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MASTERS DEGREE PROJECT

 

 

THE SIGNIFICANCE OF LEADERSHIP AND MANAGEMENT IN THE ORGANIZATION. EXPLORING THE PRACTICES APPLIED FOR SAP AG

 

 

2010

 

 

TABLE OF CONTENTS

 

ABSTRACT. 3

1. INTRODUCTION.. 4

2. MANAGEMENT THEORY.. 5

3. LEADERSHIP THEORIES. THE SIGNIFICANCE OF THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE. 17

4. MANAGEMENT AS A PRACTICE. CORRELATION BETWEEN LEADERSHIP AND PERFORMANCE. 23

5. THE CASE OF SAP AG.. 24

6. CONCLUSIONS AND RECOMMENDATIONS. 31

7. REFERENCES. 33

 

 

 

ABSTRACT

 

Leadership and management are the key dynamic forces that motivate and coordinate the members of the organization to accomplish its goals. The significance of leadership and management styles and practices is particularly important due to the dynamic changes which occurred in the last few decades.

The obejctive of this research is to provide us an overview of the achievements of management theory schools and the different types of leadership paradigms discussed in literature.

This paper also addresses the issues of management and leadership as practices and will reveal the correlation between them and the organizational performance.

The dissertation reviews the case study of the largest software company in Europe - SAP AG – and provides us with information about how management and leadership are put in practice in a giant corporation in order to ensure its success.

 

 

 

“Leadership and management are two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment. (…) Management is about coping with complexity. Leadership, by contrast, is coping with change. (…) Each system of action involves deciding what needs to be done, creating networks of people and relationships that can accomplish an agenda, and then trying to ensure that those people actually do the job. But each accomplishes these three tasks in different ways. (…) The real challenge is to combine strong leadership and strong management and use each to balance the other.”

 

 

John P. Kotter

 

 

 

 

 

 

 

1. INTRODUCTION

 

Leadership and management are the key dynamic forces that motivate and coordinate the members of the organization to accomplish its goals. The significance of leadership and management styles and practices is particularly important due to the dynamic changes which occurred in the last few decades.

The purpose of this research is to provide us an overview of the achievements of management theory schools and the different types of leadership paradigms discussed in literature.

This paper will address the issues of management and leadership as practices and will reveal the correlation between them and the organizational performance.

The case study of SAP AG (the largest software company in Europe) will provide us with information about how management and leadership are put in practice in a giant corporation.

 

The dissertation is based solely on secondary sources. No primary data was collected during the process of research.

This paper addresses three major questions:

1.      What are the highest achievements of leadership and management theories?

2.      How do leadership and management influence the overall performance of the organization ?

3.      What’s the key for SAP AG’s success ?

 

The dissertation is structured in six chapters (1. Introduction,  2. Management theory, 3. Leadership theories. The significance of the relationship between leadership and organizational performance,  4. Management as a practice. Correlation between leadership and performance, 5. The case of SAP AG and 6. Conclusions and recommendations) which provide both theoretical and practical data for the purposes of the research.

.............................................................................

 

7. REFERENCES

 

·        Avery, G.C. (2004) Understanding Leadership: Paradigms and Cases. London: Sage

·        Avolio, B.J. (1999) Full Leadership Development: Building the Vital Forces in Organizations. Thousand Oaks, CA: Sage.

·        Barker, L. M. (1994). Learning and behavior: a psychobiological perspective. Macmillan,

·        New York

·        Bass, B.M. and Avolio, B.J. (1989) Potential biases in leadership measures: How prototypes, leniency, & general satisfaction relate to ratings & rankings of transformational & transactional leadership constructs. Educational & Psychological Measurement, 49: 509-527.

·        Barling, J., Loughlin, C. and Kelloway, E.K. (2002) Development & test a model linking safety-specific transformational leadership & occupational safety. Journal of Applied Psychology, 87(3), p. 488-496.

·        Berson, Y., Shamair, B., Avolio, B.J. and Popper, M. (2001) The relationship between vision strength, leadership style & context. The Leadership Quarterly, 12, p. 53-73

·        Binning, J.F., Zaba, A.J. and Whattam, J.C. (1986) Explaining the biasing effects of performance cues in terms of cognitive categorization. The Academy of Management Journal, 29(3), p. 521-535.

·        Cameron,  B. G. and Pertuze, J. A. (2009) Disciplinary links between scientific management and strategy development [online], http://esd.mit.edu/WPS/2009/esd-wp-2009-19.pdf  [Accessed: 26th January 2010]

·        Drath, W.H. (2001) The Deep Blue Sea: Rethinking the Source of Leadership. San Francisco, CA: Jossey-Bass.

·        Duff, K. D. Management theory and practice: are there irrevocable differences [online], http://www.agribusiness-mgmt.wsu.edu/extensionnewsletters/mgmt/mgmttheory.pdf  [Accessed: 26th January 2010]

 

·        Evans, M.G. and Dermer, J. (1974) What does the least preferred co-worker scale really measure? A cognitive interpretation. Journal of Applied Psychology, 59, 202-206.

·        Giambatista, R.C. (2004) Jumping through hoops: A longitudinal study of leader life cycle in the NBA. The Leadership Quarterly, 15, p. 607-624.

·        Ghosal, S. (2005) Bad management theories are destroying good management practices [online], http://corporation2050.org/documents/Resources/Ghoshal.pdf [Accessed : 25th January 2010]

·        Goleman, D.P. (1995) Emotional Intelligence: Why It Can Matter More Than IQ for Character, Health & Lifelong Achievement. New York, NY: Bantam.

·        Guzzo, R.A. and Dickson, M.W. (1996) Teams in organizations: Recent research on performance & effectiveness. Annual Review of Psychology, 47(1), p. 307-338.

·        House, R.J. (1977) A 1976 theory of charismatic leadership, in J.G. Hunt and L.L. Larson (eds), Leadership: The cutting edge. Carbondale, IL: Southern Illinois Press.

·        Hull, C. L. (1943). Principles of behavior. New York: Appleton–Century–Crofts

·        Jermier, J.M. and Kerr, S. (1997) Substitutes for leadership: Their meaning & measurement. The Leadership Quarterly, 8 (2): 95-101.

·        Judge, T.A. and Piccolo, R.F. (2004) Transformational & transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), p. 755-768.

·        Kanter, R. (1989) When Giants Learn to Dance. New York, NY: Simon and Schuster.

·        Keller, R.T. (2006) Transformational leadership, initiating structure & substitutes for leadership: A longitudinal study of research & development project team performance. Journal of Applied Psychology, 91(1), p. 202-210.

·        Kristonis, A. (2004) Leadership in Organizations : National Implications. Internationa Journal of  Scholary Academic Intellectual Diversity, 8(1) [online],  http://www.nationalforum.com/Electronic%20Journal%20Volumes/Kritsonis,%20Alicia%20Leadership%20In%20Organization%20National%20Implications.pdf [Accessed : 25th January 2010]

·        Lado, A.A., Boyd, N.G. and Wright, P. (1992) A competency-based model of sustainable competitive advantage: Toward a conceptual integration. Journal of Management, 18(1), p.77-91.

·        Lim, B. and Ployhart, R.E. (2004) Transformational leadership: Relations to the five-factor model & team performance in typical and maximum contexts. Journal of Applied Psychology, 89(4), p. 610-621.

·        Meindl, J.R. (1998) Invited Reaction: Enabling visionary leadership. Human Resource Development Quarterly, 9(1): 21-24.

·        Nadler, D.A. and Tuschman, M.L. (1990) Beyond the charismatic leader: Leadership & organizational change. California Management Review, 32(2), p. 77-97.

·        Olum, Y. (2004) Modern management theories and practices [online], http://unpan1.un.org/intradoc/groups/public/documents/AAPAM/UNPAN025765.pdf

·        [Accessed: 26th January 2010]

·        Pop, M. and Pop, D. (2008) Types of management and management styles [online],  http://imtuoradea.ro/auo.fmte/files-2008/MIE_files/POP%20MIRCEA%201.pdf [Accessed: 26th January 2010]

·        Rowe, W.G., Cannella Jr., A.A., Rankin, D. and Gorman, D. (2005) Leader succession & organizational performance: Integrating the common-sense, ritual scapegoating & vicious-circle succession theories. The leadership Quarterly, 16(2), p. 197-219.

·        Raelin, J. (2003) Creating Leadership Organizations: How to Bring out Leadership in Everyone. San Francisco, CA: Berrett-Koehler

·        Ryan, R. M. & Deci, E.L. (2000) Intrinsic and Extrinsic Motivations: Classic Definitions and New Directions Contemporary Educational Psychology 25, p. 54–67

·        Schneider, B., Ashworth, S., Higgs, C. and Carr, L. (1996) Design, validity & use of strategically focused employee attitude surveys. Personnel Psychology, 49, p. 695-705.

·        Schneider, B., White, S. and Paul, M. (1998) Linking service climate & customer perceptions of service quality: Test of a causal model. Journal of Applied Psychology, p. 150-163.

·        Shamir, B. and Howell, J.M. (1999) Organizational & contextual influences on the emergence & effectiveness of charismatic leadership. The Leadership Quarterly, 10(2), p. 257-283.

·        Skinner, B. F. (1953). Science and human behavior. New York: Macmillan

·        Tarabishy, A., Solomon, G., Fernald Jr., L.W. and Sashkin, M. (2005) The Entrepreneurial leader’s impact on the organization’s performance in dynamic markets. Journal of Private Equity, 8(4), p. 20-29

·        Teece, D.J., Pisano, G. and Shuen, A. (1997) Dynamic capabilities & strategic management. Strategic Management Journal, 18(7), p. 509-533.

·        Waldman, D., Ramirez, G., House, R.J. and Puranam, P. (2001) Does leadership matter? CEO leadership attributes & profitability under conditions of perceived environmental uncertainty. Academy of Management Journal, 44(1): 134-143.

·        Western Electric Company Hawthorne Studies Collection (1924-1961)  Harvard Business School 

·        Wilson, A., Lenssen, G. and Hind, P. (2006) Leadership Qualities and Management Competencies for Corporate Responsibility, Ashridge, p. 3 - 38

·        Yukl, G. (2002) Leadership in organizations. 5 rd edn. Englewood Cliffs, NJ: Prentice-Hall.

·        Zhu, W., Chew, I.K.H. and Spangler, W.D. (2005) CEO transformational leadership & organizational outcomes: The mediating role of human-capital-enhancing human resource management. The Leadership Quarterly, 16(1), p. 39-52.

·        http://www.softwaretop100.org/list.php?page=1 [Accessed: 26th January 2010]

·        http://moneycentral.msn.com/companyreport?Symbol=SAP [Accessed: 26th January 2010]

·        http://www.hoffmanmarcom.com/docs/SAP_Global_Leadership_brochure.pdf [Accessed: 26th January 2010]

·        http://www.sdn.sap.com [Accessed: 26th January 2010]

 

 

 

Темата е разработена 2010 г.

Не съдържа таблици.

 

Ключови думи:

management, organizational performance, SAP AG, management theory, types of leadership, corporate responsibility, team performance, networks of people


Търси за: management | management theory

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