For many people, the words management and leadership can be used interchangeably. After all, the manager is normally the one in charge of a group of employees, which makes that person their leader. You may even be thinking about advancing in your company to be a part of leadership in a position that requires you to manage people.
In a workplace context, it’s easy to confuse the two concepts and think that they mean the same thing. But experts say that’s not the case.
“Leaders are those people who create a vision of the future they want to see, figure out a direction to get there, decide on the specific steps to make it happen, and then get busy motivating and inspiring people to get behind their ideas and following through with them, explains Carl R. Nassar, PhD, LPC, CIIPTS.
He says leadership differs significantly from what a manager does.
“The role of a manager is to make sure people are staying on task, and staying focused, in honoring the leader’s vision. They’re likely to build structures to help people follow a plan and arrive at the leader’s destination. They’re likely to create organizational systems to get everyone to achieve the leader’s goals,” Dr. Nassar notes.
Let’s take a look at the characteristics of both leadership and management, real-world examples of these concepts in action, and give you helpful insight on when to use leadership versus management approaches.
Understanding Leadership vs. Management
Even with definitions of the terms, it can still be hard to tell leadership and management apart. Both are essential components of group success, whether it’s in the workplace, on a sports team, or in a working group at school.
“Both management and leadership are responsible for guiding and influencing individuals or groups to achieve common goals. The primary objective of both management and leadership is to attain organizational goals. Managers and leaders are both involved in decision-making processes, and both roles require strong interpersonal skills,” explains Dan Freschi, President of EDGE Where Leadership Begins.
But understanding the specific roles and traits of people in leadership and management is what helps to set them apart.
- Have a vision and strategy
- Aren’t afraid of risk
- Motivate and inspire others
- Initiate change
- Solve problems
- Coordinate resources
- Guide team members
- Monitor performance
Leadership in a Nutshell
Leaders set the direction and tone for the group. Experts note that leadership produces change and movement:1
- Leadership means not only having a vision, but making sure the vision is clear to the people that
are following you. - Leaders are not afraid to take calculated risks, and think outside of the box, to achieve their goals. They have “visionary focus,” states Freschi. “For example, Steve Jobs demonstrated visionary leadership by driving innovation at Apple, particularly with the development of the iPhone.”
- Influencing others is also a part of being a leader. “Leadership is about inspiring and motivating others through your actions and examples rather than relying on your authority. For example, Mahatma Gandhi led India’s independence movement through nonviolent civil disobedience, inspiring millions,” states Freschi.
- Leaders have a strategy and a plan to bring their vision to pass. Their clear-cut roadmap is what others can follow to help them achieve the vision end goal.
- Leadership involves being flexible, and willing to adapt to changing circumstances. Sometimes, the ability to make a mid-course correction while implementing a plan can be the difference between barely surviving and achieving success.
People in leadership also have internal qualities that serve them well and benefit their company.
“Effective leaders are authentic and have a high sense of self-awareness. Teams appreciate leaders who are true to themselves and embrace their vulnerabilities. In doing so, they relate to their teams on a human level,” adds Ashley Rudolph Founder & Performance Coach at Work with Ashley R.
Management in a Nutshell
Managers are also strong leaders in their own right. What causes them to function more in a management capacity is their focus, their end goal, and the way that they implement their plan of success.
Effective managers understand their team’s work. They’ve mastered the task, projects, or work product that their team is responsible for and as a result, understand the most effective and efficient ways to do that work at scale.
Management personnel are more focused on executing their leader’s vision, as opposed to creating the vision.
While a person in leadership looks at the big picture of a company’s future, the manager works on the details and specifics of moving the group from point A to point B. Management produces order and consistency:1
Someone in management is focused on the daily operations of a business. This person wants to make sure that the business is meeting its goals consistently on a day-to-day basis.
- A manager makes sure tasks are completed properly and on time. “For example, project managers use tools and processes to coordinate tasks, allocate resources, and meet project timelines,” Freschi states.
- Operating at the management level means being a problem-solver. How many times have you been unhappy with a business’ customer service representative, and asked to speak with the manager? This person has to be able to remain calm, address your concerns, and resolve your issue.
- Managers monitor employees’ performance. When it’s time for your annual review, that comes from your manager. This is the person that often works most closely with you, and the person you report to directly.
- Working in management means you put operational policies in place for your employees to follow. “For example, an operations manager is responsible for creating and executing standard operating procedures (SOPs) that can help to simplify and optimize various processes,” notes Freschi.
Having a better understanding of the differences between leadership and management is beneficial when trying to determine which concept you need to implement in various situations.
Applying Management Versus Leadership
You apply leadership when you are in a situation where you need to lead people on a journey through change, when you create a vision for your group’s future growth, and when you motivate others to help you make that vision happen. You clearly see the end goal and inspire others to help you attain it.
You apply management in situations where the vision for a business is laid out before you and you handle the responsibility of making sure tasks are done, monitoring the performance of employees, and solving problems to keep procedures running smoothly on a daily basis.
Both concepts are hugely valuable, and necessary for the success of the group. And yes, you can be both a leader and a manager, which is why it’s so critical to understand when each is the most helpful and useful to the group.
“Leading others effectively requires both management and leadership skills, with leading being a critical component of effective management. . . When there is no leadership, management becomes a soulless routine,” Freschi concludes. “Both leadership and management are equally crucial for any organization to achieve its goals effectively.”