What Is Leadership in Management and Why Does It Matter?

If you've ever wondered, "What is leadership in management?" just imagine yourself in a busy restaurant on a Saturday night when, all of a sudden, there is no power. The diners are agitated, the kitchen is dark, and time is running out.

A great leader wouldn't hesitate. They'd gather the staff, quickly distribute candles, and encourage the chefs to prepare cold dishes that don't require cooking. They might even take it a step further by offering complimentary drinks to keep the guests engaged. However, not all managers are leaders, and the night can easily spiral into frustration and lost business.

What Is Leadership in Management?

Many understand leadership as a means of guiding and inspiring others. For example, John C. Maxwell, a renowned author, orator, and expert on leadership, famously stated, "Leadership is influence—nothing more, nothing less." Like him, a lot of people emphasize the notion that being a leader is all about having the power to influence and mold other people's behaviors and ideas. 

Although Maxwell's perspective is relevant—leadership cannot genuinely exist without influence—reducing it to that alone oversimplifies what leadership is all about. In addition to influence, vision, emotional intelligence, decision-making, and the capacity to uplift and empower others are all essential components of true leadership.

Leadership in management is about people. Although overseeing tasks and issuing directions is part of a manager's job, a manager who is also a leader, in addition to fulfilling their duties, creates a clear vision, encourages collaboration, and guides and inspires their team to achieve shared goals. 

Key Components That Define Leadership in Management

Effective leadership in management can be broken down into several key components:

Vision and strategic thinking

They say that the best way to predict the future is to create it. For this reason, leaders need to be able to create and convey a clear vision, see past the obstacles they face, recognize opportunities for the future, and establish long-term objectives that support the mission of the company.

Influence and persuasion

While authority is derived from a formal position or title that demands obedience, influence is earned via genuine relationships, trust, and respect. Additionally, persuasion appeals to common motivations and values, bringing people along with the vision because they genuinely believe in it rather than just because they have to.

This distinction makes influence and persuasion more effective in creating lasting commitment and driving meaningful change, as people are more likely to be engaged and proactive when they feel genuinely inspired rather than merely directed.

Emotional intelligence (EI)

Daniel Goleman, a leading expert on EI, has argued that this kind of intelligence is an invaluable component of effective leadership. As Goleman explains, "The most effective leaders are all alike in one crucial way: they all have a high degree of what has come to be known as emotional intelligence."

He acknowledges that while IQ and technical skills are important, they are merely "the entry-level requirements for executive positions."

Decision-making and accountability

Decision-making for managers is where vision should meet influence and converge into action. Effective leaders are decisive, yet they understand the weight of their decisions and the impact they have on the team and the organization.

Additionally, whether their choices result in success or necessitate a change in direction, great leaders take responsibility for the results. 

Adaptability and resilience

As Charles Darwin stated, "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." The same can be said for leaders who are flexible in their approach and resilient in the face of adversity and can guide their teams through difficult times.

Resilient leaders can weather the storms of uncertainty, remaining composed and focused under pressure. They manage to turn challenges into opportunities for growth.

Communication and relationship-building

Good communication is an indispensable leadership quality as it goes beyond words; it involves building relationships based on trust, respect, and mutual understanding. This process relies heavily on clear, consistent, and empathetic communication that connects with the team on both a professional and personal level.

Good leaders must be able to clearly articulate their vision, provide constructive feedback, and listen actively to their team members.

Characteristics of Effective Leaders

Effective leaders share certain characteristics that set them apart. Some of the most prominent ones are:

• Integrity
• Decisiveness
• Resilience
• Empathy
• Accountability
• Self-awareness
• Confidence
• Humility
• Patience
• Optimism
• Creativity

Leadership Styles in Management

In the field of management, there isn't a one-size-fits-all leadership style. Different environments, teams, and challenges require different styles, each with its own strengths.

The best leaders are those who can modify their approach to fit the circumstances, realizing that what works in one setting might not work in another. Some of the most common leadership styles are:

Transformational leadership

Imagine a leader who walks into a room and instantly lights a fire of enthusiasm. They speak of big ideas, challenging the team to reach heights they hadn't imagined. 

Transformational leaders are the visionaries who push their teams, welcome change, and encourage everyone around them to move beyond the status quo. To put it simply, they are the ones who inspire their teams to see possibilities when others perceive barriers.

Transactional leadership

For this leadership style, picture a manager who is all about structure and clarity. With them, you know exactly what's expected, what the goals are, and what you'll gain for achieving them. 

Transactional leaders focus on the here and now, using rewards and incentives to drive performance. Though you won't often find them pushing for radical change, they excel in environments defined by consistency, efficiency, and clear guidelines.

Servant leadership

Now, think of a leader who prioritizes their team's needs above their own. Servant leaders lead by serving, focusing on empowering their team members to reach their full potential. 

They listen deeply, support generously, and create a culture where everyone feels valued. It's like having a guide who's always there to remove obstacles from your path, enabling you to succeed.

Situational leadership

Situational leaders can easily switch gears and adapt their approach to fit the situation. One day, they're hands-on, providing detailed guidance to a new team; the next, they're stepping back, giving experienced team members the autonomy they need. 

These leaders are chameleons, adjusting their style based on the task, the team's maturity, and the specific challenges at hand. 

Democratic leadership

Managers who employ a democratic style of leadership value every voice at the table. They make decisions by gathering input from the entire team, thus instilling a sense of ownership and collaboration in all team members. 

This style thrives in creative environments where innovation and diverse perspectives are what's needed for success.

The Role of Leaders in Team Dynamics

Leaders in team dynamics are not just figureheads or taskmasters. They are the living, breathing embodiment of the values, culture, and energy they wish to see in their team.

After all, a leader's actions speak louder than any directives or speeches. When team members assess whether they respect a leader, they don't focus on the leader's lofty goals or their vision for the team. Instead, they watch closely to see who the leader truly is in action. Are they walking the talk or merely reciting it?

For instance, a leader who constantly reminds their team about the importance of communication but fails to communicate themselves will quickly lose credibility. Think of a manager who preaches openness but then avoids difficult conversations, leaving issues to fester. Such a disconnect between words and actions sends a clear message: the leader's principles are negotiable. In contrast, a leader who models the very behaviors they expect—whether it's transparent communication, accountability, or collaboration—naturally earns the respect and trust of their team.

A leader's role also encompasses the responsibility of holding the team together and pushing for a positive, inclusive, and growth-oriented culture and environment. Leaders must always strive to have everyone working toward the same goals. 

Challenges Faced by Leaders

Leadership isn't without its hurdles. Challenges come with the territory, and encountering them doesn't mean you're falling short—it's simply part of the role. Rather than trying to avoid them, it's better to understand and learn how to navigate them.

New leaders

Building authority and garnering trust are generally the first challenges faced by those who are new to leadership. It can be challenging to redefine connections without losing them when moving from peer to leader. 

In such cases, the new leaders must strive to assert themselves while remaining approachable. They might also grapple with imposter syndrome, questioning whether they truly belong in their new role. Overcoming these doubts and proving their capability, not just to others but also to themselves, is a critical early test.

Small-team leaders

Leaders managing smaller teams or businesses face a different set of challenges. Here, the proximity to the team can be both a blessing and a burden.

With fewer layers between the leader and their team, every decision, no matter how small, feels personal. This closeness demands a heightened level of emotional intelligence and communication, as any tension or misalignment is quickly felt. 

Top leaders

At the highest levels of leadership, the challenges take on a broader, more complex dimension. Leaders at the top must navigate the weight of long-term vision and responsibility, often making decisions that impact not just their teams but entire organizations, communities, or industries. 

They face the pressure of steering the company through uncertainty, whether it's economic downturns, disruptive technologies, or shifts in consumer behavior. Moreover, the isolation of top leadership roles can be daunting.

Surrounded by people yet often feeling alone, these leaders must find ways to stay grounded, make tough calls, and continue to inspire those they lead, even when the path ahead is unclear.

The Bottom Line

Leadership in management is what separates good managers from great ones. So, if you're ready to become great, elevate your ability to lead with confidence, and make a real impact, consider where the right education can take you.

The Master of Science in Leadership at César Ritz Colleges can equip you with the skills, insights, and mindset to lead in any setting. Keep in mind that leadership isn't about standing above the rest; it's about standing with them. So join us, and stand with us.

Frequently Asked Questions (FAQs)

How do you develop leadership skills?

Leadership skills are developed through continuous learning, embracing challenges, and seeking feedback, all while observing and adapting the best practices of successful leaders. Real growth comes from pushing beyond your comfort zone and leading by example.

Why is leadership important in management?

Leadership is at the center of management, fueling team motivation, alignment, and innovation to achieve organizational goals. It is essential for overcoming obstacles and achieving long-term success in any kind of business.