MANAGEMENT SKILLS I: FOUNDATIONS OF MANAGEMENT (3rd Ed.

Chapter 2
Manager or Leader?
CHAPTER OUTLINE

I. Managers and Leaders: Differences and similarities

A. Traditional distinctions
1. Managers establish and implement processes and procedures to ensure
smooth organizational, departmental, or divisional functioning and goal
attainment.
2. Leaders
a. Look to the future, chart the course for the organization, and attract,
retain, motivate, inspire and develop relationships with employees based
on trust and mutual respect.
b. Provide meaning and purpose, seek innovation rather than stability, and
impassion employees to work together to achieve the organizational
vision.

B. Other explanations
1. Bernard Blass:
a. “Leaders manage and managers lead, but the two activities are not
synonymous.”
b. Although leadership and management overlap, each entails a unique set
of activities or functions.
i. Managers perform functions associated with planning, investigating,
organizing, and control.
ii. Leaders deal with the interpersonal aspects of a manager’s job, such
as inspiring others, providing emotional support, and getting
employees to rally around a common goal.
c. Leaders play a key role in creating a vision and strategic plan for an
organization.
d. Managers are charged with implementing the vision and strategic plan.
2. John Kotter:
a. Neither manager nor leader is better than the other - they complement
each other.
b. Managing is about coping with complexity, while leading is about coping
with change.

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C. Coping with Complexity

1. Management is necessary because complex organizations, especially large
ones that dominate the economic landscape, tend to become chaotic unless
there is good management.
a. According to Kotter, companies manage complexity in three ways:
i. Determining what needs to be done—planning and budgeting.
a. Setting goals for the future
b. Establishing steps to achieve the goals
c. Allocating resources to accomplish goals
ii. Arranging people to accomplish the plan—organizing and staffing.
a. Hiring qualified individuals to fill necessary jobs
b. Devising a system of implementation
c. Deploying resources to tackle the plan.
iii. Ensuring people do their jobs—controlling and problem solving.
a. Managers monitor results by means of reports, meetings, and
other tools.
b. By solving problems as they arise, they achieve the plan.

D. Coping with Change

1. As the business world becomes more competitive, doing things the same way
as in the past is no longer a formula for success. Change is required for
survival—hence the need for leadership.
2. According to Kotter, leadership copes with change in three ways:
a. Determining what needs to be done—setting direction.
i. Developing a vision for the future
ii. Developing strategies for realizing the vision
b. Arranging people to accomplish the plan—aligning people.
i. Communicating the new direction to employees
ii. Building coalitions to realize the vision
c. Ensuring people do their jobs—motivating and inspiring.
i. Appealing to basic but often untapped human needs, values, and
emotions to keep people moving in the right direction, despite
obstacles to change.

E. Conclusions
1. Good leaders are not necessarily good managers, and good managers are not
necessarily good leaders.
a. Effective leaders require effective management skills at some level.
b. Good management skills can turn a leader’s vision into action and
successful implementation.
c. Effective implementation is a key driver of organizational success.
2. Managers can be leaders at times, and leaders can be managers, although a
leader does not have to be a manager to lead.
3. Situational leadership

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a. There are a number of different leadership styles that are effective in

different situations or work environments
b. A leader’s ability to adopt his or her leadership style to the situation at
hand is important to an organization’s success.
c. The best leaders are skilled at several leadership styles and instinctively
understand when to use them.
4. Organizational success requires a combination of both effective leaders to
inspire and effective managers to meet objectives.

II. Characteristics of Effective Leaders

A. Leaders are made, not born
1. Each of us has the ability to become a leader.
2. Great leaders do not fit a singular mold.

B. Kouzes and Posner: Effective leaders are characterized by their ability to:
1. Challenge the process:
a. Some of the most successful leaders have taken risks, challenged
convention, and ignored rules.
2. Inspire a shared vision
a. Effective leaders appeal to group values, beliefs, and emotions,
motivating others to align themselves with a mission that reflects the
greater good.
b. Leaders who passionately believe in their teams, products or services
infect others with their passion.
3. Enable others to act
a. Effective leaders share information and power with their followers,
empowering them to set and achieve cooperative goals.
b. By listening to and supporting employees—regardless of their position—
leaders create an atmosphere of mutual trust and respect which enables
others to perform to their highest potential.
4. Model the way
a. A leader’s power exists because power is granted to them by those who
follow.
b. To be effective, a leader must “walk the talk” by demonstrating the
behaviors they expect from others and ensuring consistency between
actions and words.
5. Encourage the heart
a. Leaders must reward individuals and groups that achieve established
goals.

C. Along the way, effective leaders must provide coaching, feedback, and
recognition to demonstrate their appreciation for the efforts of others.

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1. Leaders who focus on consideration by building relationships and trust in an

open environment—while achieving organizational objectives—inspire high
levels of respect.

D. Project GLOBE (Global Leadership and Organizational Behavior Effectiveness)

1. A large, ongoing effort to develop an empirically based theory to describe,
understand and predict the impact of specific cultural variables on leadership
and organizational processes and the effectiveness of these processes.
2. Researchers determined that certain attributes of leadership were
universally liked or disliked.

III. Leadership Models

A. The leadership model of the NMA . . . THE Leadership Development Organization
defines the critical attributes and core competencies for leaders in today’s
workplace.

B. Each of the core competencies of the model are explained in more detail below.
1. Mobilize Individual Commitment for Change
a. Stress open and honest communications
b. Energize, excite and motivate others
c. Lead by example with high expectations
d. Convey purpose and mission to motivate others
e. Celebrate successes and learn from disappointments
f. Implement continuous improvement
g. Build teams to maximize success
h. Inspire in ways consistent with organizational values
2. Set Direction
a. Maintain internal and external customer focus
b. Translate strategy into actionable objectives and plans
c. Share vision, values and accountability at all levels
d. Maintain direction and consistency
e. Create a win-win atmosphere
f. Create an environment where all can take risks, create, contribute and
learn
g. Seize changes as opportunities
3. Engender Organizational Capability
a. Take advantage of diversity
b. Provide effective controls/metrics
c. Mentor and coach for growth and success
d. Maintain an effective customer network to spot issues
e. Demonstrate strong operational skills
f. Use complexity as leverage
g. Ensure operational performance
h. Capitalize on unanticipated opportunities

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4. Demonstrate Personal Character

a. Model organizational values
b. Earn trust and respect
c. Promote integrity and ethical behavior
d. Meet your commitments
e. Be accountable for your actions and decisions
f. Keep promises under pressure
g. Marshall all leadership attributes

C. The NMA list of leadership competencies reflects the skills, behaviors, and
imperatives for the enterprise and the individual to thrive. They must be aligned
and integrated throughout.
1. Setting direction (red), mobilizing individual commitment for change (blue),
and engendering organizational capability (yellow) comprise three of the four
core competencies.
2. They will not be fully realized unless the leader demonstrates the personal
character (green) that fosters the necessary relationships and creates an
atmosphere of trust.
3. Success is realized when strategic leadership development efforts are proven
to be linked to positive organizational outcomes.

IV. Who’s Who in Management and Leadership?

A. Influential Thought Leaders from the Past
1. Frederick W. Taylor (1856 – 1915)
a. Regarded as the father of scientific management
b. Taylor is recognized for:
i. Analyzing work tasks to find “one best way” to perform and teaching
people that way
ii. Developing the time and motion study as a metric for efficiency and
productivity
iii. Impacting quality standards
c. Quote: “In the past the man was first. In the future, the system will be
first.”
d. Noted Publication: The Principles of Scientific Management (1911)
2. Dale Carnegie (1888 – 1955)
a. Known for his famous courses which provide a common sense approach
to self-improvement, salesmanship, and public speaking.
i. Authored one of the most popular books in history, How to Win
Friends and Influence People
ii. Taught millions how to achieve self-confidence with well-honed
interpersonal skills.
iii. His simple, yet effective, techniques for winning friends and
influencing people have proven enduring and become part of the
American culture.

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b. Carnegie’s rules on how to win friends include:

i. Show a genuine interest in other people.
ii. Be happy and positive
iii. Remember that people love hearing the sound of their own name
iv. Listen to other people and develop good listening skills.
v. Talk about others' interests rather than your own.
vi. Give others a sincere sense of their importance.
c. Carnegie’s rules on how to influence people include:
i. To get the best of a situation, avoid arguments.
ii. Always listen to others' opinions and never tell anyone they are
wrong.
iii. Admit it if you are wrong.
iv. Show friendliness.
v. Make statements that the other person can agree with.
vi. Let the other person talk more than you.
vii. Make the other person feel that an idea is their own.
viii. See the other person's point of view.
ix. Show empathy for others' ideas and desires.
x. Infuse some drama into your ideas.
xi. Appeal to the better nature of others
xii. Finish with a challenge.
3. W. Edwards Deming (1900-1993)
a. Credited with improving production in the US by applying statistical
methods to enhance product design, quality, testing, and global sales.
i. Often referred to as the father of quality.
ii. Had a significant impact on manufacturing in Japan by teaching top
management how to produce innovative, high-quality products.
b. Deming is recognized for:
i. Defining quality by the ratio: Quality = Results of work efforts/Total
costs
ii. The Deming System of Profound Knowledge
iii. Jump starting a quality movement at Ford Motor Company
c. Quotes:
i. "There is no substitute for knowledge."
ii. "The most important things cannot be measured."
d. Noted Publications:
i. Out of the Crisis (1982) and
ii. The New Economics for Industry, Government, Education (1993)
4. Peter F. Drucker (1909 – 2005)
a. Is said to have "invented" management as a discipline worthy of study
i. Gave management of large firms the essential tools to deal with their
post World War II enormity, complexity, and growing global reach.
ii. Often referred to as the father of management theory and
organizational practice.

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iii. Predicted many major developments of the 20th century

(privatization and decentralization)
b. Drucker is recognized for:
i. Coining the term “knowledge worker”
ii. Viewing employees as “assets or resources” and not liabilities
iii. Popularizing the system of goal setting called “management by
objectives (MBO)’
iv. Believing that “managers cannot motivate people because people
motivate themselves”
c. Quote: “Management is doing things right; leadership is doing the right
things.”
d. Noted Publications:
i. Classic Drucker (2006)
ii. Leading in a Time of Change (2001)
iii. The Frontiers of Management (1986).
5. C.K. Prahalad (1941 - 2010)
a. Named the world’s most influential business thinker on the 2009
Thinkers 50 list published by the NY Times.
i. He was known globally and consulted by the top management of
many of the world’s foremost companies.
ii. His research focused on corporate strategy and the role of top
management in large, multinational corporations.
b. Prahalad is recognized for:
i. Coining the term “core competency”
ii. Promoting the role business can play in tackling world poverty
c. Noted Publications:
i. Competing for the Future (1994)
ii. The Fortune at the Bottom of the Pyramid (2004)
iii. The New Age of Innovation (2009)

B. Influential Thought Leaders from the Present

1. Ken Blanchard
a. Discovered the Hersey-Blanchard Situational Leadership Model.
i. Leadership behavior reflects how leaders should adjust their
leadership style according to the readiness of their followers.
ii. Managers should be flexible in choosing a leadership style and be
sensitive to the readiness level of their employees.
a. Readiness is the extent to which a follower possesses the ability
and willingness to complete a task.
b. Employees with high readiness require a different leadership style
than those with low readiness.
iii. The model is not strongly supported by scientific research.
b. Quote: “As a manager the important thing is not what happens when
you are there, but what happens when you are not there.”

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c. Noted Publications:
i. The One Minute Manager®, coauthored with Spencer Johnson,
ii. Raving Fans, Gung Ho!®, and Big Bucks®, coauthored with Sheldon
Bowles
2. Marcus Buckingham
a. Studied the world’s best managers and organizations to uncover the key
drivers of great performance and the factors that differentiate high
performing teams.
b. Conceived the strengths-based approach to management which
advocates that a job should be tailored to fit the person instead of the
other way around.
c. Quotes:
i. "Great management is not about changing people. Great managers
take people as is and then focus on releasing their talents.”
ii. “People are dramatically more effective, fulfilled and successful when
they are able to focus on the best of themselves.”
d. Noted Publications:
i. First Break all the Rules (1999)
ii. Now Discover Your Strengths (2001)
iii. One Thing You Need to Know (2005)
iv. Go Put Your Strengths to Work (2007)
v. The Truth About You (2008).
3. Jim C. Collins
a. Researched how companies grow, how they attain superior performance,
and what takes a company from “good to great”.
b. Found that average companies can transition to greatness by narrowly
focusing the company’s resources on its field of competence and
implementing “level 5 leadership” or leadership by persons who
possesses humility and a fearless drive to succeed.

c. Quote: “If you cannot be the best in the world at your core business,
then your core business absolutely cannot form the basis of a great
company.”
d. Noted Publications:
i. Built to Last (1994), coauthored with Jerry Porras
ii. Good to Great (2001)
iii. How the Mighty Fall (2009)
4. Stephen R. Covey
a. Authored one of the most influential self-help books of the 20th century,
The Seven Habits of Highly Effective People.
b. Covey identifies seven habits shared by all truly effective people which
can be learned and which lead to personal success.
c. The seven habits include:
i. Be Proactive

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ii. Begin with the End in Mind

iii. Put First things First
iv. Seek to Understand, Then be Understood
v. Think Win/Win
vi. Synergize
vii. Sharpen the Saw
5. John P. Kotter
a. Has helped mobilize people around the world to better lead
organizations, and their own lives, in an era of increasingly rapid change.
i. Recognized as one of the 50 Top Business Thinkers in 2009
ii. Is the voice on how the best organizations achieve successful
transformations.
iii. Explores the new rules of leadership and the importance of lifelong
learning in the post corporate world.
b. Developed the eight step method for leading change which includes:
i. Establish a sense of urgency
ii. Create the guiding coalition
iii. Develop a vision and strategy
iv. Communicate the change vision
v. Empower broad based action
vi. Generate short-term wins
vii. Consolidate change and produce more change
viii. Anchor new approaches to the culture
c. Noted Publications:
i. Leading Change (1996)
ii. What Leaders Really Do (1999)
iii. Our Iceberg is Melting (2006)
6. John Maxwell
a. Is recognized for his commitment to developing leaders of excellence and
integrity through his Five Levels of Leadership.
b. According to Maxwell, leadership learning never ends.
i. It is a process of personal development – a daily commitment to
leading with integrity, discipline, vision, and experience.
ii. It is embracing the guiding philosophy that “everything rises and falls
on leadership.”
iii. The traits that are the raw material of leadership can be acquired.
iv. The process of becoming a leader involves a life-long series of lessons.
v. Leadership is a process of personal development; it develops daily,
not in a day.
c. The Five Levels of Leadership
i. Position
ii. Permission
iii. Production
iv. People development

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v. Personhood
d. Quotes:
i. “People buy into a leader before they buy into the vision.”
ii. “If you keep doing what you’ve always done, you’ll always get what
you’ve always gotten.”
e. Noted Publications:
i. Developing the Leader Within You
ii. Running With the Giants
iii. The 21 Most Powerful Minutes in a Leader's Day
7. Henry Mintzberg
a. One of the world’s most influential teachers of business strategy.
b. Mintzberg’s theory on Organization Forms describes the six parts of an
organization.
i. The strategic apex (top management)
ii. Middle line (middle management)
iii. Operating core (operations)
iv. Technostructure (systems and processes)
v. Support staff
vi. Ideology (norms, values and culture).
c. He is a strong advocate against management as a science.
d. He promotes educating practicing managers with action learning and
problem solving.
e. Quote: “Management is, above all, a practice where art, science, and
craft meet.”
f. Noted Publications:
i. Managers Not MBAs (2004)
ii. The Rise and Fall of Strategic Planning (1994).
8. Tom J. Peters
a. Led the way in preparing management for an era of staggering change,
starting in the mid-1970s.
i. Focuses on the basic drivers of business success – employees,
customers, culture, action, innovation and entrepreneurial spirit –
rather than “just the numbers”.
ii. Rallies against the status quo and advocates change and reinvention.
b. Peters is recognized for:
i. The pursuit of excellence
ii. Passionate leadership
iii. Acquiring and developing the best talent
c. Quote: “Excellent firms don't believe in excellence - only in constant
improvement and constant change.”
d. Noted Publications:
i. In Search of Excellence (co-author Bob Waterman)
ii. Thriving on Chaos

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9. Peter Senge
a. Emerged in the 1990’s as a major figure in organizational development.
i. Popularized techniques for stimulating problem solving and creative
thinking among managers.
ii. Developed the concept of a learning organization as a dynamic
system in a constant state of adaptation and improvement.
b. For his work, Senge was named by the Journal of Business Strategy as the
“Strategist of the Century.”
c. Senge is recognized for:
i. Developing the concept of “learning organizations” -- those
organizations where people continually expand their capacity to
create and learn to achieve the results they desire.
ii. Adopting “systems thinking” as the cornerstone of the learning
organization which focuses on interactions within an organization and
between organizations to obtain a large picture view.
iii. Promoting shared vision as a framework for addressing problems and
opportunities
d. Noted Publications:
i. The Fifth Discipline: The Art and Practice of the Learning Organization
(1990)
ii. The Necessary Revolution: How Individuals and Organizations are
Working Together to Create a Sustainable World (2008)
10. Jack Welch
a. Former Chief Executive Officer (CEO) of General Electric
b. Has been described as the greatest manager in modern times.
c. Defines successful leaders as those who “grow others” and cautions
leaders about the real purpose of their job—to focus on employees, not
themselves.
d. Welch is recognized for his management philosophies:
i. Managing less is better. Not to say, don’t manage at all, just don’t get
bogged down in over managing.
ii. Manage by creating a vision—then make sure that employees run
with that vision.
iii. Lead, don’t manage, then get out of the way. Let employees do their
jobs without interference.
iv. Instill confidence. Treat employees with respect in order to build
their confidence in your leadership.
e. Quote: “For a company and for a nation, productivity is a matter of
survival.”
f. Noted Publications:
i. Jack Welch and the GE Way (2005)
ii. Winning (2008)

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