Difference Between Leadership and Management

Leadership and management are crucial factors in the delivery of goods and services. The two are alike in some aspects but differ in their view, performance and services. Leadership is considered a significant element of management.


Business Quiz

Test your knowledge about topics related to business

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A building jointly owned is called office________.

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Which of the following is not an economic activity?

3 / 10

Small scale firms are ____________ flexible in their functioning.

4 / 10

When at least 51% shares are in the hands of government, it is called as __________.

5 / 10

Productivity means how much was done compared to what it took to do it.

6 / 10

Whose Liability is limited to the extent of his capital to the firm?

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Shares traded through stock exchanges are called __________.

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A firm which outsources its works requires ___________.

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Who is the servant of the firm with a share in the profits?

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Leaders define the direction for their juniors to follow and must also use management skills to guide them to the destination well and effectively.

Leaders should possess some basic managerial skills, and likewise, it is a requirement for managers to have basic leadership skills. Leaders motivate others and negotiate for resources and any other support needed from the management to obtain their goals.

Key Takeaways

  1. Leadership focuses on inspiring and motivating individuals, fostering innovation, and creating a vision for the organization.
  2. Management involves planning, organizing, and controlling resources to achieve specific goals.
  3. Both leadership and management are essential for organizational success; they complement each other but involve different skill sets.

Leadership vs Management

The difference between leadership and management is that leadership has a vision of what needs to be achieved; the leaders design the strategies to achieve them and then communicate them to others. Management refers to the skills required to get work done through others. Management is crucial to any organization, company or institution. It is found in different fields like hospitality, education, offices, etc.

Leadership vs Management

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Comparison Table

Parameters of comparisonLeadershipManagement
Vision CreationLeadership comes up with a vision and the direction to be taken and has a passionate attitude about achieving them.Management creates a process for achieving the vision by planning and budgeting.
FocusLeadership focus more on changing the approach to how things are done and would do more to bring change to the organization. Leaders are risk-takers.Management will focus more on bringing stability to an organization as long as the daily routine is maintained.
StrategyLeaders set the direction and work with people to achieve d achieve the desired goals.Managers run the administration and resources of a company. They ensure day to day planning and running of an organization.
PowerLeaders influence people well; they use quiet styles that acknowledge others more than themselves.Managers rule their subordinates. They are paid to get work done and operate within time and money constraints.
DesignLeaders strive to create new principles and guidelines and can change the policies that are in place to enable them to move from one point to another.Management formulates and designs policies to be followed and the proper procedures to be applied.
ConflictsLeadership understands that conflicts are inevitable. They use conflicts as an asset.Managers try to avoid conflicts at all costs.
RulesLeaders break the rules for the sake of the organization they are leading.Managers set the rules to be followed and make sure they are followed.
CreditLeadership prefer the given credit to those with whom they worked together to achieve the goals.Management takes credit for the goals achieved.


What is Leadership?

Leadership is the art of guiding and motivating a group of people towards achieving a common objective in a given situation. It is the ability of a leader to make his juniors to work with confidence and passion.

It is the process of being able to inspire others. Effective leadership is founded on ideas, whether original or copied, that are communicated to others in a way that motivates them enough to perform in a way that the leader wants them to.

A leader holds leadership and special character and is able to influence others to move in his direction.


What is Management?

Management refers to a set of different philosophies relating to the purpose of organizing, directing, planning and controlling an organization and the application of these philosophies in joining human, financial, and informational means efficiently to obtain organizational objectives.

Management is a process undertaken with the main aim of achieving a set goal.  Varied objectives depend on the nature of the organization.

It could be for the development of a company, to increase the client base, increase the knowledge of employees and develop the skills and capacity of employees or attain a specific sales target.

Managers in an organization are expected to follow due process; they come up with guidelines on how to achieve the targets. When the management is defective, it will always reflect on every other aspect of the organization.

management 1

Main Differences Between Leadership and Management

  1. Leaders create followership and have people following them, while managers have people working for them, referred to as subordinates.
  2. Managers exercise power over people; they rule them, while leaders create power with the people.
  3. Leadership uses a proactive approach, while management is reactive.
  4. Leaders build trust in the people by the leader, while management will require control of the people the manager.
  5. Management exercise authority over the people, while leadership tries to use motivational power.
  6. Leadership works to make everyone a hero, while management tries to be the hero.
  7. Leaders can lead from anywhere; they don’t necessarily have to hold an official position, whereas managers are always strictly in a managerial position or official position.
  8. Leaders are risk-takers and would stretch the organization to achieve its goals, while a manager tries to maintain the status quo.
Difference Between Leadership and Management
  1. https://files.hbe.com.au/samplepages/SA4170.pdf
  2. https://www.ajol.info/index.php/saje/article/viewFile/25107/4321
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4 thoughts on “Difference Between Leadership and Management”

  1. Great explanation. Also I think that great leaders can easily manage things so it is the leadership that is a more important skill to acquire.

    1. Thank you Anurag for your feedback. You are absolutely right. Readers like you make us publish more quality content.

  2. I consider myself a good manager because I handle the work of 7 people under me. But how do I develop leadership skills?
    Please guide.

    1. Hi Shekhar,
      Leadership skills don’t come to you overnight. Yes, some people are born leaders like our freedom fighters in various countries.
      When you experience the world, learn about human psychology and have knowledge of so many things then you are bound to become a good leader.

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