In the business world, there are a multitude of job positions and responsibilities assigned to individuals.
Sometimes, it can be difficult to distinguish between job profiles due to their overlapping responsibilities. Two of the most commonly confused job profiles are that of a leader and a manager.
Despite the current trend of considering leadership and management to be almost interchangeable, there are still significant differences between these two roles that are crucial to understand in the corporate world.
In the business world, there are numerous models that depict leadership and management. In reality, management and leadership have very different meanings.
- A manager is a title, while a leader is a function.
- Management is a position, while leadership is a skill.
This article aims to discuss the differences between leadership and management, and the balance between these two important characteristics in organizations.
The Fine Line between Leadership and Management in the Corporate World
One of the most effective ways to differentiate between management and leadership is to look at the action verbs used to describe their performance.
Key action verbs that effectively describe leadership performance include –
Initiation, innovation, origination, decision-making, critical thinking, active listening, inspiring, motivating, coaching, guiding, developing, planning, forecasting, and achieving.
These verbs demonstrate a charismatic role focused on vision.
In contrast, action verbs that represent managerial characteristics include –
Organizing, administering, coordinating, maintaining, enforcing rules, assigning tasks, controlling, replicating, reproducing, and dictating.
These verbs show a focus on efficiency and a purpose of ensuring that tasks are carried out efficiently.
Exploring the Roles of Leaders and Managers in Organizations
A leader’s power and authority come mainly from the people around him or her.
A leader must be people-oriented and maintain an effective interpersonal communication relationship with others, resulting in an ongoing and growing network.
A leader must present original thinking, a fresh ideal, a vision, or a new path that attracts and motivates others to follow without hesitation. Without people who are willing to follow, a leader is not a leader.
On the other hand, a manager obtains power and authority from his or her position as a manager.
A manager must ensure that the rules and procedures are enforced, and tasks are carried out efficiently.
A manager is responsible for organizing, administering, coordinating, and maintaining the work of the team or department.
Decoding the 5 Key Differences between Leaders and Managers
Below are some key differences between managers and leaders:
1.) Hierarchy and Seniority:
In a leadership scenario, the leader always holds a higher position and is more experienced than their team members as they are responsible for guiding the team.
In contrast, when managing a team, it is not always necessary for the manager to hold a higher position than the rest of the team. Sometimes, the position of “team manager” may be based on seniority.
2.) Decision-Making Power:
Leaders are the ones who take the lead and have the ultimate decision-making power.
On the other hand, a manager may spend most of their time communicating and coordinating between departments.
3.) Involvement in Projects:
Since leaders have the ultimate decision-making power, they are often more involved in a project than managers.
A manager may simply delegate tasks to their team, while a leader could be the one to initiate and drive the project forward. In some cases, the leader initiates the project, and the manager works to maintain and enhance it to achieve a successful outcome.
4.) Crisis Management:
During a crisis, the true differences between a manager and a leader become apparent.
A manager may rely on tried and tested methods to solve the crisis, while a leader may seek to devise a new solution, taking their problem-solving skills to the next level.
5.) Leadership Qualities vs. Management Skills:
Leaders have several traits that differentiate them from managers.
They possess charisma and a friendly demeanor that allows them to put their team at ease and motivate them to perform better than they normally would.
Managers, on the other hand, tend to focus on systems and infrastructure. A leader is a people’s person who places a greater emphasis on their team.
In summary, a leader is the idea creator, while a manager is the executor who brings the idea to a logical and profitable conclusion. There are many other distinctions between leaders and managers, but it’s important to understand that both roles are vital to an organization’s smooth operation.