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CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories

Which of the following correctly distinguishes a leader from a manager in the usual management view?

A manager is mainly concerned with planning, organising and controlling resources to meet objectives, whereas a leader concentrates on inspiring and influencing people towards a vision. Managers usually derive power from formal position, while leaders may rely on personal influence, so the two roles differ in function.

  1. AA manager's power comes only from personal charisma, while a leader's comes from the organisation chart
  2. BA leader is always appointed formally, while a manager emerges informally
  3. CA manager is concerned with planning and controlling resources, while a leader focuses on inspiring and influencing people towards a visionCorrect
  4. DA leader and a manager differ only in salary, not in function

Explanation

Managers handle planning, organising and controlling to achieve results, while leaders inspire and influence people towards a vision. Options A and B reverse the usual sources of power and appointment. Option D is unfounded because the difference lies in role and orientation, not pay.

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