Performance Management

Leadership and Management (E)

What is the difference between leadership and management? What are the primary responsibilities of leadership?

Posted: Aug 2009

Business management requires application of different management skills and methods. Leadership and management are frequently used terms that reflecting a skills necessary for business management. So what is the similarities and differences between these to terms?

Management is focused on business result and management of resources. Resources are all inputs of business process; materials, machines, buildings, finished goods, potential, people... Resources are transferred to outputs through different business processes. Good management of resources brings optimal ratio between inputs, processes and outputs.

Leadership is focused on people, culture and relationships. Results are still important aspect, but the stress is given to making people capable of doing their part of job.

Leadership is the capacity to motivate and direct others toward the common goal.

Leader is initiating the action and making other to take their responsibility for the part of the process.

The primary responsibilities of leaders are to make their people successful, to make their business successful and to make themselves successful.

The emphasis is given on making their people successful. Every manager is the leader to at same time. But the leadership style can be different, depending of the position of the manager. The different positions in hierarchy requires different skills, time allocation and work values.  

Related Reading:
Situational Leadership 
Leadership Through 4 Cs