Final answer:
Management focuses on maintaining the status quo and involves supervision and a reward system, characterized as transactional leadership. Leadership inspires change and includes transformational qualities such as charisma and intellectual stimulation. Effective leadership can vary in style and is often more successful with transformational approaches.
Step-by-step explanation:
Key Differences Between Management and Leadership
Management and leadership are two distinctive but complementary systems of action within organizations. Management is traditionally about maintaining the status quo and involves supervision, organizational goals, and a system of rewards and punishments, often characterized as transactional leadership. Managers focus on processes, systems, and structures to ensure that an organization achieves its goals efficiently and effectively.
On the other hand, leadership is more concerned with inspiring and influencing change through vision and innovation. Transformational leaders are charismatic, inspirational, intellectually stimulating, and considerate. They encourage critical thinking and problem-solving, promote emotional strength and health, and ensure that people feel supported.
Different leadership styles, such as democratic, laissez-faire, and authoritarian, can be appropriate in various contexts. Effective leadership may involve a combination of these styles, with considerations for the leader-follower dynamic, which is influenced by individuals' varying responses and preferences. Studies suggest that transformational leadership approaches are often more effective than transactional ones, though leaders may exhibit elements of both.