Management theories Essay Example | Topics and Well Written Essays - 1500 words

Management theories - Essay Example While managers administer, depend on control and focus on organizational systems and structure, leaders innovate, inspire trust and focus on individuals in an organization. In addition, managers and leaders differ greatly in that leaders have individuals following them whereas managers have individuals working for them. Moreover, leaders tend to be brilliant and charismatic, like taking risks, visionary and creative among others. They use non-coercive form of influence to make individuals achieve certain goals (Bertocci 2009, p.7). In contrast, managers are rational, problem solvers, and in most cases, they focus on organizational goals, structures, personnel as well as the availability of resources. Mostly, managers make use of formal and rational method when organizing people while leaders use passion and stirs emotions when dealing with their subordinates. Managers have to deal with complex issues in an organization like setting standards for development, developing action plans, and effectively using available resource (Klein 2007, p.2). Moreover, the effectiveness of leaders is determined by the accomplishment of goals while managers’ effec tiveness is determined by results like profit margins (Bertocci 2009, p.9). Nevertheless, leaders and managers approach to tasks differently, that is, leaders look at the problem and come up with creative solutions. Their charisma and dedications helps them to motivate employees to do their best and to effectively solve any problem arising. In contrast, managers establish strategies to form teams and combine ideas to come up with appropriate solution to any problem. They encourage their subordinates to share their views in order to reduce inherent risk and promote success. Accordingly, they both have different approaches to risk in that as leaders are risk takers, managers are risk averse. More so, leaders are the facilitators when decisions are made while managers are involved