Management is an administrative function that must be performed in any organization. Management entails giving meaning to organizational direction as well as giving form to the organizational needs. The management is responsible for establishing systems and procedures which facilitate effective and smooth running of an organization. They set up controlling systems and procedures which are used to ensure that the organization is controlled and disciplined. Management ensures that the organization that the rules set up is adhered to for the organization to function optimally. The management team in the company creates a structure in which people can operate effectively and provides a measure of equality for every to feel equal before the law. The controlling systems setup assist in establishment of performance standards, which are used for measurement of performance, evaluation and correction of performance. The management sets up the procedures that are used to ensure accountability and compliance. Employees should be held responsible for all their actions under these rules.

Managers involve planning, organizing projects and allocating resources effectively to reduce cost and increase benefits. In addition, the management is responsible for establishing control procedures that are used to measure the efficiencies and effectiveness of employees. Management refers to the practice of controlling, directing and supervising employees and subordinates. Management utilizes tools such as finances, human resources, natural resources, and technology in order to achieve a certain goals for company. The management process includes heading and leading the management, organizing the management and planning how to handle the management. Management involves creating structure and delegating responsibilities to subordinate and having the authority to ensure the goals of the company are achieved. (Benator, Thuman, 2003).

Leadership is a relationship created between leaders and the subordinates. Under this relationship, leaders identify the specific talents of each of their employees, motivate them and coach them towards utilizing their talents effectively. Leaders are also responsible for building trust between them and their subordinates. Leaders involve guiding a group of people toward achieving the best result in and a company. The leadership of a company mainly involves establishing direct and creating a vision for the company. It involves modeling the vision, forming teams, influencing them and aligning people to achieve the set goals. Leadership bears the responsibility of inspiring people and producing meaningful changes in the company. Leadership is therefore responsible for positioning people and organizations for useful change. Therefore it ensures that the company does the right, in its strategies. Leadership requires are sound understanding in order to create goals and vision of the company and work towards achieving them. Good leadership entails the ability to articulate a vision, align the people’s talents and efforts of the company’s direction and keeping them focused on the set vision by motivating and inspiring them. Leadership communicates the company’s vision to the employees and inspires them to overcome barriers for change. It energizes people and brings about positive and meaningful change.

Management and leadership are different in the sense that the main purpose of leadership is movement and meaningful change, while the purpose of management is to create stability, efficiency and order. Leadership is a process that is in a continuous motion while management is viewed as a product of that process. Therefore it can be argued that management is the physical force while leadership is the formative force of a company. Leadership ensures that a company is effective in its strategies while management ensures that the company is efficient in its internal systems.