This report, prepared for the CEO of Rays of Sunshine by the Human Resource Manager, meticulously contrasts the roles and functions of leaders and managers. It begins with an executive summary outlining the report's objective: to differentiate leadership and management roles, focusing on the practical application of relevant theories to enhance human relations within the organization. The introduction distinguishes between managers, who assign tasks, and leaders, who inspire and guide. The report then details the characteristics of both managers and leaders, highlighting key attributes such as positive attitudes, self-motivation, and calmness for managers, and honesty, communication, and commitment for leaders. A comparative analysis underscores the differences, such as managers solving problems and implementing strategies, while leaders focus on empowering people and fostering long-term vision. The report examines management theories like Taylor's scientific management, Fayol's administrative theory, and Mayo's human relations theory, alongside leadership theories including Adair's action-centered theory, transformational, and transactional leadership. The application section explores the functions of managers and leaders in various situations. Finally, the report applies situational, contingency, and system theories to Rays of Sunshine, concluding with recommendations for improved leadership and management practices.