Leading versus Managing ( Part 3)

The vital issue when analysing the key differentiating points between leadership and management is the theory that employees willingly follow leaders because they want to, not because they have to.
A leader may not have the formal authority to reward good or to penalize poor performance , but followers provide leaders with real power by attending their requests.
Managers on the opposite side, may have to use their formal authority to get their reports to perform accordingly.
In modern companies the persons who are the key driver achieve authority through, and only through, their success.

Leading versus Managing ( Part 2)

Managers have to deal with complexity, they handle it, by bringing order into a situation and predicting its outcome. But, to succeed in times of uncertainty and turbulence, those tasks are no longer enough. Nowadays companies are desperately trying to adapt themselves to a rapidly and constantly changing business environment. To achieve this, managers have to learn how to manage change, or, how Professor John F. Kotter, Konosuke Matsushita Professor of Leadership at Harvard Business School expressed; they have to lead change.
The question that managers facing change have to ask is:
What do I need most “ to develop more Leadership or more Managing skills ?
What are the crucial distinctive elements on both definitions?
1. Management involves planning and budgeting. Leadership involves setting a direction.
2. Management involves organizing and staffing. Leadership involves aligning and inspiring people.
3. Management provides control and problem solving skills. Leadership drives motivation.
The challenge is to know when to be a leader and when to be a manager,
Both skill sets—management and leadership—are needed to achieve organizational goals. Managers typically take care of the inner-workings of the business. They design systems, create rules and procedures and oversee daily operations.
Leading involves motivating and inspiring people, both directly or indirectly. Leaders are often seen as collaborative, visionary and tuned with the needs of their staff. Leaders have a high level of personal involvement in a company or project. They are able to set the tone with their behavior and attitude (leading by example) and influence decisions (credibility and power).
Sometimes, however, we must wear both hats , the one of a leader and the one of a manager . "we may be in a leadership position, but we still need to manage every day if we want to stay profitable and keep a our stakeholders satisfied.