The management and leadership of organisations is played out through formal organisational structures with their accompanying rules and regulations, but the practice of both management and leadership influences is also influenced by, an organisation’s culture, the way power is distributed and the approach taken to conflicts. Thus management and leadership are both parts of the formal and informal aspects of organisational life. So what is the underlying difference between the two? A distinction can be made that places management rather more firmly in the context of the formal organisation with leadership more naturally associated with the informal aspects of organisations. The dictionary definitions of management – The act, manner, or practice of managing; handling, supervision, or control and leadership – an act or instance of leading; guidance; direction is not the same.
Management can be thought of as a function that is part of an organisation’s formal structure. This is evident in Mullins’s (2005, p. 190) statement that he regards management as: taking place within a structured organisational setting and with prescribed roles; directed towards the attainment of aims and objectives; achieved through the efforts of other people; and using systems and procedures. He also goes on to say: It is through the process of management that the efforts of members of the organisation are co-ordinated, directed and guided towards the achievement of organisational goals. Management is therefore the cornerstone of organisational effectiveness, and is concerned with arrangements for the carrying out of organisational processes and execution of work. This definition draws on the idea that management is a particular function, which is embedded in the organisational structure and involves a number of different kinds of activities that are associated with each other. Thus Fayol (1949) proposed five elements of management – planning, organising, commanding, coordinating,...