The difference between leader and manager can be summarized this way: “When you are a leader, you work from the heart. As a manager, you work from the head.” Although it is probably more complex than that, the point to remember is the difference between what you do as a leader and what you do as a manager-and the constant need to be able to do both. Furthermore, the head and heart need to be partners, not independent operators. A manager focuses attention on efficiency, effectiveness, and making sure the right things happen at the right time. For instance: You are in a manager role when you set performance objectives with staff, prepare budgets, review cash flow projections, develop action plans, and evaluate programs or fund raising strategies or any other aspect of the company. Managing may also include doing hundreds of other tasks that require focused and logical attention Continue reading
Management Concepts
Absence of Organizational Structure and Its Impacts
Organizational structure, a popular phenomenon in the dynamic business world, can be defined as the manner in which a company allocates its management responsibilities and how different activities are coordinated within the firm. The structure of an organization will always influence its success. A well-devised strategic and operational framework is more likely to enable the company to attain its objectives easily than a roughly sketched one. Small enterprises generally start without a formal organogram but gradually add hierarchical corporate entries with departments, executives, and other subordinate minions as the business expands, thus realizing improved performance. On the contrary, the absence of such a setting in a business implicates operational inefficiencies that may eventually push it out of the market as a result of competition. High Rate of Turnover – Employee turnover, often known as staff renewal rate, is a problem in which employees quit their jobs frequently and in large Continue reading
Causes of Resistance to Organizational Change
The main reasons for resistance to change are both individual and organization. The research document of individual and organizational behavior has found that organization groups and individuals resist change. Resistance to change provides a degree of stability and predictability to behavior, as it does not allow immediate change. If there was no resistance to change the organization will take on characteristics of chaotic randomness. Read: Reactions to Organization Change There may be reasons for resistance to change for analytical purpose, lets us categories the causes into the following. Individual Resistance. Group Resistance. Organizational Resistance. 1. Individual Resistance Individual arise due to differing perceptions, personalities and needs. Some of these reasons appear to be rational and emotional. These reasons are listed below, a). Economic Factors The economic reasons for the resistance to change may be the following: In organization when the development or change on technology takes place, employee resists the Continue reading
Five Sources of Power Used by a Leader
A leader is a person who can influence the behavior of others without using force. Leadership also means that the process of influencing a group to achieve goals. There are three main types of leadership style, they are autocratic, democratic and laissez faire. Besides the three main types of leadership styles, there are also five sources of power that used by a leader, they are coercive, reward, legitimate, expert and referent. First, the autocratic style of leadership, it is also called the leader centered style. This type of style described a leader who tended to centralize authority, make unilateral decisions and limit employee participation. An autocratic leader always tells the people that what should be done, the employees have to perform the work without changing any of the orders. There are three main characteristics of autocratic leadership style, they are formal relations, centralized authorities and single man decision. Formal relations Continue reading
Leading Versus Managing – A Comparison
In this era of globalization for today’s workplace, people always like to say that “A manager may be a leader; a manager may not be a leader, but a leader may emerge who is not a manager.” So what its means of this phrase? It means that a leader and a manager could be different. For example, an outstanding leader may have superior management skills, but not all managers could possess true leadership skills. In short, it is possible for the role of manager and leader not to be connected at all. This phrase is important to prove that having both talented managers and dedicated leaders make the business success. Why? Let’s see the difference between managers and leaders as following. Manager and Leader – Definitions By definition, a manager is an individual who is given a position and the power within an organization. In normal circumstance, he is normally Continue reading
Various Aspects of Business Failure
Business failure occurs due to different reasons. While few firms fail within first year or two of life, few others grow, mature and fail much later. The business failure can occur in a number of ways and also from different reasons. Why Business Firms Fail Let us try understand the different reasons why corporate often fail; An imbalance of skills within the top echelon. A chief executive who dominates a firms operations without regard for the inputs of peers. An inactive board of directors. The board of Directors lack of interest in the financial position of the company may lead to insolvency. A deficient finance function within the firm’s management. The absence of responsibility for the chief executive officer. Apart from the above mistakes the firm usually is vulnerable to several mistakes; Management may be negligent in developing effective accounting system. The company may be unresponsive to change. Management may Continue reading