(Doc) Leadership and Management in a Global Context

Business Report on
Approaches to Leadership
and Management in a
Global Context

Table of Contents
INTRODUCTION...........................................................................................................................3
1. FUNCTIONAL AREAS AND HIERARCHY OF MANAGEMENT........................................3
REFERENCES................................................................................................................................5
2. COMMUNICATION CENTRAL TO LEADERSHIP AND MANAGEMENT........................6
REFERENCES................................................................................................................................7
3. DRIVERS OF GLOBALISATION AND THEIR IMPACT ON BUSINESS ...........................8
REFERENCES................................................................................................................................8
4. Comparison of Styles of Leadership or Management..................................................................9
REFERENCES .............................................................................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Leadership and Management is most important part of any business that helps to
maximise the efficiency as well as to achieve organisational goals. None of the businesses at
global or local can achieve its desire goals and objectives without leadership and management. In
this present business report, functional areas of Allum and Sidaway Holdings Limited and its
hierarchy management. Further, the importance of communication in leadership and
management. Moreover, the current drivers of globalisation will be deeply discussed in this
report. Styles of leadership and management will also include in this report.
1. FUNCTIONAL AREAS AND HIERARCHY OF MANAGEMENT
Overview of Allum and Sidaway
It is a retail company which is located in England, United Kingdom. Allum and Sidaway
is a multi-award winning independent jeweller have five unique stores of jewellery. Another key
product of Allum and Sidaway is watches. The revenue of company is £6 Million to £10 Million.
Functional areas of Allum and Sidaway
There are five key functional areas in Allum and Sidaway which are very important for
smooth functioning of organisation. It is also called as operational management of organisation.
Here are the five main functional areas of Allum and Sidaway which are as follows-
Human Resource Department- Human resource department is responsible for
recruitment of the eligible employees in Allum and Sidaway. They make policies and rules for
the organisation which followed by the all employees inside the organisation. They coordinate
many functions of the organisation.
Production Department- Production department is responsible planning, directimng,
organising, coordinating and controlling of the production functions of Allum and Sidaway
company in such a manner that desired products could be manufactured in right time, in right
quantity and right cost (Functional Areas of Management, 2017).
Financial Department- This is also the functional area of management and it is
responsible for cash flow in the Allum and Sidaway. Work of finance department consist with
accounting, cash management, investment, stock, debts, taxes etc.
Marketing Department- The Marketing Department plays an important role in
promoting the business and mission of Allum and Sidaway. Marketing department is responsible

for promote the business and advertisement of the products which made by the organisation.
They represent the image of the organisation in market.
Sales Department- Sales department is responsible for making sales of the Allum and
Sidaway. They are responsible for create and maintain relationship with the customers. With
response to making relationship with the existing customers or new customers they grow the
business in effective way (BODDY D, 2016).
Hierarchy of Management
The way in which the structure of company uses different level of authority as well as
vertical link, or chain of command between subordinate and higher level of the company is
called as hierarchy. In Allum and Sidaway, lower levels are controlled by higher level of the
company.
TOP MANAGERS- Top line managers such as board of directors, chairmen, president, vice
president, managing director, CEO, general manager etc. They all are considers as a group of
management which are responsible for overall main management in the organisation. They make
the small group of managers which manage overall organisation. Overall welfare of the
organisation done by them. They establish overall organisational goals and scheme for their
achievements.
For example the big decisions in Allum and Sidaway are taken by the top level managers.
Chairmen of the company decide the all big things such as formulation of strategic decision,
policies etc. which relates to the external environment of the company.
Functions
 Examine the goals of organisation
 Make policies to attain the goals.
 Furnish direction to the organisation.
MIDDLE MANAGERS- Middle managers considers the head of department, head of task or
project, and head of different types of departments. They are responsible for the specific group.
They make plans and strategies for run the small group and motivate them to work in effective
way.
For example in Allum and Sidaway n middle managers work for making the policies for the
lower level managers and they are responsible for the internal environment of the organisation.
Functions

 Understand the policies and procedure which made by the upper level management and
follow it.
 Recruitment and selection of the employees which are suitable for the post.
 Assign duties and responsibility to the employees.
First line managers
First-line-managers considers the person such as foremen, supervisor, sales officer,
account officer etc. They are responsible for operate the team and their work and also responsible
for follow the rules which makes by the middle level managers. They are responsible for the
operational plan for the organization because productivity depends on them.
For example the first line managers in Allum and Sidaway responsible for operational function
such as account department, production and manufacturer department etc. They are responsible
for maintain relationship with the employees.
Functions
 Issue order and instruction to the workers.
 Classify and assign job to the workers.
 Solve the problems which faced by workers.
 Arrangement of tools and resources which needed to the employees to work.
 Maintain the relationship among workers.
REFERENCES
Hierarchy of management. 2018. [Online]. Available
through:<https://courses.lumenlearning.com/boundless-business/chapter/types-of-
management/>.
Functional Areas of Management. 2017. [Online]. Accessed through: <https://www.erp.gold/5-
important-functional-areas-management/>.
BODDY D. (2016) MANAGEMENT: AN INTRODUCTION. Pearson

2. COMMUNICATION CENTRAL TO LEADERSHIP AND MANAGEMENT
It is fact that communication is the central part in leadership and management within
organisation. Communication is a core function of leadership. Communication and effective
leadership are closely interrelated with each other. Leaders need to be develop the skills of
workers in the organisation and sometimes it has to do on the global scale.
Leaders need to think with clearness, express ideas, and share information with a multitude of
people. They must learn to handle the rapid flows of information within the organization and
among customers, partners as well as other stakeholders and influencers. According to Peter F.
Drucker- communication become successful only when listener listen what is delivered by
speaker.
Communication in the backbone in the role played by leaders and mangers both at global
and local level because without proper communication they can not achieve desire goals of the
company. Communication is the major part of business and fluent communication with flat
organisational structure create positive environment in the organisation. On the basis of
communication trust and understanding increase among the employees and it also leads
organisation to the highest profitability and productivity.
If the organisation uses flat organisational structure than it is easy to communicate with
the all employees in proper manner. Employees can directly talk with the managers and
managers provide them opportunity to participating in decision making process and it will
increase the work efficiency of employees and create positive vibes in the organisation.
Communication plays major role in the organisation when it comes to being flexible for
employees as they feel valuable in the company if managers provide them opportunity to share
their views and give importance to their words. Mike Krzyzewski also put light on imprtance of
communication with employee, as he said “ Effective team work starts and end up with
communication. Satisfaction of employees is also most important thing in the organisational and
if the employees feel safe and valuable in the organisation than it will increase the goodwill of
the company and also increase in employee retention. Communication helps in decrease in
employee turnover. Thus, these are the reason why communication is the central part of all
companies.
For example Effective interdepartmental communication in the functional department of
organisation helps to achieve goals. Communication between employees help them to provide

the best suggestion for the problem. Both sales and marketing department needs to close with
each other. Marketing department works for promoting and advertisement of fairness products in
the chosen organisation and it helps the sales department to target the area. With the help of
marketing department, sales department can work in well manner. Other side communication
needed in finance department and marketing department to work in well manner. Human
resource department and marketing department interrelates with each other because they make
policies and rules for the organisation and marketing department have to accept these all rules
which formulated by them.
REFERENCES
Importance of Communication in leadership and Management. 2018. [Online]. Accessed
through: <https://www.theglobeandmail.com/report-on-business/careers/careers-
leadership/why-communication-is-essential-for-great-leaders/article4098019/>.
Qualities of Good Communication. 2017. [Online]. Accessed through:
<https://online.csp.edu/blog/business/communication-strategies-for-great-leadership>.

3. DRIVERS OF GLOBALISATION AND THEIR IMPACT ON BUSINESS
Technological drivers- Technology is the most important driver for globalization. It
takes shape to the organisation. It is important for the technical revolution of the company.
Inventions in the area of microprocessor and telecommunication enables highly effective
commuting and communication at low cost level (Globalisation Drivers, 2018).
It makes big impact on the business because technology takes a new shape to the company and it
the new market is going towards the internet which is too useful for the company to make
efficiency in the process.
Political drivers- Political instability is major thing for globalization of the company.
Company has to follow all the rules and regulations of the company and they are not permitted to
break the boundary of the rules. The general agreement on tariff and trade and world trade
organisation is responsible for the rules and regulations for international trade.
They make impact on the organisation because the organisations ahas to follow all the
regulations of WHO and GATT. It makes cost and time for the organisation and the organisation
has to pay fees for it.
Market drivers- Market drivers is also an important aspect for globalization and the
domestic markets plays an important role for growth of the company on the wide scale. Common
customers need and the possibility to use global marketing transmission and transfer marketing
to some level are also incentives to choose worldwide.
It makes impact on the business because if the organisation want to be global than it is
important to create a good image in domestic markets because with the help of it they can go for
globalization.
Saturation level in domestic market- high saturation level indicate that industry achieved at
its peak, now there is now growth opportunity in available for further expansion. For instance
Allum and Sidaway tries all the marketing effort, but still it is able to earn economy of scale and
enough profit. This situation occurred when volume of service and product, reached maximised
in domestic country. In such case company try to move it's business in global market, where it's
product is welcome by host country. Company can only target this problem when it renders
innovative product for domestic customer as well.

Availability of resources at global level-
Organisation's success is not only relay on increased profit and market share, but also on
cost effectiveness. Cost efficiency can only be achieve when firm is able to procure right
resource in right quantity at right time. Scarcity of resources enhance transportation and import
cost. For instance company may find difficulty in finding the high educational human capital in
domestic market. To tackle this situation firm can take two decision i.e. either it hires personnel
from foreign country or set its branch in host country. If company do not move itself in
deficiency of resource in domestic market, it will face problem of high cost of product because it
has to bear cost of import resource from outside the domestic boundary. Globalisation also help
in save the negative impact of currency exchange rate again and again.
REFERENCES
Globalisation Drivers. 2018. [Online]. Accessed through: <https://ged-project.de/videos/what-
are-the-drivers-behind-economic-globalization/?cn-reloaded=1>.

4. Comparison of Styles of Leadership or Management
Bases Democratic leadership Transformational leadership
Urgency of task This leadership style is not
suitable for the time
management. It takes lot of
time to manage the project and
complete the task (Leadership
styles, 2018). In this style
leader considers the views of
everyone and it takes time to
evaluate the opinion and
perception of everyone.
According to Carlos Ghosn,
leader have to be more
confident as well as secure, but
on the other, leader has to be a
lot more open and empathetic.
It can be good for motivate the
people in the organisation. In
this leadership style the leader
helps the subordinates to
complete the task if the task is
in urgency. They support the
subordinates in every problem.
It is considers in one of the
task oriented leadership. They
give direct command to
complete the task.
Leaders must create cultures of
constructive skepticism and
surround themselves with
people who bring multiple
perspectives and have no fear
of challenging the boss.
Experience of team member In experience members can
show their least interest in
sharing the thoughts. But it is
useful to hear the opinion of
the people. If the team
members are experienced than
it is useful for the leader
because leader can gain many
things from them and it will
help them to achieve there
This leadership style is suitable
for both experienced and
inexperienced person because
the nature of leader is
supportive in it. Experienced
team can join new task and
inexperience team can do the
old task in which they feel
comfortable.

goals.
As per Ellen Kullman
communication play a very
important role in democratic
leadership as he focuses on
communication, more time out
at plant sites, in sales offices,
with customers, in our research
laboratories.
Size of team Size always make impact on
the performance of leader. The
smaller the team the easier to
work. The bigger the team the
longer it will take time.
For this type of leadership
style the size of team can not
impact. A good leader can
send his vision even upon the
nations and make them believe
it is a right way.
For global organisation like Tesco, Marks and Spencer, Hilton etc. transformational
leadership style is suitable because it is the style in which the leader being frank within the
employees and make them engage with their work and it will help them to achieve the task in
well manner. The most important thing is that they always focus on implementing carnages
within organisation. Nature of leader is supportive always when the employees needs to solve the
problems and many more things. The corporate vision of organisations are quickly formulated.
REFERENCES
Leadership styles. 2018.[Online]. Available through:
<https://www.verywellmind.com/leadership-styles-2795312>.
Transformational Leadership style. 2018. [Online]. Accessed through:
<https://managementstudyguide.com/transformational-leadership.htm>.

CONCLUSION
The above report comes to the conclusion that leader and management plays an effective
role in both global and local business but it is vital in global businesses. It has been also founded
that communication is the central part in the role played by leaders and mangers both at global
and local level because without proper communication they can not achieve desire goals of the
company. Further, technological, market and political drivers leads to major impact on global
businesses. In addition to this, by comparing transformational and democratic leadership, it is
founded that transformational leadership is best for global businesses.

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