30 Jan 2010

Sample Essay: The Difference Between Management and Leadership

Introduction

Is there any difference between leadership and management? Or leadership and management are the same? On a close look it can be seen that many managers are not leaders, though successful in their field. Leaders lead from the front and managers believe in directing controlling and planning and improving the efficiency of the organization. A manager makes the subordinates to work, a leader work with the people. Management philosophers and thinkers have been interested in identifying the difference between a manager and a leader.. Some leaders show management skills and some mangers show leadership skills. (Mccrimmon M, 2007) It is now well established that there is difference between a manager and a leader

Leader leads from front

A leader leads from the front. His language will be like come let us do the work. On the other hand a manager believes in planning and coordinating the work. He uses management techniques to manage others. Followers voluntarily follow the leader. This may not be the case with managers. Subordinates is been asked to obey the instruction of the manager by virtue of his position. The subordinates may be obeying the manager on his leadership skills or may be just as it is part of their duty. It is also common the subordinates dislike the manager and still follows his action to save his or her job. A leader has his interest common to the followers. When the common interest is being identified, people voluntarily follow him. Rather than asking the people to work, a leader prefers to call them for work and they just follow the instructions of a leader. This important quality makes a big difference between the style of functioning of a manger and a leader.

Difference in working style

There is a big difference in the working style of a manager. A leader attracts the people with the charisma he is having. He used to have an upper hand in technological knowledge than the workers. Leadership may not have any relevance with the functioning of the organization. On the other hand the management is different in its way of functioning. A manager keeps the organizational priority at his best. He has to do certain tasks as per the guidelines set by the organization. He then plans to achieve this by his people. Here the manager uses the modern management tools. He is interested in directing, planning and organizing. To make this effective he also uses modern management tools. A leader innovates and the manager administers (Bennis W, Doyal S, 2006). Leadership is setting up vision and Direction and management is implementation of this (Doyal S, 2006).

A leader set his vision and the followers follow his vision almost voluntarily. He seldom needs force to attract towards him in execution of his direction and vision. On the other hand the manager executes the vision of the organization. On his journey towards this he will also be using leadership skills to effectively manage his people. A manger with leadership skills can effectively manage the organization. There should be a force attracting the followers or a subordinate to the person directs them. In case of leadership it is often the quality of the leader or his charisma that attracts the people to him. On the other hand the manager and the leader should be the two sides of the coin. Latest management trends show an inclination towards improving the leadership qualities of a manager. It is accepted that a manager should improve the output of the organization but it should be on the cost of the people working in the organization.

Directing Function

The directing function of the manager is making people ready to perform certain task or assigning certain task to the people. This functional area of the manger has more to do with leadership. Once a task is to be performed, the concerned manager has to detail people or direct people to accomplish the task. This is mostly done in different ways by a manager and a leader. However both leader and a manager use the function of directing. Followers voluntarily work as per the direction where as manager needs to have something else for motivating the people to work. This may be different to different organization and also as per the management style it differs. Organizations have special structure and policies to motivate the people to work and managers are part of it.

In the field of emergency medical services the directing function of the manager has a lot to do with routine jobs. Things are to be done at high pace and many times immediate decisions are to be taken. The chances of going these decisions wrong are high. In this scenario subordinates should be motivated and encouraged to take decisions at time of emergency. Also the manager should be able to provide directions without any delay. His competence as a leader is very important. A leader comes forward to take the responsibility of the actions of his followers. The followers also recognize this fact and there are more people willing to work under a leader under emergencies. This is what actually needed in an emergency service. At the same time the leader should be conversant with the procedures adopted in an emergency. A manager is a technical person and he is likely to be thorough in procedures and policies. Union of managerial qualities and leadership skills will be a good formula for emergency medical services.

Emotional Intelligence

Leaders are emotionally more intelligent than ordinary managers. A manager wants to be successful should have high emotional intelligence. Emotional intelligence is the ability to understand and control one’s emotions and to understand the emotions of others. People having high emotional intelligence tend to be leaders. According to Terry, “a leader shows the way by his example. He is not a pusher; he pulls rather than pushes (Terry R G, 1988). A typical manager does not follow this style. He plans and direct people to get the work done. There is set of duties and responsibilities for each person in the organization. A manager ensures this is been done. He uses his control function to see things are going as per the schedule. A manger often uses his control powers. In contrast a leader expects his subordinates to perform the way it is desired. For example if a staff is coming late to his duty. The typical manager may think of taking corrective action, where as a leader may be thinking to find out the reasons behind the late coming of the staff and may be willing to support that person. Similar actions make the follower emotionally attached to the leader and they keep the individual interest only next to the common goals

In emergency medical service, emotional intelligence is a highly required quality of the person heading the operation. A leader who is empathetic and understands the emotions of others can do a lot in getting people involved in the service. A leader should avoid knee jerk reactions. It is already said emotional intelligence makes the difference in actions of a manager and a leader. A manager who is low in emotional intelligence may follow only the rule book and this kind of attitude may lead to poor quality service especially in emergency medical service. It is good to be knowledgeable but at the same time the managers should understand the need of being empathetic to the subordinates and the customers.

Leadership in Emergency Medical Service

The EMS (Emergency Medical Service) is becoming more and more complex day by day. The system is working with a lot of supervisors, ordinary staff and managers and a wide net work is being formed. Due to all these it has become very difficult for people associated with these services to survive without leadership skills. A leadership includes motivating and directing people to work. Emergency service requires quick action and this demands intrinsic motivation rather than anything. Only a true leader can make the intrinsic motivation in people following him. A leader motivates people to work for a common goal. In this service too, the person heads the department has to motivate the people to work for the common goal. A true leader can do it more effectively than a manager.

A leader should be a team player. Emergency service is always a team play. Mere management principles will not make any difference to the organization. A lot of uncertainty is present with the Emergency services. A manager should be capable of handling these services. People under him should be willing to work for extra hours if required. If extra service is required it should be given on volunteer basis. Here the scope of leadership is more visible. A leader can motivate his team members to provide their best.

Team members perform will perform to their full potential when the team leader motivates them to do so. The team leader should be empathetic to his team mates. He should make the people well aware of the team goal and the members should feel that the goal is common to all. Then only their full potential can be utilized. A leader should also provide a platform for the members to learn and grow. This will make the team members to become more professional. This will also increase the efficiency of the team to perform tasks.

Functions of management

Functions of management are Directing, Organizing, Planning, controlling and staffing. Professional managers are trained to perform these functions. Some people are on the view that Directing is the most important function of a manager. Many managers believe decision making is an important function of the manager. In the Emergency Medical Service Industry manager should be good at decision making. He will have to make decisions in seconds. A manger is trained to have these qualities. In management schools Case studies are used to impart the skills of decision making.

A leader has the quality of decision making and directing, a leader’s method of directing and decision making differ from that of a manager. Leaders decision are derived from that of his team members where as the managers decisions are learned decision and the decision the manger thinks to be good for the company.  In respect to other function like controlling and planning a manger uses modern management tools. An ordinary leader may not know these tools for planning and controlling. Hence in these function a manger may have an upper hand in delivering the duties. But if the manager has leadership skills then he can really outperform an ordinary manager. All leading management institutes have special curriculum to sharpen the leadership skills of the managers. It is also said it is important to become a leader then become a manager by learning management tools. Management is ‘managing men’ and a leader is expected to do this function well. Leadership involves in common interest and goal. By this common interest and goal a leader can motivate people to attain common goals. Managers seek scientific methods to perform their task. Leaders are not interested in going for such tools and management techniques. They are good motivators.

Born Leaders and Managers

Many people believe leaders are born to be leaders but not they believe there are born managers. People believe management qualities are trained. This may not be true regarding leadership qualities. For example, in accident sights some people emerge as leaders and guide others on what to do. These leaders are not trained to become managers or leaders. It is also observed that such people repeat the leadership role in similar occasion. This shows they are born leaders. Many view that leadership skills can be trained on individuals. But training on leadership skill is more difficult than training on management skills. It is also observed that function of direction is the most difficult part for any managers. Unless people have certain inborn skills it is difficult to direct other people.

In emergency medical service, to make the service more useful and effective, leaders are required than mere mangers. Emergency situation are unique and the robotic act will not help. A kind of intuition is the requirement of medical services. It is not that made up managers will be a failure. But born leaders can perform the task of emergency dealing perfectly

Leaders should have technical skills and personal skills to be more effective. If the leader does not have adequate knowledge people may not obey him in the long run. The followers should believe that the leader is more knowledgeable and technically competent than them. This gives the followers confidence to work with the leader and they will feel an assurance that the leader will look after them in case of any trouble. Leaders are more approachable than managers. They like to meet people and discuss their problems. Leaders suggest measures to resolve the worries of the people when people approach them. These characteristics are not applicable to managers. Managers are mainly concerned in increasing the profitability of the organization. In contrast leaders are more concerned about their followers.

Managers and Leaders

Successful managers are efficient leaders. Bill Gate is a successful leader as well as a good manager. There are other examples too. Most successful managers are not MBA holders rather they are good leaders. On a close view it can be understood that it is important to become a leader first than becoming a manager. Story of successful managers in all fields underlines this factor.

There are other differences in the styles of managers and leaders. A manager makes his decision and then sells his decision to his followers. Manger compares alternatives before making decisions. He asks his subordinates to question if they have any doubt. In case of a leader his decisions are more acceptable to the mass and that is the reason they follow the leader.

Conclusion

There is a difference between leadership and management. Managers are more concerned about planning, controlling, staffing and organizing. Leaders are more concerned about directing and organizing people. They act more as a representative of the followers. People follow leaders voluntarily than by virtue of their position. Leaders should have high emotional intelligence. In Emergency Medical Service leadership qualities are more sought after than mere management skills. Managers with good leadership skills can produce best result. Successful business people are good leaders as well as good manager. To be successful in the long run a manager should have leadership skills.

Reference

M Crimmon (December, 12 2007) Leader or Manager, What are You? Retrieved 14 April 2009 from http://businessmanagement.suite101.com/article.cfm/leader_or_manager_which_are_you

Doyle, S. (2006, October 27). The Difference Between Leadership and Management. Retrieved April 15, 2009, from http://ezinearticles.com/?The-Difference-Between-Leadership-and-Management&id=340478

Terry R G (1988), Principles of Management, Richard D Irwin Homewood III.

Emergency medical services management and leadership in America Retrieved April 14 from

http://www.nemsma.org/LinkClick.aspx?fileticket=FGTTfMTe5CU%3D&tabid=37&mid=409

Goleman D (1980) Managing; The Dark Side of Charisma Retrieved April 14, 2009

http://www.nytimes.com/1990/04/01/business/managing-the-dark-side-of-charisma.html?partner=rssnyt&emc=rss

Beck, M. (2004, November 10). Exceptional Leadership Inspires the Best Effort in Others. Retrieved April 16, 2009, from http://ezinearticles.com/?Exceptional-Leadership-Inspires-the-Best-Effort-in-Others&id=5315

Abdul-Karim, Z. (2009, April 9). Leadership in Uncertain Times – Integrity. Retrieved April 16, 2009, from http://ezinearticles.com/?Leadership-in-Uncertain-Times—Integrity&id=2203907

Gopalachery TM, September, 19, 2008, The Difference Between Leadership And Management

Retrieved April 16, 2009 from http://www.evancarmichael.com/Management/1055/The-difference-between-Leadership-and-Management.html

Maruta, J. (2009, March 29). Importance of Leadership Management. Retrieved April 16, 2009, from http://ezinearticles.com/?Importance-of-Leadership-Management&id=2157973

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29 Jan 2010

Sample Essay: The Marketing Game: A Strategic Tool for Managers in the 21st Century Market Place

The rapidly changing and turbulent economic environment of today requires companies and enterprises to implement responsive, relevant marketing strategies to survive and grow in whatever industry they are in.  These strategies are necessary to address intense competition; changing market behavior and preferences; and the emergence of new products and technologies that change the dynamics of the marketplace.  Indeed, the main competitive factor for success in many companies in today’s environment lies in the formulation and implementation of effective marketing strategies that focus on consumer analysis, competition analysis, and industry assessment, and the appropriate marketing mix involving target market strategy, product development, pricing, promotions, and place.  Ultimately, the entrepreneur or corporate manager who best understands the dynamics of the market stands to succeed and profit the most in the long-term.

In recent years, business and marketing tools have been invented to assist business strategists, entrepreneurs, and managers on how to plot market strategies.  One of the most recent is called The Marketing Game (TMG) developed by Charlotte Mason and William Perreault, Jr. This marketing simulation game has attracted hordes of users for its applicability, flexibility, and systematic approach to market strategy formulation.

The Marketing Game or TMG

The marketing tool called TMG is considered an effective marketing strategy program or framework because it allows users to strategize using simulated, relevant business conditions.  As explained by Dr. P.V. Balakrishnan (2007) in his marketing presentation entitled Marketing Management Laboratory BBUS 438 for the University of Washington, the TMG aims to accomplish the following objectives:

To develop skills in identifying market opportunities, encompass knowledge of and the ability to apply key marketing frameworks and tools in analyzing customers, competition, and marketing strengths and weaknesses;

To develop insights about creative selection of target markets and making integrated strategy decisions concerning product, price, promotion, place, and the needs of the target market;

To develop skills in marketing analysis; and to provide meaningful and practical experience in translating qualitative and quantitative analysis into conclusions about profitable marketing strategies and programs.

A key feature of the TMG program is that it incorporates all the elements needed in a game environment in the same manner as sports.  In particular, as described by Balakrishnan (2007), the TMG adheres to the key elements of sports namely players, tools, grounds, scoring systems, and umpires.  In relating sports to business, Balakrishnan (2007) describes the players as competitors; the marketing mix, factories, and distribution systems as the tools; the markets are the grounds on which the game is played; share prices and market shares are the scoring systems,; and the regulators are the umpires.  Fundamentally, the TMG is designed to allow users to engage in market and strategy planning activities in a simulated, competitive environment using a rapid feedback mechanism (Balakrishnan, 2007).

The Applicability of TMG

One of the main strengths of the TMG as a market planning tool is its applicability.  In particular, the program attempts to approximate a real business situation in need of strategic market planning.  Thus, as explained by Prof. A.J. Otjen of the Montana State University College of Business University, the TMG presents a “living case where you learn about a situation, evaluate opportunities, develop a strategy, and make market plan decisions (Otjen, 2009).”  She   also harps on the game’s computer modeled feedback mechanism that summarizes marketing outcomes, related financial results, based on both the plan and competitors decisions (Otjen, 2009).

Thus, as explained by both Balakrishnan (2007) and Otjen (2009), an essential attribute of the TMG is that is captures the highly competitive nature of a business environment.  More importantly, the game requires that users, who can be entrepreneurs or corporate managers, to examine and assess a variety of factors affecting a company in relation to the industry it operates in.  In effect, the TMG adheres to one of the most authoritative business and management strategy thinkers in the person of Michael E. Porter, who developed a comprehensive framework to analyze the competitive environment found in industries.  Specifically, Porter, from his book entitled Competitive Advantage: Creating and Sustaining Superior Performance (1985), developed the Five Forces Theory of industry structure.  In this theory, the competitive environment in the industry emanates from the bargaining power of suppliers, the threat of substitutes, the potential entrants to the industry, the bargaining power of buyers, and the intensity of rivalry among existing firms (Porter, 1985).  Basically, these five forces influence each other, and consequently, firms in a given industry operate and create marketing strategies in response to the competitive pressures of the industry and the competition.  This view is echoed by Otjen (2009) in describing the TMG as quote as follows:

…The simulation is competitive, and you must carefully analyze what marketing mixes competitors are offering or what customers they are targeting because that obviously impacts the strengths and weaknesses of your firm and choices that customers have in the market…

Therefore, from a strategic perspective, the TMG clearly defines the relationship between the uncontrollable factors in the industry or marketplace and the controllable factors a firm can manipulate.  In particular, Balakrishnan (2007) explains that the TMG considers such independent variables as competition, consumer tastes, the regulatory environment, and economic, social and cultural factors to have an effect on the marketing strategies of the firm.  In turn, these strategies are aimed to elicit behavioral responses on the part of the customer namely product awareness, brand loyalty, and consequently, product purchase.  In the end, the firm measures the effectiveness of its marketing strategies through specific indicators such as sales, profits, return on investment, market share, among others.

A Systematic Approach to Market Planning

To appreciate the value of the TMG, one must examine the systematic manner in which the game process was designed.  As derived from Otjen (2009), the TMG process flow is illustrated in Figure 1 below.  Basically, the player of the TMG assumes the position of the marketing manager in charge of all the marketing initiatives of a given firm.  Consequently, as explained by Balakrishnan (2007), the game begins with an analysis of the market situation and a determination of market opportunities.  In this phase, the business manager examines the industry environment or market place environment to determine such vital trends as industry growth, customer behavior and trends, technological factors affecting the industry, the competitive environment, among other key market conditions.  After assessing the market place and identifying programs to tap into market segments, the manager is then compelled to engage in sales planning and budgeting in view of the products and services to be introduced in the marketplace.  In the sales planning stage, the manager needs to account for the product’s market share data and forecasted volume of demand per customer segment and distributional channel.  Meanwhile, the budgeting process includes the determination of the necessary costs to be incurred in positioning and introducing the product in the market place.  Budgeting items may include salaries, research and development (R&D) costs, advertising and sales promotions, expenses, customer service expenses, market research reports expenses, and so on.

Once the forecasts have been derived, the manager then formulates and calibrates the marketing plan, which is basically composed of the four P’s of marketing namely product, price, place, and promotions.  For product strategies, the manager decides upon the relevant product attributes that correspond to what the market needs and differentiate these from those offered by the competitors.  In this stage, the manager should already know what kind of product positioning he or she want to establish in the market place.  Consequently, manager then calculates and sets the appropriate price for the product.  In this stage, the manager determines the product cost and retail prices.  In determining the price of products, a manager would have to consider the product’s image or value in the eyes of the customer.  Consequently, the manager then identifies the distribution strategy, by analyzing and determining the appropriate distribution channels per channel or account.  The manager then formulates a promotions plan that includes advertising strategies and activities.  In each of the marketing mix elements, the manager makes use of well-organized templates and fields where data and information are imputed and processed.

Once the marketing mix has been determined, the manager then subjects the plan to the simulation phase.  In this stage, the manager receives constant feedback concerning the reactions and competitive environment in the simulated market place.  The feedback comes from customers, competitors, the regulators, and the other forces present in the simulated market place.  After assessing the feedbacks in relation to the marketing mix, the manager then makes the final marketing plan and submits it.  Subsequently, the marketing reports are then sent back to firms and the next cycle of marketing decisions, as prescribed by the TMG program, commences.

Throughout the TMG process, the manager is assisted on each of the market planning stages clearly and systematically.  This systematic, yet easy to use process applied in the TMG is enhanced using computer and Internet technology.  Furthermore, the player is assisted by built-in tools to generate illustrative aids such as graphs, charts, figures, diagrams, and other features to produce professional market reports.

Fundamentally, the iterative cycle inherent in the TMG module reflects the flexibility of the program.  In actual business situations, market trends are always in a state of flux.  Products and services change depending on the so many forces such as client preferences, technology, new inventions, economic instability, and so on.  Given this reality, the TMG trains users to be nimble, innovative, and multifaceted in terms of strategic thinking.  The range of factors and variables accounted for users playing the TMG are numerous indeed.  For example, on the aspect of competitor analysis alone, the user would have to consider the competitors past, present, and future strategies, their market positioning in various market segments, their financial performance, and a host of other factors.  Users playing the TMG would also need to conduct comparative analysis of competitors in matrix format comparing sales, products, sales representatives, market shares per channel, and a host of other variables.  Another example is the pricing strategy.  In this aspect, the user needs to consider such factors as production costs, investments in machinery and assets, economies of scale, as well as customer perception of the product’s value and image.

Meanwhile, product positioning strategies also require that a TMG player knows what makes his or her products superior to competitors and what kind of products fit into a particular customer segment.  Essentially, with so many variables and interrelationships to examine in the simulated market place, plus the fact that the system is designed to account for changes in the market place, users of the TMG are bound to develop in-depth, critical thinking skills.

Figure 1: TMG Process Flow (Source:  Prof. A.J. Otjen, Montana State University College, 2009)

Analysis of market situation/ opportunities

Planning and budgeting

Make marketing plan decisions

The marketing game simulation

Company reports returned to firms

Conclusion

The TMG strategy program offers corporate managers with a relevant, responsive and systematic approach to market planning and strategy.  The program is very much applicable in today’s uncertain, fast changing economic environment because it conditions managers to think strategically and critically.  In effect, the program reduces the danger of managers confining their analysis on just one or two elements of the marketing analysis, thereby allowing them to forge sound, detailed, and effective strategies.  Consequently, the program’s systematic process flow enables users to develop the marketing plan in its fullness, thus minimizing the risk of overlooking a key step in the market planning process.   Another significant feature of the TMG is that it is designed to accommodate game situations and therefore offers users with an exciting, challenging, and highly engaging market planning experience.

In the final analysis, the TMG is a valuable training and strategizing tool for managers examining the business landscape in the 21st century.  Amidst the current economic recession, managers need to be aided by tools that allow them to craft holistic marketing strategies effectively and swiftly.

Reference List:

Balakrishnan, P.V 2007.  “Marketing Laboratory BBUS 438,” A marketing presentation for the
Business Administration Program of the University of Washington Otjen, A.j. 2009

The Marketing Game! Viewed 9 April, 2009,
<http://www.msubillings.edu/businessfaculty/otjen/index2.html>

Porter, M 1985.  “Competitive Advantage:  Creating and Sustaining Superior Performance,”
The Free Press, A Division of Macmillan, Inc.

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