Management is the outcome of the hierarchy of organisations. An organisation consists of various levels of management depending on the structure of the organisation. These levels of management are executive, middle and lower management. Griffin (2014) defines management as a set of activities of planning, decision-making, organising, leading and controlling focused at organisational resources with the aim to achieve the organisation’s goals in an effective and efficient way. Management refers to the responsibilities and actions of planning, organising, leading and controlling to provide direction to the organisation or a department or unit of an organisation (Hellriegel, Jackson ; Slocum, 2005).
The activities of planning, organising, leading and controlling of management occur at the executive, middle and bottom/lower level of management (Griffin, 2014). Hellriegel, Jackson and Slocum (2005) concur with this definition by Griffin (2014) since they argue that executive management sets the overall objectives to ensure that the organisation achieves its objectives. The operations of units/departments rest in the hands of middle management. Hellriegel, Jackson and Slocum (2005) also assert that the objectives of middle management should be in line with that of executive management. This ensures that the objectives of each level of management should complement each other to avoid conflict and the organisation moving in different directions or no direction at all. Bottom or lower management are more concerned with the operations and the facilitation of employees to accomplish operations.
Cole and Kelly (2015), in contrast, group the main functions of management as planning, organising, motivating and controlling. They state that decision-making is embedded in each of the four management functions. They further argue that management today still has connections to management of decades ago, but owing to the dynamics of the environment, the workplace and market place should continuously adapt to meet the changing demands from the environment. Cole and Kelly (2015) conclude that management has certain roles identified with management positions as offered by Mintzberg (1973). These roles are interpersonal-, informational- and decision-making (Mintzberg, 1973). Badenhorst et al., (2003) state that these roles as identified by Mintzberg (1973) are interdependent. The interpersonal role refers to the role of the representative of the organisation, leading in the various functions of the organisation and maintaining a relationship with the internal and external stakeholders. The informational role includes the role of collector of information from internal staff, various external stakeholders and the environment to make informed decisions. The last role of decision maker refers to the activities of analysing information to make informed decisions.
This study opted for the definitions as set out by Hellriegel, Jackson ; Slocum(2005) and Cole ; Kelly (2015) because their definitions emphasise all the functions of management namely planning, organising, leading and control, the competencies of strategic thinking, team work, global awareness and self-management and the roles are interpersonal, informational and decision related. These four competencies are of crucial importance today to ensure sustainability and success of organisations that operates in a dynamic, competitive and global environment. The roles of management show that management should have a relationship with all stakeholders and should have the necessary information to make informed decisions. This study defines management as those people in an organisation who have functions of planning, organising, leading and control of the various resources through proper relationships with the various stakeholders to have the appropriate information to make informed decisions.
2.4 CONCEPT LEADERSHIP
The success of any organisation depends on effective leadership (Yukl, 2006). Day and Antonakis (2012) state that there is a well-known acceptance that leadership is crucial for effective organisational and societal functioning. However, it is easy to identify leadership in practice but difficult to define it exactly (Day ; Antonakis, 2012).
Organisations use various resources like information, monetary, tangible and human resources. The ability to effectively manage these resources, particularly the leading of human resources is of crucial importance to the success of an organisation (Yukl, 2006). The largest percentage of an organisation’s operational expenses is spent on its human resources. If these human resources are not harnessed properly they will not perform well and the organisation may deteriorate.
In contrast to the origin of the concept management, the concept leadership can be traced to 384 BC (Northouse, 2016). The following definitions for leadership have been offered in the 20th century (Northouse, 2016). Moore in 1927 states that leadership is the capability of the leader to affect the team members to ensure compliance, admiration, devotion and cooperation from the team. In the 1930s leadership was defined as the collaboration of individual’s specific personality traits with those of the team, noting that the attitudes and activities of the team members are changed by the leader and vice versa’. In the 1940s leadership was defined ‘as the behaviour of an individual while involved in direct group activities (Hemphill, 1949). During the 1950s, the definition of leadership was dominated by three dimensions, namely, a relationship that develops shared goals, effectiveness and continuance of group. Seeman (1960) described leadership as the actions by which an individual endeavours to ensure that other people move in a common direction. The scholars of the 1970s viewed leadership (according to Burns, 1978) as the shared process of organising people with certain motives and values, various economic, political and other resources in a context of competition and conflict, in other words to grasp goals of independently or mutually held by leaders and team members. The authors of the 1980s opted for the following themes, namely, do as the leader wishes, the leaders influence on the group, the leader’s traits and organisational transformation. As with the definition of management, there are various definitions of leadership (Northouse, 2016). This study concurs with the definition offered by Burns (1978) given above, when people interact in such a way that this interaction will advance the levels of motivation and morality of the leader and the team members.
With the dawn of the 20th century, authors offered different views on the concept leadership. Leadership represents the directing of the human resources by bringing the activities of the human resources in line with the pre-established goals and plans of the organisation (Badenhorst et al., 2003). Singh (2015) in contrast, defined leadership as the direction by which one person change the actions, beliefs and outlooks of a group, and provides the path to the team to achieve the desired outcome for the future. In a formal organisation this desired outcome for the future refers to the vision and mission of the organisation. Singh (2015) further argues that to be a leader one should have a vision that can be realised and should have an obligation to the mission and to a responsibility for the realisation of the mission. He adds that other responsibilities of a leader are to oversee the wellbeing of the team, to be a calculated risk taker and to accept acknowledgement for success or failure. DuBrin and Dalglish (2006) state that leaders deal with the interpersonal aspects amongst the team. Leadership, according to Spillane (2006) refers to the actions knitted to the core work of the organisation that are designed by organisational members to positively affect the motivation, understanding and performances of other organisational members. Dlabay, Burrow and Kleindl (2012) define leadership as the ability to motivate and encourage individuals and groups to accomplish important goals to the benefit of all stakeholders of the organisation.
Cole and Kelly (2015) on the other hand, explain leadership as the use of power to persuade and influence fellow employees to achieve the organisational goals. Griffin (2014) identifies certain types of power that a leader may use to influence his/her followers. These powers are legitimate, reward, coercive, expert and referent power. Legitimate power refers to the power attached to a position, while reward power is the power that a leader may give or withhold to convince the followers to do or not to do a task.
The use of emotional, physical or psychological threats to comply is referred to as coercive power. In contrast referent power is when the leader offers intangible things like charisma, imitation and identification. Expert power results from the knowledge or expertise the leader may possess. These different types of power that a leader may have makes him/her stand out in a group. It is, however, important that the leader should know to what degree and in what way to use this power, to the benefit of the group members and the organisation and thereby ensure that an organisation achieves its vision and mission. The abuse of power by the leader can have serious consequences for the wellbeing of the team and the organisation in general (Griffin, 2014).
The views of Griffin (2014) contrast with those of Cole and Kelly (2015) since he argues that leadership involves the influencing of team members without the use of power. Meanwhile Hellriegel, Jackson and Slocum (2005) define leadership as an influential affiliation between leaders and followers, who strive for real change and results which reflect their shared purposes. Hellriegel, Jackson and Slocum (2005) further argue that leadership involves three aspects: namely influence, shared purpose and change. According to them, followers can be influenced by the power of the leader’s position, rewards, coercion, expertise and charisma. The second aspect, shared purposes, refers to shared goals of the leader and the followers that will ensure that common goals will be achieved. The third aspect of leadership means that change is an integral part of leadership. Northouse (2016) defines leadership as a process by which an individual influences a group to achieve a common goal. Erasmus, Strydom and Rudansky-Kloppers (2016) view leadership from a managerial perspective. They regard leadership as a process to influence followers to work voluntarily towards the achievement of the organisational objectives. Since the 1900s, many attempts have been made to define leadership, as outlined above.
However, two key characteristics of leadership come to the fore, namely a vision from the leader and the involvement of team members. This study accepts the following definition as proposed by Burns (1978) that leadership is displayed when people voluntarily interact with one another via continuous, effective communication and transformation, because of the dynamics of the environment, to achieve the goals of the internal and external group members as well as that of the organisation as a whole.
The question arises as to whether there is a difference between leadership and a leader or is a leader an element or component of leadership. Northouse (2016) states that leadership is a process whereby a single person inspires a group to achieve a collective objective. Northouse (2016) further argues that a process implies that a single person, the leader, affects and is affected by the team members. Webb (2014) lists the following differences between leadership and a leader as reflected in table 2.1 on page 46.