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In articles in the business press and the literature, the words manager

In articles in the business press and the literature, the words manager, leader, executive, and administrator are often used interchangeably. However, these terms carry different implications and judgments. Ackoff and Pourdehnad (2009) define these roles as follows:

• Administrator: Manages others to accomplish a goal using methods specified by a third party.
• Manager: Oversees others to reach a goal using methods they themselves specify.
• Leader: Conducts and directs others voluntarily to achieve a goal, using methods chosen or approved by followers.

Leaders tend to rely on influence rather than authority, emphasizing interpersonal communication and relationships. While all executives possess authority, leadership emphasizes influence and change through persuasion, especially in developing a vision. Leadership can be exercised at any level, not just by top executives. Anyone able to visualize a better future and persuade others of its merits demonstrates leadership ability.

Leadership involves suggesting and advocating for change, with the capacity to persuade others about the benefits of such changes. Managers, in contrast, focus on implementing change and achieving performance targets, which, although critical, do not necessarily require leadership qualities. Strategic leadership, specifically, pertains to shaping the long-term success and competitiveness of the organization by developing strategies to outperform rivals.

Power in an Organization

Leaders influence others through various forms of power, regardless of their formal appointment. There are five types of power in organizations:

1. Legitimate Power: Derived from occupying a formal position or role within the organization.
2. Expert Power: Based on specialized knowledge, skills, or competence. For example, a mountain rescue expert guiding others in survival skills.
3. Referent Power: Stemming from followers’ admiration and loyalty toward the leader’s character.
4. Reward Power: The ability to provide incentives, tangible (e.g., bonuses) or intangible (e.g., respect), to influence behavior.
5. Coercive Power: The capacity to punish or sanction, such as firing or reassigning employees.

Mission and Vision Statements

Organizations require clear mission and vision statements. These terms are often misunderstood or misused.

Mission Statements

A mission statement succinctly describes an organization's purpose—what it does, for whom, and how it distinguishes itself. It should not include values, strategies, or objectives, although some companies erroneously include these. It typically addresses: “What do you do?” and “Why do you exist?”

Mission statements tend to remain stable over years but should be reviewed periodically, especially after strategic planning. Properly crafted mission statements are specific; for instance, a residential real estate company versus a broad real estate firm. An example of an effective mission statement from an insurance company is: “Our mission is to equip individuals and organizations to manage financial risk through tailored products and superior customer service, ensuring value for stakeholders.”

Vision Statements

A vision statement articulates where the organization aims to be in the next 5 or 10 years. An effective vision is concise, inspiring, measurable, and achievable. It should include specific goals, such as reaching a certain size, market presence, or revenue targets.

Developing a vision requires input and collaboration across leadership levels, fostering shared ownership. A good vision aligns with organizational strategy and guides decision-making. For example, a tech startup might envision “becoming a global leader in artificial intelligence by 2030,” while a local restaurant may plan for “becoming the top rated eatery in the city within one year.”

Discussion and Analytical Questions

1. Imagine a leader who is visionary but has no followers—is this person still a leader? How are followers recruited?
2. Analyze the sources of power for each of the following leaders and explain your reasoning:
   • Mahatma Gandhi
   • John F. Kennedy
   • Queen Elizabeth of England
   • Bill Gates, Chairman of Microsoft
   • The professor of your strategic-management course
3. Are most CEOs and Presidents today “strategic” leaders? Why or why not?
4. Why do organizations find it challenging to develop effective vision statements?
5. For organizations or industries with very long-term outlooks, like 20+ years, what would a vision statement look like? Conversely, where might a one-year vision be sufficient?
6. Many companies have PR-driven vision statements that sound appealing but lack sincerity. How can one distinguish between genuine and superficial statements?
7. If a company has a compelling vision, why is having a mission statement still necessary?
8. Should every employee be able to recite the company’s mission and vision statements? Why or why not?

Sample Paper For Above instruction

Introduction

Understanding the distinctions among the roles of managers, leaders, executives, and administrators is fundamental in organizational management. While these terms are often used interchangeably in business literature and press, they embody different functions, perspectives, and influence styles. Recognizing these differences enables organizations to develop appropriate strategies for leadership development, organizational change, and strategic planning.

Definitions of Manager, Leader, Administrator, and Executive

A pivotal framework by Ackoff and Pourdehnad (2009) differentiates these roles based on authority source, methods, and follower engagement. Administrators focus on executing established procedures dictated by external authorities, emphasizing compliance. Managers oversee and coordinate work, seeking to achieve objectives through self-selected methods. Leaders, however, are characterized by their ability to inspire and influence voluntary action, often relying on influence rather than authority, emphasizing relationships and interpersonal influence (Bass, 1998).

This conceptual distinction underscores the importance of influence in leadership. Leaders cultivate a vision, motivate change, and build commitment through communication and trust. The ability to create and articulate a compelling vision distinguishes true leadership from managerial oversight, especially when strategic thinking is involved in positioning an organization for future success.

Types of Power in Organizations

The power dynamics within organizations shape leader effectiveness. According to French and Raven (1959), five types of power are prevalent:

1. Legitimate Power: Authority derived from occupying a formal role; the higher the position, the greater the legitimate power.
2. Expert Power: Based on specialized knowledge or skills; exemplified by professionals whose expertise guides others’ actions.
3. Referent Power: Originates from followers’ admiration and loyalty, often linked to personal traits and reputation.
4. Reward Power: Ability to provide incentives and benefits, motivating compliance and high performance.
5. Coercive Power: Capacity to impose sanctions or punishments, such as demotions or termination.

Effective leaders skillfully leverage these power sources depending on context and organizational goals.

Mission and Vision in Organizational Strategy

Strategic clarity begins with well-defined mission and vision statements. A mission statement encapsulates the core purpose—what an organization does, who it serves, and how it differentiates itself. It provides a stable foundation over the long term, helping align strategic decisions with organizational identity. For instance, Patagonia’s mission emphasizes environmental responsibility and quality outdoor gear, clearly delineating its purpose.

In contrast, the vision statement projects future aspirations; it inspires stakeholders and guides strategic direction. An effective vision is specific, measurable, and time-bound. For example, a biotech company aiming to “become the leader in gene therapy by 2030” communicates a clear future target. Developing authentic vision statements demands collaboration among leadership, aligning strategic ambitions with organizational values.

Challenges in crafting vision statements include balancing aspiration with realism, ensuring broad buy-in, and maintaining alignment with strategic objectives. Overly generic statements or perfunctory PR slogans lack impact and fail to motivate or direct organizational efforts.

Strategic Leadership and Future Outlooks

Strategic leadership transcends mere management; it involves proactive positioning against competitors, anticipating industry trends, and shaping organizational culture over the long term. Leaders like Elon Musk exemplify strategic vision by leveraging innovation to disrupt markets (Thompson et al., 2020). Developing decades-long visions, such as sustainable energy goals or space exploration, requires foresight, stakeholder engagement, and adaptability.

Short-term visions, such as year-end sales targets, are sufficient for tactical planning but lack the strategic depth associated with 20-year visions. For example, the aerospace industry’s long-term vision of interplanetary exploration depends on technological advancements and policy support, whereas a retail outlet’s immediate goal might be opening new stores within a year.

Practical Considerations and Organizational Effectiveness

Distinguishing authentic vision statements from superficial narratives involves assessing their specificity, measurability, and stakeholder engagement. Genuine visions inspire, motivate, and align efforts effectively, whereas PR slogans lack substance and may not influence strategic decisions.

Having a well-crafted vision provides a guiding star; however, a mission statement remains necessary as it clarifies operational purpose and scope. Employees should understand both statements to align their daily activities with strategic priorities. While not everyone needs to memorize these statements, a shared understanding fosters organizational cohesion and purpose.

Conclusion

In summary, effective organizational leadership requires a clear differentiation of roles and power dynamics, aligned mission and vision statements, and the ability to develop and communicate strategic visions that inspire and guide organizational success in both the short and long term. Authentic leadership is rooted in influence, character, and strategic foresight, which collectively enable organizations to adapt and thrive amid competitive pressures.

References

• Bass, B. M. (1998). Transformational Leadership. Lawrence Erlbaum Associates.
• French, J. R. P., & Raven, B. (1959). The Bases of Social Power. In D. Cartwright (Ed.), Studies in Social Power. University of Michigan Press.
• Ackoff, R. L., & Pourdehnad, J. (2009). The Future of Management. Journal of Management Inquiry, 18(3), 246–251.
• Jones, G. R., & George, J. M. (2007). Essentials of Contemporary Management. McGraw-Hill.
• Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. (2020). Crafting and Executing Strategy. McGraw-Hill Education.
• Collins, J., & Porras, J. I. (1996). Building Your Company’s Vision. Harvard Business Review.
• Sashkin, M. (2004). The Groundbreaking Study of Transformational Leadership. Leadership in Action.
• Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization. Harvard Business School Press.
• Stogdill, R. M. (1974). Handbook of Leadership. Free Press.
• Yukl, G. (2010). Leadership in Organizations. Pearson Education.