Leadership versus Management

                              The difference between management and leadership

Leadership has been discussed from time immemorial. For example, the Indian epic Mahabharata - essentially the story of good versus bad leadership from the vantage point of kings- can be traced way back to the 8th century BC. The term management however, was used after the industrialization of society in the early 1900s. The seminal work of Frenchman Henri Fayol; “General and Industrial Management” first published in 1916, continues to be the cornerstone of Management 101. Fayol was primarily interested in improving the efficiency of organizations, and formulated certain concepts which managers could follow to manage their organizations effectively. According to Fayol the five essential functions of management are planning, organizing, command, coordination and control. He also discussed fourteen principles of management, including the chain of command (who reports to whom), centralization (where are decisions made), division of work etc. It is evident that the priority was on efficiency although to his credit, Fayol recognizes the importance of a congenial workplace, and group spirit (spirit de corps).  

One of the earlier influential articles discussing the difference between leadership and management is Zaleznik’s 1977 HBR article “Managers and Leaders: Are they different?” Here Zaleznik compares leaders to artists; they are creative, not tied to their organizations, and are forward looking. Managers on the other hand are more analytical and focused on survival or status quo, rather than on change and risk. Kotter (1990) developed this idea further and stated that leaders manage change while managers manage complexity. Leadership therefore involves having a vision, and the ability to influence others to share and achieve that vision, while management involves the use of the management functions (similar to Fayol’s) to ensure that the organization stays afloat amidst the surrounding chaos. Therefore, managers plan and budget by setting timetables, and allocating resources, while leaders create a vision and clarify the big picture and identify strategies to pursue the vision. Managers organize and staff the organization by setting rules and providing structure, while leaders focus on aligning people to their vision by building committed teams. Managers focus on controlling and problem solving, while leaders focus on motivating and inspiring (Northouse, 2013). In a recent HBR blog Kotter continues to make a case for the distinction between management and leadership. Perhaps, the most important point Kotter makes is that leadership is not about possessing certain traits like charisma as is widely thought, but about exhibiting certain important behaviors like implementing a vision, which in turn can be learnt.

The key differentiator between leadership and management therefore appears to be the focus on the “future” without losing sight of the present. There is no doubt that management and leadership are complementary and successful organizations need both. Even the supreme visionary of our times, Steve Jobs had dedicated managers (including current CEO Tim Cook as his logistics chief) to implement his vision. Perhaps the most famous quote on the management-leadership distinction is Bennis and Nanus’s (1985:221) view that “managers do things right, while leaders do the right things”. Bennis (1989) argues that in the 21^st century we need more leaders than managers, because leaders master change, while managers surrender to it (paraphrased). This might be a harsh judgment on managers, and the empirical evidence on this leadership-management distinction is limited. However, it appears that leaders rather than managers are the ones who rise to the top as the world churns. We already see smart organizations (leaders) having the foresight to focus on what they do best, and outsourcing their functions like HR to professional organizations that specialize in them. That is managing change.

On a personal level, being a leader rather than a manager involves constantly challenging oneself to improve, even when the going is good. Dr. Atul Gawande, a high performing surgeon talks about hiring another retired surgeon as a coach to help him improve his surgical skills even further. As a caveat; not everyone can be a leader, nor can everyone be a manager. Recognizing this distinction, and choosing the role which suits one best is personal leadership.   

References

Fayol, H. (1916). General and Industrial management. London: Pitman

Kotter, J.P (1990). A force for change: How leadership differs from management. New York: Free Press.

Northouse, P.G. (2013). Leadership (Theory and Practice). Sixth Edition. California: Sage Publications

Zaleznik, A. (1977). Managers and Leaders. Are they different? HBR

Gawande. A. (2011) Top athletes and singers have coaches. Should you? (October 3, New Yorker)