CAN LEADERS MANAGE AND MANAGERS LEAD?

 

 

 

 

Many people frequently use the terms “leader” and “manager” interchangeably, but these roles involve two different sets of skills. According to Steven Covey, author of The 7 Habits of Highly Effective People, “Leaders and managers are two different things. Leadership is not management. Leadership has to come first. Management is a bottom-line focus: How can I best accomplish certain things? Leadership deals with the top line: What are the things I want to accomplish?” (2017, p. 107).

The roles of leader and manager are both fundamentally important to an organization. Managers are required to keep things running smoothly and leaders are needed to provide direction and motivation and to produce change. A person can be both a good manager and a good leader, but this is not always the case. For this Discussion, you will examine the leadership skills and management skills of the leaders with whom you have worked.

To prepare for this Discussion:

Reflect on your professional experience with leaders with whom you have interacted as a follower, colleague, or supervisor. Consider the strengths and weaknesses these professionals had with regard to leadership and management skills. How well did they perform their roles as managers and as leaders?
Then, drawing from your professional experience, identify a leader with whom you have interacted as a follower, colleague, or supervisor that matches only one of the following descriptions:
They are a good leader lacking effective managing skills.
They are a good manager lacking effective leadership skills.
They are an effective leader and manager.
They are neither a good leader nor manager.

Post an analysis of leadership versus management in business, being sure to address the following:

Without giving the actual name of the leader you have selected, identify their strengths and weaknesses as a leader and as a manager. Then distinguish the individual’s leadership skills from their management skills.
Analyze the effect the leader had on the business environment where you worked at the time. Was there a need for both management and leadership from this individual? Explain why or why not.
Identify two lessons learned from working with this leader that you could apply to your own professional practice as a leader and/or manager.
Refer to the Week 1 Discussion 2 Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.

 

Sample Solution

Leadership and management are often considered to have overlapping functions. While this can be true, these two terms have different meanings and shouldn’t be used interchangeably. Both imply a unique set of functions, characteristics, and skills that share similarities. However, they show prominent differences in some circumstances. For example, some managers do not practice leadership, while others lead without a managerial role. While a managerial culture emphasizes rationality and control, leaders are more about looking for opportunities for improvement on the organizational level. They do so by coming up with new ideas and driving the shift to a forward-thinking mindset.

In addition, Rehman (2006) examined the how WCM impacted on financial performance of Pakistani firms listed on Islamabad Stock Exchange (ISE). The study focused on the implication of average payment period and cash conversion cycle on the net operating profit of firms. An empirical study was conducted on working capital management as a financial strategy for Nestle Nigeria PLC. The firm under study was selected for a period of five years, that is, from 2004 to 2009. The study analyzed the effect of various constructs of WCM which included current ratio and collection days on gross profit movement coefficient.

 

 

The results obtained by Rehman (2006) indicated that there exists a negative correlation between current ratio and financial performance. The collection days were regressed against ROCE. The pertinent results showed that, the relationship between the two variables was negative. This implied that a reduction in collection days increased financial performance of the firm. Generally, therefore, the study revealed that WCM as a financial strategy not only affects firm liquidity but also its financial performance.

2.3.2 Firm Characteristics and Policies

Certain firm characteristics are associated with high performance of firm. These include size, growth rate, dividends, liquidity and sales (Love & Rachinsky, 2007). The forms that have better growth rate can afford better machinery, and then gradually the assets and size of the firm will increase. Large firms attract better managers and workers who in turn contribute to the performance of the firm. So, both firm and its people support each other’s goals. A study on Saudi’s cement manufacturing firms indicated that the firm size is directly proportional to firm’s financial performance (Almazari, 2013). These findings concurred with a previous study conducted in Pakistan where it was noted that firm size had a significant effect on the financial performance of the firm (Raheman, Afza, Qayyum & Bodla, 2010).

According to Berger and Bouwman (2012) the extent to which higher capital ratios increase the performance of commercial banks during the time of stress is determined significantly by the size of the bank. A study conducted in Nigeria BY Bassey, Aniekan, Ikpe and Udo (2013) indicated that the size of the firm was one of the firm characteristics that were significant with debt ratio of the firm. Moreover, when examining agro-based firms in Nigeria between 2005 and 2010, Bassey et. al., (2013) noted that the firm size was one of the major determinants of short-term debt ratio for the firms under study. A study on listed

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