Leading Versus Managing In A Business Setting

Leadership and management are two closely-related terms but they are not necessarily synonymous or interchangeable with each other

. However, management is oftentimes subordinate to leadership but leadership cannot work efficiently without proper management.

Leaders are the innovators, the movers and shakers of organizations and society in general. Managers, on the other hand, are the ones who maintain the balance and preserve the status quo. Without the managers, an organization cannot work in a structured and efficient manner. Leaders might be best suited for CEO positions but managers are the ones who are mainly responsible for running the daily affairs of a business organization.

Emotional attachments

Leaders are typically good in motivating people in achieving common goals. They are good in letting others see long-term visions of a business organization. They know how to get emotional commitment from their team members in striving to accomplish difficult tasks and surpassing obstacles along the way.

Business leaders always have the entrepreneurial attitude in approaching things. Hence, many of them excel in starting and guiding an enterprise in its infancy or development stage. Nonetheless, as the enterprise grows, managers or managerial skills become increasingly important to achieve stability and maintain the direction.

In contrast to leaders, managers do not have very strong emotional attachments to the organizational goals. They tend to be more objective and decide based on expediency or necessity instead of deciding based on personal desire to achieve. They usually decide in highly structured terms, especially when they are in the lower rungs of the corporate ladder.

This is not surprising considering the fact that lower and middle managers do not have much freedom to decide and take risks. Taking risks is the main role of the high-ranking leaders. This does not necessarily imply that managers do not have leadership abilities. It is just that their hands are tied when it comes to making major decisions.

Taking risks

Risks are always involved in any business venture with varying degrees or seriousness of consequence. Of course, the biggest and most serious risk is the risk of losing a business. The various degrees of risks may be measured in terms of potential loss of profits or potential loss of credibility to clients/customers and business partners.

Risks could also refer to internal factors such as miscommunication and conflict among the members of a business organization. Risks could also refer to potential inefficiency in performing tasks and delivering expected results.

The main task of managers in the different levels and departments of a business organization is to minimize risks by ensuring that the company is operating in an efficient manner based on company guidelines and directives.

On the other hand, the main task of business leaders is to assume larger responsibility for the risk they take in behalf of the companies they are running either as CEO's or as main shareholders. Taking risks is oftentimes the only way for a business organization to move forward. This is the main reason why company leaders have the bird's eye view and long-term vision for the company.

A leadership training course such as the leadership courses in Melbourne universities and training companies can help a lot.

by: Johnathon F Black

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