Dear Ashpreet,
I see that there are contrasts.
When You say the Manager is hard working, efficient, knowledgeable, but at the same time he is not a good leader, his team members are not really happy working with him because he is too fussy, rigid and doesn’t get along with others easily, we keep on getting many complaints against him which we also agree, we had tried talking to him and making him realize his weakness but he is not ready to accept.
Taking that data I interpret it as:
He is not a Lazy Job/Responsibility shirker, he probably does more than what he is expected to and expect the same from the others on his team
He may not a Buck-Passer either, as he may do the barest minimum, delegates and try to shift responsibilities across to others, sometimes to give themselves an not so easy life, and sometimes to intolerant to deficiency in their abilities.
He may not be a Pessimist and a Negative type either. If one is consistently negative or pessimistic about things at work, doesn’t try to make them look at the positive side, such people will be able to justify every thought pattern he holds.
He could be the Competitive type who finds his team isn't moving at the pace and the level he wants them to. Someone who feels he has to constantly prove himself, take credit for things and generally have to compete in one-upmanship. That’s just the way most competitive people are, I’m afraid, the one's who always want to win. I see that such people could lack the self-confidence to face reality for what it really is, and have to cover up their own deficiencies by raising their self-esteem through hot air.
Firstly the role of a Manager and that of a Leader is different.
In his 1989 book "On Becoming a Leader," Warren Bennis composed a list of the differences:
"– The manager administers; the leader innovates.
– The manager is a copy; the leader is an original.
– The manager maintains; the leader develops.
– The manager focuses on systems and structure; the leader focuses on people.
– The manager relies on control; the leader inspires trust.
– The manager has a short-range view; the leader has a long-range perspective.
– The manager asks how and when; the leader asks what and why.
– The manager has his or her eye always on the bottom line; the leader’s eye is on the horizon.
– The manager imitates; the leader originates.
– The manager accepts the status quo; the leader challenges it.
– The manager is the classic good soldier; the leader is his or her own person.
– The manager does things right; the leader does the right thing."
Bennis concludes, "I believe that there are very distinct differences between the role of a manager and the role of a leader. But the roles should not be in conflict with each other. Sustainable, high-performance organizations recognize that there is a symbiotic relationship between managers and leaders and they ensure that both are being utilized effectively. I believe that we manage things (processes, procedures and outcomes) and we lead people (employees, customers and others)."
Going by this the issue then you could be having with your Manager could be aspects of Age (the Age/Experience between the Manager and the team, if it is too wide then there is one problem - Generation Gap perhaps, and when there isn't much there is another type of a problem - Oh he isn't more experienced than us so why should we go with him sorts,
Qualification - premier/specialized vs non-premier/non-specialized,
Cultural Background ( early education, language, Hindi Non-Hindi etc.)
Work Ethics (Values, Discipline, etc.) and lastly the most critical aspect is EGO ( this can run into volumes if one has to explain this).
I can empathize with the manager in this case as I've had and still have issues when working with people. This isn't a mind-set, but a fact. Maturity has taught me over the years to adjust and adapt. The levels of thinking, thinking out-of-the-box, creativity, innovation, problem-solving, not throwing up more problems but a variety of offering solutions when tackling issues, are all factors.
My suggestions would be to get all of them the Manager and the Team Members together, and give them a common goal the organization to achieve. Let them have a brain storming and perform a SWOT Analysis. After that they draw out a plan to execute the task with responsibilities clearly marked.
Encourage them to be constructive, not just positive. Discuss responsibilities for the changes that would have to be made. Concentrate on what can be done, instead of reasons why they can’t. Ask them to come up with solutions; this way, they have to be looking forward instead of viewing things through dark-colored glasses.
Resist the temptation to indulge in competing with each other; instead, emphasize the need for teamwork and stress common goals that all should be working towards. That way, they may start thinking about how to collaborate instead of compete.
Last but not the least, if I may state the truth, your talking to the Manager if you are all in the same age/experience group may not yield the result, you might need someone with more experience and wisdom to deal with this, need not be from an external source, as they can't really help the cause so much.