Definition of Terms

Historical Background of Management

•Ancient Management
–Egypt (pyramids) and China (Great Wall)
–Venetians (floating warship assembly lines)
•Adam Smith
–Published “The Wealth of Nations” in 1776
•increase
Advocated the division of labor (job specialization) to
the productivity of workers
•Industrial Revolution
–Substituted machine power for human labor
–Created large organizations in need of management
1. What is leadership, and what is the
difference between leadership and
management?
2. Leadership without management
3. Management without leadership
4. Leadership combined with
management
5. Some potential confusions...
 LEADERSHIP
setting a new direction or
vision for a group that they
follow, ie: a leader is the
spearhead for that new
direction
creating change
aligning people through
empowerment
motivate and inspire toward
producing useful change and
achieve the vision
MANAGEMENT
controls or directs
people/resources in a group
according to principles or
values that have already been
established
planning and budgeting
organizing and staffing
problem solving
 Leadership without Management
...sets a direction or vision that others
follow, without considering too
much how the new direction is
going to be achieved.
Other people then have to work hard
in the trail that is left behind,
picking up the pieces and making it
work.
 Leadership without Management

Eg: in Lord of the Rings, at

the council of Elrond, Frodo
Baggins rescues the council
from conflict by taking
responsibility for the quest
of destroying the ring - but
most of the management
of the group comes from
others.
Management without Leadership

- controls resources
to maintain the
status quo or
ensure things
happen according
to already-
established plans.
 Management without Leadership

- Eg: a referee manages a

sports game, but does not
usually provide "leadership"
because there is no new
change, no new direction -
the referee is controlling
resources to ensure that the
laws of the game are followed
and status quo is maintained.
Leadership combined with Management

...does both
- it both sets a new
direction and
manages the
resources to achieve
it. Eg: a newly elected
president or prime
minister.
Exhibit 2–1 Development of Major Management Theories
 Potential Confusion
Some potential confusion...
The absence of
leadership/management is not
to be confused with
participatory or facilitative
management, which can be a
very effective form of
leadership.
Also, the absence of leadership
should not be confused with
the type of leadership that calls
for 'no action' to be taken.
 Definition of Management

- process of assuring that the program

and objectives of the organizations
are implemented as planned.
- all actions focused on accomplishing
the tasks in an organization
 What is Management?
A set of activities
planning and decision making, organizing, leading, and
controlling
directed at an organization’s resources
human, financial, physical, and information
with the aim of achieving organizational goals
in an efficient and effective
manner.
Manager
- Make sure things
happen through
other people;
- Task-oriented
- Making sure the
work is done by
others
 The Management Process
Planning and
Organizing
Decision Making
Determining how
Setting the organiza-
best to group
tion ’s goals and
activities and
deciding how best
resources
to achieve them

Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization
 The Management Process (cont’d)
•Planning and Decision Making
–action from a set of alternatives to achieve them.
Setting an organization’s goals and selecting a course of

•Organizing
–Determining how activities and resources are grouped.
•Leading
–to work together to advance the interests of the
The set of processes used to get organizational members

organization.

•Controlling
–Monitoring organizational progress towards goals.