Leadership refers to the capacity of management to make effective choices and motivate individuals to perform at their best. It involves guiding others’ actions towards the attainment of a shared objective. In essence, leadership entails accomplishing tasks by working together with others.

Importance of Leadership

Effective leadership plays a crucial role in a company as it results in enhanced team performance, boosts motivation and morale among team members, and enables them to effectively adapt to change.

Leadership is instrumental in promoting organizational success by fostering a sense of responsibility and accountability among individuals within the organization. In essence, it adds value to the company.

Comparison of Leader and Manager

A leader is an individual whom others choose to follow or who provides guidance and direction to others. On the other hand, a manager is responsible for overseeing and controlling the work and employees within an organization or a specific department.

The key distinction between the two is that a leader leads through personal example, whereas a manager establishes and enforces expectations. If a manager disregards the established rules, it can damage their position as a manager. Conversely, if a leader fails to uphold the standards they set, it is viewed as a setback. Here are some subtle differences between leaders and managers.

  • A leader is someone who brings new ideas and brings about innovation, while a manager takes charge and gives orders.
  • A leader cannot fulfill the role of a manager, but it is possible for a manager to possess leadership qualities that go beyond being a leader.
  • A leader focuses on doing what is morally correct, while a manager focuses on ensuring tasks are completed correctly.
  • A leader embraces change and adapts to it, while a manager plans and prepares for changes.
  • A leader provides guidance and sets the direction for actions, while a manager plans and coordinates all tasks.
  • A leader motivates and inspires people, while a manager exercises control over them.
  • A leader is responsible for communication, building trust, and empowering others, whereas a manager is responsible for organizing and staffing.

Leadership Styles

In work environments, various leadership styles are present. The most suitable leadership style is determined by the organization’s culture and goals. Certain organizations may even adopt multiple leadership styles to accommodate diverse tasks and departmental requirements.

There are five distinct leadership styles commonly observed in the corporate world. These include the following:


The autocratic leadership style allows managers to make decisions independently without involving others. Managers have complete authority and enforce their decisions on employees, who do not question or challenge them. Autocratic leadership is seen in countries like Cuba and North Korea.

This leadership style is advantageous for individuals who need close monitoring and guidance. However, it is disliked by creative employees who prefer to be involved in group activities and decision-making.


This leadership approach is commonly referred to as democratic leadership. It emphasizes the importance of input from team members and colleagues, while ultimately granting the participative leader the responsibility of making the final decision. Participative leadership boosts employee morale by involving them in the decision-making process, making them feel that their opinions hold significance.

When an organization requires internal changes, the participative leadership style facilitates smooth acceptance among employees as they are involved in the process. However, this leadership style may encounter difficulties when companies face time constraints and need to make prompt decisions.


The transactional leadership style is based on the idea of using rewards and punishments to motivate employees. Transactional leaders believe that an employee’s performance is primarily influenced by these two factors. When employees receive positive reinforcement or incentives, such as monetary bonuses, they are motivated to exert their best effort. Conversely, if they fail to meet the predetermined goals, they are subjected to negative evaluations or appraisals.

Transactional leaders prioritize the physical and security needs of their employees, focusing on providing a safe and comfortable work environment.


Transformational leadership has the power to influence how employees perceive their work by leveraging the advantages gained by the organization in terms of human capital. These leaders can achieve greater benefits by implementing knowledge management practices, fostering communication among employees, and establishing a positive organizational culture.

This leadership style facilitates the growth of organizational innovation by cultivating a participative environment or culture. It encourages employees to freely express their ideas and share knowledge, granting them autonomy in the process.


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