UNIVERSITI TEKNOLOGI MARA

FACULTY OF BUSINESS MANAGEMENT

MGT400
MANAGEMENT

PAPER/REPORT

TITLE : SCENARIO 1
“WHY LEADERSHIP AND MANAGEMENT IS IMPORTANT: EXPLAIN
THE DIFFERENCES BETWEENS MANAGEMENT AND
LEADERSHIP”

Prepared by:

Name : MUHAMMAD ZAID BIN BRAHIM

Matric No: 2019140035

Name:MOHD HAFIZI BIN ZULDEE

Matric No:

Name: AAQILAH BINTI OMAR

Matric No: 2019188663

Name : LISA BINTI FRANCIS

Matric No : 2019134675

Name:CERLINA SAMBA
Matric No:2019540597

Prepared for:
Dr. Dewi binti Tajuddin

Date of Submission: 13th of May 2019

1. Introduction Page
- Background of Issues………………………………………..

- Background of study………………………………………….

- Methods of gathering information…………………….

2. Content

- Literature Review……………………………………………….

- Finding and Discussion……………………………………….

3. Conclusion and Recommendation………………………………

4. References

5. Appendices
DEFINITION OF MANAGEMENT AND LEADERSHIP

Management

I. Management is fundamental to guiding any organization towards accomplishment of

goals.
II. Management also can be defined as the process of reaching organizational goals by
working with and through people and other organizational resources.
III. Management includes the activities of setting the strategy of an organization and
coordinating the efforts of its employees (or of volunteers) to accomplish its objectives
through the application of available resources, such as financial, natural, technological,
and human resources. The term "management" may also refer to those people who
manage an organization.

Importance of management :
1) Management achieves organizational goals
2) Management efficiently utilizes resources
3) Management is essential for prosperity of society
4) Management aims to improve quality of work life

Process of management :

1) Planning – Planning is the rational and orderly thinking of ways and means for
the realization of certain goals.
2) Organizing – organizing provides the mechanism or means for purposive,
integrated and cooperative action by two or more people, in view of implementing
a plan.
3) Leading – Leading is largely a function of human relations with motivation.
4) Controlling – Controlling ensures qualitative and quantative work performance in
completing plans and achieving objectives in a organization.

Levels of Management
1) Top Level Management – Responsible for the overall management of an
organization.
2) Middle Level Management – Responsible for setting objectives that are
consistent with top level management goals and translating those goals into
specific goals and plans for the implementation of lower level managers or first-
line manager.
 3) Lower Level Management – Responsible for the work of others called ‘first-
line management’ or ‘first level management’

Leadership

I. Leadership is an action where a person takes a charge of a situation or activity and

leads the people involved towards a goal
II. Leadership also defined to setting a new director or vision for a group that they
follow, example leader is the spearhead for that new direction.
III. ‘Lead’ on the other hand means to take someone somewhere by going in front of
the person to show him/her the way, while the person follows.
IV. A simple definition is that leadership is the art of motivating a group of people to
act towards achieving a common goal. In a business setting, this can mean
directing workers and colleagues with a strategy to meet the company's needs.
V. This leadership definition captures the essentials of being able to inspire others
and being prepared to do so. Effective leadership is based upon ideas (whether
original or borrowed), but won't happen unless those ideas can be communicated
to others in a way that engages them enough to act as the leader wants them to
act.
VI. Put even more simply, the leader is the inspiration and director of the action. He or
she is the person in the group that possesses the combination of personality and
leadership skills that makes others want to follow his or her direction.

Difference Between Leadership and Management.

Leadership is a quality of influencing people, so that the objective are attained willingly and
enthusiastically. It not exacly same as management, as a leader is one major element. While,
management is a discipline of managing things in the best possible manner. It is the art or
skill of getting the work done throught and with others. It can be found in all the fields, like
education, hospitality, sports, office etc.

Basis For Leadership Management

Comparison
Meaning Is a skill of leading other by Is an art of systematically organizing
examples. and coordinating things in an efficient
way.
Basis Trust Control

Emphasis On Inspiring people Managing activities

Power Influence Rule

Focus on Encouraging change Bringging stability

Strategy Proactive Reactive

Formulation of Principles and guilines Policies and procedures

Perspective Leadership requires good Management has a short range

foresightedness. perspective

The skill of leading a group of people and inspiring them towards a direction is known
as Leadership. It is an interpersonal process which involves influencing a person or a group,
so as to ensure achievement of objectives, willingly and enthusiastically. Management refers
to a technique used by a man for dealing and manage person of different age group, to work
together for achieving a common objective.The major difference between leadership and
management are leadership is a virtue of leading people through encourage them,
management is a process of managing the activities of the organization. Then, Leadership
required trust of followers on his leader, unlike management, which needs control of manager
over its subordinates.

Leadership is a skill of influencing others while management is the quality of the ruling.
Leadership also demands foresightedness of leader but management has an short range
vision. In leadership is practice. Conversely management is reactive in nature. Last but not
least is leadership brings change. On the other hand, management brings stability.

In conclusion, leadership and management are inseparable in nature, if there is

management, there is leadership. In fact, the qualities of a manager require leadership skills
to inspire his subordinate.
Literature Review

Based on the article that published by Abraham Zaleznik in the Harvard

Business Review in 1977, he argues that both leaders and managers make a valuable
contribution to an organization and that each one’s contribution is different. Whereas
leaders advocate change and new approaches, concerned with understanding
people’s belief and gaining their commitment, managers carry out responsibilities,
exercise authority and worry about hoe things get accomplished. This means both
leadership and management are presented as a people who helps to maintain a
success in some organization.

There are many traits that make up a strong leader and managers for an
organization. Characteristics that make up a strong leaders is honesty and integrity. It
is crucial to get your people to believe you and buy in to the journey your are taking
them on.

Next is vision. Leader have to know where you are, where you want to go and
enroll your team in charting a path for the future.

Inspiration also one of the characteristic of the leader. Leader need to inspired
the team to be all they can by making sure they understand their role in the bigger
picture.

The type of characteristic for strong managers is being able to execute a vision.
Managers need to take a strategic vision and break it down into a roadmap to be
followed by the team.

The second characteristic is ability to direct the people. ,managers has a day-
to-day work efforts, review resources needed and anticipate needs along the way.

Next, managers work in process management to establish work rules,

processes, standards and operating procedures.

Organizations provide its managers with legitimate authority to lead, but there
is no assurance that they will be able to lead effectively. Organizations need strong
leadership and strong management for optimal effectiveness. In today’s dynamic
workplace, we need leaders to challenge the status quo and to inspire and persuade
organization members. We also need managers to assist in developing and
maintaining a smoothly functioning workplace.
Background of issue.

Petronas is on of most largest petrol company in Malaysia. Petronas has a very

systematic management, through which every employees have the knowledge and
means to work according to the established procedure. The Petronas Company
established Petronas Management Training Sdn. Bhd (PMTSB) conducts training and
development programs INSTITUT TEKNOLOGI PETROLEUM(INSTEP). Applying
team culture at INSTEP,PETRONAS staff are trained to become leaders who are able
to analyze and realize their goals. A group of highly skilled and motivated workers and
working in the same direction can achieve better results, also stablizie Petronas
management.

For Felda management, management is extremely consistent. Felda

Management Division The Department of Administration is the Department
responsible for managing matters relating to the acquisition and maintenance of
FELDA assets. Also in terms of administration management role in, conduct tender
affairs, Manage payment of utility bills, telephone, photostat, flight, indent card and
Touch n Go all Departments.

According to The Star Online , Felda would only be involved in managing the estates
of its settlers and small-sized industries. As a part of the proposed listing of FGV, Felda
handed over the management of its commercial estate land via a land lease
agreement (LLA) and almost its entire downstream activities to FGV in 2012. Based
on the LLA Felda would receive a fixed amount payment of RM 248 mil per year from
FGV and also a 15% share of operating profit from the sale of fresh fruit bunches (FFB)
derived from the estate land leased. However, the average net income received by
Felda, amounting to RM 400mil a year, is “way too low” when compared with the
RM800mil per year forecast earlier. Hence, there was drastic drop in felda revenue
until the group began to post losses in 2013, and later, experienced a further deficit on
the back of its normal expenses and commitment, which is remained the same. Felda
has also failed to efficiently manage the proceeds from the lisitng exercise of FGV in
mid-2012.
Methods of Gathering Information

An extensive literature search was conducted using this following database:

Google Scholar. The search aimed to identify all the previous research articles that
discussed between leadership and management. The search identified 3,730,000
results of articles that focusing on leadership and management.

Next, by interview. Interviews can be more useful than questionnaires because

they allow researchers to collect non-verbal data. For example, researchers can see
whether particular questions make an interview subject nervous or whether the test
subject struggles to answer the question. In short, nonverbal cues such as lack of eye
contact, jittery mannerisms or defensive posturing can provide context to an
interviewee's answers. This type of information could not be collected from a written
questionnaire.

Moreover, by conducting a mail survey. mail survey is the pioneer of self-

administered questionnaires. In this approach, the researcher sends the
questionnaires enclosed with postage-paid envelope through the postal system.
Meanwhile, the participants will be asked to answer questions that are written on a
paper. After completing the questionnaire, the respondents will send it back through
mail.The respondent may not feel encouraged to provide accurate, honest answers
but this kind of survey is easy to administer.

Last but not least, is by telephone surveys. Telephone surveys are the fastest
method of gathering information from a relatively large sample (100-400 respondents).
The interviewer follows a prepared script that is essentially the same as a written
questionnaire. However, unlike a mail survey, the telephone survey allows the
opportunity for some opinion probing. Telephone surveys generally last less than ten
minutes. Typical costs are between four and six thousand dollars, and they can be
completed in two to four weeks.
Conclusion

As a conclusion, leadership and management has it own responsibilities to an

organization. Leadership and management play important role for the business to achieve its
goal. Not all leader in organization is a manager because leader only influenced the employee
by using it powers to make sure the group can moving together to achieve goals. While
manager is someone who in charge of managing a business in terms of resources, products,
accounts and sales. But, leader can be manager in certain organization if he/she play
manager’s role in organization. If there is no leadership, there is no management in the
organization and there is no motivation for the employees.

Recommendations

References
Anna Green, The Advantages of an Interview Over a Questionnaire, (September 2017).
Retrieved from https://bizfluent.com/info-8220458-advantages-interview-over-
questionnaire.html

Mails survey, application and advantages (2017). Retrieved from

https://nationalpublicresearch.com/services/mail-surveys/

Research method, Ways to Get Information. Retrieved from

https://www.statpac.com/surveys/research-methods.htm

Norlida Kamaludin. Za'faran Hassan, Principles of Management Second Edition. Oxford Fajar
Sdn Bhd (2014)