[c]

The terms leadership and management are often used interchangeably, but they are two distinctive and complementary processes. John Kotter¹, Konosuke Matsushita Professor of Leadership at Harvard Business School, argues that leadership is different from management, but if either is missing, success in today’s business environment will be elusive.

According to Warren Bennis and Bert Nanus, ‘leadership is one of the most observed and least understood phenomena on earth’².  There are consequently many definitions of leadership, but the following one is worth quoting because it includes elements of influence, intention, responsibility, change, and creating a shared purpose: 'Leadership is an influence relationship among leaders and followers who intend real changes that reflect their shared purpose.'³

Management, on the other hand, has been described as the: 'Attainment of organisational goals in an effective and efficient manner through planning, organising, staffing, directing and controlling organisational resource.'⁴

Leadership is thus about influencing people while management is about control and creating predictable results.

Unfortunately, management is today regarded by some as being a lesser skill than leadership. Kotter argues, however, that neither is better than, nor a replacement for, the other and that, ‘the real challenge is to combine strong leadership and strong management and use each to balance the other’⁵.  This point is summed up in the following analogy:

Leadership and management are like the oil and vinegar in a good salad dressing: although they remain quite separate and have their own distinct qualities, when shaken together properly their combined effect can be quite stunning. Just don’t try dressing your salad with one or another alone! - Peter Cunningham, FCIPD, (September, 2004).

Schoemaker and Russo have produced the following comparison between management and leadership.

	Management	Leadership
Direction	Planning and budgeting Keeping an eye on the bottom line	Creating vision and strategy Keeping an eye on the horizon
Alignment	Organising and staffing Directing and controlling Creating boundaries	Creating shared culture and values Helping others grow Reducing boundaries
Relationships	Focusing on objects – producing/selling goods and services Based on a position of power Acting as boss	Focusing on people – inspiring and motivating followers Based on personal power Acting as coach, facilitator, servant
Personal Qualities	Emotional distance Expert mind Talking Conformity Insight into organisation	Emotional connections (Heart) Open Mind (Mindfulness) Listening (Communication) Non-conformity (Courage) Insight into self (Integrity)
Outcomes	Maintain stability	Creates change, often radical change

SOURCE: Paul J Schoemaker and J. Edward Russo, 'A Pyramid of Decision Approaches', California Management Review (Fall 1993), 9-31.

Copyright © 1993, by The Regents of the University of California. Reprinted from the California Management Review, Vol. 36, No. 1. By permission of The Regents. All rights reserved. This article is for personal viewing by individuals accessing the site. It is not to be copied, reproduced, or otherwise disseminated without written permission from the California Management Review. By viewing this document, you hereby agree to these terms. For permission reprints, contact: cmr@haas.berkeley.edu. www.haas.berkeley.edu/cmr.

Management is about the control process, which aims to ensure that lapses in performance are spotted and corrected.

The leadership contribution is to motivate, inspire and energise people by satisfying basic human needs for achievement, a sense of belonging, recognition, self-esteem, control over one’s own life and an ability to live up to one’s ideals.

Good leaders motivate people by making the vision relevant to the particular group, supporting the employee with coaching, feedback and role-modelling, and by recognising and rewarding success.

from the Knowledge Bank, an on-line resource developed for the Leadership Foundation for Higher Education.  The permission of the Leadership Foundation to reproduce this material is gratefully acknowledged.

REFERENCES:

1. J P Kotter, ‘What Leaders Really Do’, Harvard Business Review (May/June 1990).
2. Warren Bennis & Bert Nanus, Leaders: The Strategies for Taking Charge (Harper and Row, 1985).
3. Joseph C Rost, Leadership for the 21st Century (Praeger, 1993), p 102.
4. R L Daft, Leadership Theory and Practice (Dryden Press, 1999).
5. Kotter, p 26.