LEADERSHIP VS MANAGEMENT: When to Lead &

When to Manage

When Noah heard the weather forecast he ordered

the building of an ark – that was Leadership

Then he looked around and said, “Make sure the

elephants don’t see what the rabbits are up to” - that
was Management

Leadership
“The only safe ship in a storm is leadership”
Faye Wattleton

"A business short on capital can borrow money and

one with poor location can move. But a business short
on leadership has little chance of survival."

Defining Leader

A leader is "a person who influences a group of people towards the

achievement of a goal
To be a leader, one must have followers. To have followers, one must
have their trust.

A leader is "a person who influences a group of people towards the

achievement of a goal

To be a leader, one must have followers. To have followers, one must

have their trust.

How People Become Leaders

Bass' (1989 & 1990) theory of leadership states that there are three
basic ways to explain how people become leaders. The first two
explain the leadership development for a small number of people.
These theories are:

• Some personality traits may lead people naturally into

leadership roles. This is the Trait Theory.
• A crisis or important event may cause a person to rise to the
occasion, which brings out extraordinary leadership qualities in
an ordinary person. This is the Great Events Theory.
• People can choose to become leaders. People can learn
leadership skills. This is the Transformational Leadership
Theory. It is the most widely accepted theory today.

Leaders can be made, rather than are born.

Successful leadership is based in definable, learnable

behavior.

If success can be defined in terms of describable actions, then it

should be relatively easy for other people to act in the same way.
This is easier to teach and learn then to adopt the more ephemeral
'traits' or 'capabilities'.

Leadership's Core Qualities

• Character
• Behaviors
• Confidence
• Vision

WHEN YOU DO NOT HAVE A VISION OF WHERE YOU WANT TO GO, THEN
WHICH PATH YOU TAKE DOESN’T MATTER.
Any road will you travel will get you NOWHERE.

Why are leaders important?

Leaders Manage Through Times of Change
They determine direction.
They move organizations from where they are to where they need to
be.

Leaders Make Things Happen

They shape the culture.
They use the management tools

Leaders are Revolutionaries

They face reality and mobilize appropriate resources.
They encourage others to do the same"

Future challenge of leaders

In the future the real core competence of companies will be the ability
to continuously and creatively destroy and remake them to meet
customer demands. Everyone in the organization must take
responsibility for taking responsive actions. This means that a
company needs leadership everywhere in the organization. From the
corner office, in the customer rep's cubicle, and on the shop floor.
Leadership is the ability to see reality as it really is and to mobilize the
appropriate response."

Responsibility of leaders
As a leader, your main priority is to get the job done, whatever the job
is. Leaders make things happen by:

• knowing your objectives and having a plan how to achieve them

• building a team committed to achieving the objectives

• helping each team member to give their best efforts

Who are good Leaders?
“I cannot give you the formula for success, but I can give you the formula for
failure: which is: Try to please everybody"

Herbert B. Swop

If you are a leader who can be trusted, then those around you will
grow to respect you. To be such a leader, there is a Leadership
Framework to guide you:

BE KNOW DO

BE a professional. Examples: Be loyal to the organization, perform

selfless service, take personal responsibility.

BE a professional who possess good character traits. Examples:

Honesty, competence, candor, commitment, integrity, courage,
straightforwardness, imagination.

KNOW the four factors of leadership - follower, leader,

communication, situation.

KNOW yourself. Examples: strengths and weakness of your

character, knowledge, and skills.
KNOW human nature. Examples: Human needs, emotions, and how
people respond to stress.

KNOW your job. Examples: be proficient and be able to train others

in their tasks.

KNOW your organization. Examples: where to go for help, its climate

and culture, who the unofficial leaders are.

DO provide direction. Examples: goal setting, problem solving,

decision making, planning.

DO implement. Examples: communicating, coordinating, supervising,

evaluating.

DO motivate. Examples: develop morale and esprit de corps in the

organization, train, coach, counsel.

Effective leadership is not about making speeches or being liked; leadership is

defined by results not attributes.”

Peter F. Drucker

Understanding the Leadership Role

"I don't like to be managed. But if you lead me, I'll follow you anywhere."
Anonymous

Leadership is hard to understand, there are so many definitions,

some of them bad ones. Leadership has an essential focus on people
and how they can be influenced. Leader’s focus more on:

• Vision
• Inspiration
• Persuasion
• Motivation
• Relationships
• Team work
 • Listening

One can add to the list activities such as:

• Counseling,
• Coaching,
• Teaching,
• Mentoring.

Management
“The conventional definition of management is getting work done through people,
but real management is developing people through work.”

Agha Hasan Abedi

Some Definitions

 Management is the process of getting activities completed

efficiently and effectively with and through other people.

 Management tends to involve direction of day-to-day

operational tasks, management and maintenance of budgets
and deadline oriented, directing teams to achieve goals by
establishing objectives.

Managers

 plan, organise, direct, control resources to achieve objectives.

 follow formal policies, rules &procedural regulations of their
employing organisation (administration > management?)
 handle and physically direct resources:
 money, materials, machinery, equipment, space, facilities,
 information and technology
 use of time
 people
Telling people what to do and how to do it more than vision and
giving a sense of direction

Understanding the Management Role/Functions

Good management is the art of making problems so interesting and their
solutions so constructive that everyone wants to get to work and deal with them.”

Paul Hawken

Management focuses on work. We manage work activities such as

money, time, paperwork, materials, equipment, etc. Management
focuses more on:

• Planning
• Organizing,
• Controlling
• Coordinating
• Directing
• Resource use
• Time management
• Logistics and the supply chain
• Finance and money management
• Budgeting
• Strategy
• Decision Making
• Problem Solving

(Gulick & Urwick 1937. Papers on the Science of Administration)

The first five (planning, organizing, controlling, directing, and

coordinating) are often listed as the major functions of management.
Certain conceptual skills such as decision making, strategy
development, and problem solving seem to fit better in management
verses the leadership area, but you can go either way.

A better description is, "Executives are decision makers— managers

are problem solvers."
 Leadership vs. Management
"Some leaders cannot manage— some managers cannot lead."

Unknown

“Management is efficiency in climbing the ladder of success; leadership

determines whether the ladder is leaning against the right wall.”

Stephen R. Covey

"Leaders manage and managers lead, but the two activities are not
synonymous….

Management functions can potentially provide leadership; leadership

activities can contribute to managing. Nevertheless, some managers
do not lead, and some leaders do not manage".

Warren Bennis – popular writer of leadership resources and business

professor at the University of Southern California – shares the same
view. "There is a profound difference between management and
leadership, and both are important. To manage means to bring
about, to accomplish, to have charge of or responsibility for, to
conduct. Leading is influencing, guiding in a direction, course, action,
opinion. The distinction is crucial". One of Bennis’ most quoted
phrases is, "Managers are people who do things right and leaders are
people who do the right thing".
Bennis further defines the difference using the following paired
contrasts (taken from, "Learning to Lead: A Workbook on Becoming a
Leader", pg. 9. Perseus Books / Addison Wesley, 1997):

The manager administers; the leader innovates.

The manager maintains; the leader develops.
Leaders approach is proactive while manager approach is reactive
The manager focuses on systems and structures; the leader
focuses on people.
The manager relies on control; the leader inspires trust.
The manager has a short-range view; the leader has a long-range
perspective.
The manager asks how and when; the leader asks what and why.
The manager has his or her eye always on the bottom line; the
leader has his or her eye on the horizon.
Leaders want achievement while managers want results.
The manager accepts the status quo; the leader challenges it.
The manager is the classic good soldier; the leader is his or her
own person
Leaders take risk while managers minimize risk

Managers do things right, while leaders do the right thing. This

means that managers do things by the book and follow company
policy, while leaders follow their own intuition, which may in turn be of
more benefit to the company

Groups are often more loyal to a leader than a manager

• Taking the blame when things go wrong.

• Celebrating group achievements, even minor ones.

• Giving credit where it is due.

Managers have 'subordinates' and

communicate

 enable others to understand information, instructions or ideas

  seek order and control

Authoritarian, transactional style

Managers have a position of authority vested in them by the

company, and their subordinates work for them and largely do as
they are told. Management style is transactional, in that the manager
tells the subordinate what to do, and the subordinate does this not
because they are a blind robot, but because they have been
promised a reward (at minimum their salary) for doing so.

Work focus

Managers are paid to get things done (they are subordinates too),
often within tight constraints of time and money. They thus naturally
pass on this work focus to their subordinates.

Seek comfort

An interesting research finding about managers is that they tend to

come from stable home backgrounds and led relatively normal and
comfortable lives. This leads them to be relatively risk-averse and
they will seek to avoid conflict where possible. In terms of people,
they generally like to run a 'happy ship'.

Leaders have followers. They

 Envision, influence, inspire.
 tolerate, promote creativity and imagination
 Bring order from chaos
 influence people towards objectives and desire to achieve
 gain voluntary commitment over compliance
 win hearts and minds

“Effective leadership is putting first things first. Effective management is

discipline, carrying it out.”

Stephen R. Covey

Leaders do not have subordinates - at least not when they are

leading. Many organizational leaders do have subordinates, but only
because they are also managers. But when they want to lead, they
have to give up formal authoritarian control, because to lead is to
have followers, and following is always a voluntary activity.

Charismatic, transformational style

Telling people what to do does not inspire them to follow you. You
have to appeal to them, showing how following them will lead to their
hearts' desire. They must want to follow you enough to stop what
they are doing and perhaps walk into danger and situations that they
would not normally consider risking.

Leaders with a stronger charisma find it easier to attract people to

their cause. As a part of their persuasion they typically promise
transformational benefits, such that their followers will not just receive
extrinsic rewards but will somehow become better people.

People focus

Although many leaders have a charismatic style to some extent, this

does not require a loud personality. They are always good with
people, and quiet styles that give credit to others (and take blame on
themselves) are very effective at creating the loyalty that great
leaders engender.

Although leaders are good with people, this does not mean they are
friendly with them. In order to keep the mystique of leadership, they
often retain a degree of separation and aloofness.

This does not mean that leaders do not pay attention to tasks - in fact
they are often very achievement-focused. What they do realize,
however, is the importance of enthusing others to work towards their
vision.

Seek risk

In the same study that showed managers as risk-averse, leaders

appeared as risk-seeking, although they are not blind thrill-seekers.
When pursuing their vision, they consider it natural to encounter
problems and hurdles that must be overcome along the way. They
are thus comfortable with risk and will see routes that others avoid as
potential opportunities for advantage and will happily break rules in
order to get things done.

In summary

Subject Leader Manager

Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Horizon Long-term Short-term
Seeks Vision Objectives
Approach Sets direction Plans detail
Decision Facilitates Makes
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Dynamic Proactive Reactive
Persuasion Sell Tell
Style Transformational Transactional
Exchange Excitement for work Money for work
Likes Striving Action
Wants Achievement Results
Risk Takes Minimizes
Rules Breaks Makes
Conflict Uses Avoids
Direction New roads Existing roads
Truth Seeks Establishes
Concern What is right Being right
Credit Gives Takes
Blame Takes Blames
Conclusion
“Under performing organizations are usually over managed and
under led”

Warren Bennis

Leadership and management are certainly different but are

essentially complementary to each other. Manager uses a formal,
rational method whilst the leader uses passion and stirs emotions

If you want to lead employees to very high performance, treat them

with great respect and not like robots, thus leading them to treat their
work, their customers, each other and their bosses with great respect.

It's vital for senior individuals in positions of great responsibility to be

able to play both roles: the boss who cannot manage will kill an
organization just as fast as one who cannot lead. But the person who
can do both, they are on the path to success.
 LEADERSHIP VS MANAGEMENT

“Management is efficiency in climbing the ladder of success;

leadership determines whether the ladder is leaning against the right
wall.”

Stephen R. Covey

PRESENTED BY

SHAHBAZ CHAUDHRY (857) & NAZISH SOHAIL

(862)
BBA 8TH SEMESTER

RESOURCE PERSON

SIR RAZA ALI RAFIQ