Until now, the debate continues about the relationship between leadership and management – should a manager be a great leader, and how good a leader needs good managerial skills? What is the difference between leadership and management?
Leadership and Management – Comparison of Concepts and Role Conflicts
What made this man so powerful? Was it their strict adherence to company policy or their ability to delegate tasks effectively? Probably not. What made this person so memorable – and effective – probably had more to do with their emotional intelligence and long-term vision than their propensity to follow the rules. Chances are your favorite manager wasn’t just a “manager.” This man was also a leader.
The concepts of “leadership” and “management” are not always identical, but most people misunderstand the essence of their differences. There is nothing mystical or mysterious about leadership. This is not the privilege of a narrow circle of the elite. Leadership is not necessarily more important than management, and one does not replace the other.
In fact, leadership and management in a company are two separate, complementary systems of action. Each has its own function and characteristic activities. For a company to succeed in today’s increasingly complex and rapidly changing business world, it is necessary to master both. Leadership and management perform key but distinct functions in organizations:
- Management usually maintains stability in the firm, while leadership promotes change. Leadership drives change in an organization by focusing on inspiring people.
- Management focuses on monitoring their performance.
- To succeed, companies need both leaders and managers. While most managers need to be leaders, not all leaders need to be managers.
Leadership and Management in the Company: Is There a Difference?
Management and leadership are two different ways to organize people. Leadership is the development of a new course or way of seeing for a group of people to follow. This means that the leader is the initiator of a new direction. With regard to management, it applies the control or direction of people/resources in a group in accordance with the principles or values that have been established previously. The manager uses the formal, rational method, while the leader uses passion, attitude, and emotion.
An effective leader does the right thing and does the things that matter first. It creates an inspiring vision for the future and provides strategic direction. A leader empowers, motivates, and energizes employees. And the task of leadership is to create systems that managers will manage or change these systems in a fundamental way so that they adapt to changes outside the organization, seize opportunities, evade dangers, and raise standards.
In today’s increasingly unpredictable and competitive dynamic economy and rapidly changing business environment, firms need a new type of manager – an entrepreneurial leader who differs in behavioral norms from the classic business leader. Entrepreneurial leadership is based on the fact that the leader sees himself as an entrepreneur running his own business. He constantly looks for new opportunities for business growth and quickly responds to them.
There is such a beautiful analogy. In peacetime, there should be managed in the army. There must be planning, setting goals, organization, and control. This is enough for the functioning of a huge military machine. But in wartime, no lieutenant will be able to raise his platoon into battle if he is not a leader. They just won’t run under the bullets. They are equally essential to succeed in a complex and ever-changing business environment.