Unit 3 database concepts and applications

Management and leadership are both essential aspects of modern business organizations. In principle, there are fundamental differences between them, but there is also significant overlap or similarity. In general, management relates to operational elements of business and efficiency whereas leadership pertains more to personnel elements and motivation. Whereas business management focuses largely on planning, organizing, and controlling, leadership addresses employee motivation and performance. However, in many respects, it is impossible to completely distinguish between the two, particularly since the fourth traditional function of business management is leadership.

Management

Traditionally, the four essential functions of business management are planning, organizing, controlling, and leading. Planning generally relates to establishing the long and short-term vision and mission of the organization together with the specific objectives necessary to achieve the organizational mission. Organizing pertains largely to assessing the assets and resources of the organization and applying them in the manner that is most conducive to the achievement of the organizational mission. The management function of controlling consists substantially of establishing structures and processes whose implementation represents the optimal use of organizational assets and resources in connection with fulfilling the objectives outlines by organizational decisions. Controlling also incorporates the functions of evaluating the effectiveness of established processes and procedures and making adjustments as necessitated by the degree to which they result in successful achievement of their specific objectives.

Leadership

Leadership is often considered the fourth traditional function of business management but the modern trend is to separate leadership from management. Whereas the other functions of management focus on methods, and operations, and policies, and organizational structure, leadership pertains exclusively to people. Management also includes various functions that relate to personnel, such as the establishment of hierarchical structure, and supervisory policies and practices. However, even in these personnel-oriented functions, management and leadership are substantially different.