Management and Leadership

Every one of us manages something in our day-to-day life. Whether it`s managing our finances, calendar or career, we have acquired the skills and tools to handle everything in the best way possible. Managing these tasks or activities is actually quite simple and straightforward. However, when it comes to managing an organization, then complexities and difficulties arise. Therefore, it becomes necessary to understand the theories involved and how to apply them in the correct way.

Managers naturally have greater responsibilities than staff. They are charged with the responsibility of generating revenues and maintaining control over the costs for an organization. Management and leadership are inter-related inextricably. Managers are judged by the company’s performance, their methods for meeting the requirements, setting standards, and making decisions. Furthermore, managers will set the organizational goals.

There are many theories of how to distinguish the difference between leaders and managers. Managers are managing processes; leaders look after the people. Essentiallythe difference lies in their vision and how they view their function. Managers typically focus on maintaining a good status, whereas leaders have a broader vision, are dynamic and people-oriented. Several research studies have shown that managers will use conceptual skills to achieve their targets.

Leadership and management are two sides of the same coin. The terms are meant to go hand in hand, however, in reality there are a lot of differences between the two. Both are complementary to each other. A manager administers, while the leader engages him in innovation. The leader develops new ideas while manager maintains the organization and keeps it going. It’s always said a manager does things right, but the leader does right thing. Some of the great economists have said, A manager is one who focuses on the system and the short-term profits. On the other hand a leader is the (wo) man of people and focused on the long term success.

Previously there was debate if the functions of the manager and leader should be separated. In industry the main work is to follow orders, assign the right work and get the work done in a timely manner with greater efficiency. The major goal was to bring prosperity and success to the organization.

However, at present, the functions of managers and leaders cannot be easily separated. People look up to the managers not only for the work but also in return look for the purpose and the direction to work for and managers are there to not only increase the efficiency but also to inculcate the talents, skills and inspire them.

Over the years, both the terms management and leadership have been used synonymously. But it`s clear that both carry a different meaning although both are inseparable from each other, One cannot exist individually. The famous economist,J. M. Burns, gave an excellent explanation of how to differentiate between a leader and a manager. He clearly said that when leadership is focused on people, it is transformational. When management or leadership is focused on systems, procedures and processes, it is transactional.