Importance of Leadership and Management

The provided project report summarises the importance of leadership and management in organisational success. It discusses how leaders and managers must have capabilities to influence their team through adopting management theories or leadership styles. The report also touches upon the significance of having validate and reliable information, which can be maintained using various systems such as Management Information System (MIS).

Business
Administration-70

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1.1 Explain the importance of defining the objectives, scope and success criteria of the
decisions to be taken...................................................................................................................4
1.2: Assess the importance of analysing the potential impact of decision making.....................5
1.3 Explain the importance of obtaining sufficient valid information to enable effective
decision making..........................................................................................................................5
1.4: Explain the importance of aligning decisions with business objectives, values and policies
.....................................................................................................................................................5
1.5: Explain how to validate information used in the decision making process.........................6
1.6: Explain how to address issues that hamper the achievement of targets and quality
standards......................................................................................................................................6
TASK 2............................................................................................................................................7
2.1: Explain the difference in the influence of managers and leaders on their teams.................7
2.2: Evaluate the suitability and impact of different leadership styles in different contexts......7
2.3: Analyse theories and models of motivation and their application in the workplace...........8
TASK 3............................................................................................................................................8
3.1: Analyse a manager's responsibilities for planning, coordinating and controlling work......8
3.2: Explain how managers ensure that team objectives are met................................................9
3.3: Explain how a manager's role contributes to the achievement of an organisation’s vision,
mission and objectives................................................................................................................9
3.4: Analyse theories and models of management....................................................................10
3.5: Explain how the application of management theories guide a manager's actions.............10
3.6: Explain the operational constraints imposed by budgets...................................................10
TASK 4..........................................................................................................................................11
4.1: Explain the relationship between business objectives and performance measures............11
4.2: Explain the features of a performance measurement system.............................................11
4.3: Explain how to set key performance indicators (KPIs).....................................................12

4.4: Explain the tools, processes and timetable for monitoring and reporting on business
performance...............................................................................................................................12
4.5: Explain the use of management accounts and management information systems in
performance management.........................................................................................................12
4.6: Explain the distinction between outcomes and outputs.....................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Leadership refers to an ability and skilled of an individuals called as leader to influence
the interest and working behaviour of its team members and get work done from others in more
effective and efficient manner. An individual said to be a good leader who have an ability to
guide its followers to perform in right direction with maximum efforts and dedication. The
present assignment report is based on Rowlinson Knitwear which is engaged in providing school
and corporate wear garments to the people of United Kingdom. The management of an
organisation decide to launch a new mobile application to facilitate its clients to buy their
products without visiting at their stores. The project includes the importance of objectives, scope
and success criteria along with the analysing the potential impact of decision-making. The
project also discusses the differences between managers and leaders, leadership styles,
motivational theories, models of management and features of performance management
indicators.
MAIN BODY
1.1 Explain the importance of defining the objectives, scope and success criteria of the decisions
to be taken
The management of Rowlinson Knitwear decide to launch new mobile application in
order to make easy for buyers to buy right products after determining prices and reviews by past
customers on such products. Thus, it is the main objective of company which must be defined
towards employees in order to communicate about their roles and responsibilities in execution of
such decision in desired way. It assist company to achieve huge customer strengths due to which
it has wider scope which will bring motivation among employees to work hard and perform with
full dedication and enthusiasm (Allais and Hagen, 2013). The possibilities of achieving success
behind launching new mobile application are very high as nowadays maximum number of
people are having smartphones and like to buy products through mobile app due to consuming
less time and efforts. Therefore, the scope of launching a new mobile app is high which
motivates employees to doubled their efforts in order to assist company in achieving competitive
advantage and success in rivalry market.
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1.2: Assess the importance of analysing the potential impact of decision making
Decision of increasing sales figures and customer base through launching a new mobile
application will bring maximum profitable outcome to Rowlinson Knitwear in near future. It is
important for management to analyse the potential impact of its decisions which brings
beneficial outcomes to company defined as under:
 Managers can doubled their efforts to maintain sufficient amount of resources which are
required to utilised in execution of decision.
 Delegating roles and responsibilities to the employees on the basis of their capabilities.
For example, allotting advertisements related work to employees having an experience of
using marketing techniques.
 To determine and resolve the issues or hurdles that may restrict management to launch
new mobile app in the market.
1.3 Explain the importance of obtaining sufficient valid information to enable effective decision
making
Valid information makes easy for both managers and employees of an organisation to
perform in right direction. It assist managers to sort the task according to their priority and
accordingly delegate work to the different members. For example, receiving financial
information of company by managers should be valid and accurate so that they take decisions to
eliminate deviations through maximising their strengths. The decision of launching new mobile
app is made due to continuously falling in demand and customer base which is determined by
analysing overall performance level of company. Therefore, it is important to communicate with
the employees regarding the company's downfall along with clear guidelines and information so
that they can perform accordingly and help company in achieving its desired goals and objectives
(Eichfelder and Schorn, 2012).
1.4: Explain the importance of aligning decisions with business objectives, values and policies
It is important for the management of Rowlinson Knitwear to align its decisions towards
business objectives, values and policies so as to determine the current trends and changes in the
requirement of clients and accordingly meeting them in an effective and efficient manner. For
example, Profit maximisation is the clear objective of Rowlinson Knitwear which can be
achieved through executing a decision of launching new mobile app which facilitate its clients to
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buy their products without visiting at their stores. Here the some importance of aligning
decisions with business objectives:
 The management can evaluate the performance level of workers and tried efforts to
maximise their performance and contribution towards organisational objectives.
 Management can took decisions regarding implementation of advanced technologies in
their business operations to increase quality of work as well as their products.
1.5: Explain how to validate information used in the decision making process
The management of Rowlinson Knitwear can take an effective decisions only if valid
information is available with them. Therefore, it is important to validate the information first
through following ways:
Accuracy: The information available in the books of accounts of company should be
accurate which can be possible through allotting such responsibilities to experienced accountant.
Reliability: The information must be reliable with a clear evidence so that management
can rely on while decision-making process (Fishburn, 2013).
Fit for purpose: Information that are already attained must be used and aligned with the
goals and objectives of firm.
Relevant: Data relevancy is another aspect which need to be consider while decision-
making process.
1.6: Explain how to address issues that hamper the achievement of targets and quality standards
There are different elements which can hinder company in achieving desired goals and
quality standards. It includes:
Resources: Managers of Rowlinson Knitwear can execute its decision of launching its
new mobile app in the market only if have sufficient amount of funds. Adoption of advanced
technology in production process to manufacture quality products also requires huge funds.
Thus, shortage of funds can be a big issue which can be overcome through raising funds from
various sources such as Banks.
Employees: Operating and using new mobile application in an effective way can be
possible only if the employees have proper knowledge and experienced. Thus, lack of skills and
capabilities of employees may become a major issue which can be overcome through conducting
training programs for its staff by the management (Hanf, 2014).
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TASK 2
2.1: Explain the difference in the influence of managers and leaders on their teams
Leaders and managers both play an important different roles and responsibilities from
each other. Manager have an ability to influence their employees through framing policies and
strategies where leaders can influences through bringing motivation and self-confidence among
them team members to perform according to the prescribed guidelines. Managers can maximise
the contribution of employees through analysing their performance level and promoting them
accordingly whereas leaders can maximise the performance and capabilities of team members
through conducting training and learning programs for them to perform in a desired manner. For
example. Launching a new mobile is the decision made by managers through which they defines
roles and responsibilities to their employees but it can be only executed in desired way only if
leaders influences their working behaviour in favourable manner either through motivating or
grouping together to give mutual support (Hesselbarth and Schaltegger, 2014).
2.2: Evaluate the suitability and impact of different leadership styles in different contexts
There are various leadership styles which can be adopted by the leaders according to the
situations arises at workplace. It includes:
Autocratic: This leadership style directs the leaders to take decisions on their own
without considering views and suggestions of its employees. It can suitable to adopt while taking
decisions of delegating work to the members on their basis of their skills and knowledge. For
example, New mobile application launched by Rowlinson Knitwear can achieve success in
grabbing an attention of maximum number of customers only if it is properly controlled and
monitored. Thus, delegating work to specialised skilled and experienced members is made only
if the leaders have control power and rights of taking decision with itself only.
Democratic: This leadership style directs the leaders to consult with the employees
before taking any decisions for achievement of organisational goals and objectives. It can be
useful to adopt by leaders while dealing with issues and problems faced by employees at
workplace. For example, receiving negative comments on products through mobile app launched
by Rowlinson Knitwear can be resolved through consulting with employees in order to examine
the issues properly and accordingly take decisions for further improvement (Lammers and
Hickson, 2013).
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2.3: Analyse theories and models of motivation and their application in the workplace
There are various motivational theories such as Maslow hierarchy needs, Herzberg's two
factor theory, Vroom expectancy theory etc. among which Herzberg's theory is most suitable one
to adopt by the management of Rowlinson Knitwear as such theory mainly emphasis on two
factors such as motivator which causes satisfaction of employees and hygiene factors which
causes dissatisfaction. These two factors are much interdependent on each others. For example,
allocating roles and responsibilities to employees according to their skills and knowledge while
launching a new mobile app by Rowlinson Knitwear, it maximises the satisfaction level of
employees. On the other hand, paying less to the employees in comparison to their efforts and
contribution in launching such app in more successful way, it will bring dissatisfaction among
employees. Therefore, it is important for management to identify the level of satisfaction of
employees and accordingly make an appropriate course of action so as to maintain healthy
environment at workplace (Masa’deh, 2013).
TASK 3
3.1: Analyse a manager's responsibilities for planning, coordinating and controlling work
Managers performs several functions in order to assist organisation in achievement of
desired goals and objectives within limited time period. Such functions includes:
Planning: Business environment is dynamic in nature which can be changed on frequent
basis. It may affect the decisions of managers and desired results. Therefore, to deal with such
changes managers is responsible make an effective plan along with an alternative plan so that if
main plan shouldn't succeed then there is another as well that can help in execution of their
decisions.
Coordinating: To execute pre-determined decisions, efforts of employees are must
required due to which the managers must required to coordinate with them through bringing
transparency in communication. It brings motivation and confidence among employees to work
with full dedication and enthusiasm.
Controlling: Manager is also responsible to analyse the actual outcomes received after
execution of their decisions through comparing it with the desired results. This will help in
identifying deviations which can restrict company to achieve desired result. It makes easy for
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managers to make suitable and correction actions to eliminate such deviations so that it cannot
harm in near future (Miranda, Gramani and Andrade, 2012).
3.2: Explain how managers ensure that team objectives are met
The management of Rowlinson Knitwear should consider SMART objective in order to
ensure that it can be achieved within given time period. For example, huge profitability and
customer base are the major objective of Rowlinson Knitwear due to which the management
decided to launch new mobile app which increases their profits as well as huge customer base.
Thus, SMART objectives determined in following way can help them in achieving desired
outcomes: Specific: Capturing market share of UK to achieve huge profitability. Measurable: Achieving 65% market share of UK. Achievable: Through offering genuine and reliable clothing products to the customers. Relevancy: It increases their presence in UK market.
 Time-bound: It can be achieved within 6 months of launching a mobile app.
3.3: Explain how a manager's role contributes to the achievement of an organisation’s vision,
mission and objectives
Rowlinson Knitwear can achieve its desired vision, mission and objectives within pre-
determined time period only if the management put their maximum efforts in maximising the
performance and contribution of their employees either through promoting them or conducting
training or learning programs at workplace. Manager should first defines the objectives and
mission of company clearly to their workplace so as to communicate them about their their roles
and responsibilities with an expectation of getting maximum contribution. The managers should
continuously analyse the performance of employees while execution of their decisions so that
any issues or deviation which can bring difficulties towards employees can be removed at a time.
Due to having lots of complexities in market environment, managers should prepare an
alternative plan in advance so that if any fluctuations in competitive environment exist it can be
easily tackled and continue to operate in order to achieve organisational goals and objectives
(Park, 2011).
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3.4: Analyse theories and models of management
There are number of management theories and models which can adopt by the managers
in achievement of organisational goals and objectives. It includes:
Scientific management theory: Such theory utilizes information and estimations to make
organization progressively successful. By examining and assessing processes in numerical way,
managers can separate valuable data which gives assistance to run business more smoothly
(Scientific management theory, 2018).
Human relation theory: Such theory centers around breaking down the necessities of
workers so their needs can be fulfil in order to maintain healthy relations with them. This will
increases satisfaction level which directly decreases the employee turnover of company.
Nudge theory: It is considered as an effective theory which directs managers of an
organisation to determine the thoughts of their employees through better communication so that
their ideas and thoughts can be implemented in the decision-making process for the betterment of
an organisation brings motivation among employees to generate new ideas and thoughts so as as
to get rewards and incentives by the management.
3.5: Explain how the application of management theories guide a manager's actions
Management theories mentioned above direct the managers to make corrections actions
and suitable plans in order to maximise the contribution of employees through increasing their
satisfaction level. By applying scientific theory, managers can easily locate valid and reliable
information which will be further taken into consideration while decision-making process. It help
company to move ahead than their rivals in competitive market environment. By applying
human relation theory, manager can establish a better relations with the employees and increases
their work commitment through identifying and meeting their needs and requirements at
workplace.
3.6: Explain the operational constraints imposed by budgets
Operational constraints imposed by budget are the some barriers and challenges which
can be faced by an organisation due to lack of sufficient amount of funds to execute pre-
determined decisions.
Staffing: Insufficient amount of funds restricts operation manager of Rowlinson
Knitwear to manufacture products in demanded quantity so as to meet the needs and
requirements of their clients. It also brings difficulties towards management to conduct training
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and development programs at workforce which enhances the actual performance level of their
staff. It brings demotivation and dissatisfaction among employees which can increases the
employee turnover of company (Yasmin, Tasneem and Fatema, 2015).
Production: Rowlinson Knitwear launches its new mobile app in the market to facilitate
customers to buy after preview their prices, reviews of past customers etc. Therefore, any
changes demanded by their clients in their clothing products will be easily identified through
reading their feedbacks on their products. Such changes can be adopt by the production
department only if the management have sufficient amount of budget.
TASK 4
4.1: Explain the relationship between business objectives and performance measures
Business objectives can be achieved within pre-determined time period only if the
employees can contribute their maximum efforts which can be possible through analysing and
measuring their actual performance on regular basis. Measuring the performance level of
employees makes easy for managers to forecast the performance level of business organisation
which enables them to make corrections actions and suitable plans to enhance in order to achieve
desired objectives and goals within limited time period. Thus, the business objectives is very
much interrelated with the performance measures.
4.2: Explain the features of a performance measurement system
Performance measurement system assist managers to identify high and low performer
which makes easy for them to make further decisions regarding enhancing their performance
level. It identifies the requirements of training programs at workplace so that maximum
contribution from employees can be gained towards achievement of organisational goals and
objectives. The features of a performance measurement system are determined as under:
 It is result oriented which mainly focuses on achievement of desired goals and objectives
within limited time period.
 It continuously maximises the performance level of staff through measuring them on
timely basis.
 It provides information regarding contribution of each employees.
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4.3: Explain how to set key performance indicators (KPIs)
KPI is considered as an effective performance measure tool which determines the low
and high performer of an organisation through comparing their actual results with desired results.
Setting KPI is easy to implement by determining the pre-determined targets and goals. An
organisation need to first map their business activities and accordingly establish roles to each
employee so as to receive maximum contribution towards organisational gaols and objectives. It
is more essential to adopt by business so as to achieve desired target within pre-determined time
period.
4.4: Explain the tools, processes and timetable for monitoring and reporting on business
performance
KPI is an effective analysis tool which evaluate the performance level of each and every
employees of an organisation on their basis of their actual performance level. It makes easy for
managers to conduct training programs to low performer as well as promote high performer.
Using such tool, managers ranked their employees from 1 to 5 after analysing their performance
level. For example, top performer will get highest rank whereas other employees ranked in the
same manner. The growth and success of an organisation is depends on the efforts of employees
which can be evaluated on regular basis by using such tool. For example, evaluating performance
after every six months enhances the productivity of employees.
4.5: Explain the use of management accounts and management information systems in
performance management
Management information system (MIS) is considered as an effective tool to adopt by the
management to store information of each transactions at one place which will further useful for
budgeting, planning, forecasting and profitability. To utilise such tool in an optimum manner, the
management must required to enhance learning of their employees through conducting training
sessions for them at workplace. Using management accounting tool facilitate an organisation to
determine the actual performance level of all departments and accordingly arrange and allocate
funds to them with an expectation of getting maximum positive result in near future.
4.6: Explain the distinction between outcomes and outputs
Differentiation between the outcomes and outputs are given as under:
Outcomes Output
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It means changes result recieved from a
program's service.
It is direct output of a program's activities or
services.
Quantify changes in the behaviour, knowledge
and attitude of a person.
It is generally describes in numerical or
quantified way.
For example, food security and adoption of
health practices
For example, receiving services and attending
the workshops.
CONCLUSION
It has been summarised from the above project report that leadership and management
play an important role in achieving organisational objectives, mission and vision. For this,
leaders and managers should have capabilities to influence their team either through adopting
management theories or leadership styles. To make an effective decision for the betterment of an
organisation, it is important for management to have validate and reliable information which can
be maintained using various systems such as Management Information System (MIS).
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REFERENCES
Books and Journals
Allais, M. and Hagen, G. M. Eds., 2013. Expected Utility Hypotheses and the Allais Paradox:
Contemporary Discussions of the Decisions Under Uncertainty with Allais' Rejoinder
(Vol. 21). Springer Science & Business Media.
Eichfelder, S. and Schorn, M., 2012. Tax compliance costs: A business-administration
perspective. FinanzArchiv: Public Finance Analysis. 68(2). pp.191-230.
Fishburn, P. C., 2013. The foundations of expected utility (Vol. 31). Springer Science &
Business Media.
Hanf, J. H., 2014. Literature survey on new participative pricing mechanisms for wine tastings.
Journal of Applied Management and Investments, 3(4), pp.201-213.
Hesselbarth, C. and Schaltegger, S., 2014. Educating change agents for sustainability–learnings
from the first sustainability management master of business administration. Journal of
cleaner production. 62. pp.24-36.
Lammers, C .J. and Hickson, D. eds., 2013. Organizations Alike and Unlike (RLE:
Organizations): International and Inter-Institutional Studies in the Sociology of
Organizations (Vol. 17). Routledge.
Masa’deh, R. E. M., 2013. The impact of information technology infrastructure flexibility on
firm performance: An empirical study of Jordanian public shareholding firms. Jordan
Journal of Business Administration. 153(954). pp.1-42.
Miranda, R., Gramani, M. C. and Andrade, E., 2012. Technical efficiency of business
administration courses: a simultaneous analysis using DEA and SFA. International
Transactions in Operational Research. 19(6), pp.847-862.
Park, M. W., Chang Won National Univ Business Administration, 2011. Control apparatus and
method of senseless MPPT control for photovoltaic power generation system. U.S.
Patent 7,994,768.
Yasmin, A., Tasneem, S. and Fatema, K., 2015. Effectiveness of digital marketing in the
challenging age: An empirical study. International Journal of Management Science and
Business Administration. 1(5), pp.69-80.
Online
Scientific management theory. 2018. [Online]. Available Through :
<https://bizfluent.com/info-8375509-four-types-management-theory.html>
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