Distinction of management and leadership has been a topic of interest for industrialists and students for a long time now. There a has been a steady shift of interest in the past few years for the latter of the subject, as the industrial environment grew more dynamic and ever-growing, gradually leadership gained more importance. There’s is a very fine line of distinction between these two concepts, they are defined differently but they do overlap every now and then. An organizational goal cannot be achieved by just giving importance to one of the function.
A firm without a good leader, but a poor management won’t survive long; the vice-versa of this case is even more dangerous for any organization. The main similarities between leadership and management are that both of these function aims at attaining objectives and goals. Mainly the leader come hand-in-hand as the leader sets the objectives and the mangers tend to achieve them. Another similarity is that both utilize resources and mobilize according to demand of the company. Motivating is one thing the management and leadership has to do like as they depend on their sub-ordinates to achieve the goals.
The managers and leaders direct the lower-level workers or (followers) and the final result relies upon them, so motivating comes in handy. A functional similarity of leaders and managers are that both act as middle-men between the owners or board members and subordinates, it is the responsibility of the managers and leaders to communicate the decisions of the board to workers and organize the firm according to the needs of the board. Hence leaders and managers are part of board meetings in which both need to take up the active role of devising strategies and they communicate them with the rest.
Leaders are influencers and mangers are safe keepers. Leadership is the process of getting things done by setting an objective and directing employees towards it, they set new values, rules and regulations in a firm; Managers control people and resources, and regulate the organizational environment by pre-set norms and rules. There are various similarities between these two functions. Leadership is an important function of management role. Leadership at the managerial level, importance is given to the creation of long term vision, behavior and culture, and develops new values that are to be followed throughout the organization.
Leadership and management have some traits in common. The most important of which is forward-thinking capability, since the global economy is ever-changing the leaders and managers need to keep with the pace. Make effective decisions a day before the competitor gives us an advantage to dominate the market. Leaders and managers need to be innovative, it’s more important for leaders to excel this personality as they are the one who create policies and the mangers just establish them.
Management and leadership are considered to be one of the top level functions in any organization, so people at these posts normally need to have commanding capability ,they tend to respond sensitively to criticism. After the advent of new management systems, the aspect of the variety of markets around the globe was taken to consideration. Each market may need a certain type of leadership they may or may not be followed in other countries. We can learn from existing Multi National Corporations and Fortune 500 companies how each of these organizations learnt to adapt and survive in various countries.
So leaders who favor change are an asset to any firm so are mangers who can quickly grasp the change and gain control over it. For Eg; Proctor and Gamble (P&G) a leading multi-national consumer goods company, based in the U. S. A, approaches different management styles in different countries. In an emerging market like India P&G is adaptive and changes the style of management according to new needs like e-market and other factors whereas in the U. S they follow the traditional style of management which they haven’t changed even they were in their all time lows during 1998-2000.