Difference between management and leadership

This article discusses the difference between management and leadership, their impact on team performance, the purpose of leadership and management in meeting the needs of employees and the organization, and the effects of managerial decisions on team and organizational performance.

Difference between
management and leadership

Table of Contents
INTRODUCTION...........................................................................................................................3
Difference between management and leadership........................................................................3
Impact of leadership and management on team performance.....................................................5
Purpose of leadership and management in meeting the needs of employees and organization.. 6
Managerial decisions on team and organizational performance..................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Leadership is defined as guiding employees of company to achieve the common
objectives of business. This report is based on the case study of Marks and Spencer Company in
respect to its leadership and management approaches. Company initiated its business operations
in the year 1884 in retail sector. Michael Marks and Thomas Spencer are the two key founders of
company. Headquarter of the company is located in London, United Kingdom. IN this report
leadership and management approaches used in the Marks and Spencer Company will be
discussed. Henceforth, report will emphasis on the differentiation between management and
leadership in company. This report will further emphasis over various impacts management and
leadership styles create over company performance. Purpose of management in satisfying the
needs and retroelements of company will also discuss in this report. Furthermore, report will also
emphasis on how management decision influence team performance in company.
Part 1- Difference between management and leadership
Manager : The person who is responsible for supervising and motivating employees for
directing the progress of Marks & Spencer. The manager of Marks & Spencer is responsible for
a part of a business or organization and control department in the firm and possess the following
characteristics: interpersonal skills, organization and delegation skills, problem solving and
decision-making skills etc.
Management : Management is a set of principles relating to the functions of planning,
organizing, staffing, directing and controlling. It includes coordination and administration of
tasks to achieve a goal. There are various types of management skills in Marks & Spencer such
as technical skills, conceptual skill etc.
Leader : The person who influences a group of people towards the achievement of a goal
and can see how things can be improved. The leader of Marks & Spencer works towards making
their vision a reality while putting people first and has the following characteristics in them :
good communication skills, honesty, commitment, have positive attitude etc.
Leadership : It is the art of motivating a group of people to act towards achieving a
common goal. It is about mapping out where the firm need to go to win (Silva, 2016). In M&S,
leadership is linked to performance and their emphasis is on innovation.

Similarity between leadership and management
Both the management and leadership work with people to achieve some goals.
Both create the foundation of the organization and functional structure.
Their main concern is to allocate available resources to optimally utilize it.
Both the leadership and management aims to produce the best results in the task being
undertaken.
Basis Management Leadership
Meaning It is the art of systemically
organizing and coordinating
things in an efficient way.
It is a skill of leading others by
examples.
Emphasis on Emphasis of management of
Marks & Spencer is on
Managing activities
Emphasis of M&S leadership
is on Inspiring people of M&S
Focus on Management of Marks &
Spencer focuses on bringing
stability in the
organization(Swanwick,
2019).
Leadership of Marks &
Spencer focuses on
encouraging change in the
organization.
Orientation The Orientation of Marks &
Spencer management is task-
oriented.
The Orientation of Marks &
Spencer management is
people-oriented.
Styles The management of Marks &
Spencer adopts dictatorial,
authoritative, autocratic,
consultative and democratic
style.
The leadership of Marks &
Spencer adopts
transformational, consultative
and participative style.
Effort The efforts of management is
reactive (Duggal, 2020).
The efforts of leadership is
proactive.

Job The main job of management
of Marks & Spencer is
planning, budgeting and
establishing detailed steps for
achieving needed results and
then allocating the resources.
The main job of leadership is
establishing direction and
developing a vision of the
future (Swanwick, 2019).
Growth Management of M&S earns
organic growth.
Leadership of M&S drives
transformational growth.
Approach M&S management is more of
procedural approach.
The leadership is like a drive
ahead approach.
Part 2- Impact of leadership and management on team performance
Management and leadership create the following impacts over team performance.
Improve team performance: Leadership and management put a direct impact over team
performance. In Marks and Spencer Company leadership is denoted as progressive type of
leadership which create a positive impact over performance of employees in company. This has
also motivated employees based on the approaches like incentives, bonus to perform more
productive in against to assigned roles and responsibilities.
Enhance individual work efficiency of employee: Management and leadership approaches in
Marks and Spencer Company individual work efficiencies of employees have also increased. IT
becomes crucial that management and leadership could potentially motivate employees to
perform more efficiently (Anra and Yamin, 2017). Due to progressive nature of approach
individual employees also able to perform more operations and time efficient operations.
Innovation lead to more growth: Management and leadership in Marks and Spencer Company
has started given emphasis over innovation and technology development. This has allowed
company to channelize practices like e-commerce trade and other such policies. E commerce
trade can be stated as the revolution in the overall growth of Marks and Spencer Company.
Progressive style of leadership of company have motivated employees of company to innovate
and focus over creating a uniqueness in practices company already channelize. This has caused
the organization attracting more number of customers every year even at new business locations.

Incentive policy entertain work efficiency: Management and leadership at Marks and Spencer
Company implement incentive and performance based bonus practice to motivate employees of
company perform more effectively (Shen and et.al., 2017). This practice could engage more
positive benefits in favour of the company. Due to performance based incentives employees of
company started focusing over increasing overall work efficiencies and performance.
All the above aspects could somehow increase the performance of company. All these
practices like performance based incentives, bonus cold support the employees of company to
increase the proficiency which further expanded the growth of company. IT becomes crucial that
employees put extra effort to achieve the more work efficiencies and all these practices at Marks
and Spencer Company management and leadership use allow employees of company to perform
more effectively by putting such extra effort.
Part 3- Purpose of leadership and management in meeting the needs of employees and
organization.
There are various needs of organization the reason for which it has been established and there are
also needs of individuals for which they join the organization. So leadership and management
has the following purpose in meeting the needs of the organization and also of the employees :
Purpose of leadership and management in meeting organizational needs
 Leadership of Marks & Spencer helps in setting a clear vision for the organization while
the purpose of their management is to give direction to fulfil that vision.
 Management makes the policies of equal pay, data protection, health and safety etc. while
leadership ensures that all the policies are abided by and followed.
 Management focuses on maintaining stability in the organization while leadership
focuses on fostering change and getting out of the comfort zone.
 Management plans and looks for short term goals of Marks & Spencer while their
leadership plans and looks for long term goals.
 Management emphasis on fulfilling profitability objective of M&S while the leadership
emphasis on productivity of it (Hutchinson, 2018).
 Management is accountable for carrying out corporate social responsibility and to do the
right thing while leadership is accountable for making society a better place.

 Purpose of M&S leadership is to ensure survival of the organization while that of
management is to set target in order to survive.
Purpose of leadership and management in meeting individual needs
 The purpose of leadership in M&S is to look for development and career planning of the
employees while that of manager is to identify the lack of skills required for the job and
providing training for the same.
 The purpose of leadership is to identify what factors motivate the employees and make
them aware of the techniques and reason behind the training while that of the manager is
to organize resources for the that factor.
 The role of management is to avoid conflicts among the employees while the role of
leadership is to encourage healthy conflict among employees.
 Leadership establishes professional and also personal relationship with the employees to
provide them sense of belongingness while management works in a professional capacity.
 Management pays salary, benefit etc. to employees to retain them while role of leadership
is to create a healthy work environment where employees feel engages and appreciated.
Part 4 - Managerial decisions on team and organizational performance.
Decision making is the selection of alternative course of action from available
alternatives in order to achieve a given objective. Any decision related to the operation of Marks
& Spencer is a managerial decision. It is an act requiring judgement that is translated into
actions. These decisions are very critical for managers as a wrong move can impact the whole
organization and people adversely. The Stages of managerial decision-making starts from
identifying and diagnosing the problem, generating alternative solution, evaluating those
solutions, after evaluating making a choice and implementing the decisions and lastly evaluating
the decision. The following are the types of decisions managers of Marks & Spencer has to take
on team and organizational performance :
Programmed decisions : These decisions are generally repetitive in nature and deals in simple,
common and frequently occurring problems. These decisions are generally made in a well-
structured situation, takes less time and is inexpensive in nature. The problem occurring
frequently in the team can be sort out by taking these decisions and the performance can be

enhanced and as these decisions are well programmed it enhances the organizational
performance and productivity as these decisions are taken on a uniform basis.
Non-programmed decisions : These decisions are not routine in nature and is related to
exceptional situations for which there is no established procedure. Most of the important
decisions fall into this category (Morozova. and Glazova, 2020). These decisions greatly impact
team performance as team are made to perform specific task and achieve some specific
objective. As these decisions are taken for crucial purpose therefore it do impact M&S
performance.
Organizational decisions : As these decisions are taken by the top executives and have long
term impact on management and affect the organizational functions directly. The team only have
to follow the instructions and implement therefore it enhances their performance but can reduce
their creativity. Organizational performance is increased by this decision as it taken by top
executive after deeply analysing the facts.
Group decisions: These decisions are taken by a group of people in the organization for
example decision taken by group of team members or decision taken by group of shareholders
etc. The team performance is boosted as members are involved in discussions which enhances
their morale and ultimately improves team performance. These group decisions maintains a
healthy work culture in the organization and this improves the organizational performance.
Problem solving decisions : These decisions increases coordination among the team members
as all of them focus on solving the problem and all efforts are put into it which enhances their
performance. And in terms of organization, as problem is solved it will automatically lead to
improved M&S performance (Majeed. and Zhang, 2016).
Major and minor decisions : Decisions which are relatively important are major decisions
while those which are less important are minor decisions.
CONCLUSION
It can be concluded that leadership is about inspiring and management is about planning.
There may be many similarities in leadership and management There is a difference between the
two. As leadership is much broader term than management. There are many impacts of
leadership and management styles on the business of M&S like Improve team performance,
Enhance individual work efficiency of employee, Innovation lead to more growth. There is a

purpose of leadership and management in meeting the needs of employees and organization.
Also, team and organizational performance is impacted by managerial decisions such as
programmed decisions, non-programmed decisions, organizational decisions, group decisions,
problem-solving decisions etc.
REFERENCES
Books and journals
Anra, Y. and Yamin, M., 2017. Relationships between lecturer performance, organizational
culture, leadership, and achievement motivation. Форсайт, 11(2 (eng)).
Hutchinson, K., 2018. Leadership purpose. In Leadership and small business (pp. 53-68).
Palgrave Macmillan, Cham.
Majeed, M.A. and Zhang, X.Z., 2016. Competitive pressure and managerial decisions. Chinese
Management Studies.
Morozova, I.A. and Glazova, M.V., 2020. BASIC TYPES OF MANAGERIAL DECISIONS
AND FEATURES OF THE PROCESS OF THEIR ADOPTION. Международный
научно-исследовательский журнал. (6 (96) Часть 4). pp.88-92.
Shen, Y. and et.al., 2017. The impact of transformational leadership on safety climate and
individual safety behavior on construction sites. International journal of environmental
research and public health.14(1). p.45.
Silva, A., 2016. What is leadership?. Journal of Business Studies Quarterly. 8(1). p.1.
Swanwick, T., 2019. Leadership and management: what’s the difference?. BMJ Leader,
pp.leader-2019.
Wajdi, B.N., 2017. The differences between management and leadership. Sinergi: Jurnal Ilmiah
Ilmu Manajemen. 7(1).
Online
Duggal, N., 2020. The difference Between Leadership and Management. [Online]. Accessed
through<https://www.simplilearn.com/leadership-vs-management-difference-article>