Leading and Managing

Leading and Managing

Ed Brennan has said “I don’t know if I can define leadership, but I know when I’ve been lead” (Lourie, 2004, para. 1). Brennan, Executive Chairman for American Airlines, feels that there are six qualities that separate leaders from followers: Integrity, a deep understanding of the business, consistency, a willingness to admit mistakes, the ability to listen, and decisiveness (Lourie, 2004, para. 4). These qualities are just some of the means by which employees can distinguish between managers and leaders and their impact on a healthy organizational culture. It is important to find how both managers and leaders share similar qualities and note their differences. Leadership and management are “two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile organizational environment” (Owen, 1998, para. 14).

Similarities and Differences

Management is “the process of setting and achieving the goals of the organization through the functions of management: planning, organizing, directing (or leading), and controlling” (Allen, 1998, para. 11). Leaders apply these management practices and add their vision to create change in an organization. Leadership is the “dynamic relationship based on mutual influence and common purpose between leaders and collaborators in which both are moved to higher levels of motivation and moral development as they affect real, intended change” (Allen, 1998, para. 6). A leader is influenced by colleagues while working as a team to achieve organizational goals (Allen, 1998, para. 8). Managers and leaders carry certain amounts of responsibility depending on where their position within the organization lies. They must be able to utilize all four functions of management well in order to get results from their employees.

One of the main differences between leadership and management is that employees freely follow a leader because they choose to, not because they have to (Allen, 1998, para. 11). Managers, however, may have to use formal authority to get a desirable performance from their employees (Allen, 1998, para. 11). Managers tend to have the mindset of an administrator and a short range view. Leaders, on the other hand, are innovative and have a long-term view. Managers also are inclined to ask how and when, focus on the bottom line, and challenge the process. Leaders will ask what and why, focus on the horizon, and reconstruct organizational capacity (Owen, 1998, para. 43). Managers focus on the known and formal systems while leadership is about change and looking at what needs to be done differently to make an organization successful (Owen, 1998, para. 12).

Healthy Organizational Culture

Organizational culture can be seen as a set of shared values and beliefs, or the “social glue” that bring members of an organization together (Malhi, n.d., para. 2). Some of the ways that leadership can influence the culture of an organization include how they measure and control performance, their reactions to situations, how they reward employees, and even the design and interior of office space (Malhi, n.d. para. 5). The rumor mill also indicates what is truly happening in an organization and quality of gossip reflects on whether the organization has a healthy or unhealthy culture (Powell, 2004, para. 17). Having the right leaders in place is necessary in order to maintain a healthy environment. Looking for individuals to fill leadership roles is not always easy; fortunately the belief is out there that leadership can be taught.

“A healthy corporate culture is one that is appropriate to the success of the organization in its operating environment and the well-being of organizational members” (Malhi, n.d., para. 4). Leaders contribute to a healthy organizational culture in the way that they communicate with employees, provide open communication by having an open door policy, and give employees a reason to come to work and perform their best every day. Gossip stems from fears that are not being openly discussed (Powell, 2004, para. 19). When leaders provide a stable work environment where there is partnership and steady, open communication, fears will be diffused and drastically reduce negative gossip which reflects poorly on an organization’s culture.

Recommendations for Maintaining Healthy Organizational Culture

Most organizations know what is needed to create a healthy organizational culture. Literature on the subject focuses on open communication, employee relationships, shared values, etc. Employees in a healthy organization feel that customer satisfaction is the first priority and do