Management vs. Leadership
You had one job…oh wait, actually… you had TWO
Management vs. Leadership: The delicate, yet critical, balance of driving productivity while keeping engagement high.
At the beginning of my workshops with leaders, I encourage participants to debate the value of Management vs. Leadership. In essence, which skillset (when skillfully demonstrated) can be linked to cost reduction, quality improvement, waste elimination, customer satisfaction, and low turnover? And, which, when found lacking, can have a detrimental effect on those same metrics? Inevitably, the room is split in their responses. The answer, of course, is “both”. Both management and leadership skills impact the success of organizations.
As a manager and leader of people within your organization, you have two primary responsibilities: to keep employees producing quality work and to create a work culture and climate that engages them. Your ability to swivel your proverbial office chair in both directions will set you apart from your peers in both performance and followership.
The terms "management" and "leadership" are often used interchangeably. However, they represent distinct sets of skills and approaches that play unique roles in the success of organizations. Understanding the difference between management and leadership—and recognizing their complementary nature—can significantly impact an organization’s productivity and employee engagement.
The Essence of Management: Driving Productivity
Employees who are aligned to team objectives, who set and monitor goals, and who are held accountable for high-quality work are productive employees. Their work is completed on time and at budget. Their work is planned, organized, controlled, measured, and reported. In essence, these are the quintessential actions of management and are critical to an organization’s success. Their primary focus is on the smooth operation of the organization, optimizing processes, and meeting targets.
Skilled Managers:
Plan and Budget: Setting short-term and long-term goals, allocating resources, and planning actions.
Organize and Staff: Structuring teams, assigning roles, and ensuring that the right people are in the right positions.
Control and Problem Solve: Monitoring performance, identifying issues, and implementing corrective measures.
Effective management is crucial for maintaining stability and efficiency. It ensures that day-to-day operations run smoothly and that resources are used optimally to achieve organizational goals.
The Essence of Leadership: Fostering Employee Engagement
Employees who take the initiative, influence stakeholders, communicate rhythmically, sustain healthy connections, and aim for skill mastery are engaged employees. Their leaders realize that humans are unique contributors to the success of their organization and matter most.
Leadership is about inspiring and motivating people. Leaders focus on vision, innovation, and change. They cultivate a sense of purpose and direction, empowering employees to reach their full potential and fostering a positive organizational climate (day to day) and culture (year to year.)
Skilled leaders:
Vision and Inspire: Creating a compelling vision of the future and inspiring others to buy into that vision.
Motivate and Empower: Encouraging and empowering employees to take initiative, innovate, and excel.
Build Relationships: Fostering a collaborative and inclusive environment, building trust, offering helpful feedback, and encouraging open communication.
Leadership is essential for driving employee engagement. Engaged employees are more committed, motivated, and productive. They feel valued and invested in, and are more likely to contribute innovative ideas and go the extra mile.
The Benefits of Employee Engagement: A Study A study conducted by Gallup highlights the critical importance of employee engagement. The study found that organizations with high levels of employee engagement shared 11 performance outcomes including customer loyalty/engagement, profitability, productivity, turnover (for high-turnover and low-turnover organizations), safety incidents, shrinkage (theft), absenteeism, patient safety incidents, quality (defects), wellbeing (net thriving employees), and organizational citizenship (participation.)
Gallup also found that the top- and bottom-quartile businesses studied showed an 81% difference in absenteeism, an 18% difference in turnover, and a 64% difference in safety incidents.
These statistics underscore the profound impact that effective leadership—and the resultant employee engagement—can have on an organization’s success.
Unfortunately, a recently published Gallup survey, stated that employee engagement is on a downward trend among U.S. organizations going into 2023. The survey found that 32% of full- and part-time employees said they were engaged by their work, compared to 34% in 2021 and 36% in 2020. 2021 marked the first annual decline in engagement in a decade. The keen attention many leaders and managers gave to their employees during the COVID crisis seems to be slipping and it’s showing in their employees’ behavior.
Balancing Management and Leadership
For organizations to thrive, a balance between management and leadership is essential. While management ensures that operations are efficient and goals are met, leadership inspires and engages employees, driving innovation and long-term success.
Managers keep the organization running smoothly, adhering to established processes and focusing on productivity. They ensure that tasks are completed on time, within budget, and to the required standard.
Leaders create a vision for the future, motivating and inspiring employees to work towards that vision. They focus on developing people, fostering a positive culture, and driving engagement.
As both a manager and leader you were hired to swivel your office chair in the direction of both productivity and engagement. Understanding the value and interplay of these roles will enable you to contribute more effectively to your organization's success and to intentionally build these skills in those you lead and manage.
