Management and Leadership: Is There Any Difference?
People involved in management recognize the essential role of the effective leadership in any organization. Effective business leadership is an imperceptible quality for many. Leaders are capable not only to differentiate the results of their companies; they can also differentiate the satisfaction levels of the people working within these companies. Nevertheless, I think that management and leadership are not equal notions and to be a manager does not always mean to be a good leader. There is a difference between management and business leadership though both are important. “Management is a function that must be exercised in any business, leadership is a relationship between leader and led that can energize an organization” (Maccoby, 2000, p.57). To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading in business is influencing, guiding, action, opinion. Managers are people who do things right and leaders are people who do the right thing (see Blanchard, 2004). Powerful leaders should have clear visions about their organizations and their purpose is not only to have clear vision, but also to involve and instill the same vision in other employees.
When we talk about successful management and leadership it’s also necessary to mention such a notion as transactional leadership which is also important for a successful leader. According to Men (2011) transactional leadership is based on an exchange process in which the leader provides rewards in return for the subordinate's effort and performance. In this model, leaders can use some kind of reward or punishment to force his followers to finish their tasks. An ordinary pattern is the employer - employee relationship. The employer explains to employee what tasks he expects him to fulfill and then the employer will