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Leadership and management are two essential functions in business. Leadership represents individuals involved with balancing varying interests among managers, employees and other business stakeholders. Management commonly is defined as the organization and coordination of various economic resources in a business. While leaders can be managers, managers may not be leaders. Leaders often have specific character traits that lend their skills more to directing a company than managing resources.


Organizational leadership often manifests itself in the business owner or executive directors of a company. Many owners are seen as leaders because they start new businesses based on an idea or vision. Business owners are responsible for handling all aspects of creating the new business venture, regardless of how many difficult situations arise. Organizational leaders may respond to various negative business situations based on their core personality traits.


Leadership traits include enthusiasm, conscientiousness, boldness, self-assurance and competitiveness. These characteristics give individuals intangible business skills for accomplishing tasks and inspiring people to work with the leader during tough situations. Specific organizational leadership traits may include intuitiveness, maturity, team orientation, charisma and empathy. These may closely relate to the organizational structure of the business in which the leader works.


Business owners and leaders usually develop a mission or value statement for the organization. This statement includes information that will promote the transfer of information, knowledge and methods to individuals working in the business. Organizational leadership often recruits individuals to help the leader fulfill his vision. Leaders also have a tendency to delegate non-essential tasks to lower-level employees. This delegation allows leaders to maintain a singular focus on the overall goal of their business organization.


Businesses with strong leadership usually have a better understanding of their goals and objectives. While the main goal of many businesses is to make a profit, they also may have other goals when operating in the business environment. Leaders not only provide these goals and objectives, but also ensure the company achieves them. Leaders can help a company return to its original goals or objectives if the business begins to lose its way.


Organizational leadership can create some conflict in businesses. Leaders may be so focused on a single goal or objective that they overlook other needs in the business. Managers and employees can be overlooked or seen as less important if organizational leadership goals are placed ahead of these individuals. Organizational leadership that continually critiques and punishes employees can create an unfavorable environment in which individuals do not feel comfortable as employees.

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