Leadership and management

Leadership and management

According to the theorist Henri Fayol, the key functions of managers are to:
• make forecasts and plans
• organise work
• command the people under them by giving instructions
• co-ordinate the resources (money, people, time) for which they are

• control activities and people by measuring and correcting them to enable performance to fit the plans.
Each level of management requires appropriate skills and abilities:
• Senior managers - set strategies and objectives - lead and inspire others
• Middle managers - lead their teams to deliver the specified objectives
• Junior managers - manage tasks and learn to lead others.

Leadership is the art or process of influencing people to perform assigned tasks willingly, efficiently and effectively. Enabling people to feel they have a say in how they do something results in higher levels of job satisfaction and productivity.

By effectively planning and controlling the people and processes for which they are responsible, managers provide a positive and professional environment. This can generate similar attitudes in their teams. This engagement of employees is a powerful asset in growing a business. However, research carried out by the UK government indicates that employee engagement is low in many UK workplaces. As many as one in five employees in UK establishments are disengaged. This can lead to absenteeism and failure to complete tasks or achieve targets.

CMI recognises that leadership and management skills are not exclusive of each other. Leadership is particularly important in senior management positions within an organisation. To become an effective manager, an individual should show qualities and competencies in six key areas. These cover both leadership and management skills and are the basis for the award of Chartered Manager:

• Leading people providing purpose and inspiring trust
• Managing change encouraging creativity and driving change
• Meeting customer needs improving products and services to increase

customer satisfaction
• Managing information and knowledge developing knowledge and communication to aid decision making
• Managing activities and resources on time, to budget and meeting quality

• Self management using influence and persuasion, achieving personal goals.
The value of personal development
CMI believes strongly that all managers should be equipped and prepared to manage as well as to take on leadership roles. Knowing how to lead and motivate employees is a crucial part of this. CMI supports managers in developing practical skills through a wide range of activities including online learning, events and Continuous Professional Development.

A recent study (2010) showed that if organisations increased investment in practices that lead to employee engagement (such as personal development) by just 10%, this could increase profits by £1,500 per employee per year. For example, in a company that employed 1,200 people, profits might increase by around £1.8 million.