Leadership vs. Management -What's the Difference?

RUNNING HEAD: LEADERSHIP AND MANAGEMNT
Title: Leadership and Management
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1LEADERSHIP AND MANAGEMENT
Introduction:
Leadership in the Organisational behaviour is defined as the ability of managing the
people in the organisations and making wise decisions in inspiring the people in the organisation
to perform well (Arrons, Green& Trott et al, 2016). It is thus, in short, the ability of persuading
other by means of influencing and inspiring them in achieving the common goal of the
organisation. The whole process of leadership makes an executive to guide, set a direction and
influence the organisational behaviour in a given situation. An effective leadership skill also
includes the infusion of the zeal and confidence among the employees.
Leadership is mainly characterised as an inter-personal process that includes the
managing and guiding of the employees through effective communication and identification of
the problem. The main qualities that are required for being an effective leader are maturity,
intelligence and personality. Since, the whole process of leadership involves a two way
interaction, communication is the key fir leadership. A leader is expected to involve into
moulding and shaping the perspective of the behaviour, through an effective and positive
communication. Through the process of this co-ordination, the leader is supposed to reconcile
the personal interests with the organisational goal. Since, the art of leadership is totally
situational and no particular style can suit all the situation, various leadership styles have been
formulated by analysing the behavioural differences in the organisations.
Leadership Styles:
Though the main purpose of leadership in the organisation is the achievement of the
shared goal, the styles in leadership varies in different organisation depending on the

2LEADERSHIP AND MANAGEMENT
organisational culture and the mindset of the employees. Different leadership styles impart
different impact in the organisation. A leader has to be judicious enough to identify the most
suitable style of leadership depending on the structure and situation of the organisation since it is
a crucial factor in the success of the team. The various leadership styles are discussed further:
1. Transactional leadership:
Max Weber first formulated this style of leadership in 1947, which was further
remodelled by Bernard Bass in 1981. The managers in the organisation as the main focus of this
style is on the management process of organising, controlling or the short-term planning. The
purpose of the transactional leadership is the effective interaction between the followers and the
leaders. The main premise of this leadership style is that the members will be agreeing to abide
by the leader after taking a particular responsibility (Nazzim, 2016). The main idea of
“transaction” comes from the agreement that they will be payed by the organisation in return of
their compliance and effort. This style is based on the concept of the reward and punishment as
the organisation is of the view that the behaviour of the employees solely depend on these two
factors. The transaction thus involved in the whole process is a rewarding motivation for the
employees. thus, the motivation or encouragement is done through the system of rewards and
punishment. The main transactions involved in the process are:
1. Contingent Reward- the goal of the organisation as well as the employee is linked with reward
in this case. The expectations are clarified and the team is presented with the required resources
and upon the successful attainment of goals, they are rewarded (Karthikeyan, 2017)..

3LEADERSHIP AND MANAGEMENT
2. Active Management: the leaders in this kind of leadership styles are active in monitoring the
performance of the team and keep a watch on any kind of deviation from the set rules and policy.
They take corrective actions for preventing the mistakes.
3. Passive Management Expectation: in general the transactional leaders do not intervene in the
ongoing task and give the team an optimum freedom. However, in case of deviation from
standards they intervene and can use the mode of punishment as a corrective response to the
inappropriate performance.
2. Autocratic Leadership:
Also known as, the Authoritarian leadership style, the autocratic style is characterised by
the controlling of the whole action by one individual. This type of leadership do not take into
consideration the inputs of the team members and the decision making process is solely done by
the leader. In this type of leadership, the total authority is accessed by the leader, who imposes
the decisions and course of actions upon the employees. No opposition or deviations from the set
rules or decisions are accepted (Karthikeyan, 2017). This type of the leadership involves the
absolute control over the group. This leadership style is one of the most classical approach where
the motivation for the employees is created by the formation of a structured set of punishment as
well as reward. The autocratic leadership is the most effective style when an urgent decision has
to be taken. The autocratic leaders are mostly concerned with the three pillars- preparation,
discipline and victory. Thus, this kind of leadership is mostly effective in areas where staffs need
training and things are to be done with perfectness.