Management and Organizational Behaviour Business Environment

Question: Discuss about the Management and Organizational Behaviour for Business Environment. Answer: Introduction: In the last fifty years the business environment have changed both internally and externally because of globalization, increase in competition and technological improvement in communication process. It has created a need for better management and leadership in business organizations for long term growth and sustainability. As a result there has been innumerable number of leadership theories by scholars to explain and understand the complex process of managing diversity effectively. In this essay, the author will detail the results from three different research projects which aim to recognize and describe corporate leadership approaches and practices in Australian business organizations. The article focuses on leadership and its difference with manager and the importance of leadership in contemporary business organizations. Understanding Leadership: In the contemporary globalized business environment, leadership is one of the most common talked about issues. The current spotlight on leadership is a global incident, as is improved investment in leadership and management improvement in business organizations. It is regarded as on of the most crucial factors for establishing quality management in an organization and is regarded the panacea for organizational effectiveness. Although there is no widely accepted definition about leadership but it can be simply explained as the ability to motivate, guide and inspiring workforce for working towards a common goal and objective. Leadership also needs the ability of recognizing the skills and abilities of every individual to motivate to perform and contributing towards organizations performance and achievement (Goethals, et al. 2014). It is the talent when an individual stand-up to take accountability for success or failure of a specified target. It can also be explained as the power of in fluencing others to assists guidance in successful manner in accomplishing a goal. It is the collective action of the control, the activities, behaviour and verbal skill, decides how a leader manipulates and persuades others. According to scholarly definition (Northouse, 2014), leadership is: A process, Involving influencing others, Happens in a group framework, and Focused on achievement of a goal or objective. Leaders Verses Managers: There is a very common verse among business professional and it is that All leaders are not good managers and all managers are not good leaders. There is a basic difference between management and leadership qualities. A manager is commonly a problem solver, as managerial habits put emphasis on consistency and authority and all his attention draws towards objective, resources, workforce capability, etc. It is the duty or responsibility of a manager to check and regulate effective organizational performance at different stages of rank and responsibility. To become a good manager, one does not need to become an intellect or genius but an individual who is determined, tough-minded, conscientious, analytical, fair and patience can become a good manager (Goetsch, and Davis, 2014). One of the notable differences between manager and leader is that, managers have relatively short term goals. Although managerial position comes with authority and power that are vested on him by the organization but there is no guarantee that he will be successful in effective utilization of resources. To achieve best possible effectiveness in the organizational performance, an organization needs a strong leadership as well as a well-organized management system. Although both leaders and managers create important contributions in organizational performance but their role and responsibilities are diverse. A leaders job is to bring change and adopt new approaches for effectiveness where as a manager promotes stability, sustainability and status quo (Avolio, et al. 2014). There is also a difference between a leader and a manager regarding attitude towards goal and objective. A managerial goal generally raises because of necessity rather than requirements thus totally rooted in organizations culture and values. Thus managers be likely to be accept impersonal attitudes towards goals and not driven by passion. But in the contemporary volatile market economy, it is necessary to recognize customer demand far enough in advance to have meet customer demand with the right product at the right place at right time. Generally, the concept of work in point of view of a manager is a process which involves a combination of workforce and information act together to form strategies and formulate results. They facilitate the method all along by analysing the interests in hostility, preparation when conflict should rise, and reducing tensions by tactics like, reward, punishments, negotiation and bargaining. Managers continuously search for solutions and in this process of getting people to accept solutions, they constantly harmonize and balance opposing views (Winston, et al. 2013). The main objective of a manager is to transfer balance of power toward solving a conflict. Whereas, leaders work in a different manner, as where managers work to edge choices, leaders creates new and innovative approaches for solving long term problems and create issues to new opinions (Nohria, et al. 2013). For becoming an effective leader, he must reflect ideas into images as it attracts people and then create choices as a result those images will get matter. Generally, leaders acts from high risk position as often they naturally seek high risk and taking chances especially where chances of achievement are higher (Daft, 2014). According to scholarly observations, the basis of leaders taking more risks and managers approaches problem solving is totally depend upon personality and not on conscious preferences (Sanborn, 2008). The relation among employees with a manager and a leader is also different. A manager engages with people according to the role and responsibility they have in a chain of actions or in a decision making method. Whereas, leaders engage with more humanistic and empathic way with the co-workers and subordinates, as a leader is concerned new and innovative approaches in problem solving. The difference is basically among a managers concentration and awareness to how to solve a problem and get job done but for a leader it is to what the actions and choices will mean to the participants (Gilley, 2005). A managers view of self is protector and regulator of an ongoing process of an organizational system with which they recognize themselves and gains personally. A leader on other hand may or may not feel the part of the system and wants to bring change in the organizational structure, technology, ideology for effective utilization of the resource and bring productive change in the system. The Relative Importance Of Leaders And Managers To The Success Of Organisations: Leadership and management are the two terms which often go hand in hand and their jobs and responsibility often submerge. Sometimes they are used as synonymous terms. Despite several researches on the compatibility and implementation of managerial skills against leadership skills is still not proved. According to management scholars and professionals, effective management needs an understanding of leadership qualities (Anderson, et al. 2015). Effective leadership provides an ideal organizational environment where every individual workforce develops and sustain. This is because leaders influences and motivates workforce towards achievement of a common goal. A leader in an authority has better position to influence and motivate team or organization. Thus, a manager should develop leadership traits and persona. An effective leader creates strategic planning for growth and sustainability of the organization. Thus, the contemporary business organizations need healthy leadership and strong management systems for best possible organizational success. Both management and leadership is part and parcel of an organizational process and are equally responsible for success or failure of a system. Flourishing formation of skill improvement program is dependent relatively on the identification to management proficiency as it is regarded as the strength of the organizations core potentials (Mujtaba, 2013). These potentials should be improved through leadership characteristics that empower the workforce to progress forward in effective functioning. By understanding the basic distinction among the two and implementing according to organizational needs will bring potential result. Thus, both the systems are necessary for effectiveness in the rising complex and unstable business environment. A successful implementation in organizational process will result in effective managing of workforce as well as leading the organization towards success. Howard Schultz, A Successful Manager: Howard Schultz, CEO Starbucks is regarded as one of the most prominent and promising successful manager in the recent times. One of the main qualities that make Schultz exceptional in his job is that he encourages his workforce to come forward and challenge his ideas once they do not agree. According to a latest report by Forbes, Starbucks runs business globally with a total workforce of 238,000 employees and net worth of Starbucks is $82 billion but he still manage his teams on micromanage basis. He has every detail of organizational change and strategies. He builds confidence, respect and belief among the workforce so when changes arrives being an enigmatic leader, he handles situations more effectively. Mr. Howard Schultz respects and recognizes his diversity in workforce and employee individuality as a result he promotes organizational environment where there is a scope for employee growth and sustainability. Conclusion: Leadership is one of the crucial skill and ability that modern managers need to develop for effective management and organizational success. It is process of communication building among the management and the workforce, motivating them towards performance and achievement. The basic idea of leadership is to empower, motivate and encourage the workforce in the direction of achieving organizational goal and objective. In the above article author has discussed the difference between leader and manager and discussed about the importance of both for organizational success. In conclusion the author wants to states that, leadership quality as well as management attributes are two important and interdependent factors for a successful organization. Abandoning any one of them will bring organizational failure and miss management of resources. 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