Leadership vs. management

Revision as of 17:34, 26 February 2019

When thinking of the leaders in our life many of us might think to ourselves that they must be born to be leaders, that it must be abilities they were genetically blessed with. As where, when thinking of managers, most of us probably have an idea that there is a possibility to learn how to become one. To separate the two terms many theories can be applied. Where some leadership theories will resemble management theories and others will have a completely different aspect to them. When looking at leadership many theories apply on how to become a great leader. Theories from Transformational leadership which was initially introduced by James V. Downton defines the shifting leadership to enhance motivation in followers to reach certain goals, to the Transactional leadership. Where transformational leadership is one of the theories that distinguishes Leadership from Management. Where the Transactional Leadership resemblances the definition of management that is represented in the PMBOK® Guide [2]. Looking at the terms on a project base there would typically be assigned a project manager to manage the project, who is assigned to work towards a certain goal of the project but still sticking within the frames set. Basically, a project manager is assigned to do administrative work, to make sure that the project runs as planned, not shifting from this. During a project, the project manager or a colleague can act as a leader of the project if finding themselves being someone who motivates people to get the best results possible. Whether a project manager can also be a project leader, will be addressed in the article.

Background

In 1977 a debate rose from a newly released article by Harvard Business School professor Abraham Zaleznik, with the title “Managers and Leaders: Are They Different?”. The article created discord in business schools, and the study of leadership and management has not been the same since. Zaleznik argued that managers are all about taking a path of stability and control while trying to resolve problems, which they might not know the significance of. He also argues that managers focus on how to decide, not what decision to make. Leaders on the other hand embrace chance, even if it comes with the disorder and without structure [1]. In 1990 John P. Kotter published the article “What Leaders Really Do” to address the article by Zaleznik and the arguments that he makes. Kotter argues that leadership is not something mystical or something only a few people can do, and neither can it be claimed that leadership is anything more than management. Kotter though agrees with Zaleznik, that management is about control and stability while leadership is about embracing chaos, where Kotter [1990] puts it as “Management is about coping with complexity. Leadership, by contrast, is about coping with change” [2]. Management and leadership have been and still are somewhat undefined terms, as they can be interpreted differently depending on the situation.

Structure of this article

• In the first section leadership and management in projects will be addressed and explained. This will be done by using the theories of transactional and transformational leadership as well as the definition of project management from PMI and PRINCE2.

• In the following part the use of leadership in project management will be addressed.

• In the last part will report the limits of the addressed leadership styles as well as management in projects.

Definition of project management

“Project managers manage the project team to meet the project objectives” ^[1].

A project manager is assigned to achieve the objectives of a project within the performance targets: Time, cost, quality, scope, benefits and risk.

A project managers job is to ensure the assigned team work towards the goal set for the particular project, by operating with the following:

• Planning

Plan the way towards the goal, how are we going to get there. Doing it the right way. Creating a timeline for the project and sticking to it.

• Delegating

To ensure effectiveness, who should perform which task and at what time.

• Monitoring

Monitoring whether the team is performing as planned. A project manager should ensure that the assignments are executed as it is agreed.

• Controlling

Is the team doing what they are supposed to. Is the project within the budget and within the timeframe.

(This chapter will be elaborated and an illustration will be added)

Definition of leadership

In PRINCE2 leadership capabilities are not provided, as they suggest that leadership is imperative in project management but also comes in so many variations that it is impossible to define in a method. ^[2].

In PMI Guidebook The guidebook ^[1]. Various leadership styles are defined as tools managers can use in projects. The guidebook [3] suggests as Prince2 that leadership is an important part of the management role, to motivate the project teams or individuals. In this article the two following leadership styles will be addressed: Transactional: "where a leader can give rewards to employees based on the accomplishments." Transformational: "where a leader empowers followers through inspirational motivation and encouragement for the followers to be innovative and creative." Will also be addressed in theories “Leadership skills: skills that involve the ability to guide, motivate, and direct a team.”

Definition of leadership

In PRINCE2 leadership capabilities are not provided, as they suggest that leadership is imperative in project management but also comes in so many variations that it is impossible to define in a method. [4] In PMI Guidebook The guidebook [3] various leadership styles are defined as tools managers can use in projects. The guidebook [3] suggests as Prince2 that leadership is an important part of the management role, to motivate the project teams or individuals. In this article the two following leadership styles will be addressed: Transactional: where a leader can give rewards to employees based on their accomplishments. Transformational: where a leader empowers followers through inspirational motivation and encouragement for the followers to be innovative and creative. Will also be addressed in theories “Leadership skills: skills that involve the ability to guide, motivate, and direct a team.”

Theories

Transactional leadership

Transactional leadership is a leadership style where a leader highlights the transaction between colleagues. The transaction is based on a vision or goal shared by the leader by which the followers will receive rewards if they fulfill the requirements.

A transactional leader will reward effort, and by the beginning of a project, they will contract rewards for good performance. Basically, if an employee makes the right accomplishments the leader will recognize this and reward the performance of the individual or team. In case an individual deviate from the set of rules or standard applied to the project, a transactional leader would take corrective action. A transactional leader is a passive leadership style with the exception of intervening in the project if there is a deviation from the rules and standards. ^[3].

Transformational leadership

In some ways, transformational leadership is an extension to the transactional leadership, but is an active leadership style, as the leader intervenes in both the team's performance as well as the individuals. The leadership style is about inspiring the leader’s colleagues and followers to accomplish superior results by using one or more of the four competencies of transformational leadership.

1. Idealized influence (II)

   A transformational leader behaves in certain ways to be role models, which makes their followers admire, respect and trust them to do the right thing in a giving situation. Leaders who possess a lot of idealized influence are more likely to take risks, but their followers can expect them to act with high standards of moral.

2. Inspirational Motivation (IM)

   Another competence of a transformational leader is their way of motivating and inspire their followers, by giving their work meaning or challenge them in some way. The leaders can do this by sharing their vision of an attractive future, that lies ahead of the work that must be done.

3. Intellectual Stimulation (IS)

   Another way a transformational leader can inspire more accomplished work from their followers is to stimulate their urge to be innovative and creative with their execution of the assignment. A way to inspire this is for the leader to praise new ideas or encourage creative ways of looking at the problem at state.

4. Individualized Consideration (IC)

   The last core trait of transformational leaders is to act as a coach or mentor for the individual follower. The leaders focus should lie on the individual’s goals for achievement and development of their own leadership skills. This is essential for the individual to reach their own full potential.

Transformational Leadership

Leadership and management as a project manager (application)

The terms leadership and management are often mistaken to be the same things, but this is not the case. Management is, as described earlier, directing an individual or a team towards a set goal, by using the four components from figure [xx]. Leadership, on the other hand, is about focusing on the people, and how they are motivated to do their best when reaching for a goal, also including thinking out of the box.

For a project manager to be successful, they would need to make use of both their management- and leadership skills. Though finding the right balance between the two in each situation is what makes the difference between “standard” and great in project management.

Limitations

Annotated bibliography

• A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition

Chapter 3 - 3.4.5 Comparison Of Leadership And Management

References

1. ↑ ^{1.0 1.1} Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition) - 1.2.3.1 Overview. (pp. 14). Project Management Institute, Inc. (PMI). Retrieved from https://app.knovel.com/hotlink/pdf/id:kt011DWZR1/guide-project-management/overview
2. ↑ AXELOS. Managing Successful Projects with PRINCE2 2017 Edition, The Stationery Office Ltd, 2017. ProQuest Ebook Central, https://ebookcentral-proquest-com.proxy.findit.dtu.dk/lib/dtudk/detail.action?docID=4863041.
3. ↑ Bass, B. M., 1990. Organizational Dynamics. [e-book] Elsevier Inc. Available at: https://www.sciencedirect.com/science/article/pii/009026169090061S [February 22, 2019].

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