Although there are a lot of similarities between a leader and a manager and often a manager is a leader, there are differences. For example, a leader is somebody who can inspire people, you do not have to be in a managerial role to do this.

The size and stage of development of organisation may have an impact on leadership. In a smaller business, the entrepreneur is likely to be a leader due to their investment in the company vision. However, as the organisation grows, they may need to put in place managers to take control of different functions as the coordination of a larger business becomes unmanageable for one person.

The traits and qualities of the individual have an impact on whether somebody is a leader or a manager. Those with strong communication skills, high levels of empathy and passion for their role may naturally emerge as a leader. As management is a set of skills, they could in theory be taught to anybody.

Different work functions may require a difference in leadership and management. More creative functions such as research and development may require a leader to draw out ideas and drive innovation from their teams whereas functions such as administration which has more prescribed tasks may require managers get work done as expected.

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