Effective Management and Leadership Theories

The provided report emphasizes the significance of managing business operations effectively and efficiently to avoid losses and utilize resources optimally. Various management and leadership theories are explored, including path-goal leadership theory, to help organisations achieve their goals and make informed decisions. The document also touches on operational theories and techniques for achieving success in a competitive market.

Management and
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1 Organisation management structure ........................................................................................1
2 Role of Manager and Leader ...................................................................................................2
3 Role of management and leadership in different organisational situations ............................4
Situation. 1 : Fast Changes ......................................................................................................4
4. Strength and Weakness of management and leadership approaches ...................................5
5 Impact of manager and leaders on workplace .........................................................................6
TASK 2 ....................................................................................................................................7
1 Key operation of Toyota .........................................................................................................7
2 Operational function and roles of responsibilities of managers. .............................................7
3 Operational approaches to operation management and their values. ......................................8
4 Impact of business environment factor on leaders and managers decision making ................9
5 Operational efficiencies improve to meet successful business objectives using management
& leadership approaches ..........................................................................................................10
6. Conclusion and recommendation.........................................................................................10
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Management and operation is an essential element of an organisation which enable them
to monitor the business function as well as enhance the performance of their production. In
simple terms, it refers to manufacturing raw material into finished goods or services with
maximum utilisation of available resources in order to attain high profitability. The main aim of
management and operation is to satisfy consumers and employees in aspect of cost, time and
energy. Apart from this, optimum utilisation of resources helps the firm to minimise wastage of
product which enrich their brand image. Moreover, it plays a vital role in managing obstacle of
operations and maintenance of business function used for the manufacture of products. In context
to Toyota, a famous Japanese multinational automotive manufacturing company which is
established in the year of August, 1937. It's headquartered in Japan and they mainly produce
vehicles, engines, materials handling machinery etc. which serves across the globe. This report
covers role, functions of manager and leader and application of theories and concepts, key
approaches tom operation management. Finally, the relationship between management and
leadership and evaluate factors of business environment which influence decision making.
TASK 1
1 Organisation management structure
Management and operation process is concerned with converting raw material (input)
into finished goods or services (output) in order top accomplish the organisational goal in an
effective manner. Their main goal is to manufacture the desired products in a best quality in
order to eliminate or reduce the wastage of goods. Along with this , it helps the company to
attain maximisation of profit with the optimum utilisation of available resource in order to enrich
their proficiency and effectiveness. In case of Toyota, one of the leading auto mobile
manufacturing company introduced in the year of 1937. They have effective and impressive
management structure which enable them to attain high profitability and profitability.
Furthermore, management structure states how an organisation coordinate or mange its
establishment structure (Alanazi, Alharthey and Rasli, 2013). The main objective of this
structure is to provide suitable direction or guidance to company which helps them to improve
their overall performance in an efficient manner. The management structure of Toyota is divided
into various departments i.e. office and shop-floor which is monitored and controlled by General
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Manager. In each of these departments General Manager appointed assistant General Manager
followed by senior and section manager. Along with this, in office department, section manager
has the responsibility of directing engineer and administrator on the other hand, in shop floor's
section manager has group of team member.
Illustration 1: Management Struture of Toyota, 2018
2 Role of Manager and Leader
Manager and Leader are the main aspect of an organisation but each of them has unique
roles and responsibilities which makes them different from each other (Belbin, 2012). Manager
is a person to whom management task is assigned in order to achieve desired goals or objectives
through the key functions of planning and budgeting, organizing and staffing. On the other hand,
leader is an individual who inspire or influence others to put their full effort towards the
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attainment of business goals or objective in an effective way. In other words, leaders are flexible,
innovative, inspiring, creative, courageous and independent while managers are consulting,
analytical, deliberate, authoritative and stabilizing. However, as their title varies from each other
they both have different role to play within an organisation. Some of the role of manager and
leader are as follows:
Role of Manager
 Resolving conflict: This role is regarded as the crucial aspect of manager as they have to
manage or handle complex business situation in order to improve the morale of grieved
parties. However, Toyota 's manager behave fairly while managing the conflict of
employees as they provide the freedom of sharing their issues which in result develops an
healthy relation among them (Burke, 2013).
 Information provider: In an organisation, to carry forward the business objective in an
effective manner, manager act as a spokesperson or communicator who deals with
shareholders, employers, government etc. Furthermore, Toyota's manager is transparent
in providing information from one party to another which enable them to maintain a
proper relationship and can attain pre determined goal efficiently.
Role of Leader
 Encourager: Leader is an individual who motivates and inspires multitudes to put their
full effort towards the accomplishment of high productivity. Hence, Toyota's leader
always influences its followers and create positive attitude among them which enable
them to attain their task effectively and efficiently (Drucker, 2012).
 Making decisions: An impressive decision improves the morale of employees and builds
a strong working culture within company. However, Toyota's leader is not bias in nature
which helps them in implementing effective and fair decision which encourage
subordinates to accomplish business goal and objective.
In the above statement as it mentioned that manager and leader roles are different yet
their goal is common i.e. achieving business objectives in an efficient way. Likewise
management and leadership are two different aspects which is described below:
Particulars Management Leadership
Meaning Management controls or
directs people or resources in a
Leadership is an ability of an
individual to inspire or
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group according to principles
or values that have been
established.
influence people for achieving
pre determined objective.
Plan of action It applies reactive strategy. It follows proactive strategy.
Workers Management has employees
as a workers.
It has followers.
3 Role of management and leadership in different organisational situations
In order to expand business in a proficient way, it should have an impressive
management who can plan, coordinate, organise while at the same time an effective leadership
should also be there who can encourage, motivates and inspire employees to contribute their best
effort towards the organisational goal. Both the concepts must go hand in hand in various
business situation in order to bring forward productive and satisfactory outcome for employees.
Here some of the management and leadership theories which implies for different company's
situation are described below:
Situation. 1 : Fast Changes
Toyota, world's third largest automotive manufacturer company. Their main elements for
business growth is to adopt innovative technology in order to gain competitive advantage.
Therefore, technology advancement influence their product supply and customer buying
decision. In order to overcome this situation management and leadership has their own role to
play (Duffie and Singleton,2012).
Solution : Both leader and manager are aware about the concept i.e. technology driven company
can attain high profitability and productivity. So, they move forward to achieve organisational
goal. In case of leader they implies autocratic leadership style i.e. implementing the new
technology and command their followers to follow. On the other hand, manager accepts the
orders from leader and execute those plan by convenience employees to put their effort towards
the attainment of company's objective. Thus, it helps the firm to capture the market and add its
value among competitors.
Situation. 2: Slow Changes
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In context to Toyota, a leading Japanese manufacturing company. For them, market
expansion is an integral part for accomplishing high proficiency in terms of product and service.
Furthermore, being a multinational company establishment of new plant in a new geographical
region enhance business growth at the same time it leads many conflicts of interest among
employees. To tackle this problem management and leadership plays their role in an efficient
manner.
Solution:As leader and manager understands the importance of market expansion which act as
key factor for firm's enlargement among industry. However, in this case leader apples democratic
style i.e. providing the freedom to employees to share their thoughts or views regarding
establishment of new plant and their convenience about working condition. While manager,
adopt those ideas from leader and develops a framework to introduce those opinion into action.
Thus, it enable the company to can competitive advantage and enhance employees satisfaction.
4. Strength and Weakness of management and leadership approaches
For attaining maximisation of profit, various management and leadership approaches or
theories plays a crucial role for the smooth functioning of business activities like planning,
controlling, directing, organising, staffing etc. Each theories combine together for the
achievement of pre determined goal (Easterby-Smith, Thorpe and Jackson, 2012). But at the
same time it has their own strength and weakness which influence organisational objective which
is described below:
Situational Leadership: Under this theory it states the leader or manager capabilities in handling
complex business situation as well as implementing effective course of action in order to build a
n impressive working culture. Some of the advantage and disadvantage of this theory are as
follows:
Strength Weakness
 It helps the manager to be more flexible
and open minded in order to acquiring
business opportunities and threats.
 This theory enable the leader to handle
any character of employees i.e.
introvert and extrovert as well it helps
 It mainly implies on sudden or
immediate situation which eliminate the
long term vision of an organisation.
 As leader and manager have to react on
immediate business situation which
fails them in providing proper and clear
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them to make effective strategies for
business growth.
information to leader or manager.
System Leadership: This theory analyse and develops interconnection and inter relatedness
among different business functions or departments in order to enhance the productivity. Some of
the pros and cons of this theory are described below:
Strength Weakness
 It helps leaders to develop uniformity
in implementing decisions for
employees and also for company.
 It enrich leader adaptiveness skill and
also enable them to be dynamic or
static in nature.
 Uniformity in decision making leads to
dispute or conflict between
subordinates.
 It generate problems to manager in
implying this theory in matter-of-fact.
Contingency Leadership: Under this theory, it mainly concentrates on the relationship of
manager attribute and attitude towards situation which effect company's and subordinates
working environment. Some of the strength and weakness are given below:
Strength Weakness
 It enrich the manager and leader
decision making skill for building
effective workplace.
 The major drawback in this theory is
that it makes the leader to be reactive
rather than proactive high has direct
impact on organisation working culture.
5 Impact of manager and leaders on workplace
In every firm managers and leaders are regarded as the backbone within workplace as
they contribute their best endeavour towards accomplishment of pre determined objective in an
effective and efficient way. However, both manager and leader's role has direct impact on the
company's productivity and profitability (Fischer and et. al., 2010). As the leaders initiate to
acquire innovative technologies or plan on the other hand managers execute ideas which is given
by leaders and they create appropriate framework. During the process of achieving business
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objective, managers and leaders should be very attentive and mainly concentrate on
accomplishing high productivity. Apart from this, both should not be bias in nature and
implement fair decision which improves the employees morale and enhance company's
profitability. They should be proactive as well as reactive for complex business situation for
building impressive and healthy relationship between superior and subordinate. However, both
of them should make use of available resource in order to obtain maximisation of profit for
gaining competitive advantage.
TASK 2
1 Key operation of Toyota
Operational management process is mainly regarded as the transformation of input (raw
material ) into output (desired products and services) with the optimum utilisation of resources
for obtaining maximisation of profit. It is also considered as administration of business activities
or functions which enhance higher level of proficiency in a workplace. Along with this, its main
aim is to enrich overall performance of company which add value to company's brand image as
well improve customer buying behaviour. In context to Toyota, one of the leading manufacturing
car company which is situated in Aichi, Japan. However, it has productive strategies which
ensure them to become a famous firm in global environment. The key operation of Toyota are as
follows:
 Product quality: An productive operation enable the firm to minimise wastage and helps
them to produce best quality of product in affordable price. Moreover, Toyota's main
focal point is that optimum utilisation of available resources in order to eliminate and
reduce the wastage of product (Grint, Jones and Holt,2016).
 Organise raw materials: It is the main element for every organisation to maintain or
manage their inventory or stock in an efficient manner. However, Toyota maximise their
raw material in order to manufacture impressive product and reduce wastage of
commodity. By this company can enhance their business operation at a domestic and
global level effectively and efficiently.
2 Operational function and roles of responsibilities of managers.
Management and operation signifies the procurement of resources, make use of available
resources in order to transform raw material (labour, equipments, capital) into finished goods
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that add value to company's image as well as to employees. However, effective business
operation enable the firm to produce and deliver goods in order to enlarge company's
productivity. In relation to Toyota, it is known for its operational function and its leader
effectively monitor or coordinate the business function. Here, operational function and
responsibilities of leaders in varies business function which is described below:
 Planning: This function is an initial and foremost for every company's business growth
as it provide the outline or blueprint of business objective or goal. It is challenging for
business to achieve organisational objective without an effective planning. In relation to
Toyota, they plan their business activities in advance which enable them to move
forward in achieving goal and also it decreases the conflict of interest among
employees. By this , company can attain high productivity and create effective working
culture within workplace (Harris and et. al., 2013).
 Coordinating: This function relates with the management and coordination of business
function for achieving high level of efficiency among competitors. However, Toyota
managers coordinate their work effectively by delegating the responsibilities to each
subordinates according to their capabilities in order to increase satisfaction level among
employees. By this, firm can accomplish their objectives with the optimum utilisation
of resources.
3 Operational approaches to operation management and their values.
Management and operation is an integral part of organisation in order to evaluate or
monitor the business activities or functions and improves quality in production of Toyota. As
environmental concern and digitalisation of activity needs innovative technology and market
expansion. The key operational approach of operational management are as follows:
 Six Sigma: It mainly signifies to data driven, statistical data approach or continuous
modification of reducing errors and defects from process, products or services offered
by company. Furthermore, this approach is mainly applies to evaluate the requirements
of customers effectively and decrease the wastage in manufacturing or production.
Therefore, Toyota should implies this approach in order to produce best quality of
product which enhance company's brand image and gain competitive advantage (Lumby
and Morrison, 2010).
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 Total Quality Management: It states to framework in which it signifies that all members
of organisation from lower to high level should concentrate on accomplish long term
goal. By which they can improve their overall performance as well as can produce beat
quality of product which enhance the morale of customers. Moreover, during production
process Toyota company should applies this function so that they can put their full
effort in manufacturing qualitative product which help them to minimise their cost of
production and monitor their production from time to time (Schuler and Jonnalagadda,
2012).
 Lean manufacturing approach: This approach is very much similar to just in time
function. Therefore, if manufacturing process is constantly analysed or monitored by
manager then Toyota company can provide better quality of product at low and
affordable cost production process. Along with this, it enable them to decrease their
inventory cost and can minimise the wastage in manufacturing process.
4 Impact of business environment factor on leaders and managers decision making
To evaluate the external business environment, the Toyota business function applies
PESTLE analysis which is described below: Political factor: This factor include government policies, regulations, rules which impact
business operation and its productivity. In context to Toyota, it serves business across the
globe and in Japan, their government implement changes in policies which influence
leader and manager decision making. Economical factor: Under this factor, it is related with inflation and deflation rate,
economic condition etc. which influence company's profitability. During global
recession, Toyota sales suffered like other firm because purchasing power of consumer
decreased and people were not able to afford to buy luxurious car. Along with this,
exchange rate plays a vital role in evaluating the number of vehicles which is sold and
exported. However, this economical factor implies the decision making of leaders (Stone
and Dulebohn, 2013). Social factor: Under this factor, it involves taste and preferences of customers, lifestyle
and others. IN case of Toyota, Japan people mostly prefer innovative technology like AC,
remote control etc. thus they manufacture new design product.
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 Technological factor: For Toyota, using digital technologies such as TV advertisements,
launching mobile applications etc. assist them in reaching the information about their
products and services to the maximum number of customers. For this, leader and
manager plays crucial role in developing new and innovative ideas related with the
adoption of latest technologies within an organisation. Environmental factor: Manager of Toyota company need to prepare strategies in respect
of change in the climate and business stability. Because this organisation have capacity
and capability to introduce eco friendlily products. It can improve their sustainability
performances (Torkildsen, 2012).
 Legal factor: This factor influences the business of Toyota because different rules and
regulation effect the organisation. It includes consumer rights, safety and health law,
security of employees etc. Managers will take decision on the basis of improving
intellectual law, environmental law and consumer law.
5 Operational efficiencies improve to meet successful business objectives using management &
leadership approaches
Operation management is essential to increase the efficiency in the production process of
an organisation which drives them to achieve its desired goals and objectives. If the business
operations are effectively management according to the needs and requirements of Toyota then it
maximises the possibilities of achieving growth and success in market. It provides value to the
management operations as a result work can be done efficiently which contribute to the growth
of company (Trigeorgis and Reuer, 2017).
6. Conclusion and recommendation.
It can be said from the above study that an organisation must operate its several business
functions with the help of operating management in order to achieve desired goals and objectives
within predetermined time period. To achieve growth and success globally, Toyota need to
provide an adequate support to their operation management who is responsible to reduce defects
and maximise quality in the production process.
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CONCLUSION
From the above given report it can be concluded that it is very much essential for the
business organisations to manage its operations in the effective and efficient manner. As if it is
not done the organisation can suffer loss and the resources will not be used in the best possible
manner. For achieving the organisational and individuals goals various management and
leadership theories can be used by the organisation. Knowing the strength and weakness will
help the organisation in making better plans and strategies for the future. Various operational
theories and techniques can also be used by the organisation for achieving the goals in the
effective and efficient manner.

REFERENCES
Books and journals
Alanazi, T.R., Alharthey, B.K. and Rasli, A., 2013. Overview of path-goal leadership theory.
Sains Humanika. 64(2).
Belbin, R.M., 2012. Management teams. Routledge.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.
Drucker, P., 2012. Management. Routledge.
Duffie, D. and Singleton, K.J., 2012. Credit risk: pricing, measurement, and management.
Princeton university press.
Easterby-Smith, M., Thorpe, R. and Jackson, P.R., 2012. Management research. Sage.
Fischer, D.,and et. al., 2010. Method and process management system for the operation of a
technical plant. U.S. Patent 7,703,093.
Grint, K., Jones, O.S. and Holt, C., 2016. What is Leadership. The Routledge Companion to
Leadership, p.3.
Harris, A., and et. al., 2013. The changing context of leadership: research, theory and practice. In
Effective leadership for school improvement (pp. 19-35). Routledge.
Lumby, J. and Morrison, M., 2010. Leadership and diversity: Theory and research. School
Leadership and Management. 30(1). pp.3-17.
Schuler, F. and Jonnalagadda, K., Motorola Mobility LLC, 2012. Portable electronic device and
method of power management for same to accommodate projector operation. U.S.
Patent 8,231,233.
Stone, D.L. and Dulebohn, J.H., 2013. Emerging issues in theory and research on electronic
human resource management (eHRM).
Torkildsen, G., 2012. Leisure and recreation management. Routledge.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal. 38(1). pp.42-63.
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