The paper provides an analysis of the literature about Leadership, Culture and Strategic HRM. Definitions and theories are followed by comparisons supported by critiques and applications. Eventually, conclusion is drawn at the end.
Leadership or Management?
Northouse (2007, p. 3) defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal” while to contrast Hollingsworth in Rayner and Smith (2005) described management to involve administration, maintenance, structure and control.
According to Pawar and Eastman (1997) there is renewed interest in the concept of leadership due to changing patterns of organisation life and social expectations in working environment. Due to the shift, organisations feel the need of becoming more flexible, task or client focused which requires different authority rather than the one typical for traditional (bureaucratic) organisations, Rayner and Smith (2005). In current trends, Mullins (2005, p. 366) sees leadership skill being important for those attempting to “get things done through other people” rather than just simple managerial instructions coming from higher level of hierarchy. Some academics believe that leadership is similar to management in many ways and both are essential for organisation to prosper (Kotter, 1990), others argue that it differs in typical functions that present management such as budgeting, staffing and problem solving (Fayol, 1916). Bennis and Nanus (1985, p. 221) made the distinction very clear by saying “Managers are people who do things right and leaders are people who do the right things”.
Similarity in Leadership theories, Burns (1978) distinguishes between two types of leadership: one that focuses on simple exchange between leader and follower (Transactional/Managerial leadership) and other one where person engages with others and creates connection which raises motivation and morale (Transformational leadership). Bass and