Leader-And-Manager

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What’s The Difference Between A Leader And A Manager?

Read on to find out just how the right leader can help you do better business today. 

Even though getting promoted to middle management is a common career progression for employees who work in a big corporation, not everybody may find themselves being ready for the role. To ideally manage a team to achieve success, you should be less of a manager and more of a leader. 

You might be wondering: both a manager and a leader have people working under them, so is there truly a difference? The answer is yes, and the impact of having a manager and not a leader can be a lot larger than you think. Here are the three biggest differences between a leader and a manager.

Leaders build relationships, while managers build hierarchical systems.

Leaders tend to recognise that your company’s greatest asset would be your employees, and that everyone needs to work together to realise the company’s ultimate vision. With this knowledge and drive, leaders focus on their stakeholders and treat everyone fairly, building relationships to build trust and loyalty by delivering on their promise.

Conversely, managers tend to focus more on maintaining the status quo and the structures that are already put in place at work. Prioritising on short-term goals and objectives, they tend to neglect their team’s potential for the sake of meeting deadlines and doing the bare minimum.

Leaders coach the team or department, while managers choose to direct and give orders.

Unlike managers who simply direct and give orders to get tasks done, leaders tend to adopt a different and more developmental approach that benefits the company in the long run. They are able to see the value in the employees, recognising their strengths and identifying areas of improvement. They are able to use that knowledge to delegate tasks well, and may even offer opportunities for each employee to work on their weaker areas to gradually improve. 

In this way, leaders are capable of seeking both short- and long-term benefits for your company and its employees. Most times, managers are capable of meeting short-term goals and may not be as aware of building on long-term goals.

Leaders inspire the team by creating a vision, while managers set goals.

A leader is usually inspiring and engaging, encouraging employees to work towards a shared goal or vision together. They are optimistic of the future, able to rally people together, and to cultivate a healthy work environment where the majority of employees thrive. 

On the other hand, managers focus on goals that may already be dictated by important stakeholders and just work towards meeting them. They may not inspire change, and may even have a tendency to control the work situation and processes to meet that single objective. In the long run, this may cause your company’s deliverables and work culture to stagnate. 

Let AYP Help You Nurture Leaders

Aside from these three points, how can your company objectively identify who is a leader or a manager? With the use of HR analytics and solutions such as AYP, your company can take on a more data-driven approach to identify who is a leader and who you can invest more resources into to grow them into leaders.

AYP Global Pay is a single digital platform that offers both Professional Employer Organisation (PEO) and Employer of Record (EOR) solutions. With a single dashboard, you can easily access all the HR features that your business needs, and that includes employee productivity and other relevant stats to help you track progress too!

And with AYP Global Pay covering all bases when it comes to managing your business, you never have to worry about anything HR-related again. Ready to let analytics, data, and algorithms help you improve your HR processes? Learn more about our platform by scheduling a demonstration today!

Learn more about how AYP Global Pay lets you:
  • Hire someone in a day
  • Automate global payroll & payments
  • Enable global growth and expansion
Speak to our
HR consultants today