Managers order their employees to perform, while leaders inspire them to perform.
Much has been researched and written about various styles of leadership and management. Kurt Lewin, a German-American psychologist did groundbreaking research decades ago in social organization theory, which included definitions of management styles. He described three basic types: authoritarian or autocratic, participative or democratic and delegative or free reign. Although the terms manager and leader are sometimes used interchangeably, there is usually a distinction made between the two. Leadership styles are more collaborative and are considered more effective and inspirational for those being led.
Authoritarian or Autocratic
The authoritarian or autocratic style is most characteristic of the manager rather than the leader. In this very "top-down" style, the manager is the boss and has the first and the last word on the issue. This manager makes all the decisions and tells the employees what needs to be done, as well as where and do it. This management style is most appropriate when a task needs immediate completion -- such as in an emergency situation -- but does not foster long-term loyalty.
Participative or Democratic
This style is actually a hybrid of manager and leader. In this style, the employees are empowered to make decisions. Contentious issues may be decided by staff vote. Visionary leaders employing this style ensure their staff are ready and able to make the necessary decisions. Less capable managers may have trouble letting go of their need for power and control. They might inadvertently set the employees up for failure by burdening them with decisions they are unable to handle, and then the manager may step in and take over. Effective leaders foster capable employees.
Delegative or Free Reign
This delegative style must be applied with caution. For it to work effectively, the employees must be ready to execute the task given to them. The manager must not sit idly by on the sidelines doing nothing, while the employees waste their time engaging in nonproductive activities. A "hands-off" manager might incorrectly assume that he is empowering his staff by giving over complete control. An effective leader who employs this style allows the workers to do the job as they see fit, but guides from the sidelines and subtly steers them in the right direction by coaching and answering questions they were encouraged to ask.
Visionary Leadership
A visionary leader occasionally might have to resort to the lower-level management style for some specific situations or tasks, but overall, her staff will feel empowered. True leadership is evident in organizations where staff morale is high and employees feel their opinions are valued. When the workers feel they have control over their workplace, they are most productive, most satisfied and are being led, not merely managed. Visionary leaders lead by inspiring their followers, not by merely ordering them to perform as managers do.
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