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How can someone be a manager but not a leader

1.0 Introduction

A Manager is the person who responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career. Managers may direct workers directly or they may direct several supervisors who direct the workers.

According to Vtaide 2011 a leader is a person who influences a group of people towards the achievement of a goal. A leader by its meaning is one who goes first and leads by example, so that others are motivated to follow him. This is a basic requirement. To be a leader, a person must have a deep-rooted commitment to the goal that he will strive to achieve it even if nobody follows him.

Managers have a position of authority vested in them by the company, and their subordinates work for them and largely do as they are told. Management style is transactional, in that the manager tells the subordinate what to do.

Leaders with a stronger charisma find it easier to attract people to their cause. As a part of their persuasion they typically promise transformational benefits, such that their followers will not just receive extrinsic rewards but will somehow become better people.

2.0 Role Of Manager

There are many management functions in business and, therefore, many manager titles. Regardless of title, the manager is responsible for planning, directing, monitoring and controlling the people and their work. In fact, managers do the same types of tasks in all businesses.

Whether a person manages a hair salon or a factory, the manager’s job consists of similar tasks. Planning, leading, organizing and controlling all serve an important part in achieving management’s vision. Each component is important and one cannot function well without the others.

3.0 Types of Leader

There are three types of Leaders: Charismatic, Transactional and Transformational. 

3.1 Charismatic

According to Wikipedia 2011 the sociologist Max Weber defined Charismatic leadership is 'power legitimized on the basis of a leader's exceptional personal qualities or the demonstration of extraordinary insight and accomplishment, which inspire loyalty and obedience from followers'. Charismatic leaders are great for projects that require energy and talent. Design the new packaging of the company product, writing assignments, sports-related tasks, art project, these activities could be very successful when led by a charismatic person. Sometimes it will lacking in integrity.

of duty with rewards and punishments to reach goals and sometime it will lacking in leadership competence.

3.3 Transformational

Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders and sometime it will lacking in caring.

3.0 Roles Of Leader

Leader must generate a vision and a strategy to bring about its future. A good leader is an honest attitude towards the facts, towards objective truth. A subjective leader obscures the facts for the sake of narrow self-interest, partisan interest or prejudice. Effective leaders will continually ask questions, probing all levels of the organization for information, testing their own perceptions, and rechecking the facts. They talk to their constituents. They want to know what is working and what is not. They keep an open mind for serendipity to bring them the knowledge they need to know what is true. An important source of information for this sort of leader is knowledge of the failures and mistakes that are being made in their organization.

4.0 Conclusion

In conclusion, both a manager and a leader may know their own task in an organization. Leaders investigate reality, taking in the pertinent factors and analyzing them carefully. On this basis they produce visions, concepts, plans, and programs. Managers adopt the truth from others and implement it without probing for the facts that reveal reality and the main function of manager is planning, leading, organizing, controlling. There is the difference between leaders and managers. A good manager does things right by using their management skill. A leader does the right things by using the leading skill. Doing the right things implies a goal, a direction, an objective, a vision, a dream, a path, a reach. For someone can be a manager but not a leader, it must have very strong management skill. For a leader but not a manager, the leading skill is very important, and there are 3 types of leader which is Charismatic, Transactional and Transformational. For the people who are both a manager and a leader it must have strong management skill and leading skill.

Question 2

Identify two very different organizations that compete on a cost leadership strategy and explain how they do this, i.e. find out what they do that enables them to keep their prices low.

1.0 Background of Honda and Toyota Company

Honda Motor Company, Ltd is a Japanese multinational corporation primarily known as a manufacturer of automobiles and motorcycles. Honda Motor Company, Ltd was founded 24 September 1984 by Soichiro Honda and Takeo Fujisawa. Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. The Civic is a line of compact cars developed and manufactured by Honda. In North America, the Civic is the second-longest continuously running nameplate from a Japanese manufacturer; only its perennial rival, the Toyota Corolla, introduced in 1968, has been in production longer. The main competitor of Honda Motor Company is Toyota Motor Corporation or we usually call it Toyota. Toyota company was founded by Kiichiro Toyoda in 1937 to create automobiles. Toyota Motor Corporation headquartered is in Toyota City, Aichi and in Tokyo. Cost leadership strategy is very important for both company to keep their prices low and lower cost than the competitor.

2.0 Cost Leadership Strategy

A cost leadership strategy was founded by Micheal Porter, and it is based on the concept that can produce and market a good quality product or service at a lower cost than the competitors. For example these low costs of Toyota Motor Corporation should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital control, good process engineering skills, management of labor and low cost distribution.

The appendix 1 profit margin growth by Toyota Campany

3.0 Operating Capital Control

Operating capital control is an analysis of the factors that will influence the costs of production. The management skills, availability of personnel and compatibility of manufacturing resources is very important for operating capital control. The Toyota Motor Corporation is always consider their marketing strength and access to low cost materials and effective production by defer to the availability of adequate operating capital. Toyota Motor Corporation use "pull" systems to avoid overproduction and level out the workload. A common theme across the companies that base their strategy around low cost leadership is supplier relationships. In other words they have sufficient control over in-bound supplies and logistics. Their cost effectiveness starts from the premises of their suppliers. This is very important as major costs are incurred in the inbound supply chain.

4.0 Good Process Engineering Skill

Good process engineering skill is important for a company to avoid the extra cost. For example Toyota Motor Corporation standardized tasks are the foundation for continuous improvement and employee empowerment. And use only reliable, thoroughly tested technology that serves the people and processes. The leaders who thoroughly understand the relevant technologies and are able to perform the tasks will teach and share with others. Furthermore they are always introduce the problems such as unavailability of materials and poor quality control.

5.0 Management of Labor

Management of labor is needed for cost leadership strategy, it include the effectiveness of the company infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities. Toyota Motor Corporation make decisions slowly by consensus, thoroughly considering all options and implement decisions rapidly. Furthermore freedom is given to management team to make critical business decisions without undue influence from distributors, suppliers, unions, creditors, investors and other outside influences. They also develop exceptional people and teams who follow the Toyota company philosophy and become a learning organization through relentless reflection and continuous improvement.

6.0 Low Cost Distribution

Low cost distribution method must be select by company to get the offering into the hands of the customer. These include direct sales involves the sale of offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact.

Wholesale Sales involves the sale of using intermediaries or middle-men to distribute the product or service to the retailers. Toyota and Honda company set up a lot of outlet in many country. The outlet not only sell and display the newest car sample, the outlet also provide service and repair the vehicle beside the outlet. This will save a lot of money form just build a outlet to sell the car and build another service centre to service the vehicle.

7.0 Conclusion

In conclusion low cost strategy is centered on the capability of the company to produce and deliver products of competitive quality at lowest competitive price. Both of Honda Motor Company and Toyota Motor Corporation are success by following cost leadership strategy and maintain the aim to lower the product cost, beside that they also create value for customers. Lead the customer confident with the company product and make the company name very well known. Better way to strategically position a company on the advantage of cost is to increase market share by transforming from lowest cost producer to lowest cost supplier of products. This way the company translates its cost advantage into price advantage for its customers and thereby improves the market share. Both of Honda Motor Company and Toyota Motor Corporation have a very experience and excellent company structure and management team to operate the company well. In my opinion not only Toyota and Honda company, for all the organization a well cost leadership strategy is very important, the manager of company must measure that the cost leadership strategy must be run well and follow by the employee, then only they can survive in this competitive world now day and get successful in future.

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