I saw the term 小頭 and translated it from an online chat. Are the terms used differently? Both terms relate to a boss, an organizational leader of some sort. I am more familiar with the usage of 課長. Thank you.
小頭(kogashira) is an archaic term denoting a leader of a smaller group who works under the supervision of 大頭(oogashira). It is no longer used.
I believe there are a lot of Japanese who do not know what the term 小頭 denotes because it is almost never used in contemporary Japanese.
I, born and educated in Japan, would be surprised if there were a person bearing a job title called 小頭 in present-day Japan.
On the other hand, the term 課長(kacho), often translated as section chief, is a frequently used term that is just fine for any situation.
I guess your chat counterpart is joking.