Theory X is defined as: Management must control employees, direct them, and threaten them with punishment because employees inherently dislike work and will avoid it if possible.
Theory Y is defined as: People not only accept responsibility, but actively seek it. Satisfaction results in reaching their goals. Motivating employees to share in those goals is the most effective way to manage employees.
There are different types of leadership styles ranging from the autocratic to the permissive. However, the most effective leadership style tends to be a participative one. There is a free flow of information throughout the organization.
The Leadership at Valsource International understands the differences in leadership styles and because of our size, to be effective we must utilize the brain trust we have in the organization to affect a positive outcome for our customers. Part of our strength is the free flow of information communication with all personnel in the critical path of a job is a part our leadership process, which is ever evolving.
The Difference between Leaders and Managers
Leaders may be managers but managers are not leaders by definition. In fact, one of the functions of leaders is to manage, but managing is a minor part of what leaders do. Leadership has a much broader focus and is uniquely different from managing. Managers plan, organize, staff, direct, and control. Leaders also do these things, but not exclusive to one work area, and they do them in a different way and at a different level of purpose. Leaders plan, but their planning is more global in terms of setting the agenda for the future. Leaders organize, but their organizational responsibilities involve mobilizing resources and building institutional arrangements that will enable the organization to achieve its long-term goals. Leaders staff, but their staffing function involves identifying and developing talent. Leaders direct and control, but they direct toward a defining end purpose and control by empowering people and holding them responsible for finding their own means to those ends. Valsource International has key personnel that perform these functions at an extremely adaptable manner. The General Manager directs the efforts of the company’s managers, who in turn are given the freedom to find their own methods on how to best perform their duties which support the company’s goals. Leaders differ from managers in that they go far beyond the performance of management functions. Managers focus on operating in their area of assigned responsibility for efficiency, cost containment, and compliance with delivery schedules. Leaders are also concerned about these things, but they go beyond performance requirements in order to affect operations in meeting larger needs of the organization, or of society as a whole.
Managers and leaders tend to think in different ways. Managers are analytical and convergent. Leaders are intuitive and divergent. Managers make decisions and solve problems for their employees. Leaders set a direction and then empower and enable employees to make their own decisions and solve their own problems. Managers emphasize the rational and tangible, whereas leaders emphasis intangibles such as vision, values, and motivation. Managers think and act for the short term. Leaders thank and act for the long term. Managers accept organizational structure, policies, procedures, and methodology as they are. Leaders constantly seek to find a better way. It is important for anyone in the position of leadership to understand the basic principles of leadership in order to be effective. There is a difference in working for a leader and a manager. Most people who are good at what they do and are engaged want to be lead not managed.