2. Discuss the results of Luthans’ (1988) Real Manager Study concerning effective versus successful managers and their implications for management and leadership.
Luthans’ Real Manager Study found that “effective” managers are not necessarily “successful” managers. Effective managers are usually not the ones promoted rapidly through the organizational ranks. The managers that were promoted most rapidly were the best networkers.
Luthans found that all managers engaged in four managerial activities – traditional management, communication, human resource management, and networking/socializing with outsiders. Effective managers spend the majority of their time on communication activities and HR management, whereas successful managers spend the majority of their time on networking activities.
This research challenges the traditional assumption that promotions are based upon performance. To get ahead in an organization, one needs social and political skills. However, to be an effective manager, one needs to communicate and manage his human resources well. Further, “successful” managers may be promoted to their levels of incompetence (Peter Principle), while “effective” managers may struggle for promotions because of the thought that they are too good to be replaced. If effective managers want to be promoted, they should engage in succession planning and train their replacements.
Area 2
4. Explain the difference between a leader and a manager according to the Kotter article.
Leadership and management are two distinctive and complementary systems of action. Both are necessary for success in an increasingly complex and volatile business environment.
Management is about coping with complexity. Good management brings a degree of order and consistency to key dimensions like the quality and profitability of products. Companies manage complexity through planning and budgeting, through organizing and staffing, and through controlling