Leadership and Management

TITLE

The concept of the leadership and management for A’s Fashion Company.

ABSTRACT

The main objective of this report on leadership and management is to provide an idea about the yearly handbook of the A’s Fashion Company to be given to new management trainees.

INTRODUCTION

In this report I will be defining the terms Leadership and Management including their similarities and differences. I will be also analysing the main 4 characteristic of three different styles of leadership. Lastly, I will be also defining and explaning teamwork and delegation.

METHOD

In this report I will be using the primary research; observation and secondary research; books, internet, etc.

FINDINGS

To: New Management Trainees

Fr: Agnes Aguilar Corsanes (Business Administration)

Subject: Leadership and Management

                                               

                        Date: 10^th May 2014

I will be defining the terms Leadership and Management including their similarities and differences. I will be also analysing the main 4 characteristic of three different styles of leadership. Lastly, I will be also defining and explaining teamwork and delegation.

Task 1

Leadership is a process whereby an individual influences a group of individuals to achieve a common goal (Peter G. Northouse) while Management is the process of planning, organising, leading and controlling people so that there is a productive outcome to work (Tim Hannagan)

Similarities between Leadership and Management:

-Good management is effective leadership and the ability to manage properly a group or organization is equivalent to being an effective leader because they both managing groups and organizations mainly involve being able to direct the efforts a particular group of individuals.

-Leaders and Management are both have their own strategies and abilities to work effectively for the success of the company.

Differences between Leadership and Management:

-Management is a career. Leadership is a calling. A leader is someone who people naturally follow through their own choice, whereas a manager must be obeyed. A manager may only have obtained his position of authority through time and loyalty given to the company, not as a result of his leadership qualities.

-Leadership is more focus on leading people where they are comfortable taking risks on making decisions for the company. Almost all leaders have high levels of imagination whilst Management is more focus on managing work, which they tend to be rational, under control problem solvers. They often focus on goals, structures, personnel, and availability of resources.

-Leadership simply look at problems and devise new, creative solutions. Using their charisma and commitment, they excite, motivate, and focus others to solve problems and excel while management create their strategies, policies, and methods to make teams and ideas that combine to operate smoothly. They empower people by soliciting their views, values, and principles. They believe that this combination reduces inherent risk and generates success.

Task 2

1.    Lewin's Leadership Styles: There are three main characteristic of Lewin’s leadership style when it comes in particular decision-making. (K. Barman, 2011)

·         Autocratic: This form of style is about making decision without any consultation, which means the leader takes decision without consulting the members. Leaders dictate all the work methods and processes, which means, their staffs members are rarely trusted with decisions or important tasks for the company. Therefore, this could be discouraging, and it can lead to high levels of defection and staff turnover. However, A’s Fashion Company could use this method in terms of making decisions quickly which is when there is no need for input on the decision, where the decision would not change as a result of input and where the motivation of members to carry out following actions would not affect the business whether members are involved or not involved in the decision-making. (K. Barman, 2011)

·         Democratic: This style is about consulting all members in terms of making decisions for A’s Fashion Company, although the process would be longer than autocratic style. This method Staff members share their a wide range of ideas/opinions for A’s Fashion Company which it encourages staff members’ creativity, and make them more highly engaged in projects and decisions where staff members tend to have high job satisfaction and high productivity. However, this could create unclear final decision for A’s Fashion Company. (K. Barman, 2011)

·         Laissez-Faire: the purpose of this style is to minimize the involvement of the leader and maximise the involvement of staff members in terms of making decisions and how they set their deadlines for A’s Fashion Company, although the leaders may still be responsible for the result but they will still provide support with resources and advice if needed. However, This style can lead to high job satisfaction when staff members are capable and motivated in making their own decisions, but it can be damaging if team members don't manage their time well, or if they don't have enough knowledge, skills, or self motivation to do their work effectively for A’s Fashion Company. (K. Barman, 2011)

2.       Flamholtz and Randle's Leadership Style Matrix: Flamholtz and Randle identified their four main styles of leadership in terms of decision-making and the degree to which people are involved in the final decisions for the company. (Management Study Guide)

·         Exploitive Authoritative: The leader has no trust and confidence in team members and uses methods as threats to achieve conformance. Thus, the decisions are imposed on team members and they do not feel free at all to discuss things about the job with their leader. The teamwork and communication are very poor and the staff members’ motivation is based on threats.

·         Benevolent Authoritative: This method is more likely than Exploitive Authoritative; the leader has condescending confidence and trust in team members, which is their team members do not feel free to discuss things about the job with their leaders. However, in terms of teamwork and communication is very poor and motivation is based on a system of rewards.

·         Consultative: The responsibility is spread widely through the A’s Fashion Company hierarchy. The leader has substantial but not complete confidence in staff members. Some amount of discussion about job related things takes place between the leader and the staff members. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job.

·         Participative: In this method there is a high level of teamwork, communication, and participation; which means the responsibility for achieving A’s Fashion Company goals are widespread throughout the company hierarchy. There is a high level of confidence that the leader has in his staff members. This method would be ideal for A’s Fashion Company and will lead to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings.

3.    Transformational Leadership: This leadership style is concerned with improving the performance of staff members and developing their fullest potential. (Bass and Avolio, 2002). These are the main four factors:

·         Idealized Influence (Charisma): in this method A’s Fashion Company leaders have high standards of moral and ethical conduct and can be counted on to do the right thing. They are deeply respected by staff members who usually place a great deal of trust in them. They provide staff members with a vision and a sense of mission. (Bernard M. Bass, Ronald E. Riggio, 2002)

This factor has got two components such are: attribution component that refers to the attributions of leaders made by staff members based of perceptions they have of their leaders and behavioral component refers to staff members’ observation of leader behavior. (Bernard M. Bass, Ronald E. Riggio, 2002)

·         Inspirational Motivation: This factor A’s Fashion Company leaders inspire the staff members through motivation to become committed to and a part of the shared vision in the organisation. In terms of practice, leaders use symbols and emotional appeals to focus group members’ effort to achieve more than they would in their self-interest. For example: A’s Fashion sales manager who motivates members of the sales force to excel in their work through encouraging words and clearly communicate the integral role they play in the future growth of A’s Fashion Company. (Bernard M. Bass, Ronald E. Riggio, 2002)

·         Intellectual Stimulation: A’s Fashion leaders stimulate their staff members to be creative and innovative. This means that leaders support their staff members as they try new approaches and develop innovative ways of dealing company problems/issues. For example: A’s Fashion financial manager who promotes staff member’s individual efforts to develop unique ways to solve financial problems that have caused by accounting wrongly. (Bernard M. Bass, Ronald E. Riggio, 2002)

·         Individualized Consideration: In this factor A’s Fashion leaders act as coaches and advisers while trying to assist staff members in becoming fully actualized. These leaders may use delegation to help staff members grow through personal challenges. For an example: one of A’s Fashion managers who spends time treating each staff member in a caring way. To some staff members, the leader may give strong affiliation but to others, the leader may give specific directives with a high degree of structure. (Bernard M. Bass, Ronald E. Riggio, 2002)

Task 3

A.) Teamwork: The process of working with a group of people in order to achieve a goal.

Teamwork is often a crucial part of a business, as it is often necessary for colleagues to work well together, trying their best in any circumstance. Teamwork means that people will try to cooperate, using their individual skills and providing constructive feedback, despite any personal conflict between individuals. (Business Dictionary, 2013)

B.) Leaders talk of teamwork when they want to emphasis the virtues of co-operation and they need to make use of the various strengths of staff members.  A’s Fashion decided to make some changes for the company and one of these is for the change to team working to make effective the practices of the business; A’s Fashion management must actively support the new environment. The manager's role should move from controller to initiator which is particular managerial tasks should aim to provide the right support and environment for effective team working for the success of A’s Fashion. These tasks include:

• Encouraging the free flow of ideas and initiative.

• Training and developing staff members; they will be more responsibility on their decisions.

• Overseeing teams and ensuring they meet objectives.

The need to initiate and manage change will place increasing emphasis on leadership skills and a style of A’s Fashion management where authority comes from competence rather than status. A’s Fashion managers are capable of adapting to the new style with training, encouragement and guidance.

C.) There are four characteristics of teamwork that identified by Larson and LaFasto in their book titled Teamwork: What Must Go Right/What Can Go Wrong (Sage Publications 1989)

·         The team must have principled leadership: Teams usually need someone to lead the effort. Team members must know that the team leader has the position because they have good leadership skills and are working for the good of the team. The team members will be less supportive if they feel that the team leader is putting him/her above the team, achieving personal recognition or otherwise benefiting from the position. (Larson and LaFasto, 1989)

·         The team must have a clear goal: Team goals should make a specific performance objective, expressed so concisely that everyone knows when the objective has been met. For an example: Increase the revenue by 5% within a year. Setting up SMART objectives for A’s Fashion would help the team to identify their target and this would be easier for them to achieve. (Larson and LaFasto, 1989)

·         The team must receive external support and encouragement: Encouragement and praise works just as well in motivating teams as it does with individuals because this will help the staff members to be more determined to be successful. (Larson and LaFasto, 1989)

·         The team must have commitment: This doesn't mean that team members must agree on everything. It means that all individuals must be directing their efforts towards the goal. If an individual's effort is going purely towards personal goals, then the team will confront this and resolve the problem. (Larson and LaFasto, 1989)

Task 4

A.)  Delegation is the act by which a person or group of persons possessing authority transfers part of that authority to subordinate person or group. (Tim Hannagan) 

B.)  Delegation is a very helpful for the company in terms of succession planning, personal development and seeking and encouraging promotion for the business and staff members, which enables the staff members to gain experience to take on higher responsibilities.

Delegation is one of the most important management skills for business. Good delegation saves time, develops and motivates staff members. However, poor delegation will cause confuses to staff members, and fails to achieve the goal.

Delegation is vital for effective leadership, which means effective delegation is crucial for management and leadership succession. For the successor and for the manager or leader too: the main task of a manager in a growing thriving organisation is ultimately to develop a successor. When this happens everyone can move on to the higher stages. When it fails to happen the succession and progression becomes dependent on bringing in new people from outside. (K. Saxena, 2011)