Leadership and Management - the Differences and Overlap Essay

733 Words Apr 3rd, 2011 3 Pages
Distinction between leadership and management has for long been an interesting subject matter for academicians and industrialists alike. There has been a definite shift of focus from management to leadership in the context of business organizations. This shift can be attributed to the need of organizations to sustain their growth in the face of rapidly changing competitive landscape across the industries. The differences in leadership and management have been widely acknowledged but the matter of debate is about the overlap between the two and how these important organizational elements help in driving the business both now and in the future.
Leadership an important managerial role or management an important leadership role
In spite of
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Leadership is about influence and so is management. But the similarity ends here. John P. Kotter has distinguished leadership from management in a fundamental way as shown below:

Functions of management Leadership
Establishing agendas setting time frames
Budgeting (prioritising and allocating resources) Establishing direction
Creating vision
Seeking commitment through culture building
Identifying strategies Organizing / staffing
Providing structure
Establishing rules and procedures
Deploying people (placement) Aligning people
Communicating goals
Seeking commitment through culture building
Building teams Controlling
Designing incentive schemes
Review against plans
Initiating corrective actions Motivating and inspiring
Inspiring and energizing people
Empowering people
Satisfying unmet needs of the people

Leadership and management - the interplay
The importance of leadership in organization emerges from its role of creating and shaping organizational culture and setting a progressive direction for the organization. With out this there is no role for management, no cause for it to exist. Leadership creates a context for the management to exist. Management on the other hand, through well laid out processes and systems, ensures that effective leadership at every level is developed in the organization, as a driver for

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