Final answer:
Leadership and management are complementary systems according to John Kotter, who argues that they work in tandem, not in competition. Leaders set directions and inspire, while managers plan and solve problems. Both transformational and transactional leadership traits can be effective.
Step-by-step explanation:
John Kotter, a renowned professor at Harvard Business School and authority on leadership and change, posits that leadership and management serve as complementary systems of action within organizations. Kotter emphasizes that these systems do not compete against each other; rather, they harmonize to achieve success within a company. While leadership concerns setting direction, aligning people, and motivating and inspiring, management deals with planning and budgeting, organizing and staffing, and controlling and problem-solving.
Research, including that conducted by Eagly, Johannesen-Schmidt, & van Engen in 2003, indicates that transformational leadership approaches are generally more effective than transactional ones in inspiring employees to achieve greater performance and satisfaction. However, successful leaders often display characteristics of both transformational and transactional approaches, suggesting that versatility in leadership styles is beneficial in navigating various organizational challenges.