Managers Versus Leaders (AQA A Level Business) : Revision Note

What do managers do?

• A manager is an individual responsible for overseeing the day-to-day organisation of a team or a specific function

• Managers exist at various levels within a business organisation

• Large businesses usually have several layers of management with distinct responsibilities

  • Directors and executives establish the business’ overall goals and set long-term targets for the business

    • They are ultimately responsible for business performance

  • Senior managers work to achieve the targets set by the owners or directors

    • They are often responsible for a function within the business, e.g. marketing or finance

  • Supervisors and team leaders support senior managers to achieve their targets

    • They report problems and pass on instructions

    • They may make simple decisions, such as allocating jobs among different employees

• Managers perform four important functions within a business

Managerial Functions

The importance of a leader

• Leadership is about having a vision, sharing that vision with others and providing direction

Leadership vs management

Key differences between leadership and management

1. Vision vs. execution

   • Leadership focuses on creating a vision, setting direction, and inspiring others to follow

   • Management focuses on executing plans, organising resources and ensuring tasks are completed on time

2. Influence vs. control

   • Leadership focuses on influencing others to achieve a common goal by inspiring and motivating

   • Management focuses on controlling resources and processes to ensure that objectives are met

3. People vs. processes

   • Leadership focuses on people, their needs, and their motivation

   • Management focuses on processes, structures and systems

4. Long-term vs. short-term

   • Leadership focuses on the long-term vision and strategy

   • Management focuses on short-term goals and targets

5. Creativity vs. efficiency

   • Leadership encourages creativity and innovation

   • Management focuses more on efficiency and productivity