1 INTRODUCTION

The differentiation between managing and leading in dynamic entrepreneurial industries, such as technology and manufacturing, is very crucial for organizational effectiveness. However, both perform crucial roles that enable companies to be successful in today’s rapidly changing global landscape.

For instance, visionary leadership controls the technology industry, which demands fast decision-making to drive innovation, just like Microsoft. In contrast, the manufacturing industry, exemplified by Toyota, requires strong managerial processes for efficient execution and operational excellence (Budiningsih and TD, 2022).

Bass (1985) focused on transformational leadership being a tool to motivate employees toward higher performance, while Fayol’s (1930) management principles focused on planning, organising, and control to achieve the efficiency of operations. This opposition is symbolic of the larger charge to balance the demands of task and vision towards long-term growth (Saltik, 2023). Management is defined by Pearce and Robinson (2005) as “the process of optimising human, material, and financial contributions for the achievement of organisational goals.”

According to Isaac (2022), leadership as defined by Hannagan (2005) is “the process of motivating other people to act in particular ways to achieve specific goals.” Similarly, in that sense, while management is about being efficient and executing the tasks at hand, leadership is concerned with driving and inspiring people to meet strategic, bigger objectives.

In today’s highly competitive global market, different industries demand varying approaches to management and leadership. This essay will compare and contrast the skills and competencies required of managers and leaders, using real-world examples from both the technology and manufacturing sectors to illustrate the crucial balance between management and leadership in driving organizational effectiveness.

2 KEY SKILLS AND ABILITIES OF MANAGERS

Managers are very important for the smooth working of the organization and to achieve the predefined objectives. According to Hongal and Kinange (2020), classically, managerial functions were governed by principles identified by Fayol (1930) i.e., planning, organizing, commanding, coordinating, and controlling. However, these skills manifest differently across industries.

For instance, an IT industry manager operating at the early startup stages of Apple would have to be flexible and make quick decisions in a rapidly changing and innovative environment (Isaac, 2022). A manager in Toyota, within the manufacturing sector, would stress efficiency in processes and lean management so as to ensure less waste and better quality in production.

However, this structured approach emphasises process efficiency, which is an illustration of Toyota’s lean management. While managers in manufacturing industries, such as Toyota, focus on efficiency and lean processes to minimize waste, managers in the technology sector face different challenges. For instance, at Apple, managers must balance innovation with operational efficiency, often making trade-offs to meet market demands quickly.

Unlike Toyota’s consistent approach, Apple’s management operates in a highly dynamic environment, requiring quick decision-making and adaptability. This contrast illustrates how the same managerial skills — such as decision-making and resource coordination — manifest differently across industries (Singh and Useem, 2021). Additionally, the increasingly complex global supply chains of companies like Amazon highlight the need for managerial skills in coordinating cross-functional teams and making data-driven decisions.

Therefore, it can be supposed that the various Toyota managers control and coordinate through the Toyota Production System in one way i.e., minimisation of waste (Milewski, 2022). Therefore, this approach is perfect in stable conditions, but it may not work well in more dynamic situations, which has given rise to the need for flexibility in modern management.  

However, this really characterises a structured approach to waste minimisation, with Toyota’s lean management, in comparison, some big differences emerge in operational management within the tech industry (Isaac, 2022). For example, Apple’s operational management, under the hands of Tim Cook, engages in complex global chains that emphasize agility and just-in-time inventory to meet market demand as soon as possible.

Moreover, unlike Toyota’s emphasis on consistency, Apple management has to make trade-offs between innovation and operational efficiency (Singh and Useem, 2021). Thus, most of the times, it is done through rapid adjustments in response to the continuous evolution in technology trends and consumer preferences.

Daft’s (1999) framework identifies three types of managerial skills i.e., technical, human, and conceptual. However, much emphasis is placed on technical skills at the lower managerial level (Ismail, Som and Hashim, 2022). Similarly, the skills regard knowledge about details of the operation of the organisation.

Managers at all levels should have human skills including communication and team management. Moreover, conceptual skills at higher levels are required for strategic thinking and long-range planning (Hoffman and Tadelis, 2021). Scarlat and Barar (2023) assessed that a functional manager for Google must manage technical teams and maintain cross-functional communication.

Furthermore, human skills become essential in this case when dealing with collaboration, while conceptual skills will guide the team’s efforts to be on par with the higher strategic direction of Google. In understanding how managers strike a balance between daily operational requirements and long-term strategies,

Daft’s framework is very essential. However, it finds limitations in the face of increasing needs for agility given the faster turnarounds that the contemporary environment requires (Al-Janabi, Mhaibes and Hussein, 2022). Mintzberg (1973) presented a much more lymphatic view of management, highlighting how the task of managers is disjointed and how networking and decision-making are key.

Furthermore, the manager skips from one thing to the other continuously, and as they do so, they come across the information in their network to make rapid decision-making. Mintzberg paid a great deal of attention to informal roles in direct opposition to Fayol’s more formal functions (Adegbola, 2020). Therefore, a good example of Mintzberg’s theory can be seen in Elon Musk’s managerial approach to Tesla.

Musk’s direct involvement can be illustrative of how managers would gather information and make quick decisions. However, this style is also illustrative of how overreliance can be problematic in the sense that the tendency toward micromanagement can be inefficient and troublesome on teams. Problem-solving and decision-making are perhaps two essential management functions (Reb, Luan and Gigerenzer, 2024).

Moreover, as elaborated by Mahrinasari et al. (2021) managers make use of some kind of formal process for decision-making based upon the data available with the objective of efficiency in operations. Similarly, a prime example is Jeff Bezos’ approach at Amazon, where he has highlighted data-driven decision-making.

Bezos insists on precise data-based decisions, for instance, the “two-pizza team” rule defining team size to promote efficiency. Similarly, in this way, while the method enhances accountability, it sometimes delays innovation as rigid reliance on data sometimes puts restraints on creativity and adaptability in rapidly changing environments. These are only illustrative examples of the ongoing controversy between task-oriented management and the necessity for interpersonal leadership (Bryar and Carr, 2021).

According to Ramu (2023), all the models by Fayol, Daft, and Mintzberg revolve around structure and control in management but often neglect the interpersonal dynamics that are paramount in modern organisations. For example, although Toyota’s lean management and Amazon’s data-driven approach focus on efficiency and process control, they also vividly outline the potential drawbacks of rigid managerial structures.

In today’s scenario, with adaptability and innovation being the slogans of business success, effective managers need to combine technical ability, human ability, and conceptual ability. Toyota’s efficiency; Google’s cooperation; Tesla’s hands-on approach to decision-making, and Amazon’s data-centric approach depict how each of the above contrasts in their ways to managerial roles.

However, modern managers need to possess leadership attributes that drive flexibility, a connectedness to humanity, and creativity (Jardim, 2021). Similarly, as explained by Jakubik (2021) there may be much to be learned from traditional management frameworks like Fayol’s and Mintzberg’s regarding the core functions of and roles played by managers, but the complexity of the modern business environment requires the manager to be balanced.

Therefore, such a balance should encompass both structured processes and adaptive leadership practices to meet the evolving demands of organisations and their people (Forbes, 2023). Thus, effective managers have to combine technical, human, and conceptual skills to ensure everything works out as it should in realising the effectiveness and efficiency of operation.

3 KEY SKILLS AND ABILITIES OF LEADERS

Leaders are the ones who develop the vision of the organisation and give it life while creating a culture that inspires people to pull together. Managers are the ones who ensure the work gets done daily (Lasrado and Kassem, 2021). Leadership encourages innovation and adaptability by involving employees at a higher level.

However, one leadership style is that of transformational leadership, defined by Bass (1985) as one in which leaders inspire their followers with a vision that moves beyond mere transactional deeds (Mudd-Fegett and Mudd, 2024). Moreover, as discussed by Kim and Mauborgne (2023) Steve Jobs epitomised that at Apple he energised employees not to just put out functional products but to reinvent industries with the iPhone.

Steve was an inspirational leader of visionary creativity, though his leadership sometimes brought friction in execution balancing vision with practicality is never easy. Emotional Intelligence is also identified as an important attribute of leadership by Goleman (1998). Leaders’ high in EI has self-awareness, empathy, and the ability to establish trusted relationships.

Satya Nadella, CEO of Microsoft, exemplifies that by developing a collaborative growth culture for Microsoft, he rebuilt trust and brought about innovation, especially in cloud technology. Effective change management is another critical leadership skill, especially in dynamic business environments (Chakraborty, 2024). Kang et al. (2022) assessed that Kotter’s (1996) change model heavily emphasises the creation of urgency, building coalitions, and guiding the organisation through any transition.

Moreover, Howard Schultz a former CEO of Starbucks, did it with the shutting of the stores to retrain employees to refocus his company back on their core values. This seemed quite disruptive at first; eventually, his leadership put back Starbucks to long-term growth (Bodie, 2023). Balancing the long-term vision with the immediate business needs is key to managing change effectively.

Another key aspect of management is that it requires motivating and influencing employees, referring to Theory X and Theory Y of McGregor (1960). Theory X indicates that employees must be supervised all the time while Theory Y believes that employees fare well if they are given adequate trust and independence as shown in Figure.

It is under Theory Y that promoting creativity through the ‘20% time’ policy of Google helped in the development of products like Gmail (Dharejo and Dharejo, 2022). However, too much freedom can lead to the loss of direction, so there is a need for leaders to strike a balance between giving freedom and ensuring some degree of accountability.

In contrast to the management perspective, management is focused on structure and efficiency. Leaders are visionary people who inspire others with an emotional attachment, such as Steve Jobs and Satya Nadella, whereas managers are more organised and process-oriented. Leadership is complex and many individuals tend to combine elements of both transformational and situational styles (Viljoen, 2023).

For instance, Fiedler’s Contingency Theory, where it is argued that one correct or right way to lead does not exist; instead, the suitability of a given style depends on the situation (Reams, 2023). Moreover, this is in contrast to the situational style, where the reliance is on inspiring and motivating followers irrespective of the situation. For instance, during crisis levels, leaders have to take on a more directive style as in the case with Virgin Group during periods of economic decline and blindsided by Richard Branson (Church, 2020).

Therefore, Richard moved from a relatively casual, transformational approach to a far more interventionist and contingency-centered approach; hence, flexibility in approach to his leadership. Thus, this adaptability is an illustration of what leaders must do, revolving their strategies according to circumstances.

However, beyond transformational leadership, situational and contingency leadership models highlight the importance of adapting leadership style to the specific context. For example, Fiedler’s contingency model emphasizes that leadership effectiveness depends on the situation, with leaders adjusting their style based on follower readiness and the complexity of tasks (Fiedler, 1967).

Richard Branson exemplifies this flexibility. During economic downturns, Branson shifted from his usual transformational style to a more directive and hands-on approach, ensuring the survival of Virgin by taking control of critical decisions. This adaptability is crucial for leaders navigating crises, showing that effective leadership requires a combination of vision and situational responsiveness (Reams, 2023).

4 COMPARING AND CONTRASTING MANAGEMENT AND LEADERSHIP

Management and leadership are demarcated is not always well defined. However, during an elongated, dramatized period like COVID-19 a dynamic interplay extended amongst them. Similarly, leaders had to be crisis leaders who had a clear vision and built on unity to keep the whole from uncertainty.

For instance, companies like Microsoft, under the leadership of Satya Nadella, have not only led the immediate operational responses, such as managing remote work in light of COVID-19, but truly demonstrated leading with empathy first-class concern for the well-being of all employees and ways in which resilience can be fostered in corporate culture. This is where managers were involved in implementing new processes to guarantee business continuity on a strategic level.

Hybrid roles, where individuals embody both management and leadership responsibilities, are increasingly common in dynamic industries like technology. Elon Musk’s role at Tesla is a prime example of this. As both a leader and a manager, Musk drives innovation with a strong vision while simultaneously overseeing the operational aspects of the company, such as supply chain management and engineering.

This dual role is especially critical in industries that require rapid adaptation to technological changes. Moreover, the COVID-19 pandemic further highlighted the importance of the interplay between management and leadership, as companies like Microsoft had to ensure both operational continuity through effective management and employee well-being through empathetic leadership (Lasrado and Kassem, 2021).

Therefore, this is a good example of how in crises, management and leadership roles would have to change and complement each other, fusing strategic vision with operational efficiency in maintaining organizational stability (Lasrado and Kassem, 2021). Moreover, this can be seen in managerial roles which require a particular need for control, order, and resource delivery to achieve goals set earlier.

In contrast, managers always focus on the short term, try to control creativity, and encourage employees to perceive change as a destructive agent (Rampa and Agogue, 2021). According to Thomas and Bhat (2022), a real example of this difference can be seen in Facebook (Meta), where Mark Zuckerberg performed the work of the manager by maintaining the efficiency and safety of the company’s data infrastructure.

Authority and power define the role differences between management and leadership. Managers are usually legitimised by authority derived from legitimate power, attributed to their status in the organisational hierarchy (Lasrado and Kassem, 2021). Lee and Kim (2022) stated that the way managers direct teams and make decisions is purely structural, that is, by formal authority.

In contrast, as evaluated by Haslam, Reicher and Platow (2020) leaders often use referent power, which is held by those who are adored or have charisma, or who can remind a desire others to follow them. Fabritius (2022) explained that charismatic leaders, on the other hand, as in the case of Richard Branson of Virgin Group, gain influence with their subordinates not through formal authority but through personal magnetism and a compelling vision, which exudes loyalty and commitment.

A competent manager, as defined by Kotter (1996), may establish support for flexibility and strength in his staff during change (Laig and Abocejo, 2021). Fiedler (1967) proposed that leaders sometimes even do the work of a manager, such as learning to effectively deploy resources or mobilise workforces to accomplish operating objectives. Therefore, this blending of roles in Indra Nooyi’s exercise as the CEO of PepsiCo was reflected in her leadership, where she strategically directed the company to healthier product lines.

Another big difference that appears between the two is that management usually is more oriented towards tasks as compared to the leadership role. However, ideally, a manager is expected to be concerned with efficiency, meeting deadlines, and streamlining processes, whereas a leader is more relationship-oriented and tries to imbibe positive energy within the team, increase morale, and provide individual growth (Fiedler, 1967).

Winner et al. (2022) evaluated that the management style of Toyota is task-oriented during the lean production methods, which ensures operational efficiency and meets the set goal. In contrast, management and leadership are separate but complementary functions. Whereas a manager concentrates on structure, stability, and efficiency, a leader places his or her focus on vision, innovation, and emotional engagement (Laig and Abocejo, 2021). Thus, it is critical for organisational success that the interplay of these roles be so carried out; the blending to achieve both operational success and long-term innovation is represented in real-world examples such as Zuckerberg and Sandberg at Meta, or Nooyi at PepsiCo.

5 HOW MANAGEMENT AND LEADERSHIP CONTRIBUTE TO ORGANISATIONAL EFFECTIVENESS

Management and leadership are critical to the contribution of organisational effectiveness and have different roles. This will ensure that the organisation is balanced between its ability to operate efficiently and its ability to bring in innovation and adaptability. While management ensures that operations at the workplace are running smoothly and efficiently daily, leadership provides vision and inspiration to carry forward an organisation into the future with flexibility and resilience.

Therefore, the two functions interact and are necessary for organisations to prosper in a changing and challenging world (Ali and Anwar, 2021). Foss, McCaffrey and Dorobat (2022) elaborated that effective organisations are those that balance the operational efficiency driven by management and innovation orchestrated by leadership. Similarly, the work of Mintzberg in 1973 indicates that there is a need for managers who create order and maintain it to ensure that processes and operations work effectively.

Therefore, in his research work, Mintzberg states that the manager’s job is to coordinate work, control resources, and achieve short-term goals; through this, the organisation can work efficiently.

Leadership fosters creativity and takes the organisation through the changes needed for competitiveness. A practical example of such a balancing act includes Apple, in which the management approach of Tim Cook has enabled the vision of Steve Jobs to operate effectively (Singh and Useem, 2021). Paul and Paul (2020) stated that Cook’s expertise in supply chain management for Apple contributed to its operational excellence in meeting demand and maintaining product quality. Similarly, at the same time, Jobs’ leadership was directed at innovation, spurring the company to design breakthrough products like the iPhone and iPad.

In a dramatic change, leadership and management support each other. Leaders take on the central role of formulating the vision and steering an organisation during times of turbulence; managers ensure that changes are introduced in a coordinated way (Ali and Anwar, 2021). Leadership helps provide buy-in and motivates people to embrace change; management helps execute the change process effectively with the least disruption to ongoing operations, for example, IBM’s reinvention under Lou Gerstner.

He took over as CEO in the 1990s when IBM was just about finished. Under his tenure, they successfully changed their business from hardware to services to keep the company alive. As Gerstner said, a strategic vision and leadership need to be provided so that IBM’s business model has to shift to a new direction, but effective management of operations, finances, and resources within the company is what enabled a smooth transition (Mayberry, 2023). It is, therefore, the combination of visionary leadership, together with good management, that helped IBM navigate successfully through this huge transformation and regain its competitiveness in the technology sector.

Effective management coupled with strong leadership is a method for the success of an organisation. Managers are seen working to maintain efficiency, status quo, and short-term performances, while leaders innovate, inspire teams, and go through strategic changes in the long term.

Moreover, organisations that can balance both roles rightfully position themselves to excel competitively in dynamic environments (Chakraborty, 2024). Thus, evidence of this is very apparent in firms like Apple, IBM, and Toyota, where management and leadership have both combined and collaborated to bring operational excellence and long-term sustainability.

6 DISCUSSION AND CONCLUSION

From an evaluative perspective, management and leadership are equally important yet distinct in their contributions toward organizational effectiveness. Management pertains to operational efficiency, stability, and optimization of resources, while leadership enables the success of the organization over the long term through development, change, and pursuit of a shared vision. Where these functions work in harmony, they enable organizations to excel both operationally and strategically (Naveed et al., 2022).

Nuraini (2023) elaborated that companies such as Apple and Tesla demonstrate this balance perfectly. In these firms, efficient management and visionary leadership together make both the processes of innovation and operational excellence a possibility.

Whereas the interlinkage between management and leadership is well-appreciated, there is still a gap in the literature yet particularly in emerging organizational contexts operationalizing both concepts into a singular framework.

For instance, traditional organizational hierarchical functions in technology startups and firms driven by active sustainability involve blurred roles, in which firms cannot easily draw boundaries between management and leadership roles (Naveed et al., 2022). According to Isaac (2022), within a decentralized company or the gig economy, people are also often called upon to assume hybrid roles that comprise managing-and-leading functions.

While the distinction between management and leadership is well-established, emerging organizational contexts blur these roles. For instance, decentralized companies and gig-economy firms often require individuals to take on hybrid roles that combine both management and leadership functions.

This area of research is underexplored, particularly in the context of remote working and digital transformation. Future studies should focus on how management and leadership intersect in these evolving environments, with an emphasis on the impact of technology and organizational decentralization on these roles (Naveed et al., 2022). Understanding these dynamics will be critical for companies aiming to stay competitive in an increasingly digital world.”

It is concluded that management and leadership interact, and adapt to new environments, will require further study. Specifically, such studies would be well served by an explicit focus on the ongoing evolution of these roles in the light of developments in remote working, the technology-driven organization, and digital transformation.

An understanding of such dynamics stands to provide insight into how the intersection between management and leadership can continue to mobilize contemporary companies toward continued growth and adaptability amid an evolving business environment.

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