To what extent is leadership different from management?

Compare and contrast the leadership styles of two contemporary business leaders, and comment on how this impacts on the operation and success of their business. Management is coordinating, planning, organizing, communicating, motivating and controlling different range of peoples activity and balancing external and internal influences in a company or organization. In addition, there are different models of management which are rational goal models, internal process models, motivation models, open system models, responsive management models, fashions, fads and gurus. Leadership and Management Leadership: A simple definition of leadership is that leadership is the art of motivating a group of people to act towards achieving a common goal.Put even more simply, the leader is the inspiration and director of the action. He or she is the person in the group that possesses the combination of personality and skills that makes others want to follow his or her direction. In business, leadership is welded to performance. Effective leaders are those who increase their companies bottom lines. Management: Organization and coordination of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials, and money. Resorting encompasses the
deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management can also refer to the person or people who perform the act(s) of management.

In 1967, Rosemary Stewart stated five types of managers . They are emissaries, writers, discussers, trouble-shooters, committee members. However, later, Henry Mintzberg found ten types of managers which make three main parts. Those are informational roles, interpersonal roles and decisional roles. Informational roles include monitor, disseminator and spokesperson. Monitors job is to find and analyze information in order to understand the organization. Disseminator (a.k.a propagator) is to share information with other members of the group. Spokespersons job is to speak on behalf of others. Also, he/she is to create a new organization. Interpersonal roles include figurehead and leader liaison. Figurehead is a person used as a cover for some questionable activity. Alternatively, in politics, it is a person who holds an important title or office yet executes little actual power, most commonly limited by convention rather than law. Liaison based on making agreement in external side of company.
Decisional roles include entrepreneur, disturbance handler, resource allocator, and negotiator. An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. A disturbance handler is a managerial role dealing with unexpected issues and complications, and resource allocator is a role of a manager involving the deciding of where, when, and how the resources of a company are going to be used. Lastly, the job of negotiator involves conflict resolution between various groups, both internal and external to the company.

In 1988, Fred Iuthnas identified six managers performance. They are: success, effectiveness, communicating, traditional management, networking, and human resource management. Leadership is mainly emphasised on influencing the performance on people. Also, there are 3 main leadership theories. First theory suggests important skills needed. They are vision, intelligence, initiative, enthusiasm, dependability, self-confidence, emotional stability and sensitivity to peoples needs. However, this theory has been overshadowed by Kirkpatrick and Locke theory in

1991. Their theory points that the most important skills are ambition, energy, desire to lead, honesty, integrity, self-confidence, intelligence and job-relevant knowledge. Next theory bases on the leaders behaviour. This theory was researched in the USA in 1930s at Universities of Iowa, Ohio and Michigan. In Ohio, they found two main styles which are considerate style and initiating structure style. Considerate style bases on employees building up respect and rapport and initiating structure style was based on the execution of job according to standards and allocating resources. Also Blake and Mouton worked on managerial grid according to leadership and management styles. Below, there is an illustration of the managerial grid: There two main types which are employee or relationship-oriented and task-oriented. It can be found from Linkert research about Michigan studies in 1961. Four systems of management and leadership were identified. First one is exploitative autocratic. Here, the leader does not have the trust to his subordinates. The next system is benevolent autocratic. Leader in this system has the trust and confidence but only leaders make the decision. The third one is participative. The leader in this system has trust and confidence and he makes decision after having opinion of his subordinates. The last theory is democratic. In this theory leader has absolutely trust and confidence and he uses their opinion to make decision. The last theory is contingency and situational models. The difference between leadership and management is: Managers are focuses on outward when at the same time leaders are focuses on inward. Leaders are more specific in situation but managers job is more defined in agreement. Management concentrated on routine procedures. However leadership concentrated under conditions of change. Leadership is setting a new direction or vision for a group that they follow, i.e.: a leader is the spearhead for that new direction Management controls or directs people/resources in a group according to principles or values that have already been established. The difference between leadership and management can be illustrated by considering what happens when you have one without the other. Conclusion Managing and leading are two different ways of organising people. The manager uses a formal, rational method whilst the leader uses passion and stirs emotions. William Wallace is one excellent ex ample of a brilliant leader but could never be thought of as the manager of the Scots!