Is There Any Difference Between Leadership and Management?
Leadership and management are often put under one umbrella, whether you enroll in an online course or subscribe to an employee upskilling program. Yes, both terms have many similarities, but they differ from the core.
Leadership is the process of guiding a group or team in an organization, while management involves taking care of day-to-day operations. A leader has followers, while a manager is responsible for managing the subordinates.
Let’s dig into more differences between leadership and management.
What Is Leadership?
Leadership is a process of leading and motivating a team of workers to help achieve a certain goal. The procedure involves multiple aspects, such as communication, strategy building, planning, conflict management, and problem-solving to accomplish a task.
You can consider a leader as a guide who has the duty to lead by example. They are responsible for guiding the team, motivating people, and inspiring workers to achieve a set goal. A leader is expected to go above and beyond for the success of their organization.
The process of leadership stems from social influence. Besides, a leader is one who always takes the initiative and invests a great effort to accomplish the vision of a company. That is why people around them start following them.
As per the Performance through People - McKinsey report, companies that have dynamic leaders are 1.5 times more likely to outperform their competitors. These ventures lead to innovation and financial performance.
You may have heard about the Trait theory that leaders are born, not made. While some people may naturally have a few leadership qualities, effective leaders are majorly developed through continuous experience, training, and self-improvement. According to studies, 30% of leadership traits are inborn, while 70% can be learned.
Here are some standard skills every leader must have:
Supporting others
Active listening
Running operations in a result-oriented manner
Problem-solving
Embracing diversity
Empowering and motivating others
Back in the day, many leaders were responsible for the management of the company as well. However, with more awareness, people have understood that management of the operations should be the role of someone else.
What Is Management?
Management is the performance of responsibilities and planned tasks with the help of the resources available. It involves a smooth coordination of different departments of an organization to achieve all the desired goals effectively.
A manager is responsible for planning and setting goals. They have to take care of resource management and budgeting. They monitor and control operations while managing seamless communication and decision-making.
In an organization’s hierarchy, managers are often placed below leaders. However, this position doesn't take away their importance. A good manager works effectively with successful leadership, helping companies drive success.
As per several studies, managerial roles are now evolving, with a shift towards collaboration. They are moving away from strict supervision.
This is why many people confuse leaders with managers. However, some distinctions between the two roles remain apparent even today.
How is Leadership Different From Management?
Here are five major differences between management and leadership.
Focus
Leaders focus on three major aspects: vision, inspiration, and change. However, managers are responsible for execution, resource allocation, and planning.
Management is incomplete without leadership. The latter helps draw an idea for the managers to execute for the benefit of the company.
Present/Future
You can also differentiate leadership from management through their actions. Managers deal with the daily tasks of a company for its successful operation. But, a leader supports their team while looking at the future.
Vision
Leaders are responsible for setting the direction and course. They draw a vision and motivate workers to help achieve that. Managers, on the other hand, are responsible for implementing a proper plan to get where the leader of the company wants the venture to be.
Influence/Authority
Leadership is a process that aims to motivate and empower workers to follow a shared vision. Management uses authority to ensure all the planned tasks are completed, and all processes are followed.
Employees of a company choose to follow a leader. However, they are required to follow a manager and do what they say to meet their performance goals.
As per a Gallup report, employees who trust their organization's leadership are 3.5x more likely to be engaged. At the same time, we also can't deny the strong role of a manager. As mentioned in the same report, 70% of a team's engagement is also impacted by their local manager, clearly highlighting the importance of this role.
Risk Attribute
In leadership, leaders are mostly willing to take risks to drive the change that they wish. Managers, on the other hand, are usually risk-averse, which helps them to motivate others to solve problems as much as possible. They are more focused on maintaining stability in day-to-day operations.
Are Managers and Leaders Also Similar?
Regardless of their differences, leaders and managers share a few similarities. They both work with people. Management and leadership are incomplete without a human resource to achieve organizational goals. Additionally, both processes are responsible for setting goals, developing strategies, and then tracking progress toward the goals set.
It is also important to note that whether you become a leader or a manager, you won't be able to accomplish work until you have strong communication and collaboration skills. These are important to effectively lead or work with stakeholders and teams.
Finally, both managers and leaders are responsible for making short-term or long-term decisions that may have an impact on the organization and its people. That is why they have to think and manage wisely to avoid as many errors as possible.
Final Takeaway
Many companies rank leaders above managers. But is that the right thing to do?
Neither leadership nor management is better than the other. Both are complementary and crucial functions that play significant roles in building an organization.
While leaders inspire and motivate teams and set a vision and direction for the company, managers stay focused on efficiency, planning, and implementing strategies to achieve goals. To build an effective organization, you often need both.
To choose the best individuals to lead or manage your company, make sure to focus on the attributes mentioned above and analyze their past performances. This way, you can successfully achieve your goals through skilled people in your venture.
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