Practise explaining differences between leadership and management using IB Business Management SL 2.3.2 questions and mark schemes.
Suchenlin has made her fortune from the success of her business, High-end Holidays (HH), which sells individually designed holidays to luxury destinations in Africa, Asia and the Pacific islands. Suchenlin no longer takes part in the day-to-day running of HH. Instead, she has an input into strategic decision making and she provides the inspiration for the business.
Su thinks it very important that she maintains a leadership role for both HH and AS. However, she empowers her managers at HH to make day-to-day decisions, including organizing resources, directing staff, coordinating, and taking tactical decisions. As well as empowering managers, Su thinks that it is important to empower employees and encourage teamwork by creating opportunities for employees to discuss working practice, quality issues and matters concerning employees. Su’s intention is to empower managers similarly at AS while retaining responsibility for strategic decisions. She believes that her managers are so well motivated and committed to their work that she feels little need to interfere. There is seldom conflict between managers, but when there is, Su will provide advice and guidance. Managers, both at HH and AS, say that they are inspired by Su and have a clear understanding of her mission and share it. As part of her leadership role, Su also enjoys some aspects of organizing, particularly when fundraising events for AS are needed and meetings have to be arranged with governments and non-governmental organizations (NGOs). She usually represents the businesses at such meetings and conferences.
To help begin the project to make and sell solar power systems, Su appointed David, who, before asking to work on the AS project, worked in HH’s marketing department. He is an Afghan. She also appointed Salima, also an Afghan, who has experience with a large manufacturing business as a production director. Two more senior managers will be needed, and Su needs to decide between selecting experienced HH managers or promoting junior employees from within HH.
Su prepared a six-monthly cash-flow forecast for AS. Su’s share capital and loans from HH financed the early project; sales, capital expenditure, sales costs and other costs affect cash balances. A cash-flow forecast helps AS anticipate cash shortages, plan finance and control spending. Su empowers managers at HH and AS to organize resources, direct staff, coordinate and take tactical decisions while she retains strategic responsibility. Leadership involves setting direction and inspiring people; management involves planning, organizing, coordinating and controlling resources and activities.
With reference to Su and her managers at HH and AS, explain the differences between leadership and management.
Su shows distinct leadership qualities. She:
- inspires
- sets missions
- takes responsibility for strategic decisions
- takes on the role of spokesperson
- delegates, advises, guides
- shows features of McGregor Theory Y.
Her managerial roles are somewhat limited but include organizing at a corporate level. Most of the management functions are delegated.
Managers, for example David and Salima, fulfil management functions including:
- making day-to-day decisions
- making tactical decisions
- organizing resources, directing, coordinating staff.
Accept any other relevant difference.
Marks should be allocated according to the markbands on page 5.
Award a maximum of [3] for a theoretical answer
Award a maximum of [4] if no reference to David/Salima (managers)
Award a maximum of [5] if the explanation of differences is mainly descriptive, but in context.
To achieve 5 or 6 marks there has to be a comparison.