Leadership and management influence actions and outcomes of an organization either through building credibility or encouraging effective performance. Also in an organization they initiate and maintain order through strategic directions. However, understanding the differences between the two in terms of their roles in business organization is challenge to many people. Here are the differences between leadership and management.
Key Difference
Meaning/Definition
Leadership is the ability of an individual or an organization to guide a group of people or entire organization to act towards achieving a common goal. Leaders set direction and help themselves and others to move forward. To do this, they create an inspiring vision and then motivate and inspire others to reach that vision.
Management on the other hand, is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organization goals.
Evolution and Growth
Managers rely on tried and tested methods, whereas leaders evolve and grow. Leaders usually evolve gradual with time in terms of experience, thinking and knowledge base. Managers rely mostly on what has worked elsewhere or within their environment.
Communication
Leadership is based more on verbal communication while management is based more on written communication.
Role
Managers lay down the structure and delegate authority and Responsibility, whereas, leaders provide direction by developing the organization vision and communicating it to the employees and inspiring them to achieve it.
Mode of Operation
Managers build systems and processes whereas leadership builds Relationship. Leaders focus more on developing and building relationship with people through emotional intelligence. Managers focus on building systems and processes that facilitate achievements of an organization.
Focus
Management includes focusing on planning, organization, and staffing, directing and controlling, leadership on the other hand, focuses on listening, building relationships, teamwork, inspiring, motivating and persuading the followers.
Guidance Approach
When it comes to guidance approach, leaders focus on providing sense of encouragement rather than imposing authority over others. They are more driven towards achievement.
Management on the other hand, imposes authority as a collective sense of guiding a team. They focus more on controlling and directing the team towards achieving the collective organization goal.
Skills
Management skills include:
- Communication
- Implementation of ideas
- Problem solving
- Time management
- Budgeting
- Planning
Leadership skills include:
- Motivation
- Strategic thinking skills
- Persuasion and influencing
- Creativity
- Communication
- Innovation
Vision and Goals
Leadership in an organization creates vision while management in an organization creates goals. Managers tend to focus on setting, achieving and measuring defined objectives. Leaders paint a picture of potential opportunities and pave the way of achieving them for their team.
Risks
Leaders take risks while managers control the risk. Managers tend to avoid or minimize the chances of risk occurrence and embracing potential opportunities achieved through change. Leaders are willing and ready to take risk and lead their team to achieving the potential opportunities.
Thinking
Managers think short-term whereas leaders think long-term. Managers tend to focus on short-term goals so as to achieve more in a shorter period of time, making stakeholders happy. Leaders see the large picture of the future and take into consideration how their decision and action will affect the going-concern of the firm.
Description
Leadership is an art because it is all about influencing people, having constant reflection and review. Whereas, management is a science because management is accurate, standard, logical, involves planning and more of the mind.
Nature
Leaders initiate change such as establishing ethical and moral positions while managers react to change by enforcing the very ethical and positions or organizing people and tasks within structures.
Differences Between Leadership And Management In Tabular Form
| Points of Difference | Leadership | Management |
| Evolution and Growth | Leaders grow and evolve. | Managers rely on tried and tested methods. |
| Communication | Based more on verbal communication. | Based more on written communication. |
| Role | Leaders provide direction by developing the organization vision and communicating it to the employees and inspiring them to achieve it. | Mangers lay down the structure and delegate authority and Responsibility. |
| Mode of Operation | Build Relationship | Build systems and processes. |
| Focus | Focuses on listening, building relationships, teamwork, inspiring, motivating and persuading the followers. | Focuses on planning, organization, and staffing, directing and controlling. |
| Guidance Approach | Leaders focus on providing sense of encouragement rather than imposing authority over others. | Management on the other hand, imposes authority as a collective sense of guiding a team. |
| Skills | Leadership skills include: Motivation Strategic thinking skillsPersuasion and influencing CreativityCommunicationInnovation | Management skills include: CommunicationImplementation of ideasProblem solvingTime managementBudgeting Planning |
| Vision and Goals | Leadership in an organization creates vision. | Management in an organization creates goals. |
| Risk | Leaders take risks. | Managers control the risk. |
| Thinking | Leaders think long-term. | Managers think short-term. |
| Description | Leadership is an art. | Management is a science. |
| Nature | Leaders initiate change such as establishing ethical and moral positions. | Managers react to change by enforcing the very ethical and positions or organizing people and tasks within structures. |
Similarities between Leadership and Management
- Both leaders and managers in an organization initiate and maintain order through strategic directions.
- Both Leadership and management influence actions and outcomes of an organization either through building credibility or encouraging effective performance.
- Both leadership and management facilitate team work and connections between people through strategic decisions.
- Both leadership and management have problem-anticipation and solving skills.
- Both management and leadership’s main concern is to allocate available resources in such a way that they can be used effectively and efficiently.
- Both leadership and management have their eyes set on achieving the organization goals.
- Both management and leadership develop the functional plan and structure of the organization
- Both leadership and management involve working with people, listening to their concerns and proffering solution.
- Both management and leadership will strive to keep abreast with technology and emerging trends.
- Lastly, both management and leadership will strive to create an enabling environment for achievement of the organization goals.
Summary
Leadership is the ability of an individual or an organization to guide a group of people or entire organization to act towards achieving a common goal. Leaders set direction and help themselves and others to move forward. To do this, they create an inspiring vision and then motivate and inspire others to reach that vision.
Management on the other hand, is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organization goals.