Management vs Leadership qualities

Revision as of 07:57, 6 May 2023

Abstract

Both leaders and managers require critical skills to make good decisions and solve problems, although leaders make decisions at a higher level while managers make decisions at the departmental level. The article discusses the differences between leaders and managers, emphasising that leadership drives positive organisational change through developing a vision. In contrast, management involves guiding and directing individuals towards common goals and strategies. The focus, skillset, and vision differ between these roles, although leaders and managers share common areas of responsibility, such as communication, decision-making, problem-solving, time management, and emotional intelligence. Influential leaders must communicate the company's vision, mission, and plans to the workforce, inspire and motivate their employees, and align their work and personal values with the company's objectives. Managers must execute plans to meet the company's goals, keep employees aligned with the company's central goals and values, and constantly monitor the situation and adjust plans to achieve the desired outcome. The article also discusses the importance of leadership style in project management. The success of a project depends on factors such as the project's nature, cultural environment, and team members' personalities. In project management, the project manager is considered to have a transformational or transactional leadership style. Transformational leaders inspire team members to work towards a shared vision, while transactional leaders rely on rewards or penalties to motivate employees. While many studies do not consider the project manager as a success factor in project management, the project's success is related to the project manager's ability to share their knowledge and skill and identify the project team's knowledge and skills to coordinate effectively. The leadership style is crucial for the success of a project, and different leadership competencies are required for different project types. Critical thinking, influence, motivation, and conscientiousness are all projects' most eligible leadership success factors.

The difference between managers and leaders

Leaders and managers are often used interchangeably. While leaders and managers play an essential role within an organization, there are significant differences between these critical roles. ^[1][2] Before the leader can be unleashed in you, it is essential to understand the differences between managers and leaders. ^[2]

    Leadership is defined as driving positive change within the workplace, which involves developing a vision or ideas to guide that change. 
    Effective leadership empowers individuals to turn their vision into reality, even with challenges.[1]
    The keywords of leadership are change, vision, mission, communication, proactive, high risk, and motivation. [3]

    Management is defined as guiding and directing individuals who may need to be more motivated or are misdirected toward common goals and strategies. 
    While leaders define the vision and strategy, managers plan and execute tasks to achieve the goals.[1]
    The keywords of management are organizing, planning, budgeting, nationality, control, and risk aversion. [3]

It is important to note that a manager in an organizational chart may sit atop the hierarchy, while individuals can lead without holding a managerial position. ^{[1] [2]} Not all managers are influential leaders and may be appointed for the role based on their technical knowledge and expertise.^[1] Leaders at any position in the hierarchy have naturally gained followers willing to support them in reaching the vision.^{[4] [3]} Overall, 80% of organizations prioritise leadership, while just 41% meet the demand to find and develop leadership talents. ^[2] Understanding the differences in two main areas: Focus, and vision, will give a more precise overview.

Focus

Leaders focus on discovering ways to support and inspire their employees, mobilising them to execute a series of distinct and collective undertakings. They pursue vital company initiatives, present new ideas, and drive change to an avant-garde mindset. ^[1][2] Leaders communicate in a high-level yet empathetic way and trigger positive, slow changes by empowering workers to work towards common goals. ^[3] Their job is to sustain the firm culture's core business values and mindset through their actions, genuine interaction, and choices, influencing how workers adapt and abide by that culture. ^[1]

Managers direct, maintain, and centre their efforts on the process and structure of carrying out tasks, pursuing the firm's goals through synchronised actions.^[1][2] Their main work is to safeguard that workers in different roles with different accountabilities work productively while feeling that they can realise the objective. They continuously monitor the outcome by controlling workers and providing needed information, techniques, and tools to succeed correctly.^[3] However, some managers may need help understanding the reason for the change themself and may not even be aware of the change happening in the organisation in the worst scenarios. ^[1]

Leaders and managers should work together to sustain the firm culture's core business values and mindset and achieve the company's goals. Two-way communication should be established among workers, managers, and leaders, and managers should adequately understand the reason for the change to reinforce change communication messages. With efficient interaction and continuous feedback, leaders can inspire and energise their workforce, catch their fans' attention, and motivate them to follow necessary organisational plans, impacting employee engagement positively. Meanwhile, managers control workers, provide needed information, techniques, and tools to properly succeed, and direct their employees towards adjusting to the company culture shaped by the leader. ^[1]

Vision

Leaders typically clearly understand where they want their organizations to be in the next five or ten years. They recognize that they are only partially responsible for realizing their vision. ^[1] Furthermore, they communicate openly about the company's goals, prospects, and challenges to build trust and foster a supportive work environment. Doing so encourages employees to share their ideas, needs, and concerns, leading to a more engaged workforce. ^[1][3] However, a leader's vision is only meaningful if they can communicate it to their employees. ^[3] Therefore, leaders must inspire and motivate their staff to achieve the company's vision. The purpose is a critical driver of staff loyalty and engagement, so leaders must ensure that employees' work and personal values are aligned with the company's objectives. ^[5]

In contrast, managers are responsible for executing plans to meet the company's goals. ^[2] For example, the Finance Manager handles budgeting, while the Administrative Manager oversees human resources and corporate structuring. The department managers must work together to achieve the company's objectives.^[1] While leaders focus on the long-term, managers align employees with the company's central goals and values.^[2]

The similarities between managers and leaders

The understanding of the distinctions between the roles and responsibilities of leaders and managers is clear now. However, the two positions have a common area of duties, skills, and traits. While leaders and managers have distinct roles, their shared responsibilities are essential for success in today's business landscape. The following chapters will highlight the similarities in some of the most critical areas: Communication, decision-making and problem-solving, and emotional intelligence.

Communication

Communication is a critical skill for both leaders and managers. While leaders have to focus when someone is talking to them, including what is said and left unsaid, managers usually do one-way communication. In an organisation, communication is crucial; every single employee looks forward to being informed and prepared for what their firm stands for and intends to archive in the future. Communication between leaders interacts with the motivation of people, while managers' communication style empowers people to perform at their best and build stronger teams. ^[5]

Decision-making and Problem-solving

Leaders are seen as influential individuals who can quickly make decisions and communicate them to others with a clear goal. They have a strategic problem-solving approach and a foundation for managing and addressing issues. Influential leaders can balance emotion and reason, making decisions that benefit themselves, their employees, clients, shareholders, and the organization. ^[1]

For managers, Problem-solving is a continual process that involves evaluating situations, considering alternatives, making decisions, and following up with the necessary actions. This process requires managers to constantly monitor the situation and adjust their plans to achieve the desired outcome. ^[1]

Both leaders and managers are responsible for making good decisions and solving problems. While leaders focus on making decisions at a higher level, managers make decisions at the departmental level. ^[1] Managers and leaders view decision-making likely as a single event, which can lead to the overestimation of the ability to influence the outcome and close the perspective of alternatives by yourself. ^[2] While strong decision-making is considered a critical business success factor, just 20 % of professionals believe that their organisation excel in it, stated the management consulting firm McKinney. ^[2] In essence, effective decision-making and problem-solving are critical skills required of both leaders and managers for the organisation's success. ^[1]

Emotional Intelligence

The connection between being a leader and a manager is understanding what motivates individuals and drives their behaviour.^[1] This involves bringing out the best in each team member according to the intended goals. ^[2] To achieve this, leaders and managers must possess emotional intelligence. Since organisations consist of people, emotions inevitably come into play in the workplace. ^[1] In companies, 90% of top performers have high skills in emotional intelligence. ^[2] The emotional states of individuals are significant drivers of motivation or de-motivation. ^[3] A worker's output is influenced by their emotions alone, whether we like to admit it or not. This is evident in the need to balance work and life and the importance of emotionally intelligent managers and leaders.^[1]

Today's world is fast-paced, not only in terms of business dealings but also in social contexts. Technology integration into our lives has accelerated global trade and movements of goods, services, human resources, and social customs. Consequently, the workforce is becoming increasingly diverse, with leaders and managers seeking to work with people from different backgrounds and cultures. Being highly attuned to people's emotional states is critical in such a setting. ^[1] Emotional intelligence involves recognising and understanding one's emotions and those of others and managing moods and relationships. ^{[2] [3]} Emotional intelligence encompasses four key aspects: self-awareness, self-management, social awareness, and social skills. ^{[1] [2] [3]} Leaders and managers who possess emotional intelligence can inspire trust and confidence in their team members, empowering them to engage in constructive endeavours. ^[1][2] Conversely, leaders and managers who lack emotional intelligence can negatively impact their team members, leading to destructive outcomes. ^[2] Since leaders and managers significantly impact their team members' drive and mindset, emotional intelligence is a shared trait that must be honed.^[6]

It is essential to recognise the relevance and importance of emotions in work outcomes, even if addressing the emotional aspects of interpersonal relationships can be challenging. When providing feedback or conducting training, comments must be given appropriately. ^[3] Leaders and managers must be aware of their team members' concerns and self-doubt, which may be expressed or hidden. The higher a person's position in a company, the more critical it is to proactively understand and address their anxieties. ^[1]

Leaders and managers must cultivate their emotional intelligence and people skills to attract and retain talented and motivated team members. Developing emotional intelligence requires diligent practice and targeted effort, but fostering this trait over time is possible. ^[1]

Leadership style as a success factor in project management?

The leadership style of project managers has been a widely discussed topic in the last few years. Also, in connection with the leader and manager qualities in an organisation. This section will clarify the critical success factors of project management. Further, investigations into different leadership styles in project management are connected where the term project manager is a comprehensive statement including many areas.

The effectiveness of a particular leadership style in project management depends on factors such as the project's nature, cultural environment, and team members' personalities. ^[7] The project leader requires good communication and time management skills. The project leader's role can be expressed as connecting the information of various stakeholders, motivating team members, aiming to meet project goals, and reducing costs. ^[8] The project managers' leadership style can be described as both transformational and transactional. ^[9]

Leadership styles in projects

The transformational leadership theory, introduced by Burns in 1978 and expanded by Bass in 1990, emphasises empowering team members' intrinsic and extrinsic motivation to achieve exceptional quality work and build supportive relationships. ^[10] Transformational leadership involves leaders who expand the interests of their employees and inspire them to work toward a shared vision. These leaders achieve this by being charismatic, meeting their employee's emotional needs, and intellectually stimulating them. Transformational leaders are individually considerate, pay attention to differences among their employees, and act as mentors to those who need help to grow and develop. ^[9]

    Transformational leadership keywords: Charisma (Vision and sense of mission), inspiration, intellectual stimulation & individual considerations [9]

The transactional leadership style is based on transactions or exchanges between managers and employees. Managers define the tasks to be accomplished and what rewards or penalties will be given based on whether employees fulfil their requirements. Managers rely on the promise of rewards or avoiding penalties to motivate employees. ^{[10] [9]} This style can effectively accomplish tasks. Still, it may lead to mediocrity if the manager relies heavily on passive management by exception, intervening with the group only when procedures and standards are not met. The effectiveness of transactional leadership depends on the leader's control of rewards or penalties and whether employees want the rewards or fear the penalties. ^[9]

    Transactional leadership keywords: Contingent reward, management by exception, Task-oriented & reward penalty-based system [9]

“Managers who behave like transformational leaders are more likely to be seen by their colleagues and employees as satisfying and effective leaders than are those who behave like transactional leaders, according to their colleagues, supervisors: and employees’ responses on the Multifactor Leadership Questionnaire (MLQ). Similar results have been found in various organisations.” ^[9]Transformational leaders are closely related to leaders, and the transactional style is closely related to managers.

Project success

Project success can be described with a traditional definition, but an important point from the studies while considering project success with project manager leadership style is that a successful project is related to the project manager's ability to share their knowledge and skill as well as identify the project team’s knowledge and skills to coordinate effectively. ^[7]

The traditional definition of project success is being completed on time, within budget, and meeting quality standards. ^[10] Critical success factors such as objectives, project administration, third parties, client relations, legal agreements, politics, efficiency, conflicts, profits, customer satisfaction, effective communication, and scope are needed to manage projects efficiently for success. ^[10]

Another essential point is that project managers are usually not considered a typical success factor in project management. ^{[11] [8]} „In reviewing the literature on project success factors, we found it largely ignores the project manager and his or her leadership style and competence. This is in direct contrast to the general management literature, which considers effective leadership a success factor in organisations and has shown that an appropriate leadership style can lead to better performance.“^[8]

Leadership style and project success

The leadership style is crucial for the success of a project; based on the two project success criteria, the project is technically correct, performed as intended and meets client expectations. ^[10] Additional leadership style, personality, competencies, and attitudes toward customers and team members are essential to project success. ^[10] Also, empowering transformational and managerial leadership styles is more effective in achieving project success. ^[10]

For project management, the theoretical implications require more transformational leadership styles in complex projects and more transactional leadership styles in relatively simple products. ^[11]Creating a link to managers and leaders indicated that leaders are more suitable for complex projects focusing on vision and long-term goals, while managers are adequate for simple projects with executive activities. Project managers lead the most successful complex projects with strong competencies in the Fifteen leadership competencies. But not only is the manager different from project to project, but different skills are also required, dependent on the different types of projects. Before assigning a project manager to a project, the different requirements of the project and the accordingly essential project management skills should be considered. ^{[12] [11]} Also, the emotional intelligence skills of the project manager have a strong relationship with project success. This is also in line with the theory of Goleman, the higher in the organisation's hierarchy, the higher emotional intelligence is required. ^[11] Emotional intelligence and organisational support are essential for leaders to demonstrate transformational leadership capabilities. ^[10] Leadership's soft skills must be honed and executed correctly for leaders to reach their full potential. ^[10]

But not only the project and project manager can differ from project to project, but also the project team can vary widely in terms of business skills and techniques. For the successful execution of the project, the project manager should be both a manager and a leader. ^[7]

In common among all the studies across the paper Leadership Competency is that different leadership competencies are related to different contents of leadership success. ^[11] This is also in line with the worldwide web-based questionary that resulted in different leadership competencies required for different project types. ^[11] Where the competence of managers and leaders directly impacts organisational performance. ^[8] Overall, all projects' most eligible leadership success factors are critical thinking, influence, motivation, and conscientiousness. ^[11]

Annotated Bibliography

Below, the titles of the most relevant references are given. The sources of the titles can be found in this chapter References.

• McQueen, Z., Leadership vs. Management. 2021 ^[1]

- This book systematically approaches the similarities and differences between managers and leaders. Further, it gives a good overview of how to become a more effective leader. Additionally, it focuses more in-depth on the qualities of a manager and a leader. Especially in chapter one, the differences between managers and leaders are interesting.

• Harvard Business School online. How to Become a More Effective Leader. ^[2]

- The main purpose of this article is to answer the question of how to be a more effective leader. To answer the question a practical study to identify your leadership style and point out the most important points in leadership vs. management is conducted.

• Bass, B.M. From transactional to transformational leadership. 2003 ^[9]

- For a broader understanding of transactional and transformational leadership styles this article will clarify this. Especially the term how to transform from transactional to transformational will be discussed in this article. One important point is that both transactional and transformational leadership styles are important in organisational success.

• TURNER, J. RODNEY and MÜLLER, RALF. THE PROJECT MANAGER’S LEADERSHIP STYLE AS A SUCCESS FACTOR ON PROJECTS. 2005 ^[8]

- The purpose of this article is the starting point on the topic of the project manager's leadership style. The different leadership styles relate to the six important leadership schools in the past years. The topic is discussed based on a review of the different articles. It clarifies that the project manager has not been considered a success factor in project management so far and that there is a need for more research. Also, the research aims for another study is set.

• Müller, R. and Turner, R. Leadership competency profiles of successful project managers. 2010 ^[11]

- The article is based on a web-based questionary to answer the leadership competency profiles in project management across different project types. Successful project managers are highly connected to the skills: of critical thinking, influence, motivation, and conscientiousness. There are other sub-dimensions in different project types that are important for success.

• Ana L. Rosado, F. and Gregg A., T. A Framework for Exploring the Relationship Between Project Manager Leadership Style and Project Success. 2012 ^[7]

- A fascinating study with the purpose of clarifying the project manager's leadership style about the three dimensions of project success. This article shows a lot of different perspectives and concludes that there are different leadership styles required for different projects and different organisational structures.

  ^{[5] [4] [2] [1] [6] [3] [9] [10] [11] [7] [8] [12]}

References

1. ↑ ^{1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26} McQueen, Z. (2021) Leadership vs. Management: How to motivate and develop our team’s capabilities through effective communication, coaching, and training. Independently Published. External link
2. ↑ ^{2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17} HBS, O.T. (no date) Free E-book: How to become a more effective leader, Free E-Book | How to Become a More Effective Leader. External link
3. ↑ ^{3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11} Armstrong, M. (2009) A Handbook of Management and leadership: A guide to managing for results. London, United Kingdom: Kogan Page. External link
4. ↑ ^{4.0 4.1} Wajdi, B.N. (2017) “The differences between management and leadership,” Sinergi : Jurnal Ilmiah Ilmu Manajemen, 7(1). External link
5. ↑ ^{5.0 5.1 5.2} Răducana, R. and Răducana, R. (2014) Leadership and Management [Preprint] External link
6. ↑ ^{6.0 6.1} Mayer, J.D. and Caruso, D. (2002) “The effective leader: Understanding and applying emotional intelligence John D.,” Ivey Business Journal Online, pp. 1–5. External link
7. ↑ ^{7.0 7.1 7.2 7.3 7.4} Ana L. Rosado, F. and Gregg A., T. (2012) A Framework for Exploring the Relationship Between Project Manager Leadership Style and Project Success, THE INTERNATION JOURNAL OF MANAGEMENT External link
8. ↑ ^{8.0 8.1 8.2 8.3 8.4 8.5} TURNER, J.R.O.D.N.E.Y. and MÜLLER, R.A.L.F. (2005) THE PROJECT MANAGER’S LEADERSHIP STYLE AS A SUCCESS FACTOR ON PROJECTS. Project Management Institute External link
9. ↑ ^{9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8} Bass, B.M. (2003) From transactional to transformational leadership: Learning to share the Vision, Organizational Dynamics. Pergamon External link
10. ↑ ^{10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9} Asree, S., Cherikh, M. and Baucum, C. (2019) A Review of leadership Styles that Affect Project Success. International Journal of the Academic Business World External link
11. ↑ ^{11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8} Müller, R. and Turner, R. (2010) Leadership competency profiles of successful project managers, International Journal of Project Management. Pergamon External link
12. ↑ ^{12.0 12.1} Dulewicz, V., Higgs, M.J., 2005. Assessing leadership styles and organisational context. Journal of Managerial Psychology 20, 105–123. External link