Workers no longer want to be managed. Employees demand leadership. Leaders and managers are different.

By definition, a manager works within a system to maintain existing goals and direction. They use people and equipment to meet a goal or they use a process to produce results. A leader by contrast, sets the direction for projects. They bring vision to reality by gaining commitment from the people in the organization. Managers Leaders Work within the existing culture Create visions and excitement Maintain existing relationships Set a direction Plan and budget Align people Organize and staff Build new relationships and structure Control and problem solve Motivate and inspire Successful organizations need both managers and leaders. Management activities are critical to any business. Most often, management is providing the what that needs to be done in the daily operation. Leadership provides the how those management activities get accomplished. Companies should have the what and how aligned for optimum results. For example, when senior management shares the company vision with the workforce, they understand their role in the overall picture. This leads to greater employee buy-in and increased productivity. Then, the workforce is able to share feedback with senior management regarding processes/procedures that support the vision. This creates collaboration and greater efficiency. The practice of leadership is a key business differentiator. Companies are looking for ways to grow their products/services, business relationships, and market share. How can you accomplish more with less? Leadership. There are 3 common traits that leaders possess: 1. Inspire. Leaders create the energy for employees to do their best. They clear roadblocks and encourage creativity. 2. Communicate. Leaders keep employees informed about the organization. They build relationships at all levels in the organization. 3. Support. Great leaders create environments where employees feel safe to speak up. The business environment is constantly changing, but the leadership component remains steadfast. Its important for managers to work collectively to identify and develop leaders in the organization. The success of this collaboration has a direct impact on a companys future.
Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern.

1. Initiates action- Leader is a person who starts the work by communicating the policies and plans to the 2. Motivation- A leader proves to be playing an incentive role in the concerns working. He motivates the
employees with economic and non-economic rewards and thereby gets the work from the subordinates. subordinates from where the work actually starts.

3. Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. 4. 5. 6.
Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems. Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals. Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms. Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective co-ordination which should be primary motive of a leader.

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