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Management versus leadership

IB Business Management • Unit 2

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🎯 Management vs Leadership

Big Idea: Management is about planning, organising and controlling resources to achieve objectives. Leadership is about inspiring, motivating and guiding people toward a shared vision. Both are needed, but they are different skills.

Key differences

  • Managers plan and organise -- they create systems, set budgets and monitor progress
  • Leaders inspire and motivate -- they set direction, communicate vision and energise people
  • Managers focus on processes and efficiency -- doing things right
  • Leaders focus on vision and change -- doing the right things
  • Managers tend to maintain the status quo -- keeping things running smoothly
  • Leaders tend to challenge the status quo -- driving innovation and transformation

In practice, the best business leaders combine both: they can manage day-to-day operations AND inspire their teams toward a bigger vision.

Not all managers are leaders, and not all leaders are managers. A factory supervisor manages processes. An entrepreneur who inspires a team to build something new is leading. The best do both. 💡

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