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Leadership is an element of a system that considers governance and management

working together for a similar goal in which professionals step up into leadership
positions and leading for improvement by example (Gauld, Horsburgh & Robinson,
2015). Ironically, governance and management are a form of leadership concepts
that frequently collide yet complement each other in some ways.

Governance in any organisation is the process of controlling management and

equalise the interests of all internal stakeholders and other parties such as external
stakeholders, governments and local communities who can be affected by the
organisations conduct in order to ensure responsible behaviour by the organisation
and to achieve the maximum level of efficiency and profitability for the organisation
(Tait & Loosemore, 2012). In addition, governance pertains to the maintenance of
coherence and coordination among varying individuals with dissimilar objectives and
purpose (Economic & Council, 2006). Basically, governance monitors and controls the
actions or behaviours portrayed by management and employees (Provan & Kenis,
2008); and create and enforce rules and regulations the management must abide and
relay in the organisation (Fukuyama, 2013).

In detail, the concept of governance has six core functions. Firstly, the governing body
determines the objectives of the organisation through the expression of the
organisations mission and vision and its implementation through strategic planning.
Secondly, it defines the values, attitudes and morale the organisation must hold by
determining its ethical standard. Thirdly, the establishment of cultural norms of the
organisation provides an environment suitable for the work and is embedded mong
employees within the organisation. Its fourth function is to design and implement
the governing organisational framework since it is responsible for the organisational
performance and its consistency. Its other function is to ensure that management
sustains the cultural and ethical environment established; for the stewardship and
appropriate usage of entrusted resources; and for the compliance of objectives and
fulfilment of strategic plan. Lastly, it ensures organisational compliance with the set
regulations, legal and statutory obligations which includes monitoring and directing
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the overall performance of the organisation. Hence, governance regulate influence

to direct the affairs and actions of management and others in the organisation
(Bourne, 2014).

While management encompasses all sorts of organised business that are to be led,
developed and controlled. The areas of responsibility may vary but its primary
functions of leading, developing and controlling are nonetheless common in all
management tasks (Karlof & Loevingsson, 2005). Professionals in management are
projected to add value to the company in a generic way, carrying out a generic set of
tasks and possessing some generic capabilities (Bartlett & Ghoshal, 1997). Generally,
management empowers the sharing of knowledge by promoting and developing an
organisational culture appropriate for the environment and enable a plan of action
to facilitate management of practices and resources in correspondence to the given
procedures and policies across the organisation (Burstein, Sohal, Zyngier & Sohal,
2010).

Furthermore, management functions in four ways. Firstly, planning the means to

achieve the organisational goal and improve performance. Secondly, organising the
decision to be made, who does the job and task, and decides the individuals chain
of command within the company. Its other function is leading through inspiration
and motivation that engages employees to perform better to attain the set goal.
Finally, control by monitoring the advancement toward achieving the goal and taking
counteractive measure when improvement is not being made. Management serves
their company well when all four functions are executed effectively and efficiently.
(Management Cengage, 2017)

Both governance and management concept entails leadership skills and the
behaviour set by each body can greatly influence the organisations goals and
performance. For instance, effective governance safeguards the organisation to
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maintains its viability and thrive to improve the outcome and ensures its assets are
protected and funds are appropriately allocated. While poor governance places the
organisation at risk of commercial failure, legal and financial problems
(CommunityNet Aotearoa, 2013). Similarly, effective management gets things done
through motivation, inspiration and leading people to work with commitment
leading to higher level of organisational performance and promoting a competitive
business (Chartered Management Institute, n.d.). Poor management, however, leads
to low levels of productivity, quality and performance which affect market
profitability and organisational outcome (Lemos & Scur, 2012). Generally, both of
these concepts roles in the organisation have a strong impact in organisational
performance and its influence may it be positive or negative can direct the
organisations place in the market.

On the other hand, the realms of management and governance are separate but
interconnected. The key role of governance is to make policies and managements
responsibility is to carry it out (Bader, 2008). An organization's system of governance
is operationalized through the development of a structure which specifies the
distribution of rights and responsibilities among different participants (or
'stakeholders') in the organisation and spells out the rules and procedures for making
decisions on the industrys affairs (Bart & Bontis, 2003). While management focuses
on the work of the organisation such as operating, engineering, designing and
developing the production and the structure of work that promotes the activities of
the organisation (Nickols, 2000). Therefore, managements main job is to accomplish
the necessary task to meet the organisational goals and objectives set by the
governing body. Also, the key roles played by both parties vary in terms of
organisational task and obligation but cannot survive without the other.

Moreover, the functions of governance and management differ whereas governance

is focused on power such as rules, regulation, appointment of head, and the
limitations, acts and exploitation of authority. However, management focuses on
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performance executed by individuals or machineries and segregated into functions,

processes or tasks. Thus, governance points to doing the right thing, while
management is more on doing the things right (World Bank Group, n.d.).

The distinction between governance and management varies and stabilizing balance
between these two is a tough, frustrating and puzzling task (Nickols, 2000) yet these
two concepts are crucial to running a successful organisation. Both concept aims to
develop the performance of the organisation despite the difference in function.
Together, they must align environmental forces, partnership strategy and
partnership capabilities to achieve and improve optimum organisational objectives
and performance (Mitchell & Shortell, 2000).

Reference

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Bart, C., & Bontis, N. (2003). Distinguishing between the board and management in
company mission: Implications for corporate governance. Journal of
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Bartlett, C. A., & Ghoshal, S. (1997). The Myth of the generic manager: New personal
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Bourne, L. (2014). The six functions of governance. PM World Journal. Vol. 3 (6).
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Burstein, F., Sohal, S., Zyngier, S., & Sohal, A. S. (2010). Understanding of knowledge
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