Management is a set of activities (including planning & decision making, organizing, leading & controlling) directed at an organization's resources (human, financial, physical and information) with the aim of achieving organizational goals in an efficient and effective manner.

Leadership:

Leadership is defined as influence, that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of the goals.

Difference between management and leadership:

From the definitions, it is clear leadership and management are related, but distinct, constructs. Managers and leaders differ in how they create an agenda, develop a ration able for achieving the agenda, and execute plans and in the types of outcomes they achieve. The main differences between management and leadership are….

ØManagement establishes detailed steps and timetables for achieving needed results; allocates the resources necessary to make those needed results happen. On the other hand, leadership develops a vision of the future, often the distant future and strategies for producing the changes needed to achieve that vision.

ØManagement establishes some structure for accomplishing plan requirements, delegates responsibility and authority for carrying out the plan, provides policies and procedures to help guide people, and creates methods or systems to monitor implementation. But leadership communicates the direction by words and deeds to everyone whose cooperation may be needed to influence the creation of terms and coalitions that understand the visions and strategies and accept their validity.

ØManagement monitors results versus planning in some detail, identifies deviations and then plans and organizes to solve these problems. On the other hand, leadership energizes people to overcome major political, bureaucratic, and resource barriers by satisfying very basic, but often unfulfilled, human needs.

ØManagement produces a degree of predictability and order and has the potential to produce consistently major results expected by various stakeholders (for example, for customers, always being on time; for stockholders, being on budget). But leadership produces changes, often to a dramatic degree and has the potential to produce extremely useful changes (for example, new products that customers want, new approaches to labor relations that help make a firm more competitive).

On the above discussion we can say, organizations need both management and leadership though there are some differences. Leadership is necessary to create change and management is necessary to achieve orderly results. Management in conjunction with leadership can produce orderly change, and leadership in conjunction with management can keep the organization properly aligned with its environment.