A significant difference is that the manager’s role is mandated by some higher authority and is in effect as long as the higher authority so states. The role of leader is less permanent and, in fact, may either be shared through rotation or acquired through acceptance by followers.

Being recognized as a leader often has no relationship to an organizational position title. Thus, a manager may or may not be recognized as a leader. A worker may be recognized as a leader without having any managerial-type title or responsibility. Organizations often interchange the two terms, for example, calling someone a project leader when the intention is really project manager. A chairperson may be a leader and/or a manager, depending much on the influence he or she may have on an organization and the decision authority granted.