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Seminar paper from the year 2010 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,7, AKAD University of Applied Sciences Pinneberg, course: FGI 03, language: English, abstract: Today’s business is based on the division of labor. Different people have to work together in order to create values and offer products or services. But these people are individuals with different needs and wants, different skills and abilities. They have different social, economical or cultural backgrounds as well as different working methods. They have opposing interests and suffer from a lack of information about what others need and want. Therefore, the division of labor requires a coordinating element: a manager or a leader. It is their task to coordinate all the individuals creating a unified direction of work. By this, all efforts can be focused on a common goal. Commonly, the terms “management” and “leadership” are used synonymous with reference to the coordination function in business or administration. This raises the question whether there is a difference between the two terms “management” and “leadership” and if so, how this difference can be described and defined. Sometimes one can hear the saying that “managers do the things right, but leaders do the right things”. This adage states a significant difference between leadership and management. However, there is a heated debate about this topic. The opinions differ widely about this topic. This paper will discuss the terms “management” and “leadership” in a theoretical and practical way. These two terms will be defined as well as differentiated from each other. A special focus will be laid on the management functions and managerial roles and activities. This will be discussed from a theoretical point of view. In addition, a practical example will clarify the theoretical angle.