Intro to Project Management: Project Resource Management - Leadership vs. Management, Power Types Coercive Reward Legitimate Referent Expert

What This Is

Leadership and management are often confused with each other, but they are distinct concepts. Leadership is about influencing and guiding people towards a common goal, while management is about planning, organizing, and controlling resources to achieve that goal. A project manager needs to understand the difference between leadership and management to effectively lead and manage their team. For example, imagine building a new software product. The project manager needs to manage the resources, timelines, and budget, but also needs to lead the team to ensure they are motivated and working towards the common goal of delivering a high-quality product on time.

Key Terms & Formulas

• Leadership: The ability to influence and guide people towards a common goal.
• Management: The process of planning, organizing, and controlling resources to achieve a goal.
• Power Types: Different ways to influence people, including:
• Coercive Power: Based on fear or punishment.
• Reward Power: Based on offering rewards or incentives.
• Legitimate Power: Based on authority or position.
• Referent Power: Based on personal relationships or charisma.
• Expert Power: Based on knowledge or expertise.
• Power Distance Index (PDI): A measure of how much people accept the authority of their leaders.
• Leadership Style: The way a leader influences and guides their team, such as Autocratic, Democratic, or Laissez-Faire.
• Transformational Leadership: A leadership style that inspires and motivates people to achieve a common goal.
• Transactional Leadership: A leadership style that focuses on rewards and punishments.
• Servant Leadership: A leadership style that prioritizes the needs of the team and organization.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost).
• SPI = EV / BC (Schedule Performance Index = Earned Value / Budgeted Cost).

Step-by-Step / Process Flow

1. Identify the Power Type: Determine which type of power you have as a leader, such as Coercive, Reward, Legitimate, Referent, or Expert.
2. Assess the Power Distance Index: Understand how much your team accepts your authority and adjust your leadership style accordingly.
3. Choose a Leadership Style: Select a leadership style that fits your team and project, such as Autocratic, Democratic, or Laissez-Faire.
4. Inspire and Motivate: Use transformational leadership to inspire and motivate your team to achieve the common goal.
5. Focus on Rewards and Punishments: Use transactional leadership to focus on rewards and punishments to achieve the goal.
6. Prioritize Team Needs: Use servant leadership to prioritize the needs of the team and organization.

Common Mistakes

• Mistake: Confusing leadership and management.
• Correction: Leadership is about influencing and guiding people, while management is about planning, organizing, and controlling resources.
• Mistake: Assuming all teams accept your authority.
• Correction: Understand the Power Distance Index and adjust your leadership style accordingly.
• Mistake: Using only one leadership style.
• Correction: Be flexible and adapt your leadership style to the team and project.

Exam Tips

• Watch for trick words: Be aware of words like "Autocratic" and "Democratic" and understand their meanings.
• Distinguish between leadership and management: Make sure to answer questions that ask about leadership versus management.
• Understand the Power Types: Be familiar with the different types of power and how they are used.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: CPI = EV / AC, so if CPI is 0.8, it means the project is earning 80% of the budgeted value, indicating it is under budget.
2. What is the difference between transformational and transactional leadership? Answer: Transformational leadership inspires and motivates people, while transactional leadership focuses on rewards and punishments.
3. What is the Power Distance Index? Answer: The Power Distance Index is a measure of how much people accept the authority of their leaders.

Last-Minute Cram Sheet

• Leadership is about influencing and guiding people, while management is about planning, organizing, and controlling resources.
• Power Types include Coercive, Reward, Legitimate, Referent, and Expert.
• Transformational leadership inspires and motivates people, while transactional leadership focuses on rewards and punishments.
• Servant leadership prioritizes the needs of the team and organization.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost).
• SPI = EV / BC (Schedule Performance Index = Earned Value / Budgeted Cost).
• "Decomposition" breaks down work, not activities – it creates the WBS, not the activity list.
• "Scope creep" is when the project scope changes without a corresponding change in the project plan.
• "Scope statement" is a document that describes the project scope, including the work to be done and the deliverables.