Leadership and Management
Leadership and management are two ideas that are often used randomly. However, these
words actually describe two different concepts. Both are vital for success in a business
environment.
The differences between management and leadership
Management: is dealing with complexity, complication. The main aim of a manager is to
maximize the output of the organization through administrative implementation. To
achieve this, managers must use the following four functions: Controlling, Planning,
Leading and organizing. Without good management, enterprises tend to be disorganized.
Good management brings the organization to a level of stability, and obtains an amount of
quality and profitability.
Leadership: is about coping with change. Many changes in the recent decades have made
the leadership an important concept, such as rapid growth in the world economy,
globalization, and international competition. As a result leadership demand had increased.
Leader is born to be a managers, it can learn some of the skills up to a specific point.
Setting a direction versus planning and budgeting
Setting a direction is not the same as planning or long term planning. Planning is function
used by the managers, so they can get ordered results. Setting a direction is a process used
by the leaders, it is broader than the planning, and it creates a vision and strategies. Visions
are unexplained clearly, but once they are developed in a good business direction they can
produce the right outcome. It is too difficult to come up with a vision and some times it is
exhausting, but those people who accept these long term visions are risk takers, and seen
