There are a couple of important differences between management and leadership, between the practices of these two divisions, to be more precise. Management is usually is usually seen as someone’s capacity to deal with complex structures. The practices and procedures in management have come as a result of one of the most important aspects of the world which is oversized companies. Without good management a complex company risks of becoming chaotic. Great management can reduce this chaos and bring consistency in key points of a company’s development, turning into a perfectly functioning organization.

Management usually deals with complexity, whereas leadership deals with ways of implementing change. As opposed to management, leadership is more about change. The business environment is constantly subjected to rapid changes. Markets have become increasingly volatile in a world where keeping up with technology seems to be a constant race. Management does no longer keep a success formula in the top drawer of their fancy office, therefore companies need a strong and competent leader in order to keep up with these changes.

For instance, in times of peace an army can survive and work with an effective manager and a good leader. However, come war and the army needs competent leaders in all aspects of combat. In a battle soldiers need to be led, not managed.

Both management and leadership imply making decisions regarding the company’s goals, building up teams and networks and in the end making sure that the work is actually being done. However, each of them does all of these things in a different manner.

Most of the times everything related to numbers, reports, graphics and so one is lies within the responsibility of the management whereas everything related to putting things in words is the responsibility of the leadership.

First of all, companies deal with complexity. Planning and budgeting helps with setting certain objectives and following concrete steps in order to reach those objectives as well as with allowing suitable resources so that the plans can be fulfilled. In contrast, a leader sets a direction, envisions the future of the company and builds strategies in order to change the approach so that it is accordingly to the set goals. Management develops the company’s ability to stick to this strategy by building a suitable organizational structure, delegating tasks and monitoring the evolution of their completion. A leader motivates his employees and gets them on board with the company’s goals.

After these steps are taken, management is responsible of monitoring, identifying problems and offering solutions, identifying possible deviations from the original plan, reorganizing, encouraging and penalizing according to plan. As for leadership, it becomes responsible of motivating and inspiring the employees based on their values and needs.