Developing Leadership and Management Skills - Nike

This report discusses the importance of leadership and management in Nike, including analysis and comparison of leadership and management, key performance metrics, and organisational leadership and management performance.

Developing Leadership
and management skills
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EXECUTIVE SUMMARY
The business success and growth is depend on leadership and management in
workplaces. Today's business environment is becoming very complex in nature and that's why
the leadership and management both are necessary to be effective in order to manage the
complexity. Leadership and management are playing an important role in the success and growth
of an organisation. A company can become successful when they have a leader who is using
their effective leadership style in order to manage all the business activities. It is very crucial for
an organisation that they should use theories and models of effective leadership and management
in order to reduce the complexities of organisation. This report will be discussing the concept
and theories of leadership and management. It is also discussing many theories and models in
respect of leadership and management. It is becoming very important for the organisation that
they should make their leadership in such a way so that every employee feels motivated as well
as encouraged towards organisational goals and objectives. This report is undertaking Nike
which is the American organisation.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analysis and comparison of leadership and management......................................................4
Key performance metrics of organisational sector.................................................................6
Organisational leadership and management performance......................................................7
CONCLUSION................................................................................................................................9
REFERENCES:.............................................................................................................................10
Online...................................................................................................................................10
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INTRODUCTION
In dynamic business environment, every day companies are facing challenges and
problems. The reason behind this is uncertainties in business environment. Due to all
uncertainties, organisations are unable to take right actions. In this state, it becomes necessary for
an organisation to focus on effective leadership and management of an organisation (Castillo and
Hallinger, 2018). In this context, Nike is undertaking which is the American multinational
corporation. Nike is founded in 1964 that means they are running their business since 57 years. It
is found to be the world's largest supplier of athletic shoes and apparel. They are engaged in
manufacturing, designing, development and marketing of footwear, accessories, apparel,
equipment, and services. This report will be discussing leadership and management concept
which is crucial for an organisational success and growth. Every day it is identified by
organisations that the importance of leadership and management are increasing as it helps a
company to deal with the challenges of external and internal business environment. There are
many problems and challenges comes in the organisation which impacts on the overall
performance of organisation (Azad and et.al., 2017). This report is also discussing key
performance metrics of organisational sector.
MAIN BODY
Analysis and comparison of leadership and management
It is identified that a successful business is required strong leaders and managers in the
organisation so that their team will be follow towards organisational vision. That means both
leadership and management are important for growth and success of an organisation. Leadership
is concerned with the people to understand vision of an organisation as well as achievement of
goals and objectives. On the other hand, management is more concerned administering business
activities in order to effective management. It is found that both terms are often considered as
similar. But it is crucial for understanding that leadership is an important part of effective
management. Leadership behaviour is building the organisational environment which makes
each employee competitive in order to run business successfully. Leadership is refers to the
potential ability that influences employees towards the accomplishment of organisational goals
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and objectives. The differences between both leadership and management can be better
understand with the assistance of below table:
Leadership: It is found that leaders are using their leadership style in order to create
circles of influence. Leadership is refers to ability of an individual in order to motivate,
influence, and encourage people to contribute towards organisational success and growth
(Hallinger and Kovačević, 2021). It includes inspiration and influences. Leadership is concerned
about the creating value that assists an organisation to gain competitive advantage.
Management: Managers are creating circles of powers in order to achieve organisational
goals and objectives. Management is consisting of controlling of group in order to accomplish
goals of organisation. It includes power and control. In management, it is found that mangers are
counting value not adding value.
These are the major difference that shows an organisation needs both leadership and
management in order to grow and success. In addition to this, company are using different
models and theories that helps them to apply effective leadership and management. So that's why
some important leadership and management theories and models are mentioned below:
Leadership theories
Great man theories: It is the leadership based theory which is assume that the capacity of
leadership is inherent. That means great leaders are born not made. According to this theory, it is
found that great leaders are born not made (Bush, 2018). It is concerned with some special
qualities which are inherent. It is natural quality which cannot be develop in future. This theory
is applicable in former times as now organisations believe that it can be develop with the
assistance of effective training and development programs. In the case of Nike, it is found that
this theory is not applicable in their organisation as the CEO of company is not rely in this belief
that leaders are born not made.
Contingency theories: This theory is concerned with the leadership style which chooses
by leaders in an organisation after analysing the situation. That means leadership focus on
variables of an environment in which leaders chooses style that is best suited to the situation. It is
found that there is no best leadership style which are suited to each and every situation. That
means leaders adopt style which is appropriate for a particular situation. This theory is applied by
Nike as they found many situations are unpredictable which cannot fit one particular situation
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and that's why it is found that contingency theory is applied. They applied this theory in
pandemic situation where no single leadership style is able to apply in the organisation as that
situation demand different.
Management theories
Scientific management theory: According to this theory, it is analysing and synthesizing
workflows. The main objective of this theory is to improve efficiency, labour productivity, etc. it
is necessary for organisation that they should use scientific method in order to perform duty in
workplace (Singgih and et.al., 2020). Frederick Taylor forcing people that they should work in
most productive way. But in today's time, it is found that this theory is partially applicable in
workplaces. Nike is found to be the most leading organisation in athletic shoes and that's why
their managers are always focused on getting best outcome from their employees. In that case,
they sue scientific management theory.
Bureaucratic management theory: It was developed by Max Weber in which he stated
that organisation should have a structure in a hierarchy. This will assists in providing clear rules
of governance to each and every member. It reduces the unclear commands in organisation. It is
including clear division of labour, chain of command, separation of personal, strict and
consistent rules, etc. It is identified that bureaucratic management theory is very helpful in
establishing standards and procedures of organisation.
These are the above leadership and management theories which is found to be important
in terms of organisational goals and objectives. It is found that leaders and managers are playing
important role and responsibilities in Nike. The leaders of Nike are always focusing on providing
direction towards vision and mission of organisation. For that purpose, they are make the culture
of organisation accordingly (Bhanot, 2018). Whereas managers are focusing on individual's
performances so that they can take necessary decision in order to enhance the performances of
employees. The success and growth of Nike is depending on the leaders and managers of
organisation.
Key performance metrics of organisational sector
Key performance metrics are important to consider by organisation in order to measure
the performance of organisation over a specific time period and for a specific objective. Nike is
come under Apparel Accessories Sports equipment industry. They are using 7 types of metrics in
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their organisation so that they can measure their performances. Some important key performance
indicators are mentioned below:
Revenue per client/member
It is found to be the most common indicator or metrics used by organisations in order to
track revenue per client i.e. measuring productivity. It is calculated by annual revenue divided by
number of clients. It is found that Nike's revenue beat a consensus analyst estimate for revenue
of $9.94 billion during the quarter. Their top line is increased by 10%. the benchmarking against
this year was 8%.
Earnings per share
It is found that EPS of Nike is climbed 18% in a year to $0.67. It is also identified that it
is not only beat consensus analyst forecast. These are the analyst of organisation who predicted
the earnings of Nike's shareholders (7 Metrics Highlight Nike's First Quarter, 2018). This
metrics is very important as organisation can analyse the each earning by analysing their share.
The difference is the gain or loss. The benchmarking for this year was 15%.
Client Retention Rate
Client retention rate is very effective in order to identify Nike's client retention rate
(Arnold, Fletcher and Hobson, 2018). They can analyse that their clients are loyalty for their
products or not. If they found no then they need to take necessary course of actions.
Organisational leadership and management performance
It is noted that organisational overall performance is depending on the leadership and
management. Nike is the American international organisation that run their business in all over
the world. It is found that Nike's CEO Mark Parker has adopted participatory leadership style.
The success reason is their leadership and management (Car, Kyaw and Atun, 2018). They are
continuously focusing on effectiveness of leadership as well as management so that they can
create value for organisation. This helps them to gain competitive advantage in the market. It is
also analysed that leadership and management needs to be effective which ensures the
effectiveness in employees' performance. This can be better understand with the help of below
points:
 Managers of the Nike are setting objectives of organisation and leaders are the person
who give instruction to employees that how they contribute in order to achieve the set
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objectives. This is crucial for Nike to understand their role as both are important for the
success and growth of an organisation (Deters, 2017). In addition to this, it is also found
that leaders of Nike is always trying to integrate personal individual's goals to the
organisational goals so that company is able to achieve their objectives.
 Nike's managers are organizing work of every individual. That means they are dividing
the duties and responsibilities of each individual in the workplaces according to their
calibre and qualifications. Leaders of Nike are the one who is responsible for the
effective accomplishment of employees' job (Megheirkouni, 2018). They are always
trying to encourage employees in order to perform their duty effectively so that they can
achieve their goals and objectives.
 Managers of Nike is found to be communicating all the commands and orders to each and
very employee that what they have to perform. In this case leaders of Nike, they ensures
that all the activity perform by employees should be according to the commands and
directions. They ensure the quality of work performance so that they will meet objectives.
 It is found that Nike's managers are measuring the performances of employees so that
they can find the deviations and differences. Whereas leaders of Nike ensures that they
are reducing the difference and gaps of standard performance and actual performance.
 It is also identified that managers of Nike is encouraging employees in order to engage in
business activities so that they feel motivated and important for the organisation. Leaders
are also ensuring that managers' steps cannot be waste as it helps an organisation to
achieve their goals and objectives (Oshagbemi, 2017).
The above discussion states that an organisation will be grow if there is proper and
effective leadership and management. This will assists an organisation to improve their overall
performance in terms of employees' productivity, organisational profitability and revenues. They
can easily increase the capabilities of employees which results in enhancing organisational
performances. It is also found that leaders and managers of Nike can gain competitive advantage
as leadership and management makes the employees efficient and competitive which is very
helpful in their successful growth. That's why it is necessary to improve leadership and
management. It is also found that it can be give negative impact on the organisational
performance if they are not use the effective way of leadership and management.
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CONCLUSION
It can be concluded from the above discussion that leadership and management both are
important on the organisation. It is found that leadership is concerned with the ability that is used
for the purpose of encouraging and motivating people and management is concerned with
managing all the business activities. Management also include administrative work which used
by organisations for managing all the work in an effective way. This report discussed the concept
as well as importance of leadership and management. It is also analysed that both are different
but often businesses is considered as synonymous. This is necessary to understand the difference.
This report also analysed the difference between both terms. It is crucial for organisation in the
relation of success that they should use theories of leadership and management. This will assists
them to achieve their goals and objectives in an effective way. This report is also discussed key
performance metrics that helps an organisation to measure the performance of organisation. In
addition to this, it also discussed the overall impact of leadership and management on
organisational performance.
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REFERENCES:
Books and Journals
Arnold, R., Fletcher, D. and Hobson, J. A., 2018. Performance leadership and management in
elite sport: A black and white issue or different shades of grey?. Journal of Sport
Management, 32(5), pp.452-463.
Azad, N., and et.al., 2017. Leadership and management are one and the same. American Journal
of Pharmaceutical Education, 81(6).
Bhanot, R., 2018. Improving leadership and management education in medical school. Advances
in Medical Education and Practice, 9, pp.305-306.
Bush, T., 2018. Research on educational leadership and management: Broadening the base.
Car, L. T., Kyaw, B. M. and Atun, R., 2018. The role of eLearning in health management and
leadership capacity building in health system: a systematic review. Human resources
for health, 16(1), pp.1-9.
Castillo, F. A. and Hallinger, P., 2018. Systematic review of research on educational leadership
and management in Latin America, 1991–2017. Educational Management
Administration & Leadership, 46(2), pp.207-225.
Deters, J., 2017. Global leadership talent management: Successful selection of global leadership
talents as an integrated process. Emerald Group Publishing.
Hallinger, P. and Kovačević, J., 2021. Science mapping the knowledge base in educational
leadership and management: A longitudinal bibliometric analysis, 1960 to
2018. Educational Management Administration & Leadership, 49(1), pp.5-30.
Megheirkouni, M., 2018. Leadership and management development post-war: exploring future
trends. International Journal of Organizational Analysis.
Oshagbemi, T., 2017. Leadership and management in universities. de Gruyter.
Singgih, E., and et.al., 2020. The Role of Job Satisfaction in the Relationship between
Transformational Leadership, Knowledge Management, Work Environment and
Performance. Solid State Technology, 63(2s).
Online
UNDERSTANDING THE DIFFERENCES: LEADERSHIP VS. MANAGEMENT. [Online]
Available through: <https://www.go2hr.ca/retention-engagement/understanding-the-differences-
leadership-vs-management>
7 Metrics Highlight Nike's First Quarter, 2018. [Online] Available through:
<https://www.fool.com/investing/2018/09/26/7-metrics-highlight-nikes-first-
quarter.aspx>
A Participatory Leadership Style: Nike’s CEO Mark Parker. [Online] Available through:
<https://www.truscore.com/resources/leadership-style-nikes-ceo-mark-parker>
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