Leadership Vs. Management: 10 Key Differences Explained
When it comes to business, bosses are of two types: leaders vs managers. Although both of them are supposed to manage teams, the way they do it speaks a lot about them. Here are 10 key differences between managers and leaders and the way they are looked upon by their employees. Let’s see their differences in detail.
Who Is A Leader?
According to Oxford Dictionary: A person who leads a group of people, especially the head of a country, an organization, etc.
A leader is someone that has influence, a commanding authority, and someone that is listened to by others.
Who Is A Manager?
According to Oxford Dictionary: A person who is in charge of running a business, a shop/store, or a similar organization or part of one.
A manager is someone that manages or oversees the operations of a business or an organization. The manager is supposed to keep things in check and run the business’s day-to-day operations.
10 Key Differences of Leadership Vs. Management
By the definitions, we suppose you must have found the differences between both leadership vs management. It is time to go deeper and see how both types of styles manage people.
1. Leaders Lead By Examples, Managers Manage Through Orders
A leader sets an example and influences his peers to get the job done. On the other hand, a manager manages a team through authority and control. Subordinates under a manager consider him in charge, while subordinates under a leader consider him as a mentor and a guide that will show them through example.
2. Leaders Inspire, Managers Order
For leaders, the ideas of their team are important for success. They value their teams and reward them for doing relevant work.
On the other hand, managers demand performance through action. They don’t value employees, they only value performance and they do it through set routines and assigned tasks.
3. Leaders Innovate, Managers Create
Leaders are known for their unorthodox methods to improve work. They innovate tasks and encourage their teams to take innovative approaches as well. Leaders focus on team success and therefore lead by actions.
Managers on the other hand create processes and order their teams to follow them to get the job done. Managers don’t have out-of-the-box thinking. They follow their processes and rarely allow their employees to deviate. Leaders on the other hand create environments where teams can take new approaches to enhance efficiencies.
4. Leaders Take Risks, Managers Stay Cautious
Leaders are those who believe taking risks can lead to greater rewards. Leaders are fearless and train their teams to become the same. Good leaders are those that take calculated risks so that they can always manage them if things go south.
On the other hand, managers stay cautious when they are given an opportunity. Often they miss big opportunities because they simply are not ready to take risks. We have examples of great leaders that have taken risks and were rewarded for doing so such as Elon Musk, Jeff Bezos, and many others similar.
5. Leaders Seek Change, Managers Prefer Stability
Leaders love to take challenging steps that can bring change to the organization. They mostly oppose systematic processes because processes kill creativity. Leaders like Elon Musk questioned why drivers are needed for cars and started developing self-driven cars. Today, his company is worth billions.
On the other hand, managers prefer stability. Bill Gates of Microsoft is one CEO that averted change. When people were moving from Windows to Android, he avoided moving with them. That’s why today Windows is not available as a popular OS for smartphones. Gates opted for stability and therefore his company is stable but not growing at a pace that Google has.
6. Leaders Envision Future. Managers Discuss Present
Leaders like Mark Zuckerberg are visionaries. They know where the world is heading and they create products to help the world get there. Facebook changed its name to Meta because the world is moving towards virtual reality and the Metaverse. This is what great leaders aspire for.
On the other hand, Jack Dorsey of Twitter focuses highly on the present. Dorsey, while having millions of audiences, doesn’t come up with new means to communicate. He is risk aversive.
7. Leaders Act, Managers React
Leaders make decisions and move with them. They don’t wait for the scenarios to make them take action. They make scenarios where they can thrive.
On the other hand, managers react to change. They don’t prepare from the start and therefore often have no option but to react to scenarios. This can be anything from a market demand shift to a new competitor coming to the market. We have examples of Google’s owners and Yahoo CEOs. Google’s team created one of the top search engines. Yahoo followed suit yet failed. This is one reason, it is encouraged to act instead of reacting to change.
8. Leaders Focus on Building Shared Values, Managers Focus on Managing Workforce
Leaders start by creating shared values that the whole team should workaround. They create an environment where the teams can prosper together.
On the other hand, managers focus on managing a workforce that can help them run and manage their daily operations. Leaders put emphasis on creating a winning team, while managers focus on getting their daily tasks done through efficient team members. Leaders value team members, while managers value team performance.
9. Leaders Coach, Managers Commands
The biggest difference between a Football team manager and a coach is that the coach is responsible to help the team play better on the field.
On the other hand, the manager is responsible for managing team resources. Do you know what triggers better team performance? Obviously the coach. It is because the coach trains the team and puts the belief in them that they can achieve bigger goals. Managers command the team. They instruct them to do the tasks and if they lag at performing, they get replaced.
10. Leaders Rule By Charisma, Managers Control By Authority
In every office, there are two types of bosses. One that you would want to be around every day. The other is that you would not want to show up any day. Why? The first type is a leader. They ask about your performance if you need anything if they can help in any way. The other type is a manager. They discuss tasks, and reports, and are only focused on getting the most work done with minimal resources. They don’t train, they demand.
Although managers have expert knowledge in the domain, they are unable to transfer it to their employees. Leaders on the other hand don’t always have the expertise, but they learn and help their teams learn so that both can grow.
Bottom Line
Leadership is an art. It is not learned in school, but a trait that comes through observation. People who are good at making friends, and who inspire others to do things, often become great leaders because they have influence over others.
Management is a science. It involves processes, tasks, goals, and objectives. It is a subject that can be studied, a process that can be implemented by using tools and teams.
In the end, the world we live in will benefit from both — managers and leaders. Why? Because leaders will keep on bringing change, and managers will be needed to stabilize that change. Leaders will keep on taking risks, and managers will be the ones that will provide the relevant calculations to balance those risks. So, we need both growth and stability.
