Difference Between The Leadership And Management Commerce Essay

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A clear distinction between management and leadership may nevertheless prove useful. This would allow for a reciprocal relationship between leadership and management, implying that an effective manager should possess leadership skills, and an effective leader should demonstrate management skills. One clear distinction could provide the following definition:

- Management involves power by position.

- Leadership involves power by influence.

Abraham Zaleznik (1977), for example, delineated differences between leadership and management. He saw leaders as inspiring visionaries concerned about substance while managers he views as planners who have concerns with process. (answerbag.com/q_view/132650)Warren Bennis (1989) further explicated a dichotomy between managers and leaders. He drew twelve distinctions between the two groups:

- Managers administer; leaders innovate.

- Managers ask how and when; leaders ask what and why.

- Managers focus on systems; leaders focus on people.

- Managers do things right; leaders do the right things.

- Managers maintain; leaders develop.

- Managers rely on control; leaders inspire trust.

- Managers have short-term perspective; leaders have long-term perspective.

- Managers accept the status-quo; leaders challenge the status-quo.

- Managers have an eye on the bottom line; leaders have an eye on the horizon.

- Managers imitate; leaders originate.

- Managers emulate the classic good soldier; leaders are their own person.

- Managers copy; leaders show originality.

The exact difference between the role of managers and leaders are below here

• The best word for managers is balance; the best word for leaders is change.

• Managers want to smooth things out; leaders want to shake things up.

• Managers think about how to oversee the existing order of things; leaders think about how to shape the future.

• Managers think about execution; leaders go for ideas.

• Managers seek control; leaders seek out risk.

• Managers seek stability and, therefore, prefer to act quickly to solve problems; leaders handle ambiguity well and can delay closure.

• Managers focus on problem-solving and achieving the results to which the organization is committed; leaders incite people to think about what could be.

• Managers view work as a process of compromises so that everyone can be a winner; leaders look for opportunities for large gains at the risk of failure.

• Managers tend to be social but not as emotionally involved; leaders have high emotional intelligence and empathy.

• Managers send "signals"; leaders send "messages."

• Managers focus on following the correct procedures to resolve an issue (the process); leaders focus on the substance of an issue.


Leadership is the process of inspiring, influencing, guiding others to participate in a common effort. It is the critical factor that helps an individual or a group identify its goals and then motivates and assists in achieving the stated goals.

Without Leadership, an organization would be only a confusion of people and machines, just as an Orchestra without a conductor would be only Musicians and Instruments. The Orchestra and all other organizations require Leadership to develop their precious assets to the fullest.

Formal versus informal Leaders:

Experts on Leadership distinguish between formal and informal leadership. Formal leadership is the process of influencing relevant others to pursue officials organizational objectives. Informal Leadership, in contrast, is the process of influencing others to pursue unofficial objectives that may or may not serve the organization's interests.


Formal Leaders generally have a measure of legitimate power because of their formal authority, whereas informal leaders typically lack formal authority. Beyond that, both types rely on expedient combinations of reward, coercive, referent and expert power. Informal leaders who identify with the job to be done are available assets to an organization. Conversely, an organization can be brought to its knees by informal leaders who turn cohesive work groups against the organization.


Leadership is an important part of Management, but it is not the whole story. The primary role of a leader is to influence others to voluntarily seek defined objectives (Preferably with enthusiasm). Managers also plan activities, organize appropriate structures and control resources. Mangers hold formal positions, whereas any one can use his or her informal influence while acting as a leader. Managers achieve results by directing the activities of others, whereas leaders create a vision and inspire others to achieve this vision and to stretch themselves beyond their normal capabilities.

Because there is a difference between Management and Leadership, strong leader may be weak Managers if poor planning causes their group to move in the wrong directions. Though they can get their group going, they just cannot get it going in directions that best serve the organizational objectives.


Much research has focused on identifying leadership behaviors. In this view, Successful leadership depends more on appropriate behavior, skills, and actions, and less on personal traits. The difference is similar to that between latent energy and kinetic energy in physics: one type provides the latent potential, and the other is the successful release and expression of those traits, much like kinetic energy. The distinction is a significant one, since behaviors and skills can be learned and changed, while many traits are relatively fixed in the short term. The three broad types of skills leaders use are technical, human and conceptual. Although these skills are interrelated in practice, they can be considered separately.

Technical Skill:

Technical Skill refers to a person's knowledge of and ability in any type of process or technique. Examples are the skills learned by accountants, engineers, word processing operators, and toolmakers. Technical skill is the distinguishing feature of job performance at the operating and professional levels, but as employees are promoted to leadership responsibilities, their technical skills become proportionately less important, they increasingly depend on the technical skills of their subordinates; in many cases they have never practiced some of the technical skills that they supervise.

Human Skill:

Human skill is the ability to work effectively with people and to build teamwork. No leader at any organizational level escapes the requirement for effective human skill. It is a major part of leadership behavior.

Conceptual Skill:

Conceptual skill is the ability to think in terms of models, frameworks, and broad relationships, such as long range plans. It becomes increasingly important in higher Managerial jobs. Conceptual skill deals with ideas, whereas human skill concerns people and technical skill involves things.



Personal development plan is a structured and supported process undertaken by an individual to reflect upon their own learning, performance and achievement and to plan for their personal, educational and career development.

Personal development and growth is all about accepting positive change with open arms. For overall personal development , you need to unleash your full potential and learn to believe in yourself and your abilities. Regarded as the building blocks for improving life, personal growth and development are crucial to success. Most people fail to achieve their goals due to lack of effort, time constraints, or an inability to focus on the goal.

There are five steps to to do it and those are:

Step 1. Brainstorm.

1. Identifying the goal

2. quickly think of various ways to achieve the goal.

Step 2. Formulate a plan.

Brainstorming alone is not enough and needs to be supported by an effective

and practical plan. One must have a plan.

Step 3. Get it on the to do list

Clarity and conviction are vital elements to reach to the goals. You have to prepare

yourself to actually implement your plan. get all the important tasks on the To-

Do List.

Step 4. Get help.

You can attend seminars, workshops, and training courses to motivate yourself. you

need to prioritize your goals and find a good coach or mentor who can guide

and advise you to help you conquer barriers that hinder personal growth and


Step 5. Get it off the To-Do List. Execute!

You need to execute your plan and get all those tasks off the list - put them into

real action. If you have the will and the determination to stick to your plan, success

will surely follow.

(class notes)


Counseling And Mentoring:

Counseling is one of the methods used to offer advice and assist with the development of members of staff in an organization.   It is not only limited to personal matters affecting members of staff but can also be used to assist with the professional development of individuals and can help to steer one in the right direction in terms of business development. Business development counseling may involve providing advice on accessing finance, marketing, human resources, operations management and feasibility studies.

Organizational behavior:

Traditional field of management is defined as: Process of planning, organizing, leading, and controlling the human, material, and financial resources of an organization.

Decision Making

Decision making can be regarded as an outcome of mental processes (cognitive process) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice.

Identifying Areas Of Weakness

To improve this weakness is to wait for employees to be at the company for a certain period of time before training them up, although this may be difficult at the start of the process as the business needs employees with the correct skills, in the long run this could be an advantage as once employees are trained, the company will probably retain them as if they have been at the company for a certain period of time, they will probably stick to it resulting in the retention of staff. To compensate for poorly trained staff at the beginning of the process. Agencies could be used to employ temporary staff, although this would be expensive, it would result in being cheaper than employees leaving and costs on recruiting and training new employees.


Motivation is the set of processes that inspire a person to achieve his/her goal . The study of motivation is concerned with why individuals choose to behave in a particular way as opposed to taking an alternative action; in addition to why individuals continue to perform particular actions in spite of their difficulty and problems . All individuals have a unique set of needs, yet there is enough similarity among many of them to enable people to utilize organizations in order to attain satisfaction.

Organizational Stress

Stress at work is a relatively new phenomenon of modern lifestyles. The nature of work has gone through drastic changes over the last century and it is still changing at whirlwind speed. They have touched almost all professions, starting from an artist to a surgeon, or a commercial pilot to a sales executive. With change comes stress, inevitably. Professional stress or job stress poses a threat to physical health. Work related stress in the life of organized workers, consequently, affects the health of organizations.


training and development is rather casual and incidental. Typically, there are no specified training goals as such, nor are their ways to evaluate if the training actually accomplished these goals or not. This type of training and development occurs so naturally that many people probably aren't aware that they're in a training experience at all. Probably the most prominent form of informal training is learning from experience on the job.


Three basic components of a manager's job:

          1. Technical - Efficient use of resources to achieve organizational goals and application of technologies to achieve productivity goals.

          2. Conceptual - Development of new systems and methods of operation.

          3. Human - Concerned with employee welfare.

Seven basic features of a manager's job:

          1. Managing individual performance.

          2. Instructing subordinates (supervising)

          3. Representing staff (teaching and training)

          4. Managing group performance (facilitation)

          5. Planning and allocating resources (decision-making)

          6. Co-coordinating inter-dependant groups (collaboration)

          7. Monitoring the business environment (scanning)


There are seven learning styles and those are below here

Linguistic: This type of learner loves to read, write, and tell stories. They tend to memorize places, dates, names, and trivia very easily, and are always mesmerizing you with their incredible tales. They have a remarkable ability to repeat back everything you have ever told them, word for word.

Logical: This child is very mathematically inclined. They enjoy solving problems, particularly if they are math related. They are similar to Dr. Spock, on Star Trek, in that they are very logical, straight-forward types of learners. They will plague you with questions on how things work, how things relate to one another, and why things are here. Their favorite toys as young children were likely building blocks, and pattern puzzles.

Spatial: These are the visualizers. They spend most of the day dreaming, watching movies, and staying as far away from reality as possible.

Musical: If any child is always walking around the house humming a tune, or always needs music to study by, then he/she is likely a musical learner.

Bodily: This type of learner is always on the move. They constantly walk around, they have to touch everything, and they use body language to convey their feelings.

Interpersonal: These are the "social butterflies". They adapt easily to any type of social situation, have many friends and are excellent leaders. They are patient, understanding, and very empathetic, which makes them a favorite among their playmates.

Intrapersonal: These strong willed people work best alone. They pursue their one interests and have a deep understanding of themselves.

SWOT Analysis

SWOT analysis is a pre-condition in judging any companies feasibility and its competitiveness over the other company. Possible It helps to assess the possible cost benefit and opportunities that will lead to select a viable project. We can present SWOT analysis for Cadbury Schweppes as the given way:


Existing large market for its product

Using regional raw materials that lead to cost effectiveness

Modern means of equipment

Large market share within the relevant field

Good channel with its stakeholders

Decision making process follows good governance


Maintenance of such a large firm is troublesome job

Poor communication with all its stakeholder

Decision making process is a diverse way


Serve the customers in a wide range of products

Merger with other companies help to capture the market enormously

Integrated knowledge of expertise will serve the customers in a dimensional way

More contribution to the national economy


Mismatch with large stakeholders and employees leading to agency conflict to the organization

From merger different expertise may not be able to work consistently

Threat of fire of employees of the companies merged

Ease of entry barrier of the industry for the new companies


Above all are the important benefiting factors and loopholes of the organization. In concluding the factors we can easily understand the required organization has the better control over its critical factors to run its operation smoothly. A person can be a weak leader and still be an effective Manger, especially if he or she happens to be managing people who have a clear understanding of their jobs and a strong drive to work. This set of circumstances is less likely, and therefore we expect excellent Managers to have reasonably high leadership ability among their other skills. Fortunately, Leadership ability can be acquired through observation of effective role models, participation in Management training, and learning from work experiences.