Management Skills I: Foundations of Chapter 2: Leader or Manager? Management

Managers and Leaders: MANAGEMENT Differences and similarities • Traditional distinctions SKILLS – Managers establish and implement processes and procedures to ensure smooth organizational, FOUNDATIONSIOF departmental, or divisional functioning and goal attainment. – Leaders MANAGEMENT • Look to the future, chart the course for the organization, and attract, retain, motivate, inspire and develop relationships Chapter 2: with employees based on trust and mutual respect. • Provide meaning and purpose, seek innovation rather than Manager or Leader? stability, and impassion employees to work together to achieve the organizational vision.

Managers and Leaders: Coping with Complexity Differences and similarities • Other explanations • Companies manage complexity in three ways: – Bernard Blass: • Although leadership and management overlap, each entails 1. Determining what needs to be done—planning a unique set of activities or functions. and budgeting. – Leaders play a key role in creating a vision and strategic plan for an organization. • Setting goals for the future – Managers are charged with implementing the vision and strategic • plan. Establishing steps to achieve the goals – John Kotter: • Allocating resources to accomplish goals • Neither the manager nor the leader is better than the other ‐ they complement each other. • Managing is about coping with complexity, while leading is about coping with change.

Coping with Complexity Coping with Complexity

• Companies manage complexity in three ways: • Companies manage complexity in three ways: 2. Arranging people to accomplish the plan— 3. Ensuring people do their jobs—controlling and organizing and staffing. problem solving. • Hiring qualified individuals to fill necessary jobs • Managers monitor results by means of reports, • Devising a system of implementation meetings, and other tools. • Deploying resources to tackle the plan. • By solving problems as they arise, they achieve the plan.

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Coping with Change Coping with Change

• Leadership copes with change in three ways: • Leadership copes with change in three ways: 1. Determining what needs to be done—setting 2. Arranging people to accomplish the plan— direction. aligning people. • Developing a vision for the future • Communicating the new direction to employees • Developing strategies for realizing the vision • Building coalitions to realize the vision

Coping with Change Conclusions

• Leadership copes with change in three ways: • Good leaders are not necessarily good managers, and good managers are not necessarily good 3. Ensuring people do their jobs—motivating and leaders. inspiring. • Managers can be leaders at times, and leaders • Appealing to basic but often untapped human needs, can be managers, although a leader does not values, and emotions to keep people moving in the have to be a manager to lead. right direction, despite obstacles to change. • Different leadership styles are effective in different situations or work environments • Organizational success requires a combination of both effective leaders to inspire and effective managers to meet objectives.

Characteristics of Characteristics of Effective Leaders Effective Leaders • Leaders are made, not born • Effective leaders are characterized by their – Each of us has the ability to become a leader. ability to: – Great leaders do not fit a singular mold. – Challenge the process – Inspire a shared vision – Enable others to act – Model the way – Encourage the heart

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Characteristics of Characteristics of Effective Leaders Effective Leaders • Effective leaders must provide coaching, • Project GLOBE (Global Leadership and feedback, and recognition to demonstrate Organizational Behavior Effectiveness) their appreciation for the efforts of others. – Researchers determined that certain attributes of • Leaders who focus on consideration by leadership were universally liked or disliked. building relationships and trust in an open environment—while achieving organizational objectives—inspire high levels of respect.

Core competencies Leadership Models of the NMA model • The leadership model of the NMA . . . THE 1. Mobilize Individual Commitment for Change Leadership Development Organization – Stress open and honest communications – Defines the critical attributes and core – Energize, excite and motivate others competencies for leaders in today’ s workplace. – Lead by example with high expectations – Convey purpose and mission to motivate others – Celebrate successes and learn from disappointments – Implement continuous improvement – Build teams to maximize success – Inspire in ways consistent with organizational values

Figure 2.1: The NMA Leadership Model

Core competencies Core competencies of the NMA model of the NMA model 2. Set Direction 3. Engender Organizational Capability – Maintain internal and external customer focus – Take advantage of diversity – Translate strategy into actionable objectives and plans – Provide effective controls/metrics – Share vision, values and accountability at all levels – Mentor and coach for growth and success – Maintain direction and consistency – Maintain an effective customer network to spot issues – Create a win‐win atmosphere – Demonstrate strong operational skills – Create an environment where all can take risks, – Use complexity as leverage create, contribute and learn – Ensure operational performance – Seize changes as opportunities – Capitalize on unanticipated opportunities

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Core competencies Core competencies of the NMA model of the NMA model 4. Demonstrate Personal Character • Reflect the skills, behaviors, and imperatives for the enterprise and the individual to thrive. They must be aligned – Model organizational values and integrated throughout. – Earn trust and respect – Setting direction (red), mobilizing individual commitment for change (blue), and engendering organizational capability (yellow) comprise – Promote integrity and ethical behavior three of the four core competencies. – Meet your commitments – They will not be fully realized unless the leader demonstrates the personal character (green) that fosters the necessary relationships and – Be accountable for your actions and decisions creates an atmosphere of trust. – Keep promises under pressure • Success is realized when strategic leadership development efforts are proven to be linked to positive organizational – Marshall all leadership attributes outcomes.

Influential Thought Leaders from the Past: Influential Thought Leaders from the Past: Frederick W. Taylor (1856 – 1915) Dale Carnegie (1888 – 1955) • “The father of scientific management” • Known for his famous courses which provide a common sense approach to self‐improvement, • Recognized for: salesmanship, and public speaking. – Analyzing work tasks to find “one best way” to – Authored one of the most popular books in history, perform and teaching people that way How to Win FFirien ds and IIflnfluence PPleople – Developing the time and motion study as a metric – Taught millions how to achieve self‐confidence with for efficiency and productivity well‐honed interpersonal skills. – Impacting quality standards • His simple, effective techniques have proven enduring and become part of the American culture.

Dale Carnegie Dale Carnegie

• Rules on how to win friends include: • Carnegie’s rules on how to influence people include: – Show a genuine interest in other people. – To get the best of a situation, avoid arguments. – Be happy and positive – Always listen to others' opinions and never tell anyone – Remember that people love hearing the sound of they are wrong. their own name – Admit it if you are wrong. – Listen to other people and develop good listening – Show friendliness. skills. – Make statements that the other person can agree – Talk about others' interests rather than your own. with. – Let the other person talk more than you. – Give others a sincere sense of their importance.

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Influential Thought Leaders from the Past: Dale Carnegie W. Edwards Deming (1900‐1993) • More of Carnegie’s rules on how to influence • Credited with improving production in the US by people: applying statistical methods to enhance product – Make the other person feel that an idea is their design, quality, testing, and global sales. own. • Often referred to as the father of quality. – See the other person's point of view. • Recognized for: – Show empathy for others' ideas and desires. – Defining quality: Quality = Results of work – Infuse some drama into your ideas. efforts/Total costs – Appeal to the better nature of others – The Deming System of Profound Knowledge – Finish with a challenge. – Jump starting a quality movement at Ford Motor Company

Influential Thought Leaders from the Past: Peter F. Drucker (1909 – 2005) Peter F. Drucker • “Invented" management as a discipline • Recognized for: worthy of study – Popularizing the system of goal setting called – Gave management of large firms the essential “Management by Objectives (MBO)” tools to deal with enormity, complexity, and – Coining the term “knowledge worker” growing global reach. – Viewing employees as “assets or resources” and – Often referred to as the father of management not liabilities theory and organizational practice. – Believing that “managers cannot motivate people – Predicted many major developments of the 20th because people motivate themselves” century.

Influential Thought Leaders from the Past: Influential Thought Leaders from the Present: C.K. Prahalad (1941 – 2010) Ken Blanchard • Known globally and consulted by the top • Known for the Hersey‐Blanchard Situational management of many of the world’s foremost Leadership Model: companies. – Leaders and managers should be flexible and adjust their leadership style according to the readiness of • Researched corporate strategy and the role of their followers and employees. top management in large, multinational – Readiness: corporations. • The extent to which a follower possesses the ability and • Coined the term “core competency.” willingness to complete a task. • Employees with high readiness require a different leadership • Promoted the role business can play in style than those with low readiness. tackling world poverty. – Not strongly supported by scientific research.

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Influential Thought Leaders from the Present: Influential Thought Leaders from the Present: Marcus Buckingham Jim C. Collins

• Worked to uncover the key drivers of great • Researched how companies grow, how they performance and the factors that differentiate high attain superior performance, and what takes a performing teams. company from “good to great.” • Conceived the strengths‐based approach to – Found that an average company can become great management. by focusing on its field of competence and • Noted Publications: implementing “level 5 leadership.” – First Break all the Rules (1999) – Now Discover Your Strengths (2001) • Level 5 leadership ‐ leadership by persons who – One Thing You Need to Know (2005) possess humility and a fearless drive to – Go Put Your Strengths to Work (2007) succeed. – The Truth About You (2008).

Influential Thought Leaders from the Present: Influential Thought Leaders from the Present: Stephen R. Covey John P. Kotter

• Authored one of the most influential self‐help books of the • Explores the new rules of leadership and the 20th century, The Seven Habits of Highly Effective People. importance of lifelong learning. • Identified Seven Habits shared by all truly effective people • Developed the Eight Step method for leading change: which can be learned and lead to personal success: 1. Be Proactive 1. Establish a sense of urgency 2. Begin with the End in Mind 2. Create the guiding coalition 3. Put First things First 3. Develop a vision and strategy 4. Seek to Understand, Then be Understood 4. Communicate the change vision 5. Think Win/Win 5. Empower broad based action 6. Synergize 7. Sharpen the Saw 6. Generate short‐term wins 7. Consolidate change and produce more change 8. Anchor new approaches to the culture

Influential Thought Leaders from the Present: Influential Thought Leaders from the Present: John Maxwell Henry Mintzberg

• Committed to developing leaders of excellence and integrity. • Promotes educating managers with action learning and – Leadership learning is a daily commitment to leading with integrity, problem solving. discipline, vision, and experience. • His theory on Organization Forms describes the six – Guiding philosophy : “everything rises and falls on leadership.” parts of an organization: – The traits that are the raw material of leadership can be acquired. 1. The strategic apex (top management) • Maxwell’s Five Levels of Leadership: 2. Middle line (middle management) 1. Position 3. Operating core (operations) 2. Permission 4. Technostructure (systems and processes) 3. Production 4. People development 5. Support staff 5. Personhood 6. Ideology (norms, values and culture). • A strong advocate against management as a science.

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Influential Thought Leaders from the Present: Influential Thought Leaders from the Present: Tom J. Peters Peter Senge

• Led the way in preparing management for an era of • Popularized techniques for stimulating problem staggering change, starting in the mid‐1970s. solving and creative thinking among managers. – Focuses on the basic drivers of business success, rather • Recognized for: than “just the numbers.” – Developing the concept of a “learning organization” as a – Advocates change and reinvention. dynamic system in a constant state of adaptation and • Recognized for: improvement. – The pursuit of excellence – Adopting “systems thinking” as the cornerstone of the – Passionate leadership learning organization. – – Acquiring and developing the best talent Promoting shared vision as a framework for addressing problems and opportunities.

Influential Thought Leaders from the Present: Jack Welch

• Former Chief Executive Officer (CEO) of General Electric – Has been described as the greatest manager in modern times. – Defines successful leaders as those who “grow others” and cautions leaders about the real purpose of their job—to focus on employees, not themselves. • Recognized for his management philosophies: – Managing less is better. Don’t get bogged down in over managing. – Manage by creating a vision—then make sure that employees run with that vision. – Lead, don’t manage, then get out of the way. Let employees do their jobs without interference. – Instill confidence. Treat employees with respect in order to build their confidence in your leadership.

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