Managers VS Leaders

Managers(Role) Leaders(Role)
 Practical  Visionary

 Stability  Flexibility

 Ask how and when  Ask what and why

 Efficiency
 Adaptation

 Innovative
 Administrative
 Attitudes Towards Goals
Managers
 Impersonal

 Almost passive

 Necessity instead of desire

 Deeply tied to their organization's Culture

 Tend to be reactive
 Attitudes Towards Goals
Leaders

 Tend to be active

 Envision and promote their ideas

 Shape ideas instead

 Have a personal orientation toward goals

 Provide a vision about what is desirable, possible, and necessary

 Why Integrate ?

 Over emphasis on managing role can obstruct risk

taking and create bureaucracy.

 More attention towards leadership role can lead to

impractical change and disrupt order.

 Both roles combined, helps the organization to deal

with dynamic environment effectively.
 Flexible Leadership Model
Determinants of organizational performance

 Efficiency And Process Reliability

 Innovation And Adaptation

 Human Resource And Relation

 Importance

Efficiency

 Low Operating Cost

 Large Customers Demanding Cost Reduction

 Helps in retaining customers

 Example : Dell Computer Corp

 Importance

Process Reliability

 To minimize the Negative Effect On Health & Safety

of people

 Reduce Financial Loss

 Grapple Repeated Business From Satisfied Customer

 Importance
Innovation And Adaptation

 To provide differentiated Products Or Services

 Match Rapid Technological Changes

 Provide customer satisfaction.

 Compete efficiently with competitors

 Importance

Human Resource And Relation

 Irreplaceable , Motivated And Skilled Employees

 Retention Of Human Capital is beneficial.

 It helps in increasing productivity and efficiency in

the organization.
 Leadership Behavior
Categorized into 3 parts

 Task Oriented Behaviors

 improving efficiency and process reliability

 Relationship Oriented Behavior

 improving human resources and relations

 Change Oriented Behavior:

 Improving innovation and adaptation
Management Systems and Programs

Performance determinants can be Influenced By:

 Improvement Programs

 Management Systems

 Structural Forms
 Management Systems and Programs
 Increasing/improving one performance determinant can have
side effect on the other.

 Leaders have the responsibility for effective implementation of

systems and programs

 Adaptation is facilitated by programs designed to develop

innovative ideas.

 External Benchmarking: Systematic process for importing good

ideas to improve Company’s services, processes and products
 Comparison
Management Systems &
Leadership Behavior
Programs
 Clarify roles and task  Goal setting programs
objectives.  Training, mentoring and
 Encourage , co-operation talent management
and teamwork. programs.
 Take risks to promote  Benchmarking to import
change. best practices.
 Encourage innovative  Incentives for innovation
thinking
 Joint Influence

 Direct leadership behaviors can support/simplify

implementation of new programs and systems.

 Management systems can increase the effects of direct

Leadership behaviors.

 Management programs can act as a substitute for leadership

behavior and ensure that activities are carried out efficiently.
 Reframing the Controversy
 The two roles are narrowly defined.

 Efficiency and process reliability is placed under

Management.

 While innovation and adaptation is placed under

leadership.

 Finding the right balance between both the roles is the

ultimate solution.
 Performance Determinants
Interrelation
Adaptation VS Efficiency

Adaptations effect on Efficiency

 Major Changes requires Substantial Investments of Extra

Resources.

 Revision of individuals and groups may also be required.

 This variations may reduce Efficiency.

 Performance Determinants
Interrelation

Efficiency’s effect On Adaption

 Reduces Flexibility

 Difficulty in changing Strategy

 Pose new threats and opportunities are overlooked.

 Necessary resources are not allocated to research and

development
 Performance Determinants
Interrelation
Efficiency VS Human Relation

Efficiency’s effects On Human Relations

 Low Employee Moral and job dissatisfaction.

 Loss Of Skilled Employee Due To Downsizing.

 Can lead to lower commitment and high labor turnover.

 Decline in expertise and knowledge

 Performance Determinants
Interrelation

Human relation’s effects on efficiency

 It can lead to higher cost and reduced efficiency.

 Prices may increase which makes it difficulty to

compete with competitors
 Performance Determinants
Interrelation
Adaptation Vs Human Relations

Adaptation’s effects on Human relations

 May reduce Job satisfaction and motivation.

 Can lead to conflict and stress among employees.

 Less emphasis on developing employees skills.

 Performance Determinants
Interrelation

Human relation’s effects on Adaptation

 May lead to low investment in research and development of a

product.

 Hindrances may occur while implementing major changes.

 Mutual Synergy

 Enhancing one performance determinant can have

favorable effects on other determinants.

 Strengthening more than one determinant is required

if there is interdependence .
 Enhancing Performance
Determinant Simultaneously
 Efficiency:
- Reduction in purchasing cost.
- Reduce production overcapacity.

 Innovation and sales :

- Enhance customer appeal.

 Human relation :
- Motivation.
- Providing performance appraisal.
- Develop trust.
 Rules For Integrating

 Understanding of prior events and situations.

 Study of external environment.

 Adapt as per the changing environment.

 Being proactive in decision making.

 Rules For Integrating

 Understanding the organization structure.

 Defining objective and priorities.

 Increase commitment, co-operation and co-ordination

among employees.

 Treating organizational goal as primary objective.

 lead by Example

Follow what you preach

 Example : Top executives giving up their luxuries for
cost cutting which motivates the lower level
employees.

Unethical behavior
 Example: Providing bonuses to top executives at the
time of financial crises.
 Conclusion

 There should be balance between three performance

determinants.

 Performance determinants should be considered

while planning , to improve organizational
effectiveness.

 Leadership behavior and management system should

be properly integrated.