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Halliburton is a company that is renowned worldwide for its role in the industry of gas and fuel and a leader in liquid natural gas production. The company enjoys a healthy organizational culture through its leadership and management through the establishment of ethical code of conduct that guides the roles of every job in the company. The company has a succinct mission statement of developing business relationships that are mutually important through innovation and creativity in order to deliver value to the company and the customers of the company. The company thrives in competitive environment but it enjoys success because of its mutual benefits to its customers and the company itself. Leadership and management are two terms that have been used interchangeably but they have different meanings and so do their application in an organization (Bass, 1990).
Differences between management and leadership
According to Northouse (2007), management refers to the act of getting people in a group with the aim of achieving some specified of desired outcomes in an organization or a business. This carried out using the resources available efficiently and effectively, the may include financial resources, human and others. The main aspects or functions of management include, planning, organizing, staffing, directing, coordinating, controlling, and evaluation. Leadership on the other hand, is a process whereby an individual is able to influence others to achieve an objective while at the same time directing the organization or business in a cohesive manner (Jago, 1982)
The main difference between leadership and management is that leadership entails setting a new direction or spearheading for a new vision to a group of people or followers to follow. Management gives direction and controls people and resource in accordance to a set of values. In this, context managers therefore have subordinates and are usually a position of authority with an organization. On the other hand, leaders have followers, as opposed to management, in leading formal authority is not exercised by the leader. The followers in leadership voluntarily carry out the activity as directed. Managers and leaders possess characteristic that enable them carry out their work in a given organization effectively. In addition, being a great manager calls for an understanding of what it entails to be a great leader as well. Managers usually acquire their authority as dictated by the nature of their roles. Managers ascertain daily tasks in an organization are performed through management of other people's activities. The work of managers can be described as tactical through directing and controlling people, their activities and resources. The ability to organize people and get work done is a valuable asset for a manager.
However, leadership and management have some things in common both involve influence, working together with people or groups of people, and they involve working towards achievement of some pre-determined goal (Northouse, 2007). Another difference between management and leadership is that, the latter involves innovation while the former entails administrative aspects in a company. Therefore, the manager seeks to maintain people and work processes in place while a leader develops the direction for the followers in an organization. The main for a leader in an organization is people for a leader while a manager deals with an organization's structures and systems. The manager controls such systems and structures as the leader inspires trust to the followers.
Mostly managers are involved in planning and fiscal planning in an organization. Such planning requires a strategy and a vision in order to be effective; this is what a leader develops. In the process of leadership, followers are allowed to grow as the leader keeps a watchful eye to change them in case there is need; generally, a manager directs and controls resources and people in organization. Positive power is a manager's tool in establishing relationships with others, a leader uses personal power in building relationships and influencing others. While a leader strives to create change, a manager seeks to create and maintain stability (Rowe, 2007).
Healthy organizational culture in Halliburton
Halliburton Company has a healthy organizational culture that is cultivated through its leadership and management. An organization culture refers to unique characteristics of an organization that are based on morals, values, traditions as well as individual behavior. This is what dictates individual behavior of the different people in the organization as well as the required behavior as per the circumstances. Halliburton company management and leadership is based on strong values which employees act upon channeling their behavior. The managers in the company serve as the role models by doing the right things. The company has ethical code of conduct that reflects its values. The management of the company focuses on the drive for success while the leadership ensures decision-making is efficient and effective within the company. The company's organizational culture ensures sustenance of ethical standards, diversity in all its operations while upholding the company's mission statement.
In Halliburton, management has engaged in an additional role of maintaining a healthy corporate culture, which is beyond the traditional roles played by managers. On the other hand, leadership in the company has concentrated on the company profitability while at the same time dealing with challenges facing the company internally and in the global arena.
The leaders and managers in Halliburton play an important role maintaining a healthy organizational culture. Bass (1990) argues that, managers and leaders in the company have a responsibility of creating and maintaining a healthy organizational culture in a number of ways. The managers and leaders in the different departments and countries have kept communication channels open. This is evident not only in their respective units within the different structures of the company, but also this is practiced by those who are in charge of the entire organization, the leaders and managers as well as those representing all areas of the company . This opens lines of communication create an atmosphere of trust between the leaders and their followers enhancing more productive communication within and outside the company that lead to the achievement of the desired results.
Such an atmosphere also contributes to the improvement of the organizational culture making the company's operations run smoothly. In addition, the managers and leaders put into consideration the impact of what they intend to undertake in the company to ensure profitability and long term goals pertaining growth of the company are prioritized. The leaders and managers in the company are in charge and must put in mind that it is the collction of employees who carry out the daily tasks making the company functional and they have potential to make the company fail or succeed. In Halliburton therefore, the organizational culture is favorable and has positive effects to the employees making them deliver through initiative, high level of productivity, and creativity with morale.
There exists a direct relationship between the leadership and management of a company with its organization culture. This is based on the values, skills and priorities of the leaders and managers in a company. A company's organizational culture represents the common belief and self-image of the particular organizations. Every organization has its own unique way of doing things as guided by its mission and value statements. The organizational culture is part of the organization and cannot be changed by an individual leader; therefore, collective vision in the organization is very important (Rowe, 2007)
The effect of globalization and management
Bhagwati (2004) argues that globalization is a force that has influenced most companies globally through technology, sociocultural and political forces. Halliburton Company uses innovation to embrace globalization in its management through mergers and acquisitions. The company encourages and promotes diversity within the company and the suppliers of the company. Globalization has enabled this company to embrace diversity in business making it very competitive in the global market. The company has further embraced technology making it compete effectively.
This has also enhanced efficiency in all the operations of the company. Halliburton has grown over the years getting a global recognition; the company operates in over 100 nations and has employed over 100,000 people. Globalization has further changed the traditional management methods to new more efficient methods through technology to manage people and resources in organization. Technology has made the world a global village facilitating communication from one person to another as well as companies that are located miles from each other. A company like Halliburton operating in many different nations is able to manage its operations effectively using technology.
Recommendations for a healthy organizational culture
Organizational culture can be described at the organizations personality. For the effectiveness and success of leaders and managers in their roles in an organization to be realized, they must model the desired culture to the other people in the organization. A healthy organizational culture therefore calls for high levels of mutual respect to all, trust and concern for each other. Managers and leaders ought to ensure the organization has a shared sense of mission, the vision as well as the values upheld by the organization and develop commitment for excellence. Support of personal and professional growth is key to cultivating a healthy organizational culture. This coupled with fairness and open communication within an organization will not only accomplish a health organizational culture but also help the organization achieve its strategic goals holistically. High performing organizations uphold trust, respect and commitment as their core values as well as the employees themselves (Kotter & Heskett, 1992).
The benefits of a healthy organizational culture cannot be underestimated and has many benefits to an organizations management and leadership team and the employees. It improves work processes and ensures cohesiveness and support through mutual respect for all. Another recommendation is the creation of a learning culture where an organization grows and responds to change by assuming new roles to face competition. This is useful for individual growth and team growth in daily duties in an organization. This coupled with open communication will be useful to any organization especially when an organization wants to implement wide change. In addition, servant leadership is also key to a healthy culture in any organization because it ensures employees wellbeing is the leaders responsibility, therefore their health and security is taken care of accordingly (Ivancevich, Konopaske & Matteson, 2007)
In conclusion, leadership and management are two concepts that are interrelated and interdependent. Leadership should ensure proper management for its success while management requires proper leadership to be useful. However, management principles have changed over time due to changing requirements in work environments but leadership principles do not change with times. For instance, such qualities of a leader as being confident, inspirational, trustworthy remains the same making people be labeled great men inspiring generations. Halliburton Company has effective and efficient management and leadership system guided by its code of conduct making the company thrive a very competitive global environment and be successful. The diverse workforce and suppliers in the company is a strength that promotes the company's operations internationally.