Why the Leadership vs Management Debate is Becoming Irrelevant

Finding and retaining top quality talent has always been a bit of an uphill task for HR departments in India. In a 2010 Harvard study, 88% of Indian firms accepted that there were gaps in their leadership pipelines. In 2019, that number stood at around 80%.

And then came COVID. After negotiating the crippling impact of quarantines, lockdowns, and general chaos, firms are slowly but steadily moving into a post-lockdown phase, buoyed by modest growth prospects of 6.8% in the Indian economy.

To keep up and avoid a management crisis, you need a balance between recruiting and developing internal leadership pipelines. In this context, we explore the relevance of leadership vs management debates in modern business.

The Key Differences Between Leadership and Management

People often use the terms ‘leader’ and ‘manager’ interchangeably in business. However, there are numerous subtle and not-so-subtle differences between the two concepts. Commentators in Harvard Business Review have even said that business leaders have more in common with artists than managers.

Various factors have been cited for this separation. Here is a quick overview:

Basic Definition

Management is a process to achieve certain specific goals through the proper utilisation of an organisation’s resources. It can include activities like planning, organising, directing, coordinating, and delegating.

Meanwhile, leadership is the ability of an individual (or a group of individuals) to influence others to become followers in the quest for a specific goal. It involves creating a vision/goal, communicating it, and motivating the followers to achieve those goals.

Role in the Organisation

Manager roles are almost always clearly specified in any business organisation. Appointments to management positions are based on a combination of technical knowledge and job experience.
While leaders can be appointed, a formal position is not a prerequisite for someone to become a leader. In a workplace, even someone in a non-managerial role may be considered a leader by their colleagues, due to factors like personality.

Relationship with Subordinates

All managers have subordinates. Managerial authority stems entirely from their position within the organisation. Subordinates follow the orders of a manager because they are expected to do so, under the rules and hierarchy within the organisation.

Leaders have followers or acolytes. A leader does not command respect and obedience solely based on their position within the organization. Individuals look up to leaders because they are inspired and motivated by them.

Approach to Goals and Change

Managers generally have a short-term focus on the immediate goals of an organisation. They try to achieve these by following rules and established patterns. They are more inclined to react to change, rather than cause it.

Leaders are more likely to become agents of change, proactively bringing disruption to the organisation. Their role is to create a vision for the future, innovating either on their own or by encouraging others to come up with new ideas and new patterns.

Why the Whole Debate is Pointless in Modern Management

The entire debate was triggered in the 1970s, when theorist Abraham Zaleznik criticised the classical approach to management for stifling creativity and imagination in managers with excessive focus on structure, tradition, and stability.

However, society has moved on considerably in the last 50 years. Businesses have to be mindful of values like sustainability, inclusivity, and diversity to impress consumers. Managers and HR departments face a similar shift in focus when dealing with employees.

Candidates are more diverse and hold aspirations and expectations that are a far cry from those in the 1970s. According to classical management theory, you only need money to attract and retain top talent.

That is no longer the case. The recent trend of Great Resignation is being driven by more factors besides a low paycheck. According to a Pew Research report, the following factors are also responsible:

• A toxic work culture
• Lack of career prospects/stagnation
• Poor work-life balance
• Feeling disrespected or unappreciated

An ‘ideal manager’ in the traditional mould would struggle to motivate a modern workplace in the 21st century. Modern management theory was forced to evolve and accommodate other factors like job satisfaction, personal growth, happiness, and more.

The lines dividing managers and leaders have become non-existent these days. Firms need managers with excellent leadership qualities to keep hold of employees and to fill internal leadership pipelines.

Leadership Roles in the Indian Approach to Management

Corporate cultures in different countries have evolved their unique management styles. For example, the Japanese have concepts like continuous improvement (Kaizen), root cause analysis (Genin Tsuikyu), and a focus on harmony and collaboration.

In stark contrast, the American style is often equated with an autocratic style of management, with a heavy emphasis on individualism and heavy burden of accountability.

Meanwhile, India is still in the process of developing a coherent management style. But we can still identify some common underlying principles, as outlined by Harvard Business Review:

• Focus on business strategy above all else
• Emphasis on employee training and motivation
• Greater attention to internal factors like organisational culture

The basic strands of an Indian approach to management involve heavy utilisation of leadership skills. But we are still lacking in the aspect of creating systems to fill those leadership roles.

Both C-Suite and HR departments will have to work together with a forward-thinking plan. Firms need to find ways to attract promising candidates with leadership potential. The leadership vs management debate has largely become irrelevant for recruiters.

Any hiring endeavors should go hand in hand with internal programmes for up-skilling and leadership training. Only through a combination of the two can Indian firms hope to solve the chronic shortage of managerial talent and bridge the widening leadership skill gap in the coming years.