What is the difference between managing and leading people?

Managing people often refers to overseeing their work, ensuring tasks are completed, and dealing with administrative or logistical details. On the other hand, leading people involves inspiring and motivating them, guiding them towards a common goal, and making productive use of their individual strengths and knowledge.

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The Essential Drucker

Most of the traditional management theories practiced today can somehow be tied to Peter Drucker. Many readers will be familiar with his work, and thi...

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The first sign of decline in an industry is the loss of appeal to qualified, able and ambitious people. One does not manage people: the task is to lead people; and the goal is to make productive the specific strengths and knowledge of each individual. Workers need motivation; motivation comes from having a "challenge." Pick people well: the decisions about people are the most important ones.

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Other motivational factors for workers can include recognition for their work, opportunities for personal growth and development, a positive work environment, job security, good pay and benefits, and a sense of belonging or team spirit.

There are several theories that emphasize the importance of choosing the right people in business. One of them is the Resource-Based View (RBV) which suggests that a firm's competitive advantage largely depends on its internal resources, including its human capital. Another theory is the Human Capital Theory, which posits that the skills, knowledge, and experience of employees can be treated as capital that can contribute to the economic value of a company. The Social Capital Theory also highlights the importance of relationships and networks within a business, which can be optimized by choosing the right people.

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