While leadership is the manner of influencing others on their actions in order to achieve desirable ends, managing is maintaining the objectives of an organisation in an effective and efficient manner in order to achieve the organisation’s goals (Bush 2008). However, despite having different roles inside an organisation, managers and leaders share some similar skills and styles.
According to CMI, attitudes and behaviours are the main factors of management and leadership (2012). If leaders decide to behave with a more authoritarian manner, it is more likely that Theory X from Source: LARosadoII McGregor’s framework will be adopted from managers. McGregor argues that managers are more controlling and less likely to trust subordinates in Theory X because they believe that employees avoid taking responsibilities as well as being lazy and dislike working (Mullins 2013). Steve Jobs is one example of autocratic leadership style as he was a very demanding leader and he wanted to be part of every detail or decision within the company (The Telegraph 2011). However, for many people he was a great leader as he was able to inspire people and make them follow him, making Apple to become one of the most respected brands in the world.
The democratic leadership style is more related to Theory Y from the McGregor management attitudes and behaviours model. It is less extreme and formal compared to Theory X, where employees are motivated by managers and they are willing to be self-directed and accept responsibilities.
Leaders that adopt the Laissez-faire style are more flexible and likely to behave in the same manner as managers that implement McGregor Theory Z, allowing employees to have more ‘freedom’ when responding to responsibilities and obligations. In addition, it is less likely for the organisation to have a high hierarchical structure and therefore, trust is developed among managers and employees to achieve high productivity.
Video: http://www.mckinsey.com/videos/video?vid=2341023340001&plyrid=2399849255001&Height=270&Width=480
As mentioned before, managers and leaders have different job descriptions; however, managers are able to develop leadership skills. From the video, Useem argues that leaders are becoming more flexible and, most important, working along with the top management to lead the organisation (2013). According to Richard Branson, one of the most important aspects to be a great leader is being a great listener and motivator, delegating responsibilities throughout the team and give them trust and freedom to run the company as well as freedom to make mistakes (2013). As a result of this democratic leadership style, top managers have more power distributed, allowing them to develop their leadership skills and being a vital part on the vision, strategy and decision making of the group.
These leadership and managing styles are sometimes inter-related with the society where the company is allocated. Delegating international assignments for managers with an authoritarian style into a democratic society can be very challenging as the workers’ expectation as well as the expatriated manager might differ. According to Kennedy and Anderson’s research, employees are less likely to accomplish the objectives established by managers when they have little or no control over the desired tasks (2002). Expatriated managers should not believe that the same approach would work for both countries. Workers may feel less motivated and limited to personal achievements if communication and trust is not developed. Therefore, expatriated managers should be more flexible as well as having the ability to solve problems and communicate effectively.
According to George, employees’ motivation and customers’ satisfaction are among the priorities for Multi-National Companies (MNCs) in the 21st century as they are the key aspect to maintain revenue growth, which generates shareholder value (2010). In order to accomplish that, managers should give more opportunities for employees to explore their strengths in order to overcome their weaknesses. Buckingham argues that ‘’great managers perform their magic by discovering, developing and celebrating what is different about each person who works for them’’ (2005). Great managers are good observers and listeners, thus, they can identify the different skills of each employee. One of the approaches adopted by managers is shifting the employee in order to find their true strengths. If an employee is satisfied and able to achieve higher performance on customer service during his shifting roles within a company, a great manager should approach him, allocate him and praise him for his good performance.
As a member of a team, it is enjoyable to be part of a team led by a democratic style of leadership, as it is gratifying to be allowed to take control of the tasks, make mistakes and learn from these mistakes. In other words, instead of humiliating others, managers need to have the ability to approach a member when a mistake is done and find a solution to repair it. Furthermore, being rewarded when tasks are positively achieved with personal commitment and effort, it motivates not only the member itself but also all around them.
References
Branson, R. (2013) Eight lessons from successful business leaders [online] available from <http://www.news.com.au/finance/work/eight-lessons-from-successful-business-leaders/story-e6frfm9r-1226600391212> [10 December 2013]
Buckingham, M. (2005) ‘What great managers do’. Harvard Business Review [online] available from <http://hbr.org/2005/03/what-great-managers-do/ar/1> [09 December 2013]
Bush, T. (2008) ‘From Management to Leadership: Semantic or Meaningful Change?’. Educational Management Administration & Leadership 36 (2), 271-288
CMI (2012) Understanding Management Styles [online] available from <http://mde.managers.org.uk/members/htmlviewer.aspx?id=1133693> [09 December 2013]
George, B. (2010) ‘The New 21st Century Leaders’. Harvard Business Review [online] 30 April. available from <http://blogs.hbr.org/2010/04/the-new-21st-century-leaders-1/> [10 December 2013]
LARosadoII (2013) Management vs Leadership [online] available from <http://larosadoii.com/management-vs-leadership-part-ii/> [09 December 2013]
Mullins, L. J. (2013) Management & Organisational Behaviour. 10th edn. Harlow: Pearson Education Limited
The Telegraph (2011) ‘Virgin’s Richard Branson: Apple boss Steve Jobs was the entrepreneur I most admired’. The Telegraph [online] 06 October. available from <http://www.telegraph.co.uk/technology/steve-jobs/8811232/Virgins-Richard-Branson-Apple-boss-Steve-Jobs-was-the-entrepreneur-I-most-admired.html> [09 December 2013]
Useem, M. (2013) Leading in the 21st century: An interview with Michael Useem [online] available from <http://www.mckinsey.com/insights/leading_in_the_21st_century/interviews_with_leaders?cid=other-eml-alt-mip-mck-oth-1311> [10 December 2013]
culcandradep 
I totally agree with what was said by Buckingham managers need to approach each employee differently especially when dealing with different range of age or gender. You can have a really unpleasant job but when the team is friendly and management fair reasonable and appropriate it could turn into a really enjoyable place to work for! After all we are all human beings and everybody has a different story! In my opinion, McGregor’s theory is the worst as employees will certainly behave that way when treated as an enemy rather than part of a team
Thanks for your contribution Caroline. Actually McGregor’s management attitude and behaviour model refers to 3 different types. However, the most used are Theory X where management have a very centralised power with decision, procedures and tasks conducted in an authoritarian manner; and the Theory Y which is related to a democratic approach and I believe is the one you were referring when you mentioned Buckingham. I do prefer to be part of a company with a more sense of freedom and pleasant work environment in terms of personally having more control of the tasks, less formal way of communication and having the feeling of being valued.
A very well presented article about the different ways mangers relate to employees. As stated previously by Richard Branson, “one of the most important aspects to be a great leader is being a great listener and motivator, delegating responsibilities throughout the team and give them trust and freedom to run the company as well as freedom to make mistakes”. I truly believe in that, as the owner of a recently started company, I have come to realize that putting my trust and allowing my employees to be fully part of the development of my company, they feel as they are part owners of the company. They always come in to work happy, willing to work overtime, and prepared to go at any length to make the company a success, this is because they know they are part of a team that understands and respects them not only as individuals, but as employees.
Thank you Martins. As a owner of a business, what do you think about Steve Jobs and his leadership style? Was he a great leader or a successful leader? Because anyone can be a leader, we have leadership skills, but the dilemma is how to become a great leader. Nelson Mandela was a great leader as he was a great inspiration and people with different thinking were willing to follow him. He was a very tolerant person able to share his vision to the South African people against the apartheid as without war South Africa could be united. As a human we are always in a process of learning, and great leader have the ability to listen.