In the past few years, the difference between management and leadership strategies in business organizations has emerged as key factors in determining the long- term success or ultimate failure of such organizations. One large well-known successful global company is Nike, who has demonstrated extreme success that can be directly attributed to its leadership and management style. Nike currently is currently the leader in the footwear industry, owning 47% of the market share; the next competitor is Reebok, at 16% (Dusen, 1998). Nike's domestic annual sales average at $3.77 billion, and has been manufacturing throughout the Asian region for over twenty-five years. The leadership and management style of Phil Knight, the former CEO that began the company, has been attributed to Nike's repeated success and the ability of the company to turn around in times of economic slowdowns. This paper will differentiate between management and leadership at Nike, and will describe the roles that organizational managers and leaders play in creating and maintaining a healthy organizational culture at Nike. It will critically examine the four functions of management as well as two strategies used to create and maintain a healthy organizational culture at Nike.
The Difference between Leadership and Management at Nike
There is a distinct difference between leadership and management at Nike. Phil Knight's leadership style has been described as quiet, low-key, and in the background. Knight values great salespeople and does not directly tell them what to do. Instead, he provides them with the means to achieve the goals of the company, and favors hiring people that have actively participated in sports. Knight hires his top executives as those that as athletes, strive for quality shoes to enhance whatever sport they are playing. Thus, the difference between Nike's leadership and management styles is that the leader plays more o...