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Management vs Leadership in a Business

In a business, there are two main ways a business is run: by management or leadership. With leadership, there are four types being laissez-faire, democratic, paternalistic and authoritarian. This article will go over what management, leadership, laissez-faire, democratic, paternalistic and authoritarian are.

Leadership is a relationship through which one person influences the behaviour and actions of others.

Management is a person who follows a plan and uses their authority to tell their workers what they need to do.

There are four main leadership styles as I have already mentioned:

  • Laissez-faire.
  • Democratic.
  • Paternalistic.
  • Authoritarian.
  • This is where the person has a conscious decision to delegate.
  • Managers and employees are free to do what they think is best (links in with a soft HR approach).
  • Staff must be willing to take responsibility.
  • This is when power is with the group as a whole. 
  • Leadership is shared.
  • Employees aid decision making.
  • There is delegation and consultation.
  • This is where the leader decides what is best.
  • Addresses the employee’s needs.
  • Little arguing: what says goes.
  • There is little delegation.
  • Less chance for promotion, power for employees, initiative, and motivation.
  • This is focused on the manager.
  • It uses top down communication.
  • There are reward and penalties.
  • There is little delegation.


  1. Trucking Factoring Company January 25, 2012
  2. Grace McSmith February 8, 2012

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