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Management vs Leadership in a Business

In a business, there are two main ways a business is run: by management or leadership. With leadership, there are four types being laissez-faire, democratic, paternalistic and authoritarian. This article will go over what management, leadership, laissez-faire, democratic, paternalistic and authoritarian are.

Leadership is a relationship through which one person influences the behaviour and actions of others.

Management is a person who follows a plan and uses their authority to tell their workers what they need to do.

There are four main leadership styles as I have already mentioned:
  • Laissez-faire.
  • Democratic.
  • Paternalistic.
  • Authoritarian.
  • This is where the person has a conscious decision to delegate.
  • Managers and employees are free to do what they think is best (links in with a soft HR approach).
  • Staff must be willing to take responsibility.
  • This is when power is with the group as a whole. 
  • Leadership is shared.
  • Employees aid decision making.
  • There is delegation and consultation.
  • This is where the leader decides what is best.
  • Addresses the employee's needs.
  • Little arguing: what says goes.
  • There is little delegation.
  • Less chance for promotion, power for employees, initiative, and motivation.
  • This is focused on the manager.
  • It uses top down communication.
  • There are reward and penalties.
  • There is little delegation.

About Will Green

A student in England studying Automotive Engineering with Motorsport, Will created Ask Will Online back in 2010 to help students revise and bloggers make money. You can follow AskWillOnline via @AskWillOnline.

2 comments so far:

  1. Well, Me also wonder why sometimes it happens like that. But thanks for elaborating the situation.

  2. I am pro-leadership. I believe this type of administration allows employees to take part of the planning in every aspect of the business. When me and my partner planned to form an llc, we wanted a team that would be productive, creative and contributing.