Management and Leadership: Definition, Differentiations, and Other Theoretical Considerations

Any study on management and leadership must begin with a clear definition. Organizational management, in the sense of managing an organization or its subunits, can be defined as a steering influence on market, production, and/or resource operations that may address both people and non-people issues with the aim of achieving the unit’s objectives. Organizational people management, in the sense of managing the personnel of an organization or its subunits, is an influence on employees with the aim of achieving the unit’s objectives by generating work performance and meeting other requirements. To manage a unit or its members is synonymous with or leading them. Management and leadership influence can be exercised in two ways: through anticipatory norm-setting or through situational intervention. Both forms can be exercised in hard, externally directed ways or in gentle, non-directive ways. Since hard external influence usually triggers resistance, it is advisable to primarily exert influence in a gentle manner (e.g., in the form of systematic self-direction, instrumental behavioral reinforcement, nudging, collective social norms, or implicit communication). These and other theoretical considerations on management and leadership are discussed in this chapter.