Further accentuating the difference between leaders and managers, Richard Daft (2003) building primarily on the work of Kotter (1990) viewed the contrast between management and leadership from five different angles: that of providing direction, aligning followers, and building relationships, personal qualities, and outcomes.
According to Daft, in providing direction, management places importance on creating comprehensive strategies and plans to attain specific outcomes, then assigns the available resources to achieve the plan. Leadership however requires visualizing a direction and vision of the future and establishing farsighted strategies to impact the change required to accomplish that vision. For followers to believe in that vision, it has to be relatable to them and one that are willing to share. In aligning followers, management involves forming a structure staffed with employees and supervising the entire process. Leadership is ensuring the vision is successfully conveyed across and creating a shared culture and set of fundamental ideals that can translate towards the envisioned goal.
In building relationships, Daft further distinguishes that management places attention on objects like equipment and reports and working on maximizing these objects’ ability to produce goods and services. Leadership, however, centralizes efforts on motivating and inspiring people. While management relationship is built on rank and official authority, leadership is founded on personal influence. In terms of personal qualities and outcomes, management preserves a unit of constancy, certainty, and order using a culture of efficiency. Leadership, on the other hand, inspires change through a culture of integrity that benefits the organization to prosper in the long term by encouraging openness, constructive relationships, and lasting innovation. Leadership inspires the bravery required for tough and unusual choices that might occasionally affect short-term outcomes and thus profit a higher ethical purpose. Daft also notes that leadership is more than a set of skills and developing leadership qualities takes work. “Effective leaders know how they are and what they stand for. Leadership requires the courage to admit mistakes and doubts, to listen, and to trust and learn from others.”