Professional Documents
Culture Documents
Module 1.1 - Leaders & Managers
Module 1.1 - Leaders & Managers
The reader is expected to analyze the context provided and suggest solutions to the problems,
along with clearly articulating their reasoning for the proposed solutions.
Case studies present an excellent method to practice understanding contexts and problem solving.
Business is all about how value generation works in businesses to generate profits.
Management Function Performs only one function: Performs all five functions:
direction planning, organizing, staffing,
directing, and controlling
Qualities Required Leadership qualities are required. Both managerial and leadership
qualities are required.
Managers
● Managers are those individuals who are employed by an organization to direct and
monitor the work of other employees. They are the ones who get work done by employees.
● They ensure tasks are completed on time while complying with all organizational rules and
policies and using the allocated resources.
Functions of Managers
1. Planning: The planning function entails setting goals, formulating strategies, and
developing plans to coordinate the organization’s activities.
2. Organizing: This function involves arranging resources and scheduling tasks so that
activities can be performed sequentially.
3. Directing: This function involves giving subordinates direction, guidance, and supervision
so that they can perform tasks effectively.
4. Controlling: Controlling involves keeping a check on the activities performed by
employees so as to make certain they are being done as planned. This is done by making
comparisons between actual and intended output expected from employees. In case of
deviations, measures should be taken to address them.
Leaders
● A leader is a person who leads others in a specific situation and is capable of heading a
group toward achieving the ultimate goal by creating strategies to pursue and reach it.
● A leader has a vision, which inspires people in such a way that it becomes their vision.
● Further, a leader can be any person who can influence others, be it a manager of an
organization, the head of a family, the captain of a team, a minister of a state, or a leader in
an informal group. They are the ones who:
1. Take charge of and direct subordinates’ activities
2. Provide a group everything that is required to fulfill its task-related needs and help
it maintenance itself
3. Are required at all levels to act as representatives of the organization
4. Encourage the whole team to work together and support it, as a guide, in
accomplishing their tasks
1. A leader is someone who guides and leads others. They give direction and a purpose to
others’ efforts by shaping and molding their behavior so that they can achieve the desired
objectives. On the other hand, a manager is someone who is responsible for managing an
organization. Managers look after day-to-day operations, keep themselves updated with
changes in the market, encourage people to work cooperatively, and arrange resources,
among others.
2. A leader shapes employees’ behavior and defines a direction by developing and
communicating the organizational vision and stimulating employees to achieve it. On the
contrary, a manager tends to lay down the structure of an organization and delegate
authority and responsibility to employees.
3. While a leader performs just one management function, giving a direction, a manager
performs all management functions: planning, organizing, staffing, directing, and
controlling.
4. When it concerns the origination of authority, a leader possesses informal authority by
virtue of their personal qualities: knowledge, skills, and abilities. On the other hand, a
manager’s formal authority is due to their designation or position in the organization.
5. When it concerns approach, a leader has a proactive approach as they can predict future
events and take preventive actions in advance, whereas a manager has a reactive approach
and so they wait for the right time to take action.
6. A leader can be found in both formal and informal setups, i.e., they can be found in a
business organization as well as in an informal group, e.g., a family, a friend circle, or a
batch. In contrast, a manager can be found in a formal setup only, i.e., in a business
organization only, irrespective of its size, type, and nature.
7. To become a leader, one requires leadership qualities, whereas to become a manager, one
needs to have both leadership as well as managerial qualities.
8. Followers comply with leaders’ instructions because of their own will, whereas employees
comply with managers’ instructions and orders because of the managers’ role of authority.