There are differences between leadership and management and these two are quite separate within an organizational setting. Leaders inspire and suggest the vision to those who follow. Managers sustain and control the activities of those who wish to follow as well as those in position along the organizational path.
Leaders take risks in order to attain high payoffs while managers sustain and control in the normal course of events. Leaders look to the future while managers are stuck in the present. Each plays a key role in the organization because one cannot sustain a vision forever so the manager must attempt to coerce and enforce compliance once the enthusiasm wears off.
The role power plays in being an effective leader is usually a motivational function meant to inspire and excite those with a common idea or vision. While the leader seeks to change an organization, he or she must use all personal influence and political bargaining power that is at their disposal to affect change.
Managers, on the other hand, have a referent power which arises from their position within the organizational structure. It is one intended to sustain and control the actions of others. Further, while the manager will maintain a given element, or level of power- simply based on position alone, a leader derives no such power from job descriptions or chain of command. At least not unless they influence others.
There is no inherent power for the leader and no creative inspiration for the daily manager to power the troops. For this reason, in so much as power is concerned, the manager has an edge over the visionary leader. The organization has a vested authority that is handed down to managers that leaders are not privy to for the large part. In other words, managers are given their influence, and power, by the organization. Where as, the leader must create their own influence in the organization.
