Leadership & Business

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Leadership vs Management

There are differences between leadership and management functions. Leadership provides direction, encouragement and inspiration to motivate a team to achieve organisational success. Management, by, is primarily an organisational role, coordinating people's efforts and the allocation of resources to maximize efficiency in achieving identified goals.

The distinction between leadership and management is quite useful in gaining a better understanding of these different functions in an organisation. Leadership and management operate hand in hand. To be a good manager requires leadership skills, and an effective leader will be reliant on applying their own and others' management skills to achieve their vision.

The table below outlines some of the key differences between leadership and management:

Leadership Characteristics Management Characteristics 
 - Strategic and people oriented focus  - Tactical and organisational focus
 - Setting of organisational direction and goals  - Planning co-ordinated activities
 - Motivation and inspiration of people  - Administering and maintaining systems
 - Establishment of principles  - Formulation of policies
 - Building a team and development of talent  - Allocation and support of human resources
 - Development of new opportunities  - Solving logistical problems
 - Promoting innovation and invention  - Ensuring conformance to standards and procedures
 - Empowering and mentoring people  - Instructing and directing people
 - Risk engagement and instigation of change  - Management and containment of risks
 - Long term, high level perspective  - Short term, detailed perspective


Leadership and management are closely linked functions: each is complimentary to the other. Without efficient management, the direction set by a leader risks being unsustainable. Similarly, management exercised without effective leadership will perpetuate current activities and directions, without adaptation to meet strategic goals and without optimising team performance.