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You may think of the words “manager” and “leader” as two concepts representing
opposite ends of a continuum. The term manager typifies the more structured, controlled,
analytical, orderly, and rule-oriented end of the continuum. The leader end of the
continuum connotes a more experimental, visionary, unstructured, flexible, and
impassioned side. Managers and leaders are not the same. They think differently
internally, and behave differently externally. The two are related, but their central
functions are different. Management's concern with efficiency means doing things right
to conserve resources. Leadership is focused on effectiveness - doing the right thing.
For example, the military must manage its resources well to maximize efficiency.
But in waging war, the military's critical responsibility is to be effective and win the war
regardless of the resources required. Getting a bargain does not reflect effective
leadership if it means losing the war.
Good management is important, but good leadership is essential. The business sector in
today’s society is increasing rapidly, and with this increase comes the need for more
people to manage and lead the growing companies, but this growing need also raises
some potential questions: Can anyone become a leader or a manager? Is there a
difference between the two? Can people be trained to become leaders or a managers? Just
like many other questions that might be asked in business; these questions have no one,
definite answer. Let’s begin first by acknowledging the definitions of the two root words;
the word manage means to handle, where as the word lead means to go. Similarly as the
two words have different definitions, they also have different purposes. The manager
administers; the leader innovates.

A manager basically directs resources to complete predetermined goals or projects. For

example, a manager may engage in hiring, training, and scheduling employees in order to
accomplish work in the most efficient and cost effective manner possible. A manager is
considered a failure if he/she is not able to complete the project or goals with efficiency
or when the cost becomes too high.

On the other hand, a leader within a company develops individuals in order to complete
predetermined goals and projects. A leader develops relationships with his/her employees
by building communication, evoking images of success, and by eliciting loyalty.

Here are some key differences:

• A manager takes care of where you are; a leader takes you to a new place.
• A manager deals with complexity; a leader deals with uncertainty.
• A manager is concerned with finding the facts; a leader makes decisions.
• A manager is concerned with doing things right; a leader is concerned with
doing the right things.
• A manager's critical concern is efficiency; a leader focuses on effectiveness.
• A manager creates policies; a leader establishes principles.
• A manager sees and hears what is going on; a leader hears when there is no
sound and sees when there is no light.
• A manager finds answers and solutions; a leader formulates the questions and
identifies the problems.
• A manager looks for similarities between current and previous problems; a
leader looks for differences.
• A manager thinks that a successful solution to a management problem can be
used again; a leader wonders whether the problem in a new environment might
require a different solution.
Management's concern with efficiency means doing things right to conserve resources.
Leadership is focused on effectiveness - doing the right thing. For example, the military
must manage its resources well to maximize efficiency. But in waging war, the military's
critical responsibility is to be effective and win the war regardless of the resources
required. Getting a bargain does not reflect effective leadership if it means losing the war.
The manager is a copy; the leader is an original.

The manager maintains; the leader develops.

The manager focuses on systems and structure; the leader focuses on people.

The manager relies on control; the leader inspires trust.

The manager has a short-range view; the leader has a long-range perspective.

The managers asks how and when; the leader asks what and why.
Managers have their eyes on the bottom line; leaders have their eyes on the horizon.
The manager imitates; the leader originates.
The manager accepts the status quo; the leader challenges it.
The manager is the classic good soldier; the leader is his own person.
The manager does things right; the leader does the right thing.


Manager: A company CEO directs Sarah, one of the companies up and coming
managers, to hire enough new employees to provide the company with a state-of-the-art
customer service department. Sarah undertakes her project with enthusiasm. She hires
only those employees who can work the assigned hours, will accept the modest pay, and
have experience working in customer service. She trains her new employees to perform
the job to her expectations and assigns the employees to their new positions. Sarah
measures her success in terms of efficiency, calls handled per hour, and cost
effectiveness, i.e., did she meet her budget. However, Sarah did not anticipate that of the
employees she hired, only a handful would remain working six months later.

Leader: Rob obtains the same assignment as Sarah. Rob hires employees that he believes
he can develop a working relationship with, versus just those employees who will worked
the assigned hours and take the modest pay. Rob's goal is to hire a diverse group of
employees, some of who do not have any customer service experience, who he feels he
can develop a personal connection. A large part of Rob's training involves team building,
telling successful stories, and listening to each employee's own desires for what
constitutes a fulfilling job. Rob still assigns his employees their job duties and schedules
at the end of training, and he also measures success in terms of efficient and cost
effectiveness, but he also measures success in terms of low employee turnover, employee
morale, and employee development. Rob feels proud when one of his employees obtains
an advance level position a year or two after being hired.
Directs/oversee people or process
Handles day to day functions
Most concerned with efficiency
The "how" structure(e.g.: policy, procedures, systems)


Manager--- I implement the rules
Leaders-----I knw these rules seem arbitrary but they actually serve a good purpose
Let me show you how you can use them to your advantage
Manager----positional over people
Leader----power with people
Manager---directs the doing
Leader---provides tools and training, then allows employees to "do it" by letting go
Manager-----solve problems
Leaders---facilitates employees in resolving problems
Mangers---arise via necessity
Leaders----arise via desire, proactive
Managers---limitation focused on present vs, new possibilities
Leader---growth-"the sky is the limit"
New possibilities
Manger---concerned with efficiency-sets objectives and focuses on achieving goals(e.g:
increasing productiviy)
Tells employees: work smaerter not harder"
Leaders----concerned with effectiveness-Are we doing the right ting ?
Leads their followersd to the fulfillment of teir potential:from where they are to where
they could be
Manger----understand how things work and how to accomplish the work
Leader---detemines what needs to be done and wehy (sets the vision)
Is open to how those goals are reached

Managers and Leaders - Comparison of Traits

Managers . . . Leaders . . .
are analytical, structured, controlled, are experimental, visionary, flexible,
deliberate and orderly unfettered and creative

Primary Problem-Solving Method:

Managers . . . Leaders . . .
Use the power of the logical mind use the power of intuition

Competitive Strategy/Advantage Focus:

Managers . . . Leaders . . .
Concentrate on Strategy Nurture Culture
Consider Dangers Sense Opportunity
Follow Versions Pursue Visions
Isolate Correlate
Determine Scope of Problems Search for Alternative Solutions
Seek Markets Serve People
Think Rivals / Competition Think Partners / Cooperation
Design Incremental Strategies Lay Out Sweeping Strategies
Correct Strategic Weaknesses Build on Strategic Strengths

Organizational Culture/Capability:
Managers . . . Leaders . . .
Wield Authority Apply Influence
Seek Uniformity Pursue Unity
Administer Programs Develop People
Formulate Policy Set Examples
Instruct Inspire
Manage by Goals / Objectives Manage by Interaction
Control Empower
Easily Release Employees Would Rather Enhance Employees
Employ Consistency Elicit Creativity

External/Internal Change:
Managers . . . Leaders . . .
Yearn for Stability Thrive on Crisis
Duplicate Originate
Fasten Things Down Unfasten Them
Drive Toward Compromise Work to Polarize
See Complexity See Simplicity
React Proactive
Plan Experiment
Reorganize Redevelop
Refine Revolutionize

Individual Effectiveness Style:

Managers . . . Leaders . . .
Ask How (Seek Methods) Wonder Why (Seek Motives)
Think Logically Think Laterally
Perpetuate Hierarchies Strive for Equality
Are Skeptical Are Optimistic
Plan Around Confront
Take Charge Encourage Delegation
Like Formality Prefer Informality
Venerate Science Revere Art
Perform Duties Pursue Dreams

Bottom-Line Performance/Results:
Managers . . . Leaders . . .
Scrutinize Performance Search for Potential
Are Dependent Are Independent
Compensate People Satisfy Them
Conserve Assets Risk Them
Pursue the Tangible Seek the Intangible
Inhabit the Present Reside in the Future
Concentrate on Short-term Results Seek Long-term Results
Want Good Demand Better

Managers . . . Leaders . . .
Henry Ford, Ford Motor Company Ray Kroc, McDonald's
Harold Geneen, ITT Walt Disney, Disney Studios
John Akers, IBM Ross Perot, EDS and Perot Systems
Tom Landry, Dallas Cowboys Ted Turner, Turner Broadcasting
Charles Knight, Emerson Electric Steven Jobs, Apple Computer
George Bush, President of the U.S. Bill Clinton, President of the U.S.
Can a Manager be a Leader and a Leader be a Manager?

The answer to the question is "yes." The skills to be a leader or a manager are not
exclusive in nature. A leader who only displays leadership skills will be ineffective when
it comes to checking time cards, completing employee reviews, and scheduling employee
vacation time; things that employers require their managers to do on timely bases.
Similarly, a manager who spends all his/her time completing paperwork and reading
reports; only creates more problems for him or her because they lack a developing
relationship with their employees.

Leaders or managers? How do leaders differ from managers?

• Leaders direct, managers execute.

• Management is like investment - getting the best return from all resources - your
own energy, talent and time plus all other resources at your disposal.
• Management requires efficiency, profitability, depends on minimal inputs for
maximum returns.
• To manage well, regularly review your priorities, just as you would your
• The same person can both lead and manage - they are different functions.
• Managers are like sports coaches - they inspire and develop people to get the best
peformance out of them.
• They also provide structure and meaure output.
• Leaders champion change. They may or may not manage people.
• Management is a role, a set of responsibilities.
• Leadership is not a role. It is an occasional act, like creativity.
• Managers can be inspiring, empowering, nurturing, supportive and encouraging.
An inspiring leader moves us to change direction. An inspiring manager moves us
to work harder.
• Managers use open questions to draw solutions out of others as a way of reaching
better decisions, fostering broader ownership and developing people.
• By contrast, leaders propose novel solutions. They want to persuade prospective
followers that they know a better way of doing things.
• Managers occupy a role of responsibility for people. They may show leadership
too, but leadership can also be shown by non-managers.

Changing Styles for the New Millennium

Quality: Empowerment

Moving from Management: Moving toward Leadership:

Punishment Reward
Demands "respect" Invites speaking out
Drill sargeant Motivator
Limits and defines Empowers
Imposes discipline Values creativity
"Here's what we're going to do!" "How can I serve you?"
Bottom line Vision

Quality: Restructure

Moving from Management: Moving toward Leadership:

Control Change
Rank Connection
Hierarchy Network
Rigid Flexible
Automatic annual raises Pay for performance
Performance review Mutual contract for results
Mechanistic Wholistic
Compartmental Systemic

Quality: Teaching

Moving from Management: Moving toward Leadership:

Order-giving Facilitating
Military archetype Teaching archetype

Quality: Role Model

Moving from Management: Moving toward Leadership:

Issues orders Acts as role model
Demands unquestioning obedience Coaches and mentors others

Quality: Openness

Moving from Management: Moving toward Leadership:

Keeping people on their toes Nourishing environment for growth
Reach up/down Reach out
Information control Information availability
Quality: Questions and Answers

Moving from Management: Moving toward Leadership:

Knows all the answers Asks the right questions
Not interested in new answers Seeks to learn and draw out new ideas