The words “leadership” and “management” are often used interchangeably, but the terms can refer to different functions within an organization or different styles of people management.
The distinction seems simple at first glance: A leader rallies an organization around a vision and strategy, while a manager uses systems and processes to execute that vision. These two different — yet complementary — roles are both necessary in a successful organization.
Leadership vs. Management
Leaders provide direction and promote change through their vision, influence and empowerment of others. Anyone can demonstrate leadership, whereas management is a position of authority that instills stability through organizational structure and processes.
Leadership isn’t limited to C-suite executives. It’s a skill that all managers can demonstrate by inspiring employees, nurturing their professional development and helping them reach their potential. So, while there is value in the function of management, some experts believe the best managers are also leaders.
Differences Between Leadership and Management
Management is a position that comes with authority, whereas leadership is a quality that could be exhibited by anyone. A leader’s power doesn’t necessarily come from their rank in the chain of command; it comes from their ability to earn respect, influence others and mobilize them to action.
“Leadership can come from anywhere,” Jennifer Dulski, a lecturer in management at Stanford University’s Graduate School of Business and founder and CEO of team development platform Rising Team, told Built In. “That means that people who are managers can be leaders, and it also means that people who manage no one can be a good leader and can demonstrate leadership.”
Leadership and management are both necessary, but they play different roles. John Kotter, a professor emeritus of Harvard Business School, drew a clear distinction between the two in a Harvard Business Review article: while managers are necessary to promote stability, leaders have the power to drive meaningful change.
Their approach differs across three dimensions according to Kotter:
Vision vs. Planning
Leaders set the direction of the company. By analyzing market conditions and other data, they develop a vision and a broad strategy to achieve that vision. Managers take that vision and translate it into actionable steps, using it to guide their planning and budgeting process. They make plans, set monthly goals and allocate resources to achieve those goals.
Management relies on a leader’s vision to shape its planning processes, while a manager’s planning efforts help make a leader’s vision more feasible and less risky.
“The head can’t turn without the neck,” Stacy Roberts, lecturer of management at the Hull College of Business at Augusta University, told Built In. “The leaders come up with this big, innovative plan, and then you have managers to guide people on how to accomplish and manage those risks.”
Structuring vs. Aligning
When it comes to execution, managers develop organizational structures, staff and train employees to fill roles and communicate plans to those employees. Leaders, meanwhile, align everyone toward a common goal by communicating their vision to managers, who then build out teams to execute on that vision.
Monitoring vs. Motivating
Leaders motivate and inspire their teams by tying their vision to employees’ emotional needs for achievement, recognition, belonging and living up to one’s ideals. Managers take a more granular approach, ensuring work gets done by monitoring employees’ work, identifying problems and developing a plan to solve those problems. Management is less concerned with the intangibles, and instead focuses on systems that “help normal people who behave in normal ways to complete routine jobs successfully, day after day,” Kotter wrote.
Characteristics of a Leader
Leadership is the ability to bring people together to achieve a common goal. From Mahatma Gandhi to Martin Luther King Jr., leaders know how to influence, motivate and empower people to take bold action and affect change.
While particular traits certainly contribute to better leadership, Luigi Pecoraro, executive director of Eller Executive Education program at the University of Arizona, told Built In that there are no guarantees a leader in one organizational setting will be effective in another. Because it can be situation-dependent, Pecoraro said leadership is often shaped by a person’s experiences.
That being said, there are a few qualities that leaders tend to have in common.
Gives Direction
A good leader develops a creative, innovative vision that guides the direction of the organization. They also make it clear to employees how they are going to accomplish their goals.
This vision is typically wide in focus and long in scope. They aren’t just thinking about a single initiative or monthly target; they are also thinking about how an initiative plays into the organization’s overall strategy and trajectory over the next several years.
“They’re thinking about succession and next steps,” Roberts said. “They’re thinking past now.”
Influences Others
A leader needs their employees to buy into their vision, which motivates them to take action and steer the organization in the right direction. In addition to articulating an inspiring vision, an influential leader will be able to communicate across departments, build relationships and gain peoples’ trust.
Leads By Example
People are not going to follow a leader they don’t believe in. A leader can gain the trust and respect of employees by demonstrating integrity, living up to organizational values and leading by example. If a leader asks their team to work late, for example, that leader should also stay late and work right alongside them, Dulski said — and maybe even order everyone dinner.
“Really great managers and leaders are there with their teams, both leading by example and also being in it with them when things get rough,” she explained.
Empowers Employees
Good leaders empower employees to take ownership in their role, encouraging them to be creative and take risks. They also encourage employees to grow their skills by nurturing their professional development, giving them ample opportunities for advancement.
“Instead of directing a driver where to drive, a leader teaches you how to drive,” Roberts said. “So one day they can get out of the car and you can drive by yourself.”
Characteristics of a Manager
A manager is anyone who manages other people. There are good managers and bad managers, but they are all responsible for carrying out the same four functions, which were first articulated by French engineer Henri Fayol in 1916.
Makes Plans
Managers develop plans to achieve specific company goals, identifying what needs to be done and when. They decide on a strategy, determine what resources are needed and divide the work into manageable phases with specified timelines.
Organizes Employees
Once a project has been planned, managers need to organize their staff. They must delegate responsibilities to teams, assign tasks to individual employees and communicate the expectations for each team and employee.
Motivates the Team
A good manager leads their team by motivating them to do their best work. They recognize employee accomplishments, provide constructive criticism and offer support when necessary.
“If [an employee] is having a problem with something and they need support, the manager is going to be their first line,” Dulski said.
Keeps Projects on Track
As head of the team, managers directly oversee employees’ work, ensuring everything stays on track and runs smoothly. They identify problems as they arise and make necessary adjustments, or change strategies as needed.
Similarities Between Leadership and Management
Management is a function of “getting things done,” Pecoraro said, whereas leadership is more involved with the overall vision and direction of the organization. That being said, the two functions overlap more than they differ, he said, and most executives need to be both managers and leaders. Both skills rely on similar qualities to accomplish goals through other people.
They Motivate People
Leaders and managers both need to find and tap into what motivates employees. Leaders typically do this by creating an inspiring vision that is rooted in organizational values and employees’ desire to be a part of something bigger than themselves. Managers harness this energy on a more direct level, taking efforts to maintain high team morale, recognizing employee accomplishments and placing individuals on tasks that best align with their strengths and interests.
They Communicate Effectively
Both managers and leaders need strong communication skills to ensure everyone is working toward the same goal. Leaders need to clarify what their strategy means at various levels of the organization, and they need to align teams when necessary. Managers need to set expectations and coordinate employees within their team, and they need to communicate cross-functionally with other managers to ensure they’re all on the same page.
They Earn People’s Trust
Trustworthiness is essential for both leaders and managers. Employees need to trust a leader before they buy into their vision, and they need to trust their manager to support them and create an environment in which they feel safe to share ideas without fear of negative consequences.
They Make Hard Decisions
Leaders frequently need to make complicated decisions with lots of moving pieces to chart the course of the organization. Similarly, managers have to navigate just as many issues on the team level. They cannot escalate every concern, and often need to make tough calls, balancing team needs with broader organizational goals.
“Leaders will put you in uncharted territory whereas managers have you manage uncharted territory,” Roberts said. “Both come with some resistance and some conflict.”
Their Actions are Consequential
A bad manager is one of the most common drivers of turnover, and the same can be said about a bad leader. Surveys show that employees are more engaged (and more likely to stay) when they work closely with a manager or a leader who exhibits strong leadership qualities, according to Dulski.
“All the big things that make companies successful or not successful are people-related,” Dulski said. “That means we need good managers, and we need good managers who behave like leaders at all levels up and down the court.”
Frequently Asked Questions
What is a key difference between leadership and management?
Managers use their position of authority to provide stability and ensure the successful day-to-day operations of an organization. Leaders may not necessarily have authority, but they use their influence to chart the course of the organization.
Is a leader better than a manager?
It depends on who you ask. Some experts believe managers should aspire to also be leaders, but others see managers and leaders as two equally important responsibilities that are both necessary for an organization to function effectively.
