Aldi's Effective Leadership and Management

This assignment provides an analysis of Aldi's leadership and management, focusing on the differences between managers and leaders within the organization. It explores how external factors impact decision-making processes and identifies key aspects that contribute to Aldi's success.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Defining and comparing the roles and characteristics of leaders and managers in Aldi........1
M1 Different theories and approaches of leadership...................................................................2
TASK 2............................................................................................................................................3
P2 Application of role of leader and manager in different situational context............................3
P3 Theories and models of Approach and reflecting on the role of managers and leaders.........4
M2 Strength and weakness of different approaches to situation.................................................5
TASK 3 (Presentation)....................................................................................................................5
P4 Key approaches of operational management..........................................................................5
P5 Importance and value of operations management in fulfilling objectives.............................5
M3 Evaluating efficiency of operational management in Aldi...................................................5
TASK 4............................................................................................................................................5
P6 Factors impacting operational management and decision making.........................................5
M4 Impact of factors on business environment of Aldi..............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
It is important for the organization to have effective operation strategies for better
management and higher growth. Aldi is one of the biggest consumer product companies that is
functioning in UK. The report makes comprehensive discussion on defining the roles and
responsibilities of managers and leaders who are working in Aldi. Further, it discusses regarding
different situations and their roles in attainment of objectives. Various theories of leadership will
also be discussed such as, situational, contingency etc. Moreover, the report focuses on different
factors of business environment that has direct effect on decision making process of leaders and
managers at Aldi. In the end, in order to make the knowledge of stated subject concrete, a brief
discussion will be made on various internal and external environment factors that can affect the
function of Aldi.
TASK 1
P1 Defining and comparing the roles and characteristics of leaders and managers in Aldi
The Organizational structure is the hierarchy that is followed by the entity for flow of
communication, division of rights and responsibilities and other lines of authority. The
organizational structure followed by Aldi is hierarchal based where a manager of every
department is responsible to take care of its subordinates. The structure is beneficial in decision
making. A person can pursue the characteristics of both leader and manager. However, there are
certain differences between both of them. Some of these differences are discussed below:
 Definition: A leader possess the characteristics of a dominant personality who lead others by
his skills and achieve the objectives of an enterprise as well. However, on the other hand, a
manager is the one who is given responsibility by the management to administrate and insert
controlling functions in the organization (Mendis Muttaqi and Perera, 2012). Leaders create vision and managers create goals: A leader posses the characteristics of
converting the vision into reality. They tend to motivate the employees working at Aldi to
achieve something big. However, in contrast to this, managers are made so that they can get
the goals achieved from the employees of Aldi which has been made by top level
management. They control the situation of the organization in such a manner that the
objectives of Aldi are achieved. Innovation: The most essential attitude possessed by a leader is to have innovative and
creative ideas in their mind. They are considered as agents of change. However, in contrast to
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this, manager’s main focus is to refine the systems, structure of the business and its processes
so that the best can be achieved by the organization. Managers are the copy and leaders are unique: Leaders try to build their own identity and
do not copy the behaviour of others. It helps leaders in Aldi to develop their own new ideas
to handle the employees. However, in case of managers, they are the mimic of other and
hence follow others paths and leadership styles to attain competence at the workplace. Leaders are risk takers and Managers are risk avoiders: Leaders are the innovators and
hence always try finding creative ideas that can solve the problems prevailing in the
organization. However, in contrast to this, managers are the people who avoid risky situation
and if by chance any risk crop up in the organization, they are not able to take appropriate
steps for the same (Cheng Hu and Liu, 2014). Goals: Leaders tend to focus on long term goals of the organization. All the decisions taken
by them are beneficial for the future of the entity. However, in contrast to this, managers are
able to focus upon long term goal but desires for acknowledgement for the same. Coaching and directing: A leader is responsible to guide and inspire his team so that they
can opt for the path of success. He provides coaching to his team mates so that they can
utilize their potential to the maximum and hence their present skill set. Managers are the
people who direct its subordinates. Their goal is organization centric and less of person
centric. Leader creates relationships and managers build systems: leader’s main focus is their team
mates and hence is able to create person centric environment in Aldi. Further, it also helps in
creating relationships with the people working in Aldi as well. However, in case of
managers, there main aim is to get the work done and not focus on building relationships.
M1 Different theories and approaches of leadership
There are various theories that are applied by the leaders of Aldi. Some of the men are
mentioned below:
 Trait theory: As per the trait theories it is believed by the people in Aldi that people are
either born with the leadership skills or are made by making them excel in the qualities to
possess a leader’s role (Fayol, 2016).
 Behavioural theory: It has been made as per the reaction of trait theory. The reactions
and behaviours of a leader is through, mental, physical and social characteristics.
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 Contingency theory: This is the theory which is adopted in Aldi quite often. As per this
theory, there is no specific style that is possessed by the leader and hence the style of
leadership keeps changing as per the prevailing situation in the environment of the
organization. Aldi makes sure that the leadership style being adopted on the team mates
or the subordinates keep changing as per the situation.
TASK 2
P2 Application of role of leader and manager in different situational context
Aldi is one of the major consumer’s product companies that are functioning in UK.
Leaders and managers at Aldi play a crucial role in steering the organization towards success.
The roles and responsibilities may vary as per the situation prevailing in the organization. They
also make sure that the best is delivered to the customers and employees both. Aldi is having a
person centric environment than of entity centric one. For instance, if the top level management
is planning to implement new technology in the organization, the major role in it is played by the
leader and the manager (Li, Ouyang and Hua, 2012). However, the approach adopted by them
may vary from each other. As a leader, a person will inspire and motivate them to adopt the new
technology that has been implemented in the entity whole heartedly. He will also make sure that
that employees are made flexible enough in order to adopt for new change. However, n the
contrary side, manager will act as a connection or link between the top level management and his
subordinates. No role will be played by the managers in motivating his staff. They will monitor
and regulate the activities and make sure that the work is done. Further the whole
responsibilities of implementing the change will solely lie in the hands of managers.
Another situation in which Aldi can indulge in to is expansion strategy. For instance, if
the company is planning to open more stores in the country at different locations, in that case,
different roles will be played by managers and leaders. Since, expansion is no easy and hence
requires time and efforts both from the side of the top level management. Further, the major
requirement is to understand the taste and preferences of the customers and set up the new store
accordingly. Leaders act as a connection between customers and to level management. They can
interact to customers in order to understand their requirements and policies and regulatory
framework can be designed accordingly. Leaders also makes sure that timely services are
provided to the customers so at to increase their satisfaction level to the maximum. However, in
case of managers, the role played by them is entirely different. Managers make sure that a clear
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communication process is adopted so that all the policies and procedures are communicated to
the employees effectively. Managers also provide directions to the employees so that activities
are performed in order to attain organisational objectives. Monitoring and benchmarking
processes are also adopted by the managers to ensure that all the activities are done with utmost
proficiency. They are recruit adequate amount of effective individuals to get the work done from
them effectively. It helps in fulfilling the customer expectation to the maximum level (Wang,
2010).
P3 Theories and models of Approach and reflecting on the role of managers and leaders
There are various theories and models of leadership that can be adopted by Aldi. Some of
them are discussed below:
 Situational leadership: Situational leadership theory is considered as one of the
important and effective theory of leadership. It is considered as one of the powerful and
flexible approach where managers and leaders can change their approaches as per the
development level of the employees. There are four core and critical competencies of
leadership. They are:
o Diagnose: It is important for the leaders to understand the situation which they
wish to influence.
o Adapt: The need to change the behaviour in accordance to the existing situations
of the organization.
o Communicate: Implementation of effective communication in the environment so
that team members can be communicated for new policies and regulations.
o Advance: Managing the process is included in this competency (Johri, Salvi and
Filipi, 2011).
It is the most beneficial process of leadership that can be adopted by Aldi at its
workplace.
 System leadership style: It is a kind of management discipline that is related to
interactions between the components in a definite manner. It is considered as a dominant
organizational theory that considers entity as closed or open system. Aldi must have
leaders with a particular mindset in order to adopt this style of leadership at the
workplace.
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 Contingency model of leadership: The theory has strong emphasis on capabilities of the
leader which may change as per the situation prevailing in his life. Some of the common
situational factors include, capabilities, preferred style of leadership and behaviour
towards the employees in the organization.
Hence, it is important that the leadership style is effectively chosen by the leaders in Aldi.
M2 Strength and weakness of different approaches to situation
The strengths and weakness of different approaches of leadership are as follows:
 Autocratic: It is an authoritarian leadership and hence decision making authority lies in
the hands of leader at this place. It helps in saving time and enables speedy decisions.
However, the limitation is there is less chances of innovation and creativity.
 Bureaucratic: It is based on classification of duties and apply the rules n decision
making. The strength of this approach is helps in proper compliance of rules and
regulations. However, the limitation is it makes the working environment rigid and
inflexible.
 Democratic: It helps in giving right to the customers to participate in decision making. It
helps in creating effective working environment in the organization. The main strength of
this approach is that both workers and top level management gets involved in decision
making process. However, the main limitation of this approach is that it makes the
decision making process quite time consuming (Heizer, 2016).
TASK 3 (Presentation)
P4 Key approaches of operational management
Enclosed in presentation
P5 Importance and value of operations management in fulfilling objectives
Enclosed in presentation
M3 Evaluating efficiency of operational management in Aldi
Enclosed in presentation
TASK 4
P6 Factors impacting operational management and decision making
There are various internal and external factors that can have greater impact on operational
management and thereby on decision making process of Aldi as well. Some of internal and
external factors are discussed below:
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Internal factors
 Value system: It is necessary that all the employees of the organization follows all the
rules and regulations of the entity. It has greater impact on operations and may also
create confusion regarding roles and responsibilities as well.
 Financial strength: It is important for the entity to have adequate amount of funds t
meet its needs. Inadequate finances forces the management to compromise with the
quality and thereby leads to customer dissatisfaction (Zurich, 2017).
 Employee-employer relationship: Good relations between the employer and the
employee and helps in better decision making.
External factors
 Ethical issues: It is important to follow all the regulatory policies that have been issued
by the government for its smooth functioning.
 CSR: Aldi has to opt for corporate social responsibility as well for its continuous
sustenance.
Leaders and managers work effectively so that all the important external and internal factors
and considered diligently. It not only helps in achieving the objectives but also assist in
achieving higher customer satisfaction level as well.
M4 Impact of factors on business environment of Aldi
Impact of different factors can be analysed in the following manner:
 Political factor: The business environment of Aldi has stronger impact of prevailing
governmental laws in the environment. Some important political factors includes,
changing business laws, increasing foreign investment etc (Galindo and Batta, 2013).
 Economic factor: Some economic factors includes, fluctuating interest rates,
unemployment ratio etc. It can influence sustenance of business in long run. Drastistic
instability can lead to reduction in revenues of Aldi.
 Social factor: Change in taste and preferences of the customers can affect the output of
Aldi. It can also have greater impact on production and revenues of the business.
 Technological factor: Emergence of new technology can affect the profitability of Aldi.
It can also aid in better customer services at the stores of Aldi as well.
 Environmental factor: Environmental safety is the major concern which needs special
attention from the side of Aldi. It is an important issue for its longer sustenance.
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 Legal factor: Aldi is required to comply with the entire statutory requirements. Inability
to do this can lead to have greater impact on the reputation of the business (Systems
Theory and Systems Approach to Leadership, 2017).
CONCLUSION
Based on the above report, it can be concluded that, Aldi have effective managers and
leaders who have been able to bring the organization on top in consumers product industry. The
report outlines that there is a greater degree of difference between the roles of managers and
leaders that is played by them at Aldi. Both the aspects contribute in the success of the
organization in their own way. Further, there is an impact on external factors on decision making
process of the organization as well. Hence, these factors are important to be considered by
managers and leaders so that the objectives of Aldi can be attained effectively.
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REFERENCES
Books and journals
Cheng, Y., Hu, A. and Liu, Y., 2014. Cloud manufacturing: a new manufacturing
paradigm. Enterprise Information Systems. 8(2). pp.167-187.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Galindo, G. and Batta, R., 2013. Review of recent developments in OR/MS research in disaster
operations management. European Journal of Operational Research. 230(2). pp.201-211.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Johri, R., Salvi, A. and Filipi, Z., 2011, January. Optimal energy management for a hybrid
vehicle using neuro-dynamic programming to consider transient engine operation.
In ASME 2011 dynamic systems and control conference and Bath/ASME symposium on
fluid power and motion control. (pp. 279-286). American Society of Mechanical
Engineers.
Li, J., Ouyang, M. and Hua, J., 2012. Real time optimal energy management strategy targeting at
minimizing daily operation cost for a plug-in fuel cell city bus. international journal of
hydrogen energy. 37(20). pp.15380-15392.
Mendis, N., Muttaqi, K. M. and Perera, S., 2012, October. Active power management of a super
capacitor-battery hybrid energy storage system for standalone operation of DFIG based
wind turbines. In Industry Applications Society Annual Meeting (IAS), 2012 IEEE. (pp. 1-
8). IEEE.
Wang, F.Y., 2010. Parallel control and management for intelligent transportation systems:
Concepts, architectures, and applications. IEEE Transactions on Intelligent Transportation
Systems. 11(3). pp.630-638.
Zurich, L.B., 2017. Service Operations and Management.
Online
Systems Theory and Systems Approach to Leadership. 2017. [Online]. Available through:
<http://www.academia.edu/12677583/Systems_Theory_and_Systems_Approach_to_Leadership
>.
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