your opinion?” is often associated with this style. Requires the leader being inclusive, having effective communication skills, and being willing to share power and responsibility with their team.

Authoritative: Leaders who view themselves as mentors to their followers and encourage "follow me" approach . Leaders that motivate and inspire their teams by providing guidance, feedback, and motivation. They give an overall direction to their teams and encourage them to follow their lead.

Transactional: Operates on the basis of rewards and punishments. This style assumes that individuals may not have the motivation necessary to complete their tasks on their own. The leader establishes defined goals or tasks for the team and outlines how their performance will be rewarded or penalized.

Transformational: Prioritizes change and transformation. This style aims to motivate their followers to maximize their potential and achieve more than they previously believed was possible. The leader hopes to inspire the group with a shared vision, creating a sense of unity, energy, and passion.

^[10]

Comparison

Both management and leadership require collaborating with others and working toward shared objectives. The two concepts overlap, but despite their similarities they differ from one another ^[11]. Leadership can moreover be viewed as a subset of management, and both are crucial for facilitating organizational performance and to deliver intended outcomes. ^[12]. Managers must be leaders and leaders are typically (but not always) managers. However, management and leadership can be distinguished from one another and the difference is crucial. In rough terms, management consists of managing work while leadership focuses on leading people ^[3].

Management is the formal process of planning, organizing, coordinating, and controlling resources to achieve specific objectives. A manager's primary focus is on maintaining the status quo, managing resources efficiently, and ensuring that things are done according to established procedures and policies. Managers are responsible for setting goals, developing plans, and monitoring progress to ensure that the project is completed on time, within budget, and to the desired quality standards. On the contrary, leadership is referred to as the process of guiding, inspiring, motivating, coordinating, and enabling the growth of people in the project team. They are responsible for creating a shared vision, inspiring and empowering people to work towards that vision, and fostering a culture of innovation and creativity. Leaders set the direction and tone for the team and provide guidance and support to help the organization to achieve its long-term objectives. ^[12].

Moreover, leaders will utilize their energy to inspire others to be innovative in problem solving, but managers will ensure that the organization's day-to-day operations are carried out, which may require ordering employees what to do if necessary. A leader has soul, passion, and creativity, whereas a manager has mind, logic, and determination. A leader is flexible, innovative, inspirational, brave and independent and at the same time a manager is consultative, analytical, cautious, authoritative and stable. The literature, however, differs on the basic competencies of leadership and management. Some studies have adopted a more extreme view, claiming that management and leadership are almost diametrically opposed tasks ^[12].

A professor from Harvard Business school, John P. Kotter, wrote the following: "Leadership and management are two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in today’s business environment." ^[13]. A person can be a great leader, a great manager, or both, each one demands slightly different abilities and characteristics. The following table gives a comparison of leadership and management ^[12].

Practical approach for project managers

Project managers should adopt a practical approach that incorporates both management and leadership skills to ensure project success. By establishing clear goals, developing a detailed project plan, communicating effectively, building a strong team, managing risk, and leading by example, project managers can increase their chances of achieving project success.

For project managers it is necessary to be able to distinguish between the two separate concepts if one wishes to perform better in their job or develop their management and leadership skills. It is ideal for project managers to establish both management and leadership skills to succeed in their roles. Management skills are important for planning, organizing, monitoring, and controlling project activities and outcomes. Leadership skills are essential for motivating, inspiring, communicating, and problem-solving. It is difficult to create structured guidelines for implementing either leadership or management styles but knowing when to use each skill set depends on the specific project requirements, team dynamics, and stakeholder expectations.

When managing a project, being a good manager is not enough, being a good leader is also essential. It has been stated that "Managers do the things right, leaders do the right things" ^[3]. It is beneficial for project managers to possess a combination of both management and leadership skills. The PMBOK guide provides a list of principles for project management which are meant to guide the behaviour of project participants. One of the principles listed is to demonstrate leadership behaviours. Each project team member can develop leadership behaviour. It is therefore important for the project manager as well as the project team members to grow leadership qualities to fulfil the needs of both individuals and the team ^[1]. For project managers the first step in developing essential leadership qualities is motivating and inspiring teams. Additional leadership qualities, including communicating, listening, influencing, and team building, are equally crucial, particularly in terms of boosting team performance ^[14]. Project managers need to strike a balance between management and leadership approaches and adjust their strategies based on the specific needs and context of the project.

Limitations

Here, the concept and its application will be critically reflected upon, using key resources and literature. For example, under what circumstances it can not be used and what it can not do.

While management and leadership concepts are important for effective project management in achieving organizational goals and objectives, they cannot solve all problems and there are some limitations that should be considered. Project managers need to be aware of these limitations and adjust their strategies accordingly to achieve project success. The following are some of the limitations that project managers should be aware of:

• Resource constraints: Project managers may be limited by resource constraints, such as limitations on time, budget, or personnel. This can make it difficult to implement certain management or leadership strategies. It recommends that project managers be aware of these limitations and work to manage them effectively (PRINCE2®). Time constraints are one of the most common limitations that managers face. With deadlines and milestones to meet, project managers must ensure that every minute is used effectively. Effective time management requires setting priorities, delegating tasks, and monitoring progress to ensure that the project is on track. Budget constraints are another significant limitation that managers must manage. With limited financial resources, managers must allocate funds strategically to ensure that the project is completed within budget. This requires careful planning and forecasting to identify potential cost overruns and adjust the project plan accordingly. Personnel constraints can also limit the success of a project. With limited staff or expertise, managers must find ways to maximize the skills and capabilities of their team members. This may require training, outsourcing, or reallocating personnel to ensure that the project is staffed appropriately. By working to manage resource constraints effectively, project managers can ensure that their projects are completed on time, within budget, and to the desired quality standards. (PMBOK)
• Lack of authority: Project managers may face limitations related to their level of authority and may not have the authority or power to implement certain management or leadership strategies. This can impact their ability to make decisions and execute the project effectively. Particularly when the project involves a cross-functional team, many organizations and a combination of full and part time resources. To overcome this limitation, project managers should work to establish clear roles and responsibilities for all project stakeholders. This includes identifying who has decision-making authority and who is responsible for specific tasks and deliverables. By clarifying roles and responsibilities, project managers can help to mitigate any confusion or ambiguity around decision-making and ensure that everyone is aligned on the project goals and objectives. (PRINCE)
• Stakeholders: Project managers may face various limitations related to stakeholder expectations, engagement, or communication. Strategies should be developed to manage these limitations effectively. To manage these limitations effectively, project managers must prioritize stakeholder needs and align them with the project's objectives. By effectively communicating with stakeholders and engaging them throughout the project lifecycle, project managers can overcome limitations related to stakeholder management and achieve successful project outcomes.
• Cultural differences: Different cultures may have different management and leadership styles that may not be compatible with the project manager's approach when managing projects in a global or diverse environment. Different cultures have unique values, beliefs, and communication styles that can impact how projects are managed and executed. These differences can lead to misunderstandings, conflict, and delays if not managed properly. To overcome these challenges, project managers should develop cultural awareness and sensitivity. This involves learning about the culture and customs of the people they will be working with, and adjusting their management style accordingly. (PMBOK)

For example, management and leadership may not be able to overcome resource constraints or technical limitations that may impact the success of a project. Similarly, management and leadership cannot force people to change their behavior or attitudes if they are resistant to doing so.

Despite all the research and theory, the idea of leadership is difficult to understand. These issues might occur as a result of how elusive the idea of leadership is. There are many different kinds of circumstances in which leaders act, as well as many distinct kinds of leaders and leadership styles. It is challenging, if not impossible, to develop a single hypothesis that accounts for all of these factors. The only thing that can be done is to make use of the multiple theories that have been developed to describe various aspects of leadership, without necessarily depending on any one of them to provide a thorough explanation of what is involved ^[8]. The following are some limitations of leadership that project managers must keep in mind:

Annotated bibliography

References

1. ↑ ^{1.0 1.1 1.2 1.3 1.4 1.5} Project Management Institute. (2021). The standard for project management and a guide to the project management body of knowledge (PMBOK guide) (7th ed.). Project Management Institute, Inc. https://findit.dtu.dk/en/catalog/2702860479
2. ↑ ^{2.0 2.1} Mullins, L. J. (2005). Management and Organisational Behaviour (7th ed.). Prentice Hall.
3. ↑ ^{3.0 3.1 3.2 3.3} Armstrong, M. and Stephens, T. (2005). A Handbook of Management and Leadership: A Guide to Managing for Results. Kogan Page.
4. ↑ ^{4.0 4.1 4.2} AXELOS. (2017). Managing Successful Projects with PRINCE2® (6th ed.). The Stationary Office. https://findit.dtu.dk/en/catalog/2443140847
5. ↑ ^{5.0 5.1} American InterContinental University. (n.d.). The Four Functions of Management: What Managers Need to Know. https://www.aiuniv.edu/degrees/business/articles/functions-of-management
6. ↑ Landry. L, (2020, January 14). How to delegate effectively: 9 tips for managers. Harvard Business School Online. https://online.hbs.edu/blog/post/how-to-delegate-effectively
7. ↑ Fontein. D., (2022, April 4). Project Monitoring: What It Is and Why It’s Important. Unito. https://unito.io/blog/project-monitoring/
8. ↑ ^{8.0 8.1} Armstrong, M. (2009). Armstrong's handbook of Management and Leadership: A Guide to Managing for Results (2nd ed.). Kogan Page.
9. ↑ ^{9.0 9.1} Thuesen, C. (2023, January). 42430 - Week 2 - Part 2 - People slides [Power Point slides]. DTU Learn. https://learn.inside.dtu.dk/
10. ↑ International Institute for Management Development. (2023, January). The 6 most common leadership styles & how to find yours. https://www.imd.org/reflections/leadership-styles/
11. ↑ ^{11.0 11.1} Are Leadership and Management Different? A Review, by Dr. Ali Algahtani.
12. ↑ ^{12.0 12.1 12.2 12.3 12.4} A theoretical perspective on the difference between leadership and management, https://www.sciencedirect.com/science/article/pii/S1877705817331004
13. ↑ https://hbr.org/2001/12/what-leaders-really-do
14. ↑ Essential leadership skills for project managers https://www.pmi.org/learning/library/essential-leadership-skills-project-managers-6699.