Leadership and Business Management: Theories, Styles, and Challenges

This report delves into the interconnectedness of leadership and business management, highlighting their crucial roles in individual and organizational success. It begins by defining both concepts and emphasizing their ability to enhance individual capabilities and knowledge. The report then explores the close relationship between leadership and management, while also pinpointing their key differences. Various leadership and management theories are examined, including contingency theory, path-goal theory, and the great man theory, alongside management theories. Leadership styles such as autocratic, democratic, and laissez-faire are analyzed, illustrating their impact on employee motivation and organizational structure. The report also addresses the major challenges in leadership and management, such as recruitment and financial problems, and emphasizes the importance of clear communication and employee development. Finally, it evaluates key management and leadership theories, and explores the role of leadership and management in employee motivation, offering a comprehensive analysis of these vital business concepts.

LEADERSHIP AND
BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Index of Tables
Table 1: difference between leadership and management...............................................................4

INTRODUCTION
Leadership and business management play an important role in the individual person’s
success. The main reason behind this is that both the concepts raise the capability and knowledge
of individuals (Herman, 2011). By using management skills, persons enhance their management
qualities at the workplace. Leadership explains some roles like how to motivate team members
and business management explains that how to improve the performance of all the staff
members. Leadership and business management are interrelated with each other and for better
development of competitive environment, both are important. Present essay is based on close
relationship between management and leadership (Avolio and Yammarino, 2013). In contrast, it
also covers the major differences in both the concepts. Furthermore, assumption of different
theories of leadership and management has been covered in this essay.
MAIN BODY
Meaning of leadership
According to Goetsch and Davis (2014), leadership is a process in which team leader
enhances the capacity of people with the help of leadership theories. On the other hand, as per
Collins, Emsell and Haydon (2011) by using leadership, employees and workers can easily
develop their efficiency in their work. And with the help of this, company can easily accomplish
its objectives. For the same, leadership is a two way process and by using this, management of
the company can raise the performance of their staff members and also boost up their energy.
Meaning of business management
According to Collins, Emsell and Haydon (2011) it is a process in which senior
department guides their employees and raises their capabilities. On the other hand, as per Stacey,
(2012) it is a function whereby team leader uses all the available resources to accomplish goals
and objectives of the organisation. For the same, in business management, manager describes the
roles and responsibilities to each worker and also guides them in the entire work. Moreover, the
main responsibility of this person is to manage all the things in a proper manner.
Close relationship between leadership and business management
According to, Gopee and Galloway (2013) leadership and management are similar
because the main concept of both is based on to raise the capabilities of individuals and also
develop their management skills. For the same, in leadership, the leading person is known as
leader who guides his or her team members and motivates them time to time by using different
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leadership theories. By using these theories, he/she can easily boost up the level of individual’s
energy. On the other hand, as per Connors (2011) in management, leading person is known as
manager. This person clearly defines the roles and responsibilities of each person. By doing this
work, manager creates structure of the company. Both the management and leadership are based
on to increase working capacity of the employees and raise profit of the organisation. As per,
Giacalone and Rosenfeld (2013) business management and leadership are having a relationship
between two types of people where one person plays a mentor role and other person plays a
learner role.
Furthermore, for better development of individual person, leadership and business
management use some theories and these are as follows:
Contingency theory
This theory is related with the environment of business. It explains which style of
leadership and manager is good for the company. According to, Teizer (2016) skills and styles
are based on the nature of employees. In this context, leader and manager first evaluate the skills
and efficiency of employees as well as staff members and according to their qualities, they set
learning theory for them.
Path-goal theory
This theory is based on the motivation factor. For example, by providing incentives,
appraisal, promotion, senior authority can boost up the level of employee’s motivation and thus,
they can easily give their 100% to the organisation.
Great man theory
According to, Haas (2016) great leaders are born not made and due to this, for better
leadership, it is necessary that individual person is a natural born leader. On the other hand, as
per Wang (2016) leaders are not born with leadership qualities and with the help of practises and
appropriate knowledge, they can develop these skills.
Management theories
This theory is also known as transactional theory. According to Richard Clarence Bush,
(2016), this theory explains the roles and responsibilities of leading person in an organisation and
their employees. By adopting proper recruitment process, human resources' department of
organisation can easily hire the right candidate at right place. By doing this, company raises their
profit and brand images as well.
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Assumption of theories
 For better efficiency of staff members, it is important for leading person to clearly
understand the roles and responsibilities (Ankamah, 2016). By this, workers can easily
understand their work and give their best output to the company.
 For motivation, managers and leaders use appraisal, incentives as well as promotion and
sometimes, they also use punishment.
 For better development of company, it is important for all the workers to follow
instructions which are provided by the management.
Moreover, in leadership and management, it is important for mangers and leaders to take
feedback from employees and according to their reviews,reviews; they need to adopt appropriate
change at the workplace(workplace (Richard Clarence Bush, 2016). By doing this, both the
leading persons can create positive relationship with their customers and employees. In
organisation, leaders use different kind of leadership styles and these are as follows:
Autocratic leadership style
According to Spooner (2016), in this leadership style, leaders do not take any kind of
suggestion from employees and staff members. Due to this, they feel de-motivated and cannot
give their best concentration at the workplace. The main reason behind not taking suggestion
from staff members is that leader thinks that they do not know about all the departments and due
to this, they are not able to take right decision for the company.
Democratic leadership style
This style is also known as participative leadership style. In this, leader or manager takes
suggestion from the employees and as per their reviews, leading person takes an appropriate
decision (Connors, 2011). By following this style, leader creates positive relationship with their
staff members. By this, they feel motivated and they can easily give their 100% to the
organisation.
Laissez- faire style
This style is based on freedom due to which leader provides full freedom to all the staff
members and by this; they raise their capabilities (Giacalone and Rosenfeld, 2013). The reason
behind this leadership style is that leading person knows the capabilities of employees and they
also know this thing that their workers can easily manage all the difficult conditions at the
workplace.
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Moreover, with the help of these style employees capability increase and they can easily
handle all difficult condition at workplace (Huber, 2013). For better development of worker,
leader time to time organised training and development secession for them. By joining these
classes they clear their doubts and increase their working efficiency.
Difference between leadership and business management
According to Gopee and Galloway (2013) leadership and management are two different
things and they both play different role in thein organisation both plays different role n
company. For better development of the firm, it is necessary to use different theories of manager
and leadership and do not mix it.
Table 1: difference between leadership and management
Leadership Management
In leadership, leader adopt personal attitude. In management, manager of organization
adopts passive attitude.
The emotional attachment with their team
members is high and for this, leader time to
time take a feedback from their employees and
solve their problems
The emotional attachment with employees is
less and manger domanger does not take any
kind of personnel feedback person feedback
from the employees.
Leadership is It is a narrow term where leader
is not paying a manager role and take all their
eecision by their own and take their all
decision own.s.
Management is a wider term as compare to
leadership. It covers covered whole
organization.
It is not necessary for the leaders to play the
role of plays manager role.
It is important for the manager to first become
a good leader.
Leader set the direction at workplace and then
plan appropriate strategies (Stacey, 2012).
Manager of the company plan a budget for
organization and also designs the design the
working process.
Leaders accept all the changes and than modify
the change according to then change the it as
Manager just except all the changes.
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per company requirement
According to, Collins, Emsell and Haydon (2011) as per the this tables it shows that the
manager of company plays so many roles as compare to leader. Due to this, it is wrong if senior
authority thinks that leader and manager are same and have the same playing same
responsibility.
Leadership vs. management
 Manager of organisation first collects collect all data then makes them correct as per the
situations. Further, leader of company do all the things in the right ways.
 Manager relationship with other employees is an authority where they can give a
command to other person (Goetsch and Davis, 2014). Further, leader relationship with
workers is influential where they give a suggestion to other peoples..
 All stability is created by the manager of firm and all changes have has been done by
leaders.
Major challenges of leadership and management practises
In organisation, peoples face lot of feels lots of challenges and they are related to
recruitment, financial problems, discrimination etc (Herman, 2011). Due to this, it is
organisation’s leader responsibility to clear the doubts of the team members by and by providing
them with then proper guidance and clear their confusion which areis related to the workplaces.
Moreover, time to time clear the mission and vision of organisation and also clear the working
structure of company to all employeesworkers.
For example, firm opens open their new branch in international market. So it is the duty
of the manager to guide manager duty to all their guide their all employees about their cultural
culture environment, rules and regulation and also clear the working structure of new
companyroles nad responsibility of indivisul person. (Avolio and Yammarino, 2013). By doing
this, they can easily reduce the misunderstanding among all departmentdepartments and this will
also assist in reducing the also decrease the negative impact of stress. Moreover, by organizing
organised training classes they can easily develop the knowledge of their employees.
Evaluating key management and leadership theories
Management and leadership theories are based on the positive points and qualities which
difine the differenesspread between leaders and managers (Goetsch and Davis, 2014). For better
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creativity, manager manger has divided their all divide their all departments into inter union,
inter-association. By taking suggestion form employeesemployee’s leader and manager manger
can clearly understand the changing behaviour of their workers toward their work. It is also
important for organisation that, their senior management person the chairman and board of
director show their participation (Collins, Emsell and Haydon, 2011). For example, these people
can develop the lecture room, workshop classes for all new employees Joneses and also arrange
arranged group activities. By adopting participative leadership style, team leading person
boostgain the up the trust of their employees of their company and according to their suggestion
team leader can easily takes a right decision on right time. Nowadays, most of the companies
uses used Blake and mouton's theories, according to, Gopee and Galloway (2013) this theory
explains the degree of need which employees want from their. cCompany.
Role of leadership and management in employeesemployee’s motivation
Employees are the back bone of the organisation and with the help of their efficiency
they can achieve the target and by showing their efficiency their beat the target of company and
increase their profit (Connors, 2011). It is management duty to guide them in their work and
solve their problems by providing them with proper guidance. It is manager and leader
responsibility to analyze the respectability to analysis the need and expectation of their staff
members. If company does not fulfil the do not fulfil the expectation of their staff members then
they feel so by this they feel de-motivated and cannot give their best output to the firm
(Ankamah, 2016).
For this, leading people uses herzbergHerzberg theory and, this theory explains explain
that it is important for the company to fulfil the basic need of the human resource employees. For
example, it is necessary for the organization to company to provide basic salary so staff members
so that they can easily fulfil their basis need like; food, shelter, water etc. When employees basic
need are fulfilled so they can easily give their concentration100% to theirother work.
By providing motivationmotivating, appraisal and incentives leader boost up the energy
of employees. For example, in organisation leader can measure the performance of employees by
using balance scorecard, worksheet. After analysing the performance of human resource
employees, manager or leader sets set the incentives and appraisal for their staff members.
Nowadays, most of the organisation announces star performer in every month (Goetsch and
Davis, 2014). By doing all al these factors, team leader develop the quality of their employees.
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It is the responsibility of the manager to manger duty to divide whole work into the teams
and, by doing this these things they can reduce the burden of work. Further, when employees do
their work into the teams' so by this, they raise their knowledge and also increase the level of
trust among all department. For better efficiency, management allot allot on team leader in each
group (Richard Clarence Bush, 2016). This person guides guide their employees like what to do
and which process is good for the work. By doing this, they clear the roles and responsibility on
each department and also helps in increasing increase their knowledge.
Leadership and business management influences organisation productivity
It is the duty of the manager and the leader to create It is manager and leader duty to
creates a good communication structure in the organisation (Teizer, 2016). By doing this, they
can easily reduce the negative impact of misunderstanding among all the entire departments.
Organisation efficiency is based on each department and for this all managers and leaders
leading contribute in the people shows their contribution in the success of company. For the
same, managers take a decision and how interacts with the employees (Haas, 2016).
Communication
Leadership and management style effectaffect the communication process and the
productivity of all the staff members (Collins, Emsell and Haydon, 2011). It is the duty of the
manager to manger duty to check all the communication structure in the organisation.
Further,and also clear out that all messages are delivered on right place or not. For this, they uses
use feedback technique, where receiverd send a feedback to their sender person. By adopting
proper communication structure, leader reduces the leading person reduces the negative impact
of misunderstanding.
Employees input
According to, Gopee and Galloway (2013) for effective work, employees inputs are is
important at the workplace. By adopting democratic leadership stylestyles, manager takes a
suggestion from their staff members and according to their suggestion he adopts manager takes
an appropriate decision. By this, they create fruitful fitful relationship with their working staff.
Moreover, they also feel that they all are all are important assets of of the organisation.
Morale
WhenA staff memebrs that feels motivates so they can easily and give their 100% to the
company and achieve all the mission and vision of companytarget of organisation. It is important
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for the leaders to select appropriate leadership style for the employees and, with the help of this
the manger can influence the morale of workers. Autocratic leader also create are not able to
create a positive relationship with their staff members (Collins, Emsell and Haydon, 2011). On
other hand, by using democratic leadership style leader can easily gain tie trust of workers.
Importance of leadership and business management in the organisation
For better development of organisation, it is important for management department
to use leadership and business management as well. The man reason behind this isFor
developing the For better development of organisation on business management and leadership
both are important and the reason behind this, with the help of this management all employees
can take initiatives action at workplace., bby providing proper guidance team leader develop the
confidence level of employees and then they can easily take right decision on rigth time and also
give their best performance to the company. Leader is not only a Leading person is not only a
supervisor but they also guide their employees in their work and plays subordinator role (Avolio
and Yammarino, 2013). An effective business management environment increaseAn effective
business management environment increases the growth of organisation.
CONCLUSION
According to the preset file itIt can be has been concluded that, leadership and business
manager are important for better development. By using different leadership styles, manager can
easily understand the positive and negative points of their staff members. Moreover, it is leader
duty to take feedback from their employees and analyze their analysis their chasing behaviour
towards their work. For better development of the company, leadership and business
management both are important because they are based on different theories and qualities.
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REFERENCES
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success. John Wiley & Sons.
Giacalone, R.A. and Rosenfeld, P., 2013. Impression management in the organization.
Psychology Press.
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Gopee, N. and Galloway, J., 2013. Leadership and management in healthcare. Sage.
Haas, C., 2016. Innovation in construction health, safety and environmental research.
Construction Innovation. 16(3).
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John Wiley & Sons.
Huber, D., 2013. Leadership and nursing care management. Elsevier Health Sciences.
Richard Clarence Bush , (2016) "U.S. policy toward Taiwan", Asian Education and
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Teizer, J.,2016. Right-time vs. real-time pro-active construction safety and health system
architecture. Construction Innovation. 16(3).
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Power Transition Theory. Asian Education and Development Studies. 5(3).
Online
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