Leadership and Management - 1671 Words

What is the difference between leadership and management? Not many people understand what the â€Å"leadership† or â€Å"management† term means. Many people thing that they are similar or interchangeable. I was one of those a few years ago. Honestly, it was not easy to understand and recognize the roles of a leader and of a manager because both exist within the same department or organization. In fact, the leadership and management roles need to be differentiated and clarified. The roles’ clarification not only helps the employees to address their concerns to the appropriate higher-level â€Å"boss†, but also is crucial in making the organization’s strategies successful. This paper presents the historical definition of leadership and management as well†¦show more content†¦The French word menagement (later management) influenced the development in meaning of the English word management in the 17th and 18th centuries (Wikipedia, 2007). Manag ement can also refer to the person or people who perform the acts of management. If leadership is the evolutionary mechanism that gear organizations towards future prosper, management is â€Å"the function that organizes the execution of today’s business† (McCrimmon, 2007). Management is the process of getting activities completed efficiently and effectively with and through other people. The functions of a manager include planning, organizing, staffing, directing, coordinating, reporting, and budgeting. In other words, management comprises directing and controlling a group of one or more people for the purpose of coordinating and harmonizing them towards the expected completion of a job assignment, or a goal. Management often encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management simply is to make the best use of all resources even when we manage ourselves. The aim of management i s to deliver results cost effectively in line with customer expectations and profitably, in the case of commercial organizations. In the modern world, management has a primary function of satisfying all theShow MoreRelatedLeadership And Management And Leadership1569 Words   |  7 PagesLeadership is about seeking constructive change and management is about establishing order (Northouse, 2015). Warren Bennis (1997) wrote in  Learning to Lead: A Workbook on Becoming a Leader  that â€Å"There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial.† (Leiding,Read MoreManagement And Leadership : Leadership1023 Words   |  5 PagesManagement and Leadership In Leadership, Leadership, Leadership Are We All Chanting the Wrong Mantra, the authors says, â€Å"Leadership is simply management of higher level things† (McCormack, 2009, p.1) and that the leader manages the vision, people’s perception and their own behavior (p.1). McCormack continues his analysis by saying, â€Å"There are times when leadership simply cannot take place† (p.2). McCormack appears to believe that organizations and universities should not teach, encourage or tolerateRead MoreLeadership And Management : Leadership835 Words   |  4 PagesLeadership Verses Management The world is made up of leaders and managers. There are leaders and managers in every aspect of life. In many instances leadership and management are referred to as being the same. This paper will evaluate the differences between leadership and management. In today s organizations, leaders and managers are needed in order to operate successfully. Even though managers and leaders are different, they both have many similarities that will be discussed in this paperRead MoreLeadership And Management And Leadership1146 Words   |  5 Pages Leadership and Management Contrary to popular belief, the terms leadership and management are often thought of as hand in hand, but in retrospect they both have very strong different meanings and are not the same. There are some similar characteristics that can very much persuade some that they align in the same manner. They can be notably known as terms that are used interchangeably in the business world. â€Å"Management is a function that must be exercised in any business, whereas leadershipRead MoreLeadership Vs. Management : Leadership And Management1550 Words   |  7 Pagesauthor of On Becoming a Leader: The Leadership Classic, is best known for, that addresses why there is a difference between Leadership versus Management (Murray, What is the Difference Between Management and Leadership?, 2009). Just like most people, I use â€Å"leadership† and â€Å"management† interchangeably because one feels that they are probably the same thing or embody the same characteristics. Further di scussion will provide details on what leadership is, what management entails, and why they are differentRead MoreLeadership, Management And Management1081 Words   |  5 PagesLeadership and Management Businesses require some sort of hierarchy of power to be successful. They cannot operate on the basis that everyone has the same job level if they plan to make a profit. However, the individuals that are placed in the higher power positions fall into two categories, leaders and managers. Many would say these are the same thing, when in reality they are not. They are two different styles that are used when operating a business and using the right one at the right time isRead MoreLeadership, Management, And Management876 Words   |  4 PagesLeadership and Management Name Institutional Affiliation Leadership and Management The achievements of organizations depend on their management and the manner in which their leaders conduct several operations within the organization. It is worth mentioning that successful organizations attribute their positive impacts in the market and general employee-employer relation to the influence spearheaded by the management team (Hiriyappa, 2013). This paper narrows down to evaluateRead MoreLeadership And Management And Leadership1173 Words   |  5 PagesLeadership is a term that is often misunderstood and misinterpreted in the business world. In the world of CEOs, CFOs, vice-presidents and managers, it is important to distinguish the difference between what is considered management and what is considered leadership. While these two terms are not mutually exclusive, but it is imperative that they are not comprehended as mutually inclusive either. In this context, I will be comparing leadership and management as presented in the college textbookRead MoreLeadership And Management : Leadership1126 Words   |  5 PagesAs we know that, leadership is nothing. But the influencing flowers. Leadership includes three fundamental clusters of skills creating vision, garnering commitment to that vision, an managing progress toward the realization of that vision. powerful and effective leaders plays very vital role to reach the maximum production for any organization. This is why, Organizational renowned scholars have been studying of this very significant topic of leadership for literally hundreds of years. Because.Read MoreManagement Vs. Leadership : Management And Leadership1061 Words   |  5 PagesManagement vs. Leadership Introduction Presently many of us have learned that managers are primarily administrators who have learned to write business plans, utilize their resources and keep track of progress. We must learn that we are not limited by job title, and that means we can utilize our management skills in any position that we are in. We must also know that we can use our leadership skills in the same situations. On the other hand we have also learned that leaders are people who have

Management Decision Making Software Solutions Ltd

Question: Discuss about the Management Decision Making for Software Solutions Ltd. Answer: Introduction: Software Solutions Ltd is engaged in selling software products to the accounting and small business entities. The company acquires software packages from the software developers and sells these to the accounting firms and small business entities. Mr. Brad Shelton works for Software Solutions Ltd as consultant and he has been given an authority to analyze and finalize a software package that is the most suitable for cost accounting purpose. In this connection, Jennifer Jolie, who works for Pitt Ltd, a software developer, comes to Mr. Brad Shelton to discuss features of her companys software package. She offers Mr. Brad Shelton a trip to Los Angeles where her companys engineers would help Mr. Brad understand the specialties of the software package offered by the company. Further, for this trip, she also offers Mr. Brad to accompany her wife and children. The entire cost of the trip involving official and non official expenses is to be borne by Pitt Ltd. The analysis of the facts of the case indicates that Mr. Brad Shelton should not take this trip on ethical grounds. This is a clear case of inducement being offered by Pitt Ltd to Mr. Brad Shelton. The company may ask Mr. Brad Shelton to finalize its software package disregardingthe others (BredesonGoree, 2012). The management of the company should be alert to the situations of conflicts of interest by maintaining a proper mechanism to identify the circumstances wherein an employee of the company may prefer his personal interests over the companys overall interest. In the situation outlined in the current case, it is clear that Mr. Brad in may prefer personal gains over the companys overall interest. He has been offered freebees by Pitt Ltd to finalize its software package. Pitt Ltd is offering him a family trip to Los Angeles, the cost of which is to be borne by Pitt Ltd. It is essential to take a view here that Mr. Brad Shelton may finalize the software developed by Pitt Ltd even if it fails on certain parameters. Further, Mr. Brad has alone been assigned the task of finalization of the software, which also gives rise to suspicions that he may earn personal gains at the cost of the company. Thus, overall it could be inferred that Mr. Brad is in a position to breach the ethical principles and hence, the management of Software Solutions Ltd should not allow him to go on the trip offered by Pitt Ltd (BredesonGoree, 2012). The code of conduct is a charter that guides conducts of the individuals working in the company. It provides a set of instructions to the employees to act in the situations when they encounter ethical issues (BredesonGoree, 2012). Framing a code of conduct is crucial for guiding and controlling the human behavior and creating ethical environment, which is necessary for the achievement of the organizational goals. Since, code of conduct is crucial for the achievement of the goals and vision, thus, every organization needs to have it. Software Solution Ltd is no exception and thus, it should also have suitable code of conduct in place. There are various advantages that accrue to the organization by having a code of conduct in place. The most important among them is the positive atmosphere (BredesonGoree, 2012). The code of conduct creates a positive atmosphere among the employees and directs their activities in the best of the organizational interest (BredesonGoree, 2012). Further, it helps to build equalities among the employees, which motivates them to work harder to the fulfillment of the objectives of the entity. Apart from this, maintaining a proper code of conduct is a legal requirement for the companies, thus, it is necessary that a company maintains a code of conduct for legal compliances. Above all, the reputation and goodwill of the company is strengthened to a great extent if the company maintains code of conduct and its working is ethical. Carrying out business ethically is a booster to the companys reputation and goodwill (BredesonGoree, 2012). Although, it is necessary as well as always beneficial to maintain a code of conduct but in some instances it may be frustrating for employees. For example, poorly drafted code of may restrain the employees from raising their voices against wrongdoers, particular, against those who are in the top management. Further, the compliances with the code of conduct may reduce the efficiency of the employees at the workplace (BredesonGoree, 2012). In respect of the companies operating under common control, it is essential for the investors to analyze the financial performance and position taking a consolidated view. For this purpose, the entity having majority interest in others which is called parent company is required to prepare the consolidated profit and loss account (Pwc, 2011). The consolidated profit and loss account is prepared by combining the results of the operations of the parent with its subsidiary companies. In the current case, Greencross Limited is the parent company and therefore it prepares consolidated profit and loss account and consolidated balance sheet for the financial year 2016. Te consolidated profit and loss account presented by parent company shows the financial performance for the group as a whole (Pwc, 2011). S.No. Item As at 30 June 2016 $000 Classification with reason i. Cash and cash equivalents 62,583 Asset: An asset is a resource controlled by an origination and cash is certainly a resource owned and controlled by the entity, thus, it is classified as asset. ii. Marketing cost 17,821 Expense: an item of cost is termed as an expense when its benefits have accrued to the entity. iii. Occupancy costs 10,880 Expense: an item of cost is termed as an expense when its benefits have accrued to the entity. iv. Cost of goods sold 324,949 Expense: cost of goods sold comprises the items the benefits of which have accrued to the entity, thus, it is charged to the profit and loss account in the period in which it is incurred. v. Provisions 10,118 (5,601+4,517) Liability: Liability is an item that results in future payout. Provision is made for possibility to pay in future, thus, it is classified as liability. vi. Inventories 92,002 Asset: Inventories are the items that are used in production process or sold in normal course of business. The entity earns economic benefits by selling the inventory, thus, these are classified as asset. vii. Property, plant and equipment 156,867 Asset: Property, plant and equipment forms part of non- current assets because these are used in business for longer time period. Item 2016 2015 % Change Summary (what this means for Greencross Ltd) Gross margin percentage 55.73% 54.42% 1.31% Gross profit margin has increased by 1.31%, which indicates that Greencross has secured savings in the cost of goods sold. Operating expenses 339,404.00 302,219.00 12.30% Operational expenses have risen by 12.30%, which indicates managements operational inefficiencies (Bohm, 2008). Revenue Growth 734,009.00 (Greencross, 2016) 645,016.00 13.80% Growth in revenues by 13.80% is indicativeof enhancement in the demand and customer base of the company (Bohm, 2008). NPAT 54,649.00 35,723.00 52.98% Substantial increase in NPAT indicates improvement in the profitability of the company. Finance cost 15,986.00 13,580.00 17.72% Increase in finance cost reflects addition in the borrowings. Non-current assets 726,404.00 682,509.00 6.43% The non-current assets have increased by 6.43%, which is quite substantial. The non-current assets largely represent property, plant and equipment and increase in property, plant and equipment represents expansion of the business (Bohm, 2008). Number of stores and veterinary clinics at the end of the year 440= (220 stores+120 clinics) 332= (200 stores+132 clinics) 108 Increase in no of stores and veterinary clinic is a clear indication of growth and expansion of the business of the company. Cash flow from operating activities 78,636.00 14,691.00 435.27% The operating activities are primary activities of the business. Thus, increase in cash from operations indicates operational efficiency as well as superior liquidity state. As per most of the financial reporting frameworks prevailing in the world, the companies are required to present comparative figures in the financial statements. Comparative figures mean the figures in relation to the items of the financial statements of the preceding years (Bohm, 2008). The primary purpose behind presenting the comparative figures is to inform the investors and other users of the financial statements about the trend. The information as regards trend is essential for the investors to take investment decisions. The analysis oftrend gives understanding of the directions to which the companys financial progress is headed, which is crucial for the investors to base their future investment decisions. In respect of Greencross Limited, it could be observed that the company has presented comparative figures for the financial year 2015 in the financial statements of the year 2016. From this information, the investors of Greencross Limited would be able to analyze and evaluate the value of their investments and take decision for future course of action (Bohm, 2008). References Bohm, A. (2008). Interpretation of key figures in financial analysis. GRIN Verlag. Bredeson, D. Goree, K. (2012).Ethics in the Workplace.Cengage Learning. Greencross.(2016). Annual report of Greencross Limited. Retrieved November 22, 2016, from https://www.greencrosslimited.com.au/Docs/2045-GXL0002-_Greencross-Annual-Report-2016.pdf Pwc. (2011).Illustrative IFRS Corporate Consolidated Financial Statements for 2011 Year Ends. AC Black.