- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume
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While the words boss and leader have similar definitions, the meaning isn’t exactly the same. A lot of this is connotation, which means that it’s how the words are used in the vernacular, as opposed to denotation, which is their strict dictionary definition.
Generally speaking, one would call someone in a position of authority a boss. This is especially true in terms of a career – the person that you report to is your boss. However, you wouldn’t necessarily call them a leader, not unless they display certain enviable qualities.
The simple way to look at it is that a boss pushes their underlings, reminding them of their authority at all times. A leader, on the other hand, pulls, encouraging those working under them to keep going. They don’t remind people of their authority because they don’t have to.
Key Takeaways:
| Boss | Leader |
|---|---|
| To be a boss, you must be in a position of authority. | While a leader is often in a position of authority, it isn’t a requirement. |
| Pushes people. Bosses generally believe that if you don’t stay on others, then they won’t want to work or get their jobs done. | Encourages people. Leaders believe that their team will get the work done without needing to be checked up on continuously. |
| A boss will take credit and assign blame to others. | A leader will take the blame and share the credit. |
| Bosses are unwilling to learn or change because they feel any criticism is a threat to their authority, or they think they don’t need to. | Leaders aren’t afraid to learn new things and improve themselves. They are also willing to defer to others who know more than they themselves when needed. |
What Is a Boss?
Bosses are people in positions of authority, usually in a company. The word is most commonly used to describe someone’s direct superior at their job. However, the term also has negative connotations when used in this way, most often seen in the expression “boss around.”
What makes a boss? Bosses can vary in terms of how well they do their job, but there are several things that make someone in a position of power distinct from a leader.
Bosses will:
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Be heavily critical. While it’s a boss’s job to keep their team working properly and point out errors – especially if they’re repeated – criticism by itself is unlikely to motivate people to do better. If someone’s struggling, there’s usually a reason for it, and just telling them what they did wrong is unlikely to fix it.
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Is controlling. One of the major mistakes people in positions of power will make is to be insecure in their position. Of course, sometimes there are obstacles to overcome, but ordering people around just because you can isn’t a way to make anyone want to follow you.
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Refuse to listen. Another mistake bosses will make is to think that suggestions are criticism. Most teams want to do their job and make the work better and easier. If bosses refuse to listen to their team, then they may give instructions that are redundant or counterproductive, as they won’t know what’s really happening with their team.
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Be uninterested in learning or will fail to defer to experts. This often comes from a lack of confidence – or conversely, a surfeit of it. Some people in power will refuse to learn new things or be corrected for their misunderstanding of a subject.
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Assign blame. Bosses won’t take responsibility for mistakes made and will even point out others as the ones who made such mistakes.
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Take credit. They won’t be ashamed to say that they’re the ones who got a project done, even if it’s not really true. Bosses aren’t afraid to sell themselves and even take credit for things that they don’t deserve.
What Is a Leader?
Unlike a boss, a leader doesn’t need to be in an obvious position of power, as leaders lead by example. Those with excellent leadership qualities do tend to rise in the ranks, but it’s not a guarantee – sometimes, other qualities or qualifications end up taking precedence.
So, what makes a leader? Leaders aren’t insecure in their position – at least, not outwardly. They’re willing to grow and change, and they pay attention to those around them.
Leaders will:
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Give out praise and credit. A good leader takes the blame and defers the credit to their team. They’ll pay attention to their team and recognize extra effort or excellent work on the part of their subordinates.
Positive reinforcement is widely considered the best way to motivate and train others, and it’s much more effective than punishment for failures as a way of motivating.
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Trust their people to get the job done. Leaders won’t force themselves into the project. They’ll assign roles and responsibilities as needed and then expect their team to get it done. If there are problems, then they’ll step in to see if they can help – and will be sure to let people know that they can come to them with problems.
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Be willing to listen and learn. They’ll be aware that they aren’t the authority on everything. There will be those on the team who are more knowledgeable than they are; they’ll be willing to listen to them and learn. They’ll also be willing to keep improving themselves.
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Delegate tasks. A good leader is aware that there are tasks that are better done by others. They aren’t afraid to delegate because they have faith in others to do what needs to be done.
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Work hard. While leaders do delegate and trust their people, they also work hard themselves. Leaders lead by example, which means that they aren’t afraid to work, but they also aren’t afraid to ask for help or make changes as needed.
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Protect others. A not insignificant part of a leader’s job is to use their authority for the benefit of others. This means that they take responsibility for any mistakes made, even if they weren’t the ones who made them.
The mistake happened on their watch, which makes it their responsibility. They will also shield their subordinates from any issues from higher management and be sure to back up and praise their people to higher levels of authority.
- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume

