Module 12: Leadership, Management, Influence, and Organizational
Effectiveness Part 1
Chapter 12 Leadership: Theory and Practice
1. Good leader/bad manager
Many people tend to use the terms leadership and management interchangeably.
However, these two terms are actually not the same. As you read about in Module 1,
people can be very good leaders and very poor managers or vice versa.
At a small organization in the northern part of the country the previous Chief Executive
Officer was a man. He was an excellent leader according to the people who worked for
him. He would speak very eloquently, and he inspired people to want to do a good job.
He was extremely personable, and he seemed to get along with everyone. He could strike
up a conversation with everyone from the vice president to the maintenance employees.
He was very trustworthy and had a great moral and ethical basis. His decisions were
grounded in his moral and ethical value system, and he tended to make decisions that
were positive for the organization.
He was always looking for ways to help others and give back to the community, and since
the organization was state-funded it was difficult to do. However, he would find ways to
help out. For example, he had his own parking space right by the front door. The parking
lots were small, and parking was often limited so others often had to walk long distances
to get into the buildings. During the winter months, this can be very difficult. Each week
he would allow employees to wear jeans on Fridays if they donated a specific amount of
money. The money collected throughout the month would be given to a non-profit
organization on behalf of the company. If an employee donated that week, their name
was placed into a drawing for the Chief Executive Officer’s parking spot for one month.
So, over the course of the year, twelve individuals who donated to the good cause would
get to park in his space while he parked elsewhere in the parking lot. Although this seems
like a very small thing, people responded to it, and it is something they remember about
him ten years after his retirement.
However, this leader was not a great manager, and people remember that about him as
well. He was not the best at the details of operating an organization. He was not an
organized person, and he did not do a great job at controlling things within the company.
He did, however, know this about himself so he hired great people who were good at
managing, which hid his inability to be a good manager. This is another sign of a great
leader – he was very self-aware, and he was not ashamed to admit his weaknesses and
look for ways to improve those areas – even if it meant hiring good people around him.
2. Good manager/bad leader
Now, let’s say that you work for that organization and you hear that this Chief Executive
Officer, who has proven to be a great leader, is retiring. Your first instinct would be to say
that you hope someone who fills that position is as good a leader as he was. You want to
stay with someone who is generally the same, because as humans we do not like change –
we do not like to be removed from our comfort zone. The worst case scenario is that you
get someone who is the complete opposite when it comes to leadership and
Well, that is exactly what happened. The person who replaced this great leader had great
managerial skills. He was very good at planning, organizing and controlling the
operations of the organization. He enjoyed strategic planning, he was very organized and
tried to make sure that the operations of the organization were very organized, and he
was very good at controlling virtually everything that happened within the organization,
almost to an extreme. This person was very efficient at his job as the Chief Executive
Officer of the organization. He met deadlines, his reports to the board of directors were
always good, and he ran a tight ship in regard to the organization. The fiscal end of the
organization was very good, which is what the stakeholders want to see.
However, this person was not a good leader. He was not charismatic at all. He found it
very difficult to engage in conversation with anyone in the organization. He even said one
time that he was virtually incapable of small-talk with people. He was not a good speaker,
and oftentimes he had to have someone else in the organization speak to the public
because his public speaking skills were so poor. He did not motivate people to want to do
a good job, but instead he threatened them if they did not perform to his expectations.
You remember from Module 6 that trustworthiness is an important factor in leaders on a
global basis. This organization had a security threat and had to evacuate and close for a
day this past year. Instead of telling the public about the threat the leader made the
decision to cite a maintenance issue as the cause of the evacuation. This was a public
building and people were coming to the building throughout the day, hoping the
“maintenance issue” was fixed. Unfortunately, the media got word that there was a
security threat, and instead of focusing on the threat, the media, the public and the
employees within the organization focused more on why the leader of this organization
would lie to everyone. His trust was completely diminished by this decision, which is a
further testament to his poor leadership ability.
As you can see, good leadership and good management ability do not necessarily go
hand-in-hand. Often people are either good at one or the other. The goal, though, is to
be able to improve your skills in both areas so you are an effective leader and an effective
manager. You want to not only be able to motivate people and inspire them to be the
best they can be, but you also want to be able to run an efficient and effective department
or organization. Having a strong self-awareness will help you to understand your
strengths and weaknesses in both leadership and management, while continuing to work
on improving your skills in both areas.
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