Operation Management Concepts and Applications

This assignment delves into the core principles of operation management, covering a range of topics from system design and process improvement to supply chain management and quality control. Students are tasked with analyzing various operational challenges, applying relevant theories and frameworks to develop solutions, and demonstrating an understanding of the strategic importance of effective operation management in today's dynamic business environment.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Comparison between roles and features of leader and manager .....................................1
M1. Difference between leaders and managers in Amazon...................................................3
P2. Application of role of leader and manager in various situations .....................................3
P.3 Application of leadership theories and models................................................................4
M.2 Assessment of strengths and weakness of different approaches.....................................5
D.1 Evaluating various approaches........................................................................................6
TASK 2 ...........................................................................................................................................6
P.4 Different approaches to operational management and role of leaders and managers......6
P.5 Importance of operational management in achieving business objectives......................8
M.3 Leaders and managers improve efficiencies ..................................................................9
P.6 Elements that affect decision making of leaders and managers.......................................9
M.4 Various factors which affect business environment ....................................................11
D.2 Evaluate factors impacting business environment.........................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operations management is the managing of all activities and operations in firm according
to needs of individuals (Ale and et. al., 2010). It is important so that firm can increase the
production and enhance market share. Through this, company can easily expand and diversify in
various countries. Report discusses about Amazon which is an electronic commerce firm in the
UK. It was found in the year in 1994. Project describes about the definition and comparison of
roles and features of leaders and manager, evaluate examples that how duties and functions of
both apply in various situations, application of theories and models of approach. Assignment
explains about the importance of operations management in achieving the organizational
objectives as well as factors in business environment that impact the operational management
and decision making of leaders and managers.
TASK 1
P1. Comparison between roles and features of leader and manager
In this competitive world, firm has to produce products according to the needs and wants
of customers. So, leaders and managers play a vital role in the management so that company can
achieve their objectives. Both have different duties and characteristics through which firm can
increase their profits.
Leadership is process in which leader helps in influencing other people by motivating and
supervising them so that all employees can achieve their goals.
Management is a process in which manager manages the people and other resources such
as financial etc. so that firm can run smoothly and successfully.
Roles and characteristics of leader in Amazon:
 Motivator: Leader supports and guides all employees so that they can perform better.
Through this it increases the energy level and enthusiasm level of workers and thus they
can give good results. Hence, all activities and tasks are run in a proper and efficient
manner. Hence, all workers can easily accomplish their objectives. It results in increasing
the productivity of firm. Through this, firm can increase profits and enhance the market
share. Hence, company can expand their operations in many countries.
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 Encourage team building: Leader mainly guides all employees so that workers can give
their best results. They communicate with all workers and solve their problems. Thus, all
staff members can perform efficiently and effectively. Hence, they can give the best
results. Through support of leader, there is the creation of positive environment in firm.
Therefore, they are motivated and all workers interact and share their views. As a result,
there is the creation of effective team (Baboli, and et. al., 2014).
Roles and characteristics of manager:
Creates plans and policies: In Amazon, manager can create all plans and policies for the
firm so that all employees can perform accordingly (Bouvy and et. al., 2012). Manager delegates
roles and responsibilities to all workers so that they can understand their duties and can perform
well. As a result, workers become responsible and they can give their best to the work. This
results in achieving the goals. Through this, all activities and tasks can be run successfully and
smoothly. Thus, it results in effective management of operations in company.
Controls and monitors the business operations: Manager helps in controlling the
operational activities and tasks. Thus, they can do improvement in business operations and
correct the deviations. Thus, all activities in department are run effectively and smoothly. Hence,
firm can earn more profits and increase the market share. So, it helps Amazon to expand and
diversify operations in different countries. Through this, firm can maintain a unique and distinct
position in market as well in front of customers.
Difference between leader and manager
Leader Manager
Leader focuses on the present task of firm.
They evaluate the objectives, vision and
mission of organisation. This is important so
that all employees can easily accomplish their
targets and goals.
Manager focuses on the activities and task
related to future. They develop the plans and
strategies as well as delegate activities to all
employees. This is done so that firm can
achieve the goals and run successfully.
Leader motive, guide and supervises all
employees so that they can easily achieve their
goals. This is also important so that all
employees can increase their energy and
Managers emphasise on the activities and goals
of firm. They want that all employees can
accomplish their objectives. So hence managers
can check that workers had completed their
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enthusiasm level. Hence they can give good
results.
tasks or not. This helps in improving the
performance of firm.
Leaders are those persons who want to bring
many changes in firm so that companycan
create innovative ideas to create new products.
They also create different methods and
techniques so that firm can modify their
processes and activities.
Managers are persons who create plans and
policies and wants to develop good reputation
of company so hence they follow their own
rules, regulations and wants that company can
maintain good image in front of customers and
in market.
M1. Difference between leaders and managers in Amazon
Leader Manager
Leaders focus on the present operational
activities. This is done so that staff members
can accomplish their objectives.
They create and develop the plans and policies
related to future and hence, transfer their duties
to many workers.
They motivates all all employees that they can
perform better in firm.
They mainly focus on completion of activities
and tasks.
Leader wants to bring changes in Amazon so
that it can run smoothly.
Managers focuses on increasing image and
reputation of firm.
Leadership theories include democratic and
transformational. Democratic theory means
leader can take decisions from all staff
members and hence they can participate in
decisions of firm. Transformational leadership
means the leader can set goals and vision for
firm and hence guide workers so that they can
accomplish them.
It has theories such as contingency in which
manager can changes decision according to
different situations. There is another theory
which is system theory which consists of
different parts and it consists of input, process
and output. Good results can be received when
manager motivates them.
There are different theories and concepts through which organization can run successfully.
Leadership theories are:
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Democratic leadership theory: Through this all employees can take decisions easily.
Hence all staff members can easily participate in all tasks and activities. Through this task can
run successfully.
Transformational theories: Through this theory leader and manager can modify all
activities and policies and mission of firm. They guide and motivate all staff members so that
they can perform better.
P2. Application of role of leader and manager in various situations
There are different roles of leader and manager in various situations. It is important so
that firm can run successfully and smoothly (Burke, 2013).
So, duties of leader and manager in various situations are:
Decision making
Leader's role: Leaders play a vital role in taking decision of the firm. They thought that
lean production can be applied so that firm can decrease the expenses and costs of business. This
step of leader helps in expansion and widening of business in minimum time. So hence they also
decides to motivate all employees so that they can perform better. So they give good results.
Through they decision all activities and tasks related to operations runs smoothly and
successfully. Hence, it can increase the efficiency of all operational tasks. Thus it leads to
increasing of more profits. Therefore company can increase the market share. They can easily
expand and diversify their business which is the main objective of Amazon. Therefore, they can
maintain a unique and strong position in the market as well as in front of all users. For
Manager's role: Manager also focuses on six sigma technique so that firm can easily
improve their operations. As there are various competitors, thus company faces many difficulties
in increasing the production. Therefore, manager creates various plans and policies to apply this
technique. So they take decision to motivate all workers and give extra incentives so that they
can perform well. Thus through using all these tools and techniques, company can produce high
quality of products with additional features and attributes (Caniani and et. al., 2015). Therefore,
company can easily solve their problem. By getting incentives, all workers can give good results.
So it increases the quality and quantity of output (Chen and et. al., 2011). It enhances the
productivity of firm. It results in expansion and diversification of business in less time. They can
maintain a competitive edge on other rivals in the market.
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Risk taking
Leader's role: There is a risk that whether business can expand or not. The competitors
are charging lower prices. So, they motivate all employees to create strategies to beat the rivals.
So they motivate all employees to create strategies to beat the rivals. They take decision to
reduce this risks. So they have taken a decision on organizing the training session so that all
employees are trained and they can produce good quality of products. Through this it results in
effective and efficient management of all operations. They can sell products at less costs and
they also decided to use online applications which costs low for firm. In this way firm can sell
many products at cheaper prices and they can easily beat cfoptiotir. Through this decision firm
can earn more revenues and can easily expand their operations. Thus the can m,maintain positive
image of all users. For example There is a situation in which there is increasing in profits of
competitors. So leaders can take feedback from all employees so that they can give advices such
as using six sigma,lean manufacturing so that thee is no wastage and firm can produce good
products. Leader guide and motivate staff members so that they can give their suggestions.
Hence they can reduce this risks.
Manager's role: They have taken a decision to execute Six Sigma in firm so that firm
can produce best and superior quality of products. They create plans and policies so that all risks
associated with expansion gets reduced. Thus can be decreased only through applying of all
operational methods and procedures. They also take decision to apply their total quantity
management in firm. Through thus they can improve the quality of products and hence they can
deliver good products to customers. Hence they also take decision to apply lean production.
Through using of these tools and techniques they can easily increase their revenues and can
increase the market share. Thus it helps in improving the quality and quantity of output. It leads
to increasing of production. Thus they can easily expand and diversify the business. They can
maintain good and strong position in front of all users. For example there is a situation in which
Amazon's has less production and it has low position as compared to competitors. So there is
huge risks and all customers are moving towards other rivals. So hence manager can create
policies and can use six sigma,lean manufacturing and total quality management. So hence they
creates strategies to execute this in firm. Hence they can increase production and can give
competition to other rivals.
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Both leader and manager are important for firm. Both if them can work together as manager
crates plans and policies and leader can implement them by guiding all staff members.Through
collective effort of both firm can accomplish their goals.
Through this managers and leaders have to work together so that they can perform better.
Thus as a result all functions and tasks are effectively performed. Hence firm can earn more
revenues.
P.3 Application of leadership theories and models
There are various leadership models and approaches which are used by leader in the firm.
Different leadership theories and models used by Amazon are-
(Source: Contingency and situational approach, 2018)
System leadership: In this they all factors are interlinked with each other is some way or
another. It basically incudes three parts input,output,process and feedback (Chen and et. al.,
6
Illustration 1: Contingency and situational approach

2010). So thus leader motivates,provide extra incentives to all employees so that they can
perform better. For example there is a situation in which employees have to sell 10000 products
through various applications. So hence company motivates and gifts extra gifts and discounts to
all staff members so that they can give good results (DeAnna, Freeland and Gockeler, 2013).r
Thus leader try to organize training programme so that they can increase their skills and
knowledge. As a result they give good results. Hence firm can produce good quality of products.
Thus they can earn more profits and can easily widens and expand their operations. Leader
motivates employees so that they can sell these products while manager can create plans and
policies so that they can sell these products. It has open and closed system.
Situational leadership: In this leadership leader takes their decision according to
different circumstances and situations. Through this they can solve all issues and problems of
employees. For example there is a situation that employees are leaving the company as they are
not satisfied with them. So hence leader had taken a decision to organize motivational seminar
and workshops so that they are motivated. They are given extra incentives and highly recognized
in front of all employees. Due to this their energy level increases and they do not leave the firm
and works in same firm. So hence through their decision they can increase the loyalty. Thus all
activities can run proper manner. Manager can decide that seminars to be organized while
leaders can decide that motivational workshops can be held or not. They ko0tuvate employees
while managers create plans and policies. Both role are different.
Contingency leadership theory: Leader changes their leadership style according to
different situations Through this they can deals with many problems or issues in the firm. For
example there is a situation that competitors market share is increasing. Thus leader takes
decision that to apply the democratic leadership approach models hence they take advice and
suggestions from all worker so that they can increase the market share. All staff members have
gave a decision that to apply online techniques for the promotion. They have to create attractive
websites so that they can capture many customers. Through this style they can handle situations
in a very proper manner. Thus they can earn more revenues and can increases the market share.
For example there is a situation in which employees do not give good results. Hence leaders take
decision to provide training to employees and organizing of motivational campaigns in which all
are motivated while managers can create plans and strategies so that all employees can give best
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results. Leader can give direction while managers can set vision and objectives for all employees.
This also helps in improving performance of all employees.
Managerial grid model: They consists of 4 types through which leader guide,supervises
and motivates all employees in different situations. First is authoritarian in which leader mainly
focus on the activities and tasks. They do not guide and motivate all the people so that hey can
perform activities. Second is country club in which they focus on capabilities and skills of all
people and they do not focus on tasks. Third is situation which is known as impoverished in
which leader puts no emphasis on activities and on people skills. Forth is team leader in which
leader mainly focuses on both activities and potential of people (DeAnna and et. al. 2010).
M.2 Assessment of strengths and weakness of different approaches
Theory Strengths Weakness
Contingency Main strength is leader can
take decisions according to
various situations. Through
this firm can run smoothly and
successfully.
Weakness is that it cannot be
applied in all situations.
Sometimes there is a situation
in which decisions of leader
cannot be applied in different
situations. So hence activities
cannot run properly.
Situational Leader knows the technique to
handle situation so hence they
know methods through which
leader do not leave the firm.
By knowing technique
situation and problems can
easily be solved.
Weakness is that leader cannot
take same decisions in every
situation. Through this all
issues and problems cannot
easily be solved as situations
are different.
System Through this leader knows the
techniques to take out the
desired output using this
theory. Through this best
It is complicated as it involves
various steps. Through this it
can make complication in
procedures and system and
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results can be obtained by
using this theory.
hence it can impact
performance of all employees.
Strengths and weakness of approaches used by Amazon are-
` Contingency: Main strength is leader can take decisions according to various situations
Weakness is that it cannot be applied in all situations (Kato, 2012).
Situational: Leader knows the technique to handle situation so hence they know
methods through which leader do not leave the firm. Weakness is that leader cannot take same
decisions in every situation.
System: Through this leader knows the techniques to take out the desired output using
this theory. It is complicated as it involves various steps.
D.1 Evaluating various approaches
According to (DeAnna,and et. al., Zeosoft Tech Group Inc, 2010) System Theory
includes various components which are linked to each other. So hence leader gives various
benefits so that the can give good results. Through motivating all employee they can achieve
their goals. Hence they can give best results. Through this company can earn more profits. There
is another theory which is Situational leadership approach in which leader takes different
decisions in different circumstances. Through this they can solve all issues. Hence it can improve
performance of all employees and thus they can easily accomplish their goals. According to
(White, 2016) Contingency leadership approach leader takes different decisions and uses
various leader theories in various circumstances. Through this they can take decisions related to
different situations and thus all problems can get solved. Thus employees can work efficiently
and give superior results.
TASK 2
P.4 Different approaches to operational management and role of leaders and managers
There are different approaches in operational management and various duties if leaders
and managers. So various approaches used by Amazon are-
Total quality management: Through technique company tries to enhance the quality of
products. Thee are no flaws in delivery of products to the customers. Hence leaders take decision
to motivate and increase the enthusiasm of all employees so that they can take decision to prove
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training and motivational seminars. Managers can create plans and policies so that there are no
mistakes in packaging and deliver products through online applications. All process works
systematically. Through both decisions it increase the customer loyalty. As a result firm can
easily expand and diversify the business. Hence firm can maintain good image and reputation in
front of all users.
Lean production: Through this technique firm can decrease the expenses and costs in
process of production. So hence company can decrease the expenses in transportation. They hire
employees so that they can reduce the costs and expenses in selecting employees. Leaders take
decision to guide and supervises all employees so that can reduce costs,.They are given gifts and
other incentives so that they can increase production (Kato, 2014). Manager creates plans and
policies to organize training sessions so that they can reduce costs in producing various items.
Through this it can increase pleasure of all users and can easily expand operations in various
countries. Thus they can increase their revenues and can capture many consumers (Lindström
and et. al.2012).
Queuing and logistics: In this system,Amazon company tries to create proper system of
queuing and logistics system. In this proper records of all products are maintained and thus they
keep supervision that good are transferred to warehouses and then delivered to
salesman .Managers creates plans and strategies so that entries are properly made and there are
no wastage of items. Training sessions are given to train employees so that they can create
proper documents. All employees perform efficiently and effectively. Through decisions firm
can easily increase their production and can earn more revenues. Thus it helps Amazon to easily
expand and diversify the business. Hence they can maintain good reputation in front of users and
in market.
Just in time approach: Proper scheduling and other processes are decided by all
managers so that it increase the efficiency in operations. Goods are delivered to transporters so
that they can supply to various warehouses properly. They are also transferred to suppliers and
distributors in appropriate time so that they can deliver the goods to salesman. Manager creates
various plans and policies to create records and documents of products which are being delivered
to customers. So that items are delivered in time to customers through salesman or through
online sites. Leaders motivate all employees and give extra benefits and gifts so all workers can
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easily deliver goods to salesman. This helps in increasing satisfaction level of all users. Thus
firm can increase production and expand their operations.
Continuous improvement: Amazon can continuously improve quality of products.
Leaders motivate and give direction to employees to add new and distinct features in product.
Managers take decision to create plans and policies so that existing products gets improved.
They decided to organize training programmes so that they can train all employees so that they
can add new attributes in their products and sell through online sites. Thus they can increase
production and can expand their operations (Lisi, 2010).
There is 10 decision areas that Amazon can consider in running their operations and
activities. 10 decision areas are-
Design of goods and services: Company is using recent and advanced technologies and
communication tools so that it can create and design goods and services.
Quality management: Company can apply and use different methods so that it can
improve performance of business. Leaders motivate all employees so that they can give creating
and distinct ideas and can improve performance.
Process and capacity design: Company is using advanced tools and techniques. They
perform all automation process and thus it uses online ordering process faster so that it can
increase the process of processes and capacity design.
Location strategy: Amazon has to create different warehouses and thus it easily distribute
products through online applications.
Layout design and strategy: There can be increasing of maximization of shelf space and
less use of aisles. Thus it can provide
P.5 Importance of operational management in achieving business objectives
The operational management is very important as it increases the efficiency in processes
and activities (Moghaddam and et. al., 2011). Importance of operational management in Amazon
in accomplishing business objectives are-
Increases productivity: Through proper operational management all activities run
smoothly and successfully. All employees perform works in proper manner. It reduces the costs
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of production and transportation and there is continuously improvement in quality of products so
hence they an create good quality of products. So hence it leads to increase the production level
in firm. It can also deliver the products in time to customers. As a result it can increase the
revenues and market share. Thus it can maintain unique and good position in minds of all
customers. Hence they can easily expand their business.
Customer satisfaction: It helps in increasing pleasure level of all users. As company is
providing products to all users in suitable and appropriate time so hence all users are very
satisfied. Through decisions of managers and leaders and through various approaches used in
operational management company can create good and superior quality of products. Thus deliver
best quality of items to all customers. Satisfied users also give reference to their friends and
relatives. Thus they are very excited. Hence firm can easily increase the sales. Through high
level of satisfaction of users firm can easily expand their operations on large scale.
Achievement of target: Through proper effective and efficient management firm can
easily accomplish their targets and goals. Operational management helps in increasing the
efficiency and effectiveness level of all process,methods and techniques. All employees also
perform well and thus they can achieve their targets. Through increasing of efficiency in
operations procedures and tasks activities run in an smooth manner. Thus firm can earn more
revenues and can increase the market share. Hence it results in expansion and diversification of
business of Amazon. Through this firm can easily achieve their business objectives.
Increases revenues: Through operational management and activities firm can easily earn
more revenues. Employees perform well and thus they can produce good quality of products. Al
task run in an smooth and proper manner. Thus all process,methods and techniques in Amazon
runs smoothly and successfully (Rani and Moreira, 2010). Hence firm can deliver good quality
of products to all users. Thus it increases the level of joy and hence all customers become
contended. Thus firm can earn more revenues and can increase market share. Thus Amazon can
easily accomplish their goals. Through this they can easily expand and diversify business in
minimum time.
Brand image: Amazon firm creates good quality of products at low costs. They deliver
the products at suitable time to all users. At same time they deliver products according to
requirements of all customers (Smith, Rahn, and Wang, 2010). They do not give wrong products
to users and performs delivery in time Thus it increases the satisfaction and pleasure level of all
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consumers..Hence firm can increases the profits and can increase the market share. Through this
firm can increase the brand loyalty and can maintain good image of brand in front of all users
and in market. Thus it results in increasing the reputation and image of brand in country. This
helps in expansion and diversification of Amazon.
M.3 Leaders and managers improve efficiencies
Leaders play a vital role as they motivate,guide and supervise all employees so that they
can create and deliver good quality of products to customers. Managers can create policies, plans
and uses various techniques so that it can increase quality and quantity of output which is
produced by firm. Through contribution of both firm can increase the production ,increase their
profits and can easily expand and diversify the business.
P.6 Elements that affect decision making of leaders and managers
It has been analysed that there are various factors which may put impact on decision
making process of both managers and leaders. These elements are being divided into two main
factors and these are internal and external. These components are given beneath:
Internal factors: These are those elements that consist inside of a company which may put
impact on decision making process of both management and of leaders as well of Amazon. Some
of internal elements in this context are comprehended below:
Employees: They are the people who works in an organisation and in place of that firm
offers them wages. A company may not hit its targets if they do not have efficient or unhappy
staff members. Therefore, considering them while making decision is important. There
suggestions may also aid firm in making effective determinations.
Suppliers: This term can be understand as they are those individuals who continuously
provides or delivers raw materials and other resources so that Amazon can manufacture products.
It has been analysed that these suppliers should be effective in nature as cost of products may get
rises and firm can face various losses as well at the same moment (White, 2016).
Customers: They are the people who have certain needs and in order to fulfil them they
buy or purchase goods and services from market (Winget and Thomson, 2010) . Therefore, it is
mandatory for both management and leaders of Amazon to locate all the requirements of them
through which they can manufacture products as per gained information in order to make
enhance profit margins.
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External factors: Foreign elements are the one which put impact on decision making
process of both leaders and management of Amazon. Some of them are given below:
Illustration 2: PESTLE Analysis
(Source: PESTLE Analysis,2017)
Political: This is one of a main element which should be considered by leaders and
administration of Amazon while making determinations. Policies and other laws are being made
by government of UK which should be considered by Amazon in order to run business in
successful manner.
Economic: Few of elements like economic process rates, customers pocket, interest rate
and taxes comes under this and they may huge impact on decisions of a firm. Therefore, it is
mandatory for Amazon to make alterations in their aims from time to time.
Social: There are ample number of norms that are related to society which should be
considered by both managers and leaders in an appropriate manner while making decisions.
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Technological: This factor is much dynamic in nature. In order to make alterations in
products and services which may aid firm in enhancing brand image at marketplace.
Legal: Another external factor that consist all the legislations, acts and laws which should
be considered by administration and leaders of Amazon while making determinations in order to
gain competitive advantages.
Environmental: One more factor which may help firm in making effective decisions.
Demographics, weather and climatic conditions of area are some elements that should be
properly examined by both managers and leader in an appropriate manner.
M.4 Various factors which affect business environment
There are different elements such as internal such as customers and suppliers. External
includes includes political,economic,social,technological,environment and legal factors which
affect operational management of firm. Leaders motivate all employees so that it can create
products accounting to requirements of all customers and maintain good relations with suppliers.
Managers creates plans and policies to adopt various external factors so that they can earn more
profits and expand their operations.
D.2 Evaluate factors impacting business environment
According to company has to fulfil all needs and wants of customers and can maintain
strong relationship of supplier so that it can earn more profits. Firm have to properly consider the
external factors such as political,social,technological,economic,environmental and legal so that it
can easily adopt them. It can create strategies so that it can deal with other changes and can
increase the profits and expand their operations on large scale.
CONCLUSION
It is concluded from above report that management and operations are very important for
every business. Role and features of leader and manager are different. Different duties an
functions of leader and manager are applied in different situations. Demonstrating appreciation
of role of leaders and managers in operations functions. There is relationship between Leadership
and management in contemporary business environment. Both role are important so that they can
deal with changes.
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