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The fundamental differences between leadership and management, highlighting key skills and competencies required for effective leadership and management. It delves into various leadership and management theories, including contingency theory, situational leadership, transformational leadership, and transactional leadership, using examples from companies like haidilao and texas chicken to illustrate these concepts. A comprehensive overview of the distinct roles of leaders and managers in organizations, emphasizing the importance of understanding and applying these concepts for organizational effectiveness.
Typology: Exercises
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A leader sees how things can be transformed and motivates people to work toward a certain clearer vision. Leaders may try to make their vision a reality while prioritizing people. To be effective, leaders must be sympathetic and connect with others in addition to being able to encourage others. Leaders do not have to come from the same family or walk the same road. Future leaders will be more varied, bringing a range of viewpoints.
A leader enables their teammates to appreciate their own distinct leadership skills and act with self-accountability and enthusiasm. They encourage and motivate their people to keep making long-term development and being excited about attaining their objectives.
A manager is a professional who takes a leadership role in an organisation and manages a team of employees. Often, managers are responsible for managing a specific department in their company. There are many types of managers, but they usually have duties like conducting performance reviews and making decisions. Managers are often the line of communication between a company's employees and its high-level executives.
Leadership involves making sound -- and sometimes difficult -- decisions, creating and articulating a clear vision, establishing achievable goals and providing followers with the knowledge and tools necessary to achieve those goals. The qualities of leadership have proved harder to pin down than the less elusive functions of management, but have, nevertheless, provided a rich and growing seam of literature.
Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management functions include: Planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.
Skills for Leaders
Decisiveness : Effective leaders can draw conclusions fast based on the facts available to them. Effective decisiveness involves investigation, assessment, problem-solving, and goal-setting, all of which must be completed quickly. Integrity : Integrity in the organization frequently entails being capable of making ethical decisions and assisting the organization in maintaining a great image. Relationship Building (or Team Building) : Leadership necessitates the capacity to assemble and sustain a cohesive team of individuals operating toward a common objective. Problem-Solving : Good leaders are adept at resolving problems that develop on the job. Problem-solving abilities may assist leaders in making rapid choices, resolving difficulties with their employees as well as outside organizations, and ensuring projects are finished on schedule and according to requirements.
Skills for Managers
Interpersonal Skills : Management jobs are all about people, and being able to build successful relationships is integral. Technical Skills : Technical management skills are closely related to the technical or engineering dimension of management. They give managers the knowledge and ability to use different techniques to achieve what they want to achieve. Conceptual Skills : Conceptual skills present the knowledge or ability of a manager for more abstract thinking. That means he can easily see the whole through analysis and diagnosis of different states.
Competences for Leaders
Self-Discipline : Leaders behave not for their personal benefit, but for the benefit of others. They carefully evaluate the potential ramifications of their actions. Communication : Effective leaders must have strong interpersonal abilities. Leaders are open to sharing their thoughts and objectives with their teams. Trustworthiness : Trust is an essential component of every job. To efficiently manage and lead, the leader must demonstrate their trustworthiness to both the superiors and the teammates. Initiative : Effective leaders recognize a requirement and take appropriate actions to satisfy it. They concentrate their efforts on getting critical initiatives off to a solid start.
leader-member relations, high task structure and high leader position power (Director, 2021).
Situational Theory
Situational Leadership is flexible. It adapts to the existing work environment and the needs of the organization. Situational Leadership is not based on a specific skill of the leader; instead, he or she modifies the style of management to suit the requirements of the organization (Yun., 2009).
One of the keys to Situational Leadership is adaptability. Leaders must be able to move from one leadership style to another to meet the changing needs of an organization and its employees. These leaders must have the insight to understand when to change their management style and what leadership strategy fits each new paradigm.
For example, at Haidilao, the coaching kind of leadership style is applied since employees are empowered with their own power in creativity and actions of kindness to customers, but need to be carefully organized, observed and controlled based on the characteristic of F&B businesses that a small mistake can terribly damage the brand image (BARISO, 2021).
Transformational Leadership
Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership enhances the motivation, morale and performance of followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimize their performance.
For example, at Haidilao, there is an annual competition called "Best Employee of the Year" in which the employee is competing with thousands of other employees nationwide thus inspire them and motivate them to do their work and go extra miles (VnExpress, 2022).
Transactional Leadership
Transactional leadership, also known as managerial leadership, is a leadership style where the executive relies on rewards and punishments to achieve optimal job performance from his or her subordinates. As such, transactional leadership is based on an exchange, or transaction: The leader rewards workers who perform their tasks to the specified levels and punishes workers who do not perform to those set standards.
This relationship between leader and subordinates is based on theories that assume individuals are not self-motivated to do their tasks and need structure, instruction and supervision to accomplish their jobs. The theory also postulates that workers will perform their tasks as the transactional leader wants them to do in exchange for the leader's offering something that the workers want, such as pay.
At Texas Chicken, in addition to a satisfactory level of income through salary; reward business and work efficiency, Texas Chicken applies many welfare regimes showing great concern for employees (Anh, 2019). This is a form of contingent award in transactional theory. In addition to the welfare regimes commonly found in companies such as bonuses for holidays, New Year's Day, birthday celebrations, visits, and filial piety, Texas Chicken employees in Vietnam are also concerned about their spiritual life and health. The Group participates in advanced health insurance for employees and allows relatives to participate. Enterprises also encourage and support employees to join clubs, gyms, spas... or lend money when buying houses, cars, jewelry.... In addition, employees' children also receive gifts, rewards, congratulatory money for International Children's Day, Mid-Autumn Festival or have high achievements in study, culture, sports... Relatives of employees are also encouraged and visited when they are sick. (Anh, 2019)
Inspirational Leadership
An inspirational leader may well adopt various styles of leadership depending on what the situation calls for, without ever sacrificing the inspirational aspect of their approach (Bass, 1988). It is about using the right methods at the right time, and taking into account the needs and motivations of those you are leading.
In some cases, the highly directive approach will be precisely what is required, and will be what inspires your reports. Other situations will require a less directive approach, where employees are encouraged to take the lead and push for change themselves.
Inspirational leadership, at its core, is about finding ways to enhance the potential of those you lead in a way that works for them, and inspiring others to push themselves, achieve more and reach that potential. The methods by which this is done– will vary from person to person, and business to business, but the outcome is always the same people developing a greater confidence in what they can do, and applying this confidence in a way that benefits the organization they work for.
For example, at Haidilao, employees will have a chance to be trained by their leaders and managers about soft skills and metrics such as OKR and KPI thus inspire employees to unlock their capabilities and meet the KPI and OKR (Haidilao, 2022).
Leadership and Management Styles and
Organizational Culture
Likert's Systems 1-
The Likert Management System is a theory. In about the '60s, Rensis Likert developed four management styles, intended to describe the relationship, roles and involvement of managers and subordinates in industrial environments. It includes: exploitative authoritative, benevolent authoritative, consultative and participative.
At Texas Chickens, the leadership style is more of the benevolent authoritative since the system uses less control over employees than the exploitative authoritative system. Texas Chicken in fact empowers employees to make their own decisions and innovations to some extent under the (Chi, 2019). However, this system as Texas Chicken motivates employees through potential punishment and rewards as yearly bonus and KPI bonus of Texas Chicken as proposed above. Lower-level employees are more involved in the decision making processes, such as the store managers to make their own decision at each store of Texas Chicken (Texas Chicken, 2022). This leads to some form of innovation at Texas Chicken such as Texas Chicken Smart, an online platform innovated by Texas Chicken employees (Texas Chicken, 2022).
Theory X and Theory Y
The idea that a manager's attitude has an impact on employee motivation was originally proposed by Douglas McGregor, a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s (Farris, 1974). In his 1960 book, The Human Side of Enterprise, McGregor proposed two theories by which managers perceive and address employee motivation. He referred to these as Theory X and Theory Y.
For example, at Haidilao, the theory Y is implemented since it gives employees the freedom to speak and raise their voice along with managers to do the task at best. Empowering and giving responsibilities is witnessed in the firm and the innovation often occur from bottom-up (He, 2022).
Cultures of Organizations
Based on two dimensions, Charles Handy and Roger Harrison followed various organizations and examined how power was distributed and the specific levels of cooperation. The power distribution from low to high is placed on the y-axis, and the level of cooperation from low to high is placed
on the x-axis. The various combinations then result in four different organizational cultures (Handy, 2007).
With the large company like Texas Chicken, it is implementing a task organizational culture since the power is clearly divided based on the organizational chart, and authorities are clearly defined (Texas Chicken, 2022). With this task culture, teams are formed to obtain business goals. The teams at Texas Chicken can be named as marketing teams, different sales teams at different stores, production teams, quality control teams, delivery team, IT team, etc. (Texas Chicken, 2022). This will specialize the field of profession of employees and help them to work more efficiently with other people in the same professions likewise. If a team is built to include different professions, it is harder for the manager and leader to control the performance and have the detailed results of employees than the task culture.
There are several factors affecting the development of organizational culture (Khoshtinat, 2016):
History
The reason/mission, and manner in which the organization was originally formed, its age, and the philosophy, vision, and values of its owners and first senior managers will affect the culture. For example, the long-lasting history of Texas Chicken since 1994 makes it more valued than others. However, as an F&B business, it is also innovative and adaptive to changes.
Nature of Business and its Primary Function
This includes the range and quality of products and services provided, the importance of reputation, and the type of customers. The primary function of the organization will determine the nature of the technological processes and methods of undertaking work, which in turn also affect the structure and culture. The type of production, which is F&B, makes the business culture tend to be more innovative than other types of products since the F&B market changes day by day.
Strategy
The combination of objectives and resultant strategies will influence the culture, and may itself be influenced by changes in culture.
Size
Usually, larger organizations have more formalized structures and cultures. Increased size is likely to result in separate departments and possibly split- site operations. Texas Chicken has a relatively large size with 20,