Introduction
The economic and social wellbeing of the society depends substantially on an effective and efficient performance of organisations. Management and leadership activity in the United Kingdom organisations becomes necessary, and the weakness and opportunities that exist should get addressed to realize a further advantage based on enhanced performance (Goetsch & Davis, 2014). Thus, excellent and adequate management and leadership skills are essential tools to achieve the best in organisations. The current ideas of the nature of leadership and management have evolved significantly over several decades to encompass new ideas including emotional intelligence, especially in organisation and planning (Giacalone & Rosenfield 2013).
According to recent UK studies, the expansion of leadership and management skills has been realised in most situations by understanding how consistency and integrity should fit in the organisation. The contexts under which management and leadership apply include public, private and non-profit organisations (Giacalone & Rosenfield 2013). Accordingly, administration and leadership skills should be realised to achieve maintenance and creation of organisational processes which in turn creates an economic and social benefit to the company or business institution. Therefore, the debate on management and leadership will continue to raise issues about how the two serve their purpose. Suffice to say that the most important aspects of management and leadership that give people the sense of direction and motivation remain a crucial matter that needs to be discussed.
Porter (cited in Porter & Ketels 2003) recognises this when he says that management and leadership are a decisive factor for the British economy to achieve a higher level of performance. From a macroeconomic perspective, Porter gives a direction through international comparative data, placing emphasis on the business environment where the company is at present. These include infrastructure, investment practices and traditions and liberty of the economic market and policies applied to regulate the business climate (Li & Zhang 2007). Aspects of management show in different forms that exist in individuals, organisations and teams. Other factors include innovation, commitment, motivation, and efficiency. This paper describes the key aspects of leadership and management and the impact this can have on colleagues.
The significance of efficient administration and leadership for purposes of proper operation has become necessary in business innovation. Most organisations, both private and public, fail to achieve the full potential based on the managerial shortcomings and absence of strategic thinking.
Survey was conducted on 3,871 executives about effective leadership, and found that there are various types of leadership, drawn from emotional intelligence context. Styles greatly affect the functioning of the company, including its units and entities, and subsequently its financial standing with other companies (Shambaugh 2013). Leadership development should not be based on one model only, or the organisation looks stagnant, and fears innovation. Many successful executives and organisations fail – after a short period of success – because they rely on the same leadership approach that brought them success from the beginning. Today’s leadership models may not be effective in the future business environment. The world is always changing, the same with the business world (Shambaugh 2013). Leaders should change and must accept innovation, from time to time.
Overcoming leadership deficiencies requires an improvement in the management capability and development. This means enhancing the culture in the organisation, improving organisational resilience, confidence and skills, responding to the current market trends and challenges, and improving competitive advantage (Burgoyne, Hirsh & Williams 2004). Strategic and planning skills, people management, risk management, including financial management help raise business performance and economic progress (Burgoyne, Hirsh & Williams 2004).
Management involves activities that include planning, controlling, commanding and coordinating. Henri Fayol states that planning requires an action blueprint that involves the various departments of an organisation (Bass 1990). Time is a major factor in planning, which includes a stepwise approach in resource allocation and meeting targets. Organising includes sufficiency in staffing, capitalisation, and raw materials all needed for the fast operation of the business (Bass 1990).
Michael Porter has formulated several theories and definitions of strategy. He defined strategy as providing “trade-offs” for business competitors. Grant (cited in Trathen) added that strategy is the reaction instituted by an organisation to use its “resources and skill” and the other actions, including risks, produced by its external environment. Organisational assets, including knowledge, are fundamentals for consideration in the trade-off situation aimed at accomplishing environmental fit.
Strategy is related with leadership. Organisations view leadership as a way to attain competitive advantage. Traditional theories on leadership behaviour focused on various phenomena, some of which touched on team members’ relationships, the delivery of supervision and assistance, and influencing appropriate behaviours (Shamir et al., cited in Trathen 2007).
Management and leadership development are aspects of great concern that affect the performance of business. The performance here includes the degree of achievement of economic and social goals that determine the bottom-line for the fulfilment of a particular business. This issue can be categorised into target performance, satisfaction from the stakeholders or other methods.
Significant research considers the manager to be a high performer. It is an approach based on the tasks or activities and behaviours or skills. It takes into account the personal qualities that a person exhibits. Improvement in the selection process becomes important in analysing the capabilities of management. Some scholars use the term leadership in a manner to relate to the transformational aspect involved at any level of management. Leadership thus refers to a person concerned with the mission, change, inspiration and purpose. For some scholars, the term leadership and management get defined as a single entity (Burgoyne, Hirsh & Williams, 2004).
However, Bennis (2003) indicates that leadership and management are distinct and independent of each other. But when both skills are combined, they provide optimal performance (Bennis 2003). Bennis explains that there are differences between leaders and managers, which can be crucial: a leader is made through education, while a manager through training. The training feature for managers can be “narrow,” “rote,” “passive,” and “left brain,” while education aspect for leaders is “broad,” “experiential,” “active,” and “whole brain” (Bennis 2003, p. 40).
According to Kouzes and Posner (2002), exercising the ‘Five Practices of Exemplary Leadership’, which includes (1) Modeling, (2) Inspiring, (3) Challenging, (4) Enabling, and (5) Encouraging, assures successful relationships between leaders and constituents. These five practices reflect key traits that characterize a highly regarded leader. Extensive empirical data supports Kouzes and Posner's (2002) leadership model.
Moreover, the management competency frameworks describe the ability of the human resource management to perform specific tasks. Some issues illustrate the need to address issues including management skills and competencies. A conceptual framework basically applied by most individuals involved separating the process into some activities that require management of personnel, finance, and information.
New theories have focused on leaders that are able to convincingly and reliably change focus of those who rely on being led to behaviour of independence, i.e. free to lead and be a part of the group that focus on creativity and improvement of the team and the organisation as a whole. This needs charismatic leadership, described as the ability to unleash the organisational power and potential by appealing to morality and shared values through the use of self-confidence, self-sacrifice and inspirational communication (Flynn & Staw 2004).
Charismatic leadership was first introduced to church leaders, but now it has been applied to a group of leaders who are able to convince followers to observe and follow certain guidelines and principles for the good of the organisation. Leaders with charismatic traits show confidence, ascendancy, a sense of mission, and the skill to eloquently explain the vision for employees to grasp (House; Conger as cited in Flynn & Staw 2004).
Management in Drucker’s (2007) definition is linked with tasks, responsibilities and practices. It is the capability to control and maintain the culture of the social and personal behaviour in a group environment (DiGiulio 2000). Managers aim to channel power and authority towards more constructive efforts to impact and influence people in positive ways. Csikszentmihalyi (2003) argues that the main task of a manager is to motivate the followers to work together as efficiently as possible so that people give their best. Kounin’s (1970) and Posner’s (2002) studies focused on high expectations, which are powerful attributes because they are the frames that people can fit reality into. High expectations can lead to high performance (Kouzes and Posner 2002).
Executives are constantly pressured to provide results. As leaders have to know how to respond to immense pressures, they have to also determine their weaknesses and insufficiencies, take suitable learning-based programs to improve their capability in order to become better leaders and managers. Leaders that grow and reach this stage of maturity often experience a change in themselves, from a selfish, autocratic and defensive, and directive leadership style towards a more rounded, thoughtful, and innovative make-up (Anderson & Anderson 2001). Transformational organisational change can lead to a distinct type of organisational experience that is philosophical in essence, and a leader who wants to improve his style and personality as leader and manager can also experience the same philosophical journey and enlightenment which is fostered by critically self-reflective thoughts and behaviours.
A study by the Harvard Business Review found that senior executives show “Alpha Male” traits; meaning leaders are unemotional but logically investigative, show less concern for people and emotions, with a propensity of changing into stimulating, implying or abusive leadership methods under pressure (Lundeman & Erlandson, cited in Trathen 2007). These leaders can be categorised as “Driver,” and are likely to seek control and overtly show their assertiveness through memos and directives. Executive coaching can “heal” and provide individualised leadership development in “just-in-time” methodology. This intervention can also emphasise change at an interpersonal type, driven towards promoting greater emotional intelligence and awareness (Goleman 2011).
Leaders who are enthusiastic to exert energy and become transformational have to know the challenges, pain and benefits of the experience and become more equipped to lead their organisations on journeys of transformational change in a similar fashion. This type of leader who exhibits transformational traits tends to concentrate on the long-range organisational challenges, and strategically support change initiatives with a strong focus. But before going on an organisational journey of change, transformational leaders have to discern the context and background of the organisational journey, which is the readiness for change. Plan should be appropriately instituted along with internal and external stakeholders. Whether the organisational change needed is to be developmental, transitional or transformational, leaders of this category should have the required social capital to institute the most suitable approach, according to the cultural maturity of the organisation and the stimulus for change (Trathen 2007).
Drucker (2002) advises that self-management is an important skill needed for effective leadership and management. Being responsible is an important characteristic of self-management and self-leadership.
An example of a successful organisation led by efficient and creative minds is the Microsoft organisation. What makes this technology giant different from other technology companies? Power and distinction are ingrained in the “people, processes, and products” that make Microsoft organisational structure different. These three factors provide the organisational significance ingrained in the company’s management practices. Microsoft develops leaders who produce exceptional outcomes (Alvesson 2002).
Conclusion
As Porter and Ketels (2003) have shown, the UK economy depends on the productivity of its companies (domestic and foreign firms operating in the country), which in turn rely on the effective leadership and management of its people. We have demonstrated in the literature how management and leadership should go together for firms to perform strategically and effectively. However, even if effective managers and leaders run these companies, they must consider the business environment and the complicated factors behind this business environment. The relationship between the company and the business environment has to be mutual, because in considering the business environment the company needs skilled people, an improved infrastructure, a smooth flow of the supply chain, a good back-up from research groups, and a robust competitive pressure (Porter & Ketels 2003).
As stated earlier, accepting innovation is part of good management and leadership. This is quite similar to what Porter and Ketels (2003) have demonstrated that companies have to regularly check and upgrade their “operating practices and strategies” in order to have improved economic performance. There must be continuous change and innovation that should rely on checks and data coming from surveys performed by the company’s own people in the field and from professional surveys. Managers should also shift from simple “comparative advantages” to “competitive advantages,” which has come out as a result of globalisation factors, e.g. new products, new technology, and more competitiveness in the international market (Porter & Ketels 2003, p. 34).
We have come to a point that competitiveness is the name of the game, and companies have to effectively respond to this pressure to be ahead of the competition, or to stay on course. The UK economy must train its own citizenry to become effective managers and leaders in order to produce progressive companies, ready to march on to a competitive business environment.
The ultimate question troubling a successful business company seems to work this way: How do I know my organisation will still hold on in the future? How do we know organisations will still be there standing along with the new ones? According to Rebecca Shambaugh (2013), successful organisations will be led by dedicated teams, composed of men and women who fully cooperate to create exceptional results. These teams are led by intelligent, experienced but charismatic and transformational leaders and effective managers.
References
Alvesson, M 2002, Understanding organizational culture, Sage Publications, UK.
Anderson, D & Anderson, L 2001, Beyond change management, Josesy-Bass/Pfeffer, San Francisco, CA.
Bass, B 1990, Bass & Stogdill’s handbook of leadership: theory, research, and managerial applications, third edn, The Free Press, London.
Bennis, W 2003, On becoming a leader, Basics Books, New York.
Burgoyne, J, Hirsh, W & Williams, S 2004, The development of management and leadership capability and its contribution to performance: the evidence, the prospects and the research need, Department for Education and Skills, London.
DiGiulio, R 2000, Positive classroom management: a step-by-step guide to successfully running the show without destroying student dignity, Corwin Press, Inc., Thousand Oaks, CA.
Csikszentmihalyi, M 2003, Good business: leadership, flow, and the making of meaning, Penguin Books, London, England.
Drucker, P 2007, Management: tasks, responsibilities, practices, Transaction Publishers, New Jersey.
Flynn, F & Staw, B 2004, ‘Lend me your ears: the effect of charismatic leadership on external support for an organization’, Strategic Management Journal, vol. 25, no. 1, pp. 309-330, viewed 20 January 2017, via ProQuest database.
Giacalone, R & Rosenfeld, P 2013, Impression management in the organization, Psychology Press.
Goleman, D 2011, ‘Leadership that gets results’, in Harvard Business Review (ed), HBR’s 10 must reads on managing people, Harvard Business School Publishing, Boston, Massachusetts, pp. 1-26.
Koh, S 2008, Leadership and management skills of preservice teachers, PhD Thesis, Claremont Graduate University, viewed 21 January 2017, <http://ezproxy.sothebysinstitute.com:2195/pqdtglobal/docview/304672058/fulltextPDF/7BCC0677209408FPQ/1?accountid=13958>.
Kounin, J 1970, Discipline and group management in classrooms, Holt, Rinehart & Winston, New York.
Kouzes, J & Posner, B 2002, The leadership challenge (4th ed), Jossey-Bass, Inc., San Francisco, CA.
Li, H & Zhang, Y 2007, ‘The role of managers' political networking and functional experience in new venture performance: evidence from China's transition economy’, Strategic Management Journal, vol. 28, no. 8, pp.791-804, viewed 20 January 2017, via ProQuest database.
Porter, M. & Ketels, C 2003, UK Competitiveness: moving to the next stage, viewed 20 January 2017, < http://old.tci-network.org/media/asset_publics/resources/000/000/794/original/paper3-porter-ketels.pdf>.
Trathen, S 2007, Executive coaching, changes in leadership competencies and learning agility amongst Microsoft senior executives, PhD Thesis, Colorado State University, viewed 21 January 2017, <http://ezproxy.sothebysinstitute.com:2195/dissertations/docview/304857939/fulltextPDF/F6663A635126414CPQ/1?accountid=13957>.
Shambaugh, R 2013, Make room for her: why companies need an integrated leadership model to achieve extraordinary results, McGraw-Hill Publishing, New York.
