E-Banking and the Leadership Essay Example | Topics and Well Written Essays - 1500 words

E-Banking and the Leadership - Essay Example Leadership and management are closely related but it can be easily said that leadership ability is an essential part of managing effectively. The differences between management and leadership lie in their motivation styles. For leaders, the leadership styles tend to be transformational or transactional whereas mangers tend to be more authoritative. Leaders have a vision and they are oriented towards driving a change. As for managers they are more focused on adapting to changes and implementation and achievement of goals. There is also a difference between the personality types of leaders and managers. While managers tend to try to achieve stability leaders are more inclined towards risks from changes. (Brown, 2009) Thus it may seem that management and leadership emerge from different ends of the spectrum but in reality the qualities of a good leader and manager compliment and enhance each other. Thus though these are two different approaches they tend to work well with each other bri nging about the best in the organization and from its people. Leadership and management has been a focus of many studies which have traced the roots of leadership characteristics as well as studied the different kinds and dimensions of leadership. A brief overview of these studies done over a long period of time is taken to draw conclusions about leadership and the basic differences between management and leadership.... There are multiple theories of leadership which explain whether leaders are born or evolved. They also describe the kinds and the qualities of effective leaders. There are also studies which identify different types of leaders. As compared to this the basic management functions consist of Planning, organizing, leading, controlling, decision making and problem solving. The University of Iowa studies The University of Iowa studies in the 1930's identifies 3 broad styles of leadership. They were labeled authoritarian, democratic and Laissez fair. The authoritarian leader was directive I his style and did not encourage participation from his followers. The democratic leader encouraged discussion and participation and tried to be objective. Nevertheless he was the one who made the decisions. In contrast the laissez fair leader allowed complete freedom to the followers to make and follow their own decisions. (Martin, 2005, p. 351) Trait theory These traditional theories of leadership inclu de the Trait theory of leadership which distinguishes leaders from non-leaders. It says that there are personal qualities and characteristics which define a leader and that leaders are born and cannot be made. Leaders are described as courageous, enthusiastic and charismatic and examples include Mahatama Gandhi and Nelson Mandela. Research later validated that all leadership traits can be broadly categorized under the Big Five traits of leadership which were extraversion, conscientiousness, openness to experience, agreeableness and emotional stability. Recent studies have also found that emotional intelligence is strongly linked to effective leadership. (Robbins, 2010, p. 174) Behavioural theories The behavioural theories of leadership focused on observable behaviours