In order to define clearly the problem of management and leadership, it is necessary to separate these two concepts. The distinction between the concepts of management and leadership is due to the existence of two types of relationships – formal and informal.
Under the term “management” is understood the process of organization of any activity, which aims the implementation of pursued objectives and involves primarily a clearly structured formal (official) relations through which it is implemented. When the “leadership” implies the process of the personal influence generated by the system of informal relations. The role of the manager is defined by its formal and generally well defined structure and his right to make decision and use sanction is not disputed. The leadership, by contrast, is formed sporadically and spontaneously at the level of unconscious psychological preferences.
A leader and a manager each has his specific way of promotion. Leader, even if it is a person originally proposed by someone outside the group, is chosen and recognized only by the group. In this sense, the promotion of a leader is always more or less democratic. A manager, on the contrary, is assigned from outside and thus is imposed to the group. Since this assignment can be of political or administrative nature, the led group can differently express its attitude toward him, and, in certain cases, even reject him. But then again the other “candidate” will be most likely appointed from outside. Figuratively speaking, leadership can be defined as an inside process, when management is always has an outside initiative.
The main differences of management and leadership can be expressed as follows:
- Leader regulates the interpersonal relationships in a group by his personal authority and manager is in the head of the group and its formal relationship as some sort of a social organization.
- Leadership arises spontaneously, when the process of a manager appointment is a planned action. Compared with management leadership is less stable and is highly dependent on the mood of the group;
- A manager has at his disposal a certain system of various sanctions, which does not belong to a leader.
- For the manager, decision-making process is complex and mediated by the set of various circumstances not necessarily rooted in the group, while the leader makes more immediate decisions
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