1.

Concepts of management and leadership

1.1. Management
1.1.1. Definitions

Management is the process of administering and controlling the affairs of a company,

regardless of its nature, type, structure, or size. It is the act of creating and maintaining a
business environment in which the organization's members can collaborate and achieve
business goals efficiently and effectively (Surbhi, 2018).
 Surbhi, S, 2018. What is Management? definition, characteristics, levels and functions - Business
Jargons. [online] Available at: <https://businessjargons.com/management.html> [Accessed 23
November 2021].

According to Terry and Franklin (cited in Business management ideas, 2020), management is a
distinct process that entails activities such as planning, organizing, executing, and controlling in
order to determine and achieve stated objectives through the use of people and other
resources.
 Chetana, D., 2020. Definitions of Management. [online] Available at:
<https://www.businessmanagementideas.com/management/definitions-of-
management/definitions-of-management/19418> [Accessed 23 November 2021].

Management has been defined in the following ways by the school of management:
"As a manager, you must know clearly: what people want to do and pay attention to the best,
most economical way they do" (Taylor, 1916).
"Management is an activity that every organization (family, business, government) has, it
consists of 5 elements: planning, organizing, directing, adjusting and controlling.
Management is the implementation of that plan, organization, adjustment and control”
(Fayol, 1949)
1.1.2. Different levels of manager

The term "management levels" refers to the distinction that exists between various managerial
positions within an organization. The number of levels in management grows in lockstep with
the size of the company and workforce, and vice versa. The various levels of management can
influence the chain of command within an organization, as well as the amount of authority and,
in most cases, decision-making power that all managerial positions have.
Managerial levels are generally divided into three categories, each of which directs managers to
perform different tasks.
As shown in the pyramid below, there are three levels of management:

Figure 1. Levels of management

1.1.2.1. Top-level Management

Top-level management is made up of an organization's most senior executives and decision-
makers. Every member of top management is accountable for the company's direction and
growth. A company's success and future are largely determined by its top-level management
(Easy management notes, 2021).
This category includes all C-level executives as well as a few other titles. Some of the highest-
level designations include :

 Chief Executive Officer

 Chief Marketing Officer
 Chief Sales Officer
 Chief Technology Officer
  President
 Managing Director
 Vice-president
 Chief Operating Officer
 And a few other designations
The top level of management's roles and responsibilities can be summarized as follows:

 Defining the business enterprise's goals and broad policies.

 Providing necessary instructions for the preparation of department-specific budgets,
schedules, and procedures, among other things.
 Creating the organization's strategic plans and policies.
 Appointing middle-level executives, such as departmental managers.
 Controlling all organizational departments.
 The top management level, which includes the Board of Directors, is also responsible for
communicating with the outside world and is held accountable to an organization's
shareholders for the enterprise's performance.
 Providing overall direction and encouragement, as well as promoting harmony and
collaboration.
1.1.2.2. Middle-level Management
The heads of various departments in an organization make up middle-level management. These
executives are in charge of keeping top-level management and lower-level management in
touch. They are in charge of the majority of the organization's executions and
micromanagement (Easy management notes, 2021).
The following are some examples of standard designation titles for mid-level management
executives:

 Manager of Marketing
 Head of Purchase
 Manager of Sales
 Manager of Operations
 Manager of a branch
 Manager of Finance
 Other terms with similar meanings
The middle level of management's roles and responsibilities can be summarized as follows:

 Executing the organization's strategies in conformity with the highest management

level's policies and directives.
 Creating plans for the organization's sub-units that they oversee.
 Taking part in the hiring and training of lower-level managers.
  Top-level management must interpret and communicate policies to lower-level
management.
 Reports and data must be delivered to top management in a timely and effective
manner.
 Evaluating junior managers' performance
 Motivating lower-level managers to perform better.
1.1.2.3. Lower level Management
The coordination between the operational workforce and middle-level management is the
responsibility of operational level management. They supervise teams and micromanage
specific duties to operative personnel. Operational management has little decision-making
authority and is primarily responsible for carrying out the commands of middle-level
management (Easy management notes, 2021).
The lower level of management's functions and responsibilities can be stated as follows:

 Assigning jobs and responsibilities to different employees.

 Providing day-to-day guidance and instruction to employees.
 In charge of both the quality and quantity of the output.
 Keeping solid relationships with employees at lower levels of the organization.
 Mediating between workers and higher-level management through communicating
difficulties, recommendations, and recommendatory appeals, among other things, and
clarifying higher-level goals and objectives to workers.
 Assisting in the resolution of worker concerns.
 They are in charge of supervising and guiding their subordinates.
 Participating in the hiring and training of their employees.
 Organizing the materials, machinery, tools, and other resources needed to complete
organizational activities.
 Preparing reports on the workers' performance on a regular basis.
 Maintaining workplace discipline, decency, and harmony.
 Due to their direct touch with employees, they are improving the company's image as a
whole.
 Easy management notes. 2021. What are the different Levels of Management?. [online]
Available at: <https://www.easymanagementnotes.com/levels-of-management/> [Accessed 23
November 2021].
 SpriggHR. 2020. The 3 Different Levels of Management. [online] Available at:
<https://sprigghr.com/blog/hr-professionals/3-different-levels-of-management/> [Accessed 23
November 2021].

An example for the top level manager: As Patnaik and Sahoo (2019) point out Xerox CEO Anne
Mulcahy. She has a democratic management style and is always willing to listen to staff,
customers, and investors. Furthermore, her staff have the authority to set corporate objectives
and follow through on client agreements.
  Patnaik, R. & Sahoo, P. K., 2019. Terms of Use Copyright Cookie Policy. [Online] Available
at: Terms of Use Copyright Cookie Policy [Accessed 23 November 2021].

1.1.3. Types of managers

Figure 2: Types of managers

1.1.3.1. Functional manager

The functional manager is the individual with management authority within a business
unit/department, direct supervision over one or more project/program team resources, and/or
direct accountability for the functions impacted by or affecting the project/program deliverable
(s). Information Systems & Technology (IST) and other campus business units have functional
managers (University of Waterloo, 2014).
What are the responsibilities of the functional manager?

 Changes in their resources' availability should be communicated to the project/program

manager.
 Keep track of project/program progress and the effects on their resources and areas of
responsibility.
  If you are directly responsible for a function that is affected or affected by a deliverable
(s).
 It has direct supervision over one or more project/program team members.
 Take care of any problems with resource performance. The project/program manager
advances.
 University of Waterloo. 2014. Functional manager | IST Project Management Office. [online]
Available at: <https://uwaterloo.ca/ist-project-management-office/methodologies/roles-and-
responsibilities/functional-manager> [Accessed 23 November 2021].

1.1.3.2. General manager

A general manager (GM) is in charge of all or part of the operations of a department or of the
entire organization, including revenue generation and cost control. The general manager may
be one of the top executives in a small business. GMs are above most employees but below
corporate-level executives in hierarchical companies. The position's role and relevance varies by
company and are frequently determined by the structure of the business (Banton, 2020)
Understanding a General Manager's Role:

 A general manager is in charge of lower-level manager hiring, training, and coaching.

General managers are in charge of budgeting resources for marketing, supply,
equipment, and hiring. GMs earn more than entry-level employees due to their high
level of responsibility, demanding duties, and requirement for suitable experience.

 Banton, C., 2020. General Manager (GM). [online] Available at:

<https://www.investopedia.com/terms/g/general-manager.asp> [Accessed 24 November 2021].

1.1.3.3. Administrator
An administrator is someone who ensures that an organization runs smoothly. Above all,
administrators must be well-organized and have excellent communication abilities. The phrase
may also apply to someone appointed by a court to wind up the estate of a deceased person. In
addition, if the named executor is unable or unwilling to perform, the court may appoint an
administrator. An administrator is someone appointed by the court to administer the business
of a firm (Market Business News, 2019)
Examples of administrators:

 Network Administrators are responsible for the upkeep of the computer infrastructure,
with a focus on networking. They're in charge of the on-site servers, software-network
connections, as well as the network's integrity and resilience. They are frequently
 involved in proactive activities, such as network monitoring and testing for flaws
throughout the entire network. Updates, as well as email and Internet filters, are all
installed and implemented by some.
 A server is managed by a server administrator. They are in charge of monitoring the
performance and health of an organization's many servers. A game server may be
managed by a server administrator. They plan, set up, maintain, and improve company
servers and related components. Above all, they want to achieve the greatest possible
results.
 Market Business News. 2019. What is an administrator? Definition and examples. [online]
Available at: <https://marketbusinessnews.com/financial-glossary/administrator-definition-
meaning/> [Accessed 24 November 2021].

1.1.3.4. Entrepreneur
Hayes (2021) has shown that an entrepreneur is a person who starts a new firm and bears the
most of the risks while reaping the majority of the benefits. Entrepreneurship refers to the
process of starting a business. The entrepreneur is frequently portrayed as a pioneer, a provider
of novel ideas, products, services, and/or business processes. Entrepreneurs are important in
any economy because they have the ability and initiative to predict needs and bring innovative
ideas to market. Entrepreneurship that succeeds in taking on the risks of starting a business is
rewarded with revenues, fame, and chances for continued expansion.
When it comes to starting a business, entrepreneurs confront numerous challenges. The
following are the three that many of them consider to be the most difficult:

 Getting around bureaucracy

 Recruiting top talent
 Obtaining capital
 Hayas, A., 2021. What You Should Know About Entrepreneurs. [online] Available at:
<https://www.investopedia.com/terms/e/entrepreneur.asp> [Accessed 24 November 2021].

1.1.3.5. Small – business owners

A small business is a privately owned corporation, partnership, or sole proprietorship with
fewer employees and annual income than a corporation or a regular-sized business. The
concept of "small" varies by country and industry in terms of being able to ask for government
assistance and qualify for advantageous tax policies. A small business is defined by the US Small
Business Administration according to a set of rules based on various industries (ASQ.org, 2021).
  Asq.org. 2021. What is a Small Business? | ASQ. [online] Available at: <https://asq.org/quality-
resources/small-business> [Accessed 24 November 2021].

1.1.3.6. Team leader

According to Gigli (2021), a team leader is someone who gives direction, instructions, and
leadership to a group of people, also known as a team, in order to accomplish a specific goal. A
good leader will be aware of her team's strengths, shortcomings, and motivations.
In a company, team leaders play a variety of functions. Their role is to complete tasks by
utilizing all available resources, including other employees or team members. The following is a
list of some of the most critical duties that a team leader must frequently fulfill:

 Create a plan for the team to achieve its goal.

 Provide any necessary training to team members.
 Team members should be given clear instructions.
 Pay attention to what your teammates have to say.
 Check on team members' participation to evaluate if the training they've received is
being put to good use, and if any extra training is required.
 Gigli, M., 2021. What Is a Team Leader? - Description, Role & Responsibilities. [online] Available
at:<https://study.com/academy/lesson/what-is-a-team-leader-description-role-
responsibilities.html> [Accessed 24 November 2021].
 1.2. Leadership

An individual's or a group's ability to influence and guide followers or other members of an

organization is referred to as leadership. Making sound — and often difficult — decisions,
communicating a clear vision, defining attainable goals, and providing followers with the
knowledge and skills they need to reach those goals are all part of leadership (Pratt, 2017).
There are a few other well-known quotes that can be used as leadership definitions:
Bill Gates: “As we look ahead into the next century, leaders will be those whoempower others.”
John Maxwell: “Leadership is influence –nothing more, nothing less.”
Because of the importance of leadership, training and development can help to increase
productivity, create a positive culture, and foster harmony. To do this, critical individuals and
teams must be led utilizing the proper leadership style (Kruse, 2013). Leadership is a critical
management role that aids in maximizing efficiency and achieving organizational objectives
(ibid.).
 Kruse, K., 2013. What Is Leadership?. [online] Forbes. Available at:
<https://www.forbes.com/sites/kevinkruse/2013/04/09/what-is-leadership/?
sh=4285aa9f5b90> [Accessed 24 November 2021].

For example: Amazon.com's founder, Chairman, and CEO, Jeff Bezos. Jeff Bezos is a
transactional leader who prioritizes tasks. Bezos is described by Stone (2013) as a
micromanager with strict standards who is frequently uninterested in other people's
perspectives. Aside from a riches, he has developed his own leadership style in order to become
such a well-known leader. He frequently converses with employees and has a very amusing
manner of conversing with them, in addition to being extremely forthright when he makes
mistakes. He is quite scrupulous in the reporting sessions, which is a highlight of his style (Sata,
2015).
1.2.1. What makes a great leader?
Pratt (2017) has shown that there are numerous definitions of leadership, but they all agree on
the premise that exceptional leaders have the ability to make strategic and visionary judgments
and persuade others to follow those decisions. The general consensus is that leaders generate a
vision and can successfully persuade others to strive toward that vision. They accomplish this by
providing direction and inspiring people to want to succeed in obtaining the desired outcome.
Furthermore, they are capable of energizing and motivating others to strive toward the vision.
In other words, excellent leaders know how to both inspire and persuade followers to execute
tasks that help the leader reach his or her goal.

1.3. The link between management and leadership

1.3.1. Differences between management and leadership

People frequently confuse leadership and management, but they are not the same thing. The
major distinction between the two is that leaders have followers, whereas managers have
employees who merely work for them. Leadership is about inspiring others to understand and
believe in the company's vision and to collaborate with you to achieve your objectives. While
management is more concerned with administering the work and ensuring that the day-to-day
operations run smoothly (Next generation, 2017).
Leaders prefer to celebrate accomplishment and motivate others, whereas managers look for
flaws. A great leader builds a picture of what they believe the organization is capable of doing
and tries to inspire and involve their employees in making that vision a reality.
Managers, for example, will concentrate on defining, monitoring, and accomplishing goals
through situational control in order to meet or surpass their objectives. Leaders, on the other
hand, will concentrate on defining those objectives and motivating employees to attain them.
 1.3.2. The relationship between management and leadership

One of the many assets that a great manager must possess is leadership. A management can be
a leader, but a manager does not have to be a leader. A manager's primary goal is to increase
organizational output through managing performance. However, a leader is continually looking
for new opportunities and understanding new potential in the firm. Most workgroups are more
devoted to their leaders than to their managers.

According to Kotter (1999, p 67), “All the managers must know that how to lead as well
as manage. Because in this era, organizations may face the threat of loss if their
managers do not know how to lead as well as manage.”
Managers are hired by organizations, and they are given official responsibility to manage
people and other operations in order to achieve organizational goals. Employees joyfully follow
their leaders because they want to, not because it is required of them. Leaders may not have
the authority to bestow rewards on their subjects. Employees, on the other hand, empower
leaders by allowing them to do what they want. Managers, on the other hand, may rely on
official authority to motivate personnel to perform tasks.
Without both strong leadership and excellent management, a successful organization cannot
exist. To keep up with the growing amount of deliverables, a business will need to extend its
management team over time. The leadership team, on the other hand, will expand at a
considerably slower pace, if at all. Too many leaders, like too many chefs, will muck things up
completely.
  Despite the ongoing discussion over the differences between management and
leadership, the two have a close relationship that makes it difficult to distinguish them
as different tasks.
1.3.3. What are leadership vs management characteristics?
Someone having managerial qualities is concerned with:

 maintains the trains' on-time operation

 is quite well-organized
 encourages team members to succeed
 ensuring that everyone has the resources they require to succeed
 signals whether or not performance is good
Someone with leadership qualities is concerned with:

 expresses a clear vision

 establishes attainable and well-defined objectives
 is concerned about the team's members
 guarantees that we are focusing on the proper goals
 sets a good example by accomplishing whatever she asks of the team
 Skloot, G., 2019. Leadership vs Management Characteristics. [online] Available at:
<https://getweeklyupdate.com/blog/leadership-vs-management-characteristics/>
[Accessed 24 November 2021].
1.3.4. Examine how the management and leadership styles of your chosen organization
affect the achievement of its goals.
Leadership in Nokia
Jorma Ollila, the Chairman and Chief Executive Officer of Nokia Group, has a strong educational
background, having obtained master's degrees in political science and economics from the
University of Helsinki, as well as a master's degree in physics from the Helsinki University of
Technology. He received an honorary doctorate in political science from the University of
Helsinki in 1995, and an honorary doctorate in technology from Helsinki University of
Technology in 1998. He is an expert in the information and communications technology
industry and has a lot of expertise in this field as a global successful leader. He is on the boards
of Ford Motor Company, Otava Books and Magazines Group Ltd, and UPM-Kymmene
Corporation, in addition to Nokia. He is also a member of a number of professional
organizations in the field of information and communications technology. Jorma has gained
international acclaim. He bears the Commander's Cross of the Order of Merit of the Republic of
Poland and the Federal Republic of Germany, the Order of Merit of the Hungarian Republic, and
the Officer's Cross of the Order of White Star of Estonia. He is a Commander of the Order of
Orange-Nassau and a Commander of the White Rose of Finland, 1st Class. Nokia's rebirth as a
firm that sets the standard for mobile communications has been driven by Jorma. He effectively
rebuilt the previous industrial conglomerate and drove its expansion into one of the most
successful firms in both the mobile phone and telecoms infrastructure markets as CEO. Nokia
has attained worldwide market leadership and is listed on six main exchanges during his
leadership. Jorma's leadership style is unusual; he is concerned with both personnel and their
tasks. Equal opportunity and openness to people's new ideas are other important elements he
wants to nurture. Employees are encouraged to take charge of their own development and to
take use of the many development opportunities available to them. He supports free
conversation and debate among his employees, saying, "We listen to our employees'
perspectives and act on them when establishing our people policies and practices." He also
established the investing-in-people (IIP) program, which is a coaching and training program for
employees; such programs are primarily focused on the development of managers. Employees
can take use of flexi time, which includes flexible working hours and part-time work, depending
on local market conditions. Furthermore, Nokia provides excellent employee benefits and a
pleasant working environment. Furthermore, he was concerned about the tasks of his
employees. The Nokia value concept serves as a guideline for all employees, no matter where
they are in the world. Nokia offers a bonus system that is based on the workers' work results to
motivate them to work hard on their tasks. Using the 360-Degree Feedback analysis, we can
determine that Jorma is a successful charming leader with a high level of self-awareness. He has
the capacity to motivate his staff and is tenacious in his pursuit of a career. He has a lot of
leadership, he knows a lot about business, and he expects a lot from his people. Furthermore,
he is well-known throughout the world.
1.3.5. Some examples of businesses without a manager
1. U2i: U2i is a digital technology consulting firm headquartered in Krakow, Poland (though
with a Head Office in New York). It employs approximately 60 people and is well-known
for being mostly self-managed and for distributing 100% of its revenues to employees in
the form of bonuses. They have "Sherpas" to coach and lead them instead of managers.
2. Reddico: Reddico is a digital marketing agency situated in Tonbridge, Kent. Luke Kyte,
Head of Operations, outlines the concept here: "There are no hours. There are no
managers. The team establishes the rules.