There are three different views about management vs. leadership:

• There is no difference, these are synonyms, and distinguishing between them is at best a practice of semantics
• They are intertwined, but distinct on some level
  • Leadership could be a form of excellent management
  • Leadership is a function of management
• They are different things (this textbook’s view)

Management as we understand it now was developed during the industrial revolution:

• Scientific management movement
  • Concerned with extrinsic motivation and organizational outcomes
• Human relations movement
  • Concerned with intrinsic motivation, in response to above
• Organizational behavior
  • Considering efficiency and human relations to examine organizational success

Management is a mechanistic process, while Leadership is a social process, because establishing values is a social activity.

Management is about the present, leadership is about the future. Management is about efficiency, leadership is about vision.

Managers are people who do things right, and leaders are people who do the right thing.

Transactional leadership maintains the status quo and is closer to management than transformational leadership.

Different kinds of definitional differences:

• Authority versus Influence relationship
  • Coercive directives are more efficient and practical and more of a management tool
  • Non-coercive directives like democratic processes are tools of leadership, using other sources of power besides authority
• Manager/Subordinate vs. Leader/Follower
  • A subordinate does as told and a follower takes action, inspired by leadership
  • Managers also lead and leaders also manage which explains all this blurriness
• Produce and Sell Goods/Services versus Intend Real Change
  • Creating a specific product within the parameters of the organization’s resources is management
  • Intended change requires leadership and vision, because there are many possible outcomes rather than just two: success (on-time and under-budget) or failure
• Coordinate Activities versus Establish Mutual Purpose
  • Managers must coordinate the different activities of the different subordinates
  • Leaders generate and clarify the essential purpose of the organization

Management oversees, Leadership motivates (next chapter)

Leadership is an influence relationship aimed at moving organizations or groups of people towards an imagined future that depends upon alignment of values and establishment of mutual purpose.