Mgt 330 - Management and Leadership Case

Management and Leadership

Ben Enuma

University of Phoenix

MGT 330

Instructor: Brenda Shore

October 3, 2011

Management versus Leadership

Management and leadership go hand-in-hand. Though they are not the same thing, they are linked, and complimentary. Still much effort has been spent delineating the differences. For instance, management deals with the day-to-day activities of the organization, but leadership involves initiating important changes. Whereas managing requires planning and budgeting routines, leading involves creating a vision and setting the direction. While management requires structuring the organization, staffing it with good hands, and monitoring performance; leadership goes beyond these functions by inspiring people to attain the vision. (Bateman & Snell, (2009).

The difference between management and leadership becomes clearer when we consider what managers and leader does. Many people by the way are both. However, effective managers are not necessarily true leaders; some managers, supervisors, and top executives carry out their responsibilities successfully without being true leaders. Dennis Kozlowski was chairman and chief operating officer (CEO) of Tyco Int'l from 1992 to 2002. He effectively managed an executive team that recorded remarkable achievements for the company, such as an aggressive acquisition strategy; eventually acquiring over 1000 companies within this period. The expansion program of the company was further consolidated in 1997 when it was added to the Standard and Poor's 500 Composite index, which consists of 500 publicly quoted companies with the largest market capitalization. Within 10 years, Dennis Kozlowski grew the company's revenue from less than $2.5 billion to $35.6 billion. No doubt he is good manager. However, his leadership traits called to question when he was convicted of theft of about $150 million belonging to the company. In May 2007, the Federal District Court ordered the company to a fine of $2.92 as compensation to a class of defrauded shareholders; a crime committed during Dennis Kozlowski's tenure. Unlike effective managers, great leaders keep people focused on moving the organization toward its vision (a possible and desirable future state of the organization), motivating the team to overcome any obstacles that comes their way.

By definition managers have subordinates and a position of authority vested in them by the organization. Managers are paid to get things done and their subordinate work for them and do as there are told, hence it is transactional. The focus is the job at hand and