The Management And Leadership Commerce Essay

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People are not always born to be managers and leaders. The quality of developing a deep appreciation and sense to overcome the problematic situations, these qualities are not always born with the managers rather they are produced with the passage of time and with the experience of dealing with hoaxes. In some cases it is true that managers and leaders are born where else in other cases they have to put hard work and efforts in their work to produce the qualities of leaders and managers. Whatever the scenario is there are some certain qualities which the managers and leader possess which differs them from others. If someone is considered to be a born leader or manager, still at every stage of his career, he is in the process of learning and improving their leadership and management skills by facing different situations and problem. Effective problems solving, management and leadership skills are developed facing those challenging situations. There are some issues to be addressed still; what are managers, leaders and effective problem solvers? What unique qualities they possess? How can they improve these qualities? How can different circumstances help them shine their skills? Are the born managers and leaders better than the ones who develop themselves into effective managers, leaders and problem solvers? How managers learn to be effective? What's the difference between a manager and leader? All of these questions will be answered in detail in the report using examples of leaders and managers.

What is a Manager?

Manager is someone who takes the responsibility of planning and directing the group of people also monitors their work and takes the correct actions when needed. This can be regarded as a first step of the ladder of management. Peter Drucker, a successful American businessman says that a manager is responsible for the application and performance of knowledge. Different managers may have different responsibilities; a manager can direct his co-workers directly whereas another manager can have supervisors for the right direction of the members of the organization or the team.

What is Management?

It is a universal phenomenon and it is a really popularly used term which is used in all kind of organizations whether they are of business, political or cultural. Harold Koontz, the consultant of some of the largest business organizations of United States of America defines management as an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals. F.W. Taylor, an American mechanical engineer who was regarded as the father of scientific management and one of the first management consultants says that management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. It can be regarded as a purpose activity and it is an effort that is put in by the personals to achieve predetermined goals and objectives of an organization. There are different categories of management such as:

Process Management

Activity Management

Discipline Management

Group Management

Science Management

Art Management

Profession Management

Effective skills of a Manager:

As discussed already, some managers are born with the qualities that a manager must possess and some managers go through different challenges to acquire these qualities. In both cases, there are some qualities and skills that a manager must possess and Jan Gordon in his article elaborates what qualities a manager must have:

Creativity is something that a manager must possess and it separates an effective manager from a manager. Creativity is a quality that can catch people's eye and then their attention. It is something that can help manager to join different pieces of work together in an efficient way for the progress of the organization.

Whatever the work may be, there are always some limitations, some guidance and the work must be done keeping in mind a set of parameters. It is a quality of an effective manager that he knows how to work in a defined set of parameters and he structures his work according to those limitations and parameters and never goes beyond those boundaries.

Manager must have a keen insight and he can be able to know things which are not visible to others, this is called intuition.

Knowledge is an essential quality that a manager must have. Knowledge of the organization, the structure, the processes, co-workers, team members and knowledge of management paradigms is very important for being an effective manager.

There may come some situations in which the workload seems very heavy and difficult, managing the team and co-workers seems impossible and the commitment of a manager helps him to get rid and come shining out of such kind a situation.

Manager must be a good human, he must be flexible and versatile in his approach and he must be light on his workers and team members. Also, The manager must not be pedantic and gullible.

The manager must be focused on the goals of organization, he must show good discipline and he must take corrective actions however big the problem arises.

Examples of some effective managers:

These qualities can make help the manager to perform his duties effectively. The question is, how can a manager develop these qualities? What process and situations he must go through? Are managers born with these qualities? Well, these questions are sometimes really hard to answer but there are some examples which will help to address them.

Glen Stansberry wrote an article in 2010, describing some of the top business managers and the facts that made them so successful for their organizations. After the 9/11 attacks, the airline industry of United States were in a huge slump and each and every airline was cutting out their workforce. In this difficult situation the CEO of the Southwest Airlines, James Parker held his nerves and took some brave decisions. He announced after three days of 9/11 that the Southwest Airlines is keeping all their employees and starting 180 million $ profit sharing with them. This was a brave decision by James Parker and the decision made him a great manager and a true leader.

Another example was the failure of the Toyota vehicles which damaged their reputation big time. Instead of hiding and not answering to the questions asked, the CEO of Toyota Jim Lentz appeared on Digg Dialogg and answered as many questions as he could, when the questions were not even filtered. In this way, he saved the reputation of his company from having further damage.

Jim Sinegal is the CEO of Costco which is making a huge profit from last few years. He is a really simple man, with simple office whereas other CEOs are spending millions to decorate their offices. Annual pay of Jim is 35,000$ where other CEOs are spending millions on their own salaries. Jim Sinegal was a normal guy, from a normal background and today he is one of the exemplary CEOs in the world.

IBM is one of the finest computer manufacturers of its era. Blogging was never encouraged because of some particular reasons but the CEO of IBM asked his employees to blog and to share their views. The result is quite impressive; IBM blogs are one of the most trusted technological blogs now days. Creativity is quite visible from the decision of the CEO of IMB.

From these examples, it is quite obvious that managers are also humans. The hard and difficult situation, their lightness, their commitment, their creativity, their leadership skills, their sense of politeness with the employees, their knowledge, their understanding of situations and their faithfulness with their organizations are the things that make them the great and successful managers.

What is Leadership?

Leadership can be defined as the capacity to influence people by the means of personal attributes, knowledge of the situations and behaviour to achieve some common organizational goals. It is a process of getting things done through people. Followership is the essence of leadership. It can also be defined as the willingness of the people to follow that makes the person a leader. Leadership is a very important function of management. Leadership can come about in different ways:

Manager is the authority while leadership of their subordinates is a function of position they hold

Some leaders can be elected and then selected

Leader can also emerge by their popular choice and the qualities which they possess

What is Motivation?

Motivation can be defined as the effort, energy and excitement which a person is ready to utilize in his work. Motivation is something that causes us to act. It's a process to stimulate people to perform actions so that desired goals can be achieved. Many things can cause motivation, few of them are:




Job satisfaction

Working in team

Theories of Leadership:

There are different theories of leadership and each of these theories takes rather individualistic prospective of leader. Some of the theories are explained here:

Great Men Theory:

This theory states that the leadership is an inherent quality and that the great leaders are born and not made. This theory explains that the great leaders are born and are really heroic to lead.

The Trait Theories of Leadership:

The trait theory came out of the ''Great Men'' theory as a source of identifying the qualities of a successful leader. There are certain qualities that a leader possesses which can be aggressive behaviour, intelligence, intuition, drive for power achievement, inter-personal skills, deep imagination, self-belief, ability to rise above the situation to go with some administrative skills etc.

It is very hard to mention all those traits in a single report but there are some traits that repeat themselves over and over again and are quite common in most leaders.

Style Theory:

A leader can never forget to be a leader by involving with his followers or by continuously consulting them about his decisions. This can damage the worth of a leader and can allow the followers to think that their leader is not worth his position. Still the style of leadership of different leaders can be different and it can affect the efficiency, effectiveness and motivation of his followers.

Douglas McGregor: Theory X and Theory Y

In his book ''The Human Side of the Enterprise'' (1960), Douglas McGregor claims that the style of leadership will be adapted by the leader from the theories how his subordinates and followers will behave.

Theory X:

An average human being has an inherent human being and he always will have a disliking of the work given to him. Because of this behaviour, these humans can be punished, threatened, controlled and directed to get the maximum effort out of them to help achieve the organizational goals. Direction is needed by the humans to avoid responsibility.

Theory Y:

The physical or mental effort put into the work is just like playing and resting. An ordinary human being doesn't dislike work and can take it as a punishment or as satisfaction. Self-direction and self-control of the workers can be more beneficial than extensive control.

Contingency Theory:

This theory tells that the ability of a manager to be a leader and to influence his followers depends upon a particular situation and it will obviously vary from situation to situation. The factors which can vary are the personality of leader, style of the leadership, the nature of the task and the conditions of work.

Behavioural Theories:

This theory elaborates that great leaders are made and not born. This theory describes the actions of leader and the behaviour of the leader in different circumstances, not his mental quality and inner states. People can learn to become leaders; they don't have to be born with these qualities.

Participative Theories:

This theory tells that the best leader is the one who counts and praise the input given by others and the followers. The leader encourages and praises the efforts made by the group members for the sake of achieving the organizational goals and objectives.

Management Theories:

These are also known as transactional theories and these theories focus on the terms like supervision, organization and performances of the groups. These theories are based on rewards and punishments. These theories are mostly used in business organizations where the employees get rewards when they do something good for the organizations and there are also some punishments that have to suffer if they are the cause of loss to the organization.

Relationship Theories:

These theories are also known as Transformational Theories. These theories focus on the connection and relationships that are made between the leader and his subordinates and followers. These theories are inspiring for the subordinates and allow them to see the importance of completing a task with motivation. Leaders are focusing on the performance of the team but they will also have to look for the individual performances, whether an individual has performed his duties with his complete potential or not.

What makes a Leader?

Different leaders have to perform differently under different situations and circumstances but there are some common qualities and set of skills that can define what a good leader is:

Emotional Intelligence:

Emotional Intelligence was brought into scene by Daniel Goleman in 1995. It is a very important quality that a leader must possess. It's the ability to perceive, control and then evaluate emotions. The people who have researched about emotional intelligence say that it can be learnt and some say that it can be produced also. In 1990, Peter Salovey and John D. Mayer defined emotional intelligence as the subset of social intelligence that involves the ability to monitor one's own and other's feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions. There are four branches of emotional intelligence:

Perceiving Emotions

Reasoning with emotions

Understanding Emotions

Managing Emotions


HBS Professor Nitin Nohria says that communication is a real work of leadership. Nohria believes that great leaders are pretty good at following classic rhetoric elements. Centuries ago Aristotle said that we can reach people using different approaches, we can treat people in a manner to appeal their emotions and we can make arguments on their sense of value but the great leaders spend a lot of their time communicating. Nohria believes that the leaders can convey any message no matter how complex it is. Joe Badaracco, a professor of Business Ethics in Harvard Business School said that a talent of simplicity is needed in order to explain things in a few words. A great leader can convey very complicated concepts in just a few phrases. For a better communication, knowing your audience is also very essential. Great leaders always understand the worth and position of their audience. They know their audience well and in this way they can communicate with their audience in a far better way. Joe Badaracco says that being a good communicator is not enough to be a good leader; the leader must also be a good listener so that he can understand what his audience is trying to say to him. The leader must be able to tell all the hard realities and truths to his subordinates. Jeff Bezos, the CEO and founder of says that one of the key elements of being a good leader is the ability to tell the hard truths and realities. All these examples come under better communication.

Coping with change:

Great leaders can manage the changes to the organization, subordinates, team members or anything else. Effective leaders know and understand the value of change and accept the common vision of desired results. Empowerment is also important in managing the change process. Managing the change successfully makes ordinary humans the great and effective leaders. ''People often resist change for reasons that make good sense to them, even if those reasons don't correspond to organizational goals. So it is crucial to recognize, reward, and celebrate accomplishments." (Kanter)


In the modern era where technology is increasing day by day, knowledge is the key to success and they key element of effective leadership. The more you know about something, the more knowledge you have about things, the better you will perform. Great and effective leader must have knowledge about everything that he is interacting with. Joe Badaracco says that in the previous days, the leaders had to rely on their subordinates for collecting and implementing the knowledge but now a days, the leaders must be good enough in knowledge so that they can cope with different situations well.


As the world is progressing from industrial age to the technological age, creativity is becoming one of the key elements and quality of a great and effective leader. This is one quality that can distinct a leader from a great and effective leader. Creativity of a leader can give great advantages to the business organization. As mentioned above, the creativity of the CEO of IBM computers proved very beneficial for the company and their blogs got great recognition.

Motivation and Teamwork:

Motivation as already mentioned is a quality that can keep the whole team motivated and its one of the qualities that a leader must possess. The leader must be able to work with the team also and get the team running and working on the goals of the business organization. Team work is a really important property because working alone is very easy as you will know the benefits that you will get if you will work good whereas working in a team as a leader is very tough because the mistake of an individual can make the whole team to suffer the consequences.

Difference between Leadership and Management:

Qualities and skills of an effective leader and manager are discussed, now I will mention what is the difference between leadership and management.

Leadership is about setting a new direction and vision for the group of people whom the leader is leading that means the leader is the spearhead for the new direction whereas management controls or directs people or resources in a group of people according to the principles of values that have already been established. Management is about planning, organizing, co-ordinating and implementing the strategies and tactics and policies imposed from the top in a rational and waterfall manner. Leadership is more about opening new windows, motivation, team work and leading the followers and subordinates in to a specific organizational direction whereas management is more about the administration.


Concluding, keeping in mind all the discussion and examples, it is very obvious that the points mentioned in Morgan's Quotation are valid. The scenarios are true, in some cases the leaders are born and in some cases they will go through situations that will make them effective leaders and managers. There are some specific qualities and set of skills that differentiate the effective leaders and managers from others. That qualities and set of skills are mentioned in the report. Whenever a human undergoes hard fighting situations and scenarios, it will help him improve his skills and qualities. Experience is one thing that can teach you how to react in different situations. Working under tough conditions with different set of people will allow you to groom your personality as an effective leader and manager. A new born baby cannot manage and lead anyone, the conditions and scenarios which he will undergo will make him a great leader and an effective manager. Deep appreciation of each and every situation will produces creativity and qualities which are necessary to lead and manage a group of people or an organization. Leaders and managers like James Parker, Jim Lentz, Jim Sinegal and Bill Gates are some examples which went through the extremely difficult and tough situation in order to be successful leaders and effective managers. Close encounters, hard fought situations, difficult conditions and hopeless scenarios are those experiences which can convert an ordinary leader and manager into a great leader and a very effective manager. At the end, I recommend that the organizational trainings for the personals must be very hard so that at the time of crisis, they can come up bright and shining. They must be given responsibilities and exposure in real life difficult situations in order to groom their skills and to polish them into great leaders and managers. Studying the People Leadership and Management has improved our conceptions and our thinking about leaders and managers. Knowledge of the qualities and skills of a successful leader and manager is obtained and a lesson is learnt that the hard and difficult scenarios will surely get the best out of us and will groom our personality as a leader and manager.