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. Business Theory For Leadership

Private owned businesses have their own executives and do not need to play by the rules of a corporation. Management plays by their own rules and they tell everyone what management desires. This way of thinking for management is changing, even for the smaller businesses. A ‘manager’ is not solely what businesses are looking for. Their goal is to find a leader who can take their employees to new levels of efficiency, productivity, and skill sets.

A manager and leader are not the same. Understanding the difference is extremely important. The easiest way to understand the difference between managers and leaders is simple. Managers direct employees and tell them what to do while a leader is inspiring. A manager demands respect and uses his or her authority to obtain it. A good leader respects other employees and enhances an individual initiative of freedom, which results in a large amount of respect. In order for a manager to be effective, business theory has proven they expand activities horizontally so they can be controlled. An inspiring leader will promote development to occur at a vertical level. The power is not evident and often times it is out of a leader’s control but in the control of the staff members.

A good leader is far more effective than a manager. This is because a leader creates motivation within the employees of an organization. A leader creates drive and initiative and gives employees ownership for their positions. Employees then want to come to work and do a good job because they are motivated to do so. A manager exercises their control and power to the point that often times, employees wake up in the morning and they don’t want to go to work. Motivation is often lacking with managers who do not possess good leadership skills.

Understanding what makes a good leader can help you choose the right staff to run your business at a departmental and organizational level. A good leader has done quite a bit of self reflection, and they are aware of what they are capable of doing and the areas they can improve on. A leader has fantastic listening skills, is optimistic, empathetic, follows up with results, and is persistent with their work. Another quality of good leadership is emotional intelligence. Emotionally intelligent leaders have the ability to effectively lead by example because they know how to encourage the productivity and innovation a business needs to stand out from the competition.

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