Introduction

Understanding the difference between leadership and management is the key thing to deliberate
organizational success through strategic decision-making. Management involves controlling the
direction of a group towards a particular mission. Leadership refers to the ability of an individual to
motivate, influence, and empower people to contribute to the success of an organization. Concisely,
influence and power is the main thing that distinguishes leaders from managers. Leadership theories can
enhance one’s effectiveness in a particular role especially if it demands frequent collaboration with
different administrations. An organization’s ethical and valuable relationships with organizations
influences staff members towards productivity and higher employee satisfaction. This paper explores
the relationship between management and leadership theories and their impact on the strategic
objectives of a company.

My understanding of leadership styles and theories enhances my efficiency in collaboration and

management. During the process of seeking for jobs, interviewers tend to assess one’s leadership
potential to assess the type of leadership approach that a person prefers. Leadership theory studies the
qualities of good leaders whereby psychologists analyze and develop leadership traits as the key
eligibility criteria for certain managerial positions. Therefore, leadership theories can be defined as the
approaches that are involved in validating whether someone is good enough for a particular leadership
position. My aspiration to be a leader comes from my desire to leave an impact in any organization that I
happen to work for.

Leadership and Management Theories

Leadership theories explain the reasons why some people become leaders while identifying how they
achieved it. Leadership theories use real life observations to focus on the traits and behaviors that
people can adopt to raise their capabilities in leadership. Basically, a leader should be ethical, have
reliable organizational skills, foster connections and nurture the growth of employees. The values that
are vital in leadership are important in ensuring that every employee is on a common mission as defined
by the administration. A leader must therefore find a way to appeal to the employees towards a goal
that would be beneficial not only to the employees but also to the organization.

According to Ralph Nader’s transformational leadership theory, leadership has the obligation to produce
more leaders rather than followers. Therefore, the role of the theory is to alter the mindset and
perspective of a follower in such a way that makes them want to be leaders as well. Therefore, the main
goal of leadership must be to inspire and empower people into discovering more of what they can
become. Transformational leadership serves as an important perspective for leaders to understand in
the process of influencing and understanding other people. Among the diverse leadership theories that
exist, the common factor is the consideration of psychological and social factors.

Major Leadership Theories

The behavioral theory of leadership, also called the style theory, focuses on the behavioral traits of a
leader that can be emulated by other leaders. Concisely, the behavioral theory suggests that leaders
become successful based on learnable behavior as opposed to the prejudice that they are born as
leaders. Behavioral theories rely on the actions of a leader as the main pointers as the key performance
indicator. The patterns of behavior identified in a leader serve as the focal points of behavioral theory of
leadership. Therefore, the actions of a leader are normally the key determinants of leadership success in
the behavioral theory of leadership. The main importance of the behavioral theory is that leaders can
learn and adopt the actions that they aspire to implement in the future. Therefore, the behavioral
leadership theory facilitates flexibility and adaptation based on the circumstances. Behavioral theory is
not adequate in terms of predetermining how to act in different specific scenarios. However, the main
advantage of the behavioral leadership theory is the fact that it narrows the focus of leaders towards
utilizing their decisions to be great leaders.

The situational theory of leadership is also called the contingency theory, which assesses the situational
impacts of the success or failure of a leader. Therefore, the efficiency of a leader is derived from their
situational context. Therefore, the situational leadership theory observes the specific leadership styles
and provide that great leaders can adjust their approaches situationally. Concisely, the theory
emphasizes on the notion that it would be important to find the right kind of leader for a particular
situation. The weakness of the situational leadership theory is that insufficient details go to the context
of the situation especially considering that it focuses on a situation’s significance as opposed to the
psychology of the employees. Additionally, the situational leadership theory does not account for the
changes in leadership styles over time. Factors such as the market place and the opinions of the
customers can affect an organization at an almost equal level as their company type, innate leadership
style and the size of their teams.

Another theory of leadership is the great man theory of leadership which is commonly called the trait
theory. The great man theory suggests that great leaders are born with innate traits that make them
eligible for leadership. However, many scholars critique the great mean theory because it appears rigid
to believe that a person can either be born a leader or not. While there are examples of people that fit
within the trait theory profile such as Queen Elizabeth I, Abraham Lincoln and Alexander the Great.
Subsequently, born leaders exhibit high levels of determination and ambition in such a way that
guarantees a higher level of performance.

The management theory, which is commonly referred as the transactional leadership focuses on group
performance, supervision and organization. The transactional leadership approach uses a system of
rewards and punishments that is commonly useful especially in business. Managers reward employees
and punish them when they fail whereby the assumption is that people do things specifically for
rewards. The management leadership theory can be particularly effective in encouraging employees to
succeed. However, consequences and punishments can lower the level of morale within an organization
thus contributing to underperformance and other negative impacts among employees.

The participative theory is rare in the corporate world and it usually suggests the direct involvement of
employees in making organizational decisions. Therefore, the role of a leader is to lead a conversation,
listen to different opinions and formulate the most feasible way forward. The participative theory leaves
the leader with the role to direct the charge drawing from several meaningful suggestions. The
participative theory of leadership enhances employee engagement. However, some studies show that
leaders in the theory do not get the best outcomes as they focused more on the needs of the staff
members as opposed to the company’s needs

The power theory observes how a leader utilizes their power and influences things to achieve
fulfillment. The power theory manifests effectiveness as the leaders with a lot of power may seem
extremely effective to a point that they tend to get things done very quickly. However, most employees
do not like power leadership because they prefer leaders that encourage them rather than wield power
over them. The greatest criticism of the power theory is the fact that it does not promote employee
satisfaction but instead, it makes them feel dominated. The fact that employees in power theory
companies find it necessary to gain power of their own to influence change can contribute to an
undesirable working environment.

The relationship theory of leadership is another approach that considers the relationship between
leaders and other people. Therefore, the theory suggests that the great leaders are either people who
schedule their time to meet with employees to talk and understand their needs. In this particular
approach to leadership, it is possible to cultivate positive interactions and foster a positive work
environment. Research shows that being mindful of the form of leadership increase the results from
their employees. Through the relationship theory, mentorship provides great opportunity to bond with
employees and make them confide in the present leadership. Through mentorship, employees can grow
significantly thus making the relationship theory the best approach to train and recruit new employees
that are highly interested in continuing the organizational mission.

Theories of Management

The role of management in business is evident in the sense that managers are meant to motivate
employees, negotiate deals and allocate resources accordingly. Managers have always been critical to
the success of any business since the industrial revolution. Management became a standard part of
business practices whereby the old theories remained relevant while letting the newer theories develop
and keep up with current business trends. Since the advent of the first management theories, the
workplace has experienced many changes that force the management theories to adjust accordingly as
well.

There are three main classifications of the management theory, which include the modern management
theory, classical management theory and the behavioral management theory. Classical management
theory involves the execution and maximization of production while the behavioral theory considers the
workplace as a social environment thus focusing on human elements, the modern management theory
integrates both the classical and behavioral management theories while using systems thinking and
scientific methods. The theories of management aim to understand how to handle people, processes
and information with an aim of achieving organizational goals.

The classical management theory is the oldest theory of management whose main focus is operations
and production output standards. The classical management theory holds compensation as the key
motivation for employees. Classical management theory therefore means that a manager should target
increasing output and compensating the employees that perform highly using wages or bonuses. The
classical management theory is further divided into the scientific, administrative management and
bureaucracy theory. Frederick Taylor developed the scientific management theory whose main aim is to
minimize waste and reduce production times as a means to improve operations. Henry Fayol’s
administrative management theory depicts management as a primary business activity. Finally, Max
Weber’s bureaucracy theory promotes the guidance of management decisions instead of nepotism and
charisma. Concisely, the Bureaucracy theory emphasizes formal authority systems and unity in
organizational hierarchies.
Douglas McGregor was a theorist who created Theory X and Theory Y, which are the two important
assumptions that an organization must consider in decision-making to enhance employees to thrive
within a workplace setting. Theory X alludes to the authoritarian style of management while Theory Y is
the participative approach. For members to show deep passion for their work, they have to have the
freedom to participate within a particular environment. Therefore, the authoritarian style of
management alienates employees from their true purpose within an organization. Therefore, the theory
X is pessimistic as it implies that employees work purely for incentives. Subsequently, theory Y is
optimistic in its perspective regarding employees.

The behavioral management theory is a people-oriented approach that depicts that human behavior is
important in satisfying the needs of employees. Therefore, behavioral management approaches can
foster a collaborative atmosphere to motivate teamwork. Behavioral management theory can be
divided into the human relations theory and the behavioral science theory. The human relations theory
considers that an organization is a social entity that requires more than just money to maintain
employee motivation. The behavioral science theory is a theory that uses psychology, anthropology and
sociology to provide a scientific perspective. The behavioral science theory recognizes individuality and
why managers need to be sociable.

The modern management theory seeks to incorporate technology with traditional theories to navigate
the constantly changing and complex business environment in the current contemporary society.
Modern management theories might employ approaches such as statistics to quantify performance and
encourage cross-functional cooperation. The modern theory comprises of three major modern theories
namely; quantitative, systems and contingency theory. The need for efficiency during World War II led
to the development of the quantitative approach, whose main target was to support the decision-
making of the military. The systems theory on the other hand considers management as an interrelated
component of an organization thus making it critical to the goals that serve the overall welfare of the
organization. Joan Woodward’s contingency theory explores and acknowledges the ability of a manager
to adapt to unique situations.

Management is undeniably important since every management theory provides great input into a
managerial requirement. Sometimes, it takes a combination of theories to guarantee organizational
success. Effective management is essential to any business thus people must consider different factors
that are unique to small businesses. Effective management occupies an integral part of any business
thus it must be sustainable especially when there are limited resources. Classical management focuses
on using human resources to develop an organization and get work done.

Personal Development Plan

Managerial Approach

To create a career in leadership, I will ensure that my leadership and management style considerations
are in line with the needs of the employees. I believe that people are more likely to comply with an
organizational culture when they feel like a part of a meaningful mission as opposed to imposing laws.
Despite how much I believe in rules as a part of determining an organizational culture, I have to
integrate plans that create opportunities for growth and ensure that employees remain passionate
about their role in the company. I will ensure that through my leadership, the organizations I associate
with not only rise in value but also improve their engagement with employees to prevent employee
turnover, which would overexploit a company’s expenditure on staff training.

An understanding of management theories will help increase productivity to help maximize the
investment of the company’s resources. As a leader, I believe that my role will be instrumental in
influencing the use of human resources to the advantage of the company. Through investing in training
staff members, my managerial approach will influence the attitudes of the employees because my
organization will provide multiple opportunities for growth. Engaging employees and training them to
further their skills also enhances the performance of the organization on top of improving the attitudes
of the employees. Therefore, I believe that I have to employ some scientific management processes to
devise operation methods and policies that boost the productivity of workers.

My understanding of management theories helps my decision-making process, especially in situations

that require an immediate response. Max Weber’s hierarchical systems would be a useful approach to
inform decision-making. The flattening of hierarchy increases local innovation in such a way that
improves the process of making decisions. Reducing job titles and senior positions enhances a cohesive
work setting. Through enhancing my approachability as a key leadership quality, I can achieve a cohesive
organizational culture where employees are not afraid of bringing their ideas forth. Concisely, I plan to
implement managerial skills that aid my decision-making process through allowing staff members to
present their ideas to the management to improve the flow of information.

I would like to encourage staff participation by improving interpersonal relationships. A human relations
approach suggests that businesses must extend the decision-making power to employees. Therefore,
the most important factor regarding staff participation is that it creates a collaborative environment that
improves the domain of ideas to encourage innovation within an organization. The policies implemented
by different organizations determine how organizational processes will be carried out while highlighting
the main approaches that can be essential in making a proper flow of information to influence the best
ideas to come forward. While different companies employ various policies to suit their organizational
strategies, they are also inclined towards productivity more than the experience of their staff members.
I believe that my optimistic theory of management will help impart the same positivity on staff members
for productivity in the workplace.

Leadership Approach

Leadership is vital in management because it enhances the direction of an organization’s resources to

improve efficiency and drive goal achievement. I believe that my leadership skills will help me in my
career because I can rely on leadership theories to motivate an organization, clarify purpose while
guiding organizations to realize their mission. Leadership is essential in building an organizational culture
since it determines how leaders relate with each other and team members. Therefore, my
understanding of leadership in relation to strategic management makes me highly equipped to guide the
success of whichever organization that I am involved in. Additionally, I believe that making decisions that
involve many people will help me create a positive identity in the market by ensuring that people relate
with my organization as one that is accountable in terms of how it conducts business and demonstrates
mindfulness to the community using corporate social responsibility.

As mentioned earlier, leadership and management differ in terms of influence and control respectively.
Despite the difference between management and leadership, it is evident that management and
leadership are both critical to organizational success. I will utilize my leadership skills to cultivate a
positive attitude among staff members in the organizations I work in to ensure that individuals
understand why the achievement of the organizational mission is important for the company and the
individuals themselves. Concisely, my understanding of leadership theories will help me identify the
right decisions to make with an aim of favoring the organizational mission without compromising
employee satisfaction.

An understanding of the situational leadership and transformational leadership for instance will inform
my decision-making skills for both short-term and long-term needs. Leading a major organizations will
demand more analytical thinking to en