Difference between role of manager and role of leader

This report evaluates the leaders and managers of Tesco, a multinational retail business organisation that specialised in selling general merchandise and groceries to the consumers within the retail markets.

Management and
Operations
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Difference between role of manager and role of leader.........................................................3
LO2..................................................................................................................................................5
P2 Examples of Roles of Managers and Leaders Applied in Different Situational Contexts at
Tesco............................................................................................................................................5
P3. Leadership theories................................................................................................................6
LO3..................................................................................................................................................8
P4 Key approaches to operational management and roles of leaders and manager....................8
P5 Importance and value of operational management.................................................................9
LO4................................................................................................................................................10
P6 External Factors that impact upon operational management and decision making of leader
and manager...............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12
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INTRODUCTION
Effective management and leadership within a business organisation operating in any
industry of the markets is of immense importance and significance in order for the business
organisation to operate successfully in the consumer markets and attain optimum operational
performance, efficiency, productivity and profitability. The characteristics and skills that make
up a competent leader within a business organisation are different in key aspects in relation to the
skills and characteristics of a successful and competent manager within the business organisation
(Swanwick, 2019). This report evaluates the leaders and managers of Tesco, a multinational
retail business organisation that specialised in selling general merchandise and groceries to the
consumers within the retail markets. Tesco was founded in 1919, an astonishing 101 years ago
and currently operates from its headquarters which are located in Hertfordshire, UK. Through its
long and successful operations within the retail industries of UK, Tesco has had ample
opportunities to grow and expand their business operations to global markets. Currently, Tesco
operates close to 8,600 distinct establishments across 11 different countries in the world,
resulting in diversified successful operations for the retail giants, which has effectively resulted
in Tesco becoming the third largest retailer in the entire world on the basis of gross revenues
generated.
LO1
P1 Difference between role of manager and role of leader
Leader is the person who leads, motivates, and commands a group of organization in
order to achieve the goal. Manager is the person who manages the resources to complete the task.
Manager and leader both work on achieving of individual goal in the process.
Manager manages the tasks at hand leaders lead towards the future: Manager manages
resources to get things done in the process in order to achieve the goal. Tesco manager focuses
on completion of current job in the process whereas leader focuses on the big picture which is to
be performed in the future (Bromiley and Rau, 2016). Manager of the company leads its
function in one direction to achieve the goals. Leader of TESCO motivated the people to achieve
the vision.
Managers supervise people or tasks, Leaders can be individual contributors: TESCO has
different managers of different departments which have responsibilities to perform in the process
to achieve the goal. Manager of the company supervise the activities which are being performed
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by the employees in the process. Sometime, leader of the company is appointed to motivate the
individual in the process in order to have more contribution. Leaders inspire people to be
management in order to have positive result.
Leader’s guide people towards success managers tell people what to do: Leaders motivate
the people in the work process in order to achieve the group goal. For instance, TESCO leaders
motivate the employees by applying different methods on the individual in order to achieve the
individual goal. At the same time operation or customer service manager of Tesco directs the
employees in one direction in order to have smooth functioning in the process.
Leaders are willing to give up control, Managers set directions for everything: Leaders
promote the employees in the process on the basis of report framed of the individual. This report
helps in control over the activities performed in the process. Manager of TESCO frames the
same set of goal in order to achieve the group goal (Palšaitis, Čižiūnienė and Vaičiūtė, 2017).
Manager of the company set the goal for the individual in order to achieve the group goal.
Leaders care about the people, Managers care about the number: Managers of TESCO
involve number of people in the process in order to achieve the task. Manager of the company
leads number of people in one direction to make the task achievable in the process. Leaders of
TESCO generate the team of people who are capable of completing task in the process. Leader
is the person who finds the strength and weakness of the employee in order to complete the task
accurately.
Differentiate between characteristics of manager and leader
Manager expert excellence, leader is humble: Manager of TESCO are well trained in giving
their services in the process in order to achieve the goal. Training and polishing of the skills are
being provided by the manager to the worker to complete the task (Schiavone and Sprenger,
2017). This shows the expertise knowledge which is used in the process to obtain the positive
results. Leaders of the company are humble and polite towards the people in order to have more
contribution in the process.
Manager set the example, leader lead by example: Leaders of the company maintain the
decorum of the process. As leader are followed by many people in the process. Leaders help in
setting of discipline between the people of the organization. Manager functions according to the
people prevailing in the company. Manager set the example by completing the targets of the
company in order to achieve the task.
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Manager takes decision, leader never stop improving: Leaders of TESCO never stop learning
and making upgrade on knowledge in the process. Leaders make changes in the method
according to the changes takes in the process. Manager of the company make decision to have
effective and efficient task. Great decision helps in achieving of goal.
LO2
P2 Examples of Roles of Managers and Leaders Applied in Different Situational Contexts at
Tesco
Competent and effective leadership and management at Tesco is essential for the retail
business organisation to operate successfully within the retail markets of UK and achieve
optimum performance, efficiency, productivity and profitability in the consumer markets of UK.
Leaders at Tesco are individuals who are tasked with controlling, leading and guiding select
group of individuals within Tesco’s workforce with the intention to achieving set goals and
objectives for Tesco. While managers at Tesco are individuals who manage the operations and
functions of their fellow Tesco employees with the intention to achieving optimum performance
and efficiency by the employees. Although both managers and leaders of Tesco are required to
engage in decision making operations as part of their functions and roles, these relate to different
situational contexts, operational areas within Tesco and have distinct consequences for the made
decisions. Although the roles and functions of both leaders and managers within Tesco are quite
distinct from one another, both parties work towards achieving the same objectives and goals set
by Tesco. The ways in which roles of leaders and functions of managers are applied in distinct
situational contexts at Tesco is as follows:
First Situation: Tesco hopes to increase its brand reputation, value and perception amongst the
retail consumers of the markets.
Leader’s Role: With the intention to achieving higher brand value, reputation and perception
amongst the retail consumers, the leaders within Tesco plan and create dedicated business
strategies that can help the business organisation achieve this goal. However, as the key
leadership characteristics leaders of Tesco not only emphasis on numbers instead they also key
priority to the human resources or team members. For this purpose, leaders assure that there is
proper communication and availability of all resources so that individuals do not find any
difficulties in meeting their objectives. In order to create successful and effective business
strategies that can increase Tesco’s brand reputation and value amongst consumers, Tesco’s
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leaders conduct thorough market analyses and evaluate all the internal and external factors which
can have an impact on their brand value and reputation (Covey, 2017). After this has been done,
the leaders create effective business strategies and enforce it so that the objectives can be
effectively achieved.
Manager’s Functions: To increase the brand value and reputation of Tesco amongst consumers,
the Tesco managers conduct thorough training and development of the Tesco employees and
staff who interact with their consumers in their retail stores in order to ensure that the level of
customer service that Tesco employees offer to their consumers, is at the level which effectively
reflects the brand value and reputation of Tesco in the retail markets, with the intention to
provide customers with effective customer service and increase the brand value and reputation of
Tesco amongst retail consumers.
Second Situation: Tesco hopes decrease their operational costs attached in order to increase
profitability.
Leader’s Role: With the intention to decreasing operational costs, the leaders at Tesco analyse
and evaluate all the current operations of Tesco in order to identify operations that be used within
the intention of decreasing operational costs of Tesco, within the change having any noticeable
impact on productivity and performance of Tesco. Contrary to the managerial approach of taking
decision to solve the issue leader will also analyse the root cause of problem so that issue can be
resolved and operational efficiency can be improved continuously.
Manager’s Function: In order to reduce the operational costs of Tesco, the managers will train
their fellow employees with the intention to teaching the effective use of exhaustible and
expensive resources, which can contribute towards decreasing operational costs of Tesco
(Winston, 2018). The managers also train the employees to increase their efficiency and reduce
operational wastages and resulting losses in order to decrease operational costs. Manager takes
quick decision which can help organisation to manage the situation.
P3. Leadership theories
Leadership theories are more like guiding tools of leaders. Leaders in company follow
different leadership theories in order to take various decisions related to the functional activity of
the company. These theory guides leaders in company to take the productive decision in a certain
situation in company. Following theories follow by the leaders in Marks and Spencer Company.
Situation leadership: Situation leadership is a key leadership approaches channelize by leaders.
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This approach of leadership suggests leaders to take decision based on the situation. For instance,
at as retail industry is accomplishing most advanced version of its, the leaders of Tesco follow
situational leadership. In this context they take decisions to reform technologies or to enhance
the capabilities of the team members. This theory drives leaders to take key decisions on the
basis of the practical situation of the organisation. Business environment is full of uncertainties
due to its volatility. In corporate sector situations change fluently. The theory of situation
leadership drives leadership and management of Tesco Company to take roper decision on the
basis of the practice situation on the ground. Situation analysis is an important factor that
suggested by the situation leadership theory. Situation analysis plays a crucial role for the leaders
to take decision in order to face the situation (Deshwal and Ali, 2020). Fluctuation and volatility
allows business environment to offer constant changes in the market. This leadership theory
guides leaders to deal with all such situation and tale decisions on the basis of the practical
situation of market. By adopting this theory Tesco leader take decision by analysing the practical
situation of the market. On the basis of the practical situation all decisions must be taken that can
serve potential advantages to the company. Tesco Company is among the leading company
associated with the retail sector. Situation leadership theory is among the major factor that
improved the growth potential of the organization. With the support of this leadership theory
leaders in Tesco Company took various important decisions like reducing prices of products to
take competitive advantages, advancement of its information technology software’s and other
key decisions. Situation leadership theory also guides leader in case of dealing with any issues.
On the basis of the practical reality this theory guides leaders to take the optimum decisions to
deal with such issues.
System leadership: System leadership drives leaders to create a system. Tesco Company
involves in various departments on the basis of the different functional roles of the company like
marketing department, finance and accounts, research and development, human resource
department and other functional department (Martin, 2018). All such functional department
establish under system leadership theory allow leaders in Tesco to control and monitor individual
operation functions. System leadership focuses over developing a proper system in the
organisation hierarchy that can support company in improving its productivity and operational
efficiency. System leadership approach of leaders in Tesco can help to build a proper system in
the company so that all functional activity of the company can be managed in proper manner.
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System leadership improves the work efficiency and profitability of the company as the system
established under this theory enables leadership of company to conduct time efficient operation
function. Tesco Company has developed an advanced system in which all functions are
conducted in precise manner. All decision takes in a systematic manner so that proper planning
can be implemented related to nay functional activity of the company. System leadership provide
better work culture in company. System leadership also respect equally to all human resources
part of the organisation.
Contingency leadership: Contingency leadership drives leaders to take important decisions in
serious situations. Many times due to volatile nature of the business environment it serves many
serious concerns in front of the organisation. This theory supports leadership to take important
decision in favour of the organisation in case of contingent situations. In United Kingdom
BREXIT is a recent activity that created contingency for companies like Tesco and other
companies which has resulted into reducing in sales of companies. In such contingent situation
this theory drives leaders to take important decisions like reducing product prices, technological
advancement and other key decisions that can support company in dealing with such situations
(Bhattacharyya and et.al., 2018). This theory guides leaders top takes crucial decisions that can
strengthen the sustainability and growth potentials of the company. Contingency leadership is an
important leadership theory which improves the potential of company in respect to sustain in the
situation in case of organisation facing serious situation. This theory has supported Tesco
Company many times when the organisation needs to take important decisions to deal with the
serious situation of market.
The above mentioned theories and approaches are among the key leadership practices in
the companies. Leadership of Tesco Company takes the guidance of all the above theories while
taking important business decisions.
LO3
P4 Key approaches to operational management and roles of leaders and manager
Operational management helps in effective utilisation of various resources of firm and
delivery of services in minimum cost and time. There are different approaches of operational
management that are used by manager and leader of TESCO so that company can achieve its
desired objectives (Sankaranarayanan, Castañeda and Villa, 2018). Various approaches that are
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used by operational manager for bring economic of scales, maintaining quality of products and
satisfaction of customers needs beyond their expectancy. Such as:
Just in time: In order to get maximum benefit of particular process individual must have
completed their task within minimum amount of wastage of resources and time. Operational
manager plans different method to reduce cost and time taken for completing particular task so
that more can be produce within limited time frame. Leaders of Tesco motivate and inspires
operational team to increase their speed and capabilities so that less amount of time is invested in
performing specific task. For making suitable decisions as per situational needs Tesco managers
instruct team members to achieve goals so that all activities can be completed on time.
Therefore, it can be stated that just in time approached helped in company in optimum utilisation
of available time and resources so that standard and timely services can be render to large
number of customers.
Total quality management: It is another approach that is used by operational manager of Tesco
for long term growth and success of enterprise in industry. Operational manager plays important
roles in ensuring quality of products and services so that needs of people can be satisfied beyond
their expectancy (Musalem and et.al., 2017). Leaders of Tesco also continuously provide
guidance and direction to employees about the way task to be performed so that quality of
products and services can be maintained and firm can retain maximum customer’s satisfaction.
Operational manager of Tesco through continuous supervision able to find ways in which
employees performance can be increased so that standard and qualitative products can be
delivered to customers. It is the role of manager to monitor and control that all quality standards
in TQM approach are defined accurately as per market and organisational objective and
employees are capable to meet these standards.
Six sigma: It is techniques that help in effective and efficient utilisation of resources through
minimising number of error and mistake in production of products and services. It is techniques
that focuses on reducing amount of deflects or errors in process of manufacturing and delivery of
products and services for fulfilment of customer’s requirements. Operational manager of Tesco
defines various challenges and goals of company at the same time measure performance of each
employee to find deflect and better solution for growth and success of enterprise. On the other
hand, leaders try to minimise number of errors and deflect of each employee so that qualitative
outcome can be gained. Leaders constantly gives inspiration to team members are ready to
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introduce changes in the organisational policies. For instance, for better use of technology
resources Tesco leaders can also develop strategies such as training or upgradation of
organisational technology network.
Lean production: This approached state about different techniques or method that can be used
to get better result and outcome for organisation. Various external factors impact overall output
of firm so operational manager of Tesco uses information technologies to identify these factors
in order to form effective strategies. Operation manager through planning training and
development program for employees is able to enhance their performance and productivity and
contribute towards growth of enterprise (Chiarini and Vagnoni, 2017). On the other hand,
leaders provide information about the way wastage of effort, time can be reducing and resources
can be optimum utilisation. Therefore, it helps in reducing amount of wastage and helps in
brining economic of scales within firm so that large number of customers needs can be fulfilled.
P5 Importance and value of operational management
Operational management is crucial for growth and success of Tesco as it ensures
optimum utilisation of resources and delivery of products so that company can earn more profit
margin and customer satisfaction (Rubin and Abramson, 2018). Thus various importance and
value of operational management of Tesco in achievement of company goals are as follows:
Wastage reduction: Operational management helps in reducing amount of total wastage through
optimum utilisation of available resources so that better services can be offered to end customers.
Operational manager provides innovative technologies to employees so that they can minimise
wastage production and profit margin. Thus, company can bring economic of scale and reduce
cost of production to deliver qualitative products of Tesco at reasonable rates. Tesco has also
included waste management strategy in its CSR policy so that its unnecessary expense or
resource wastage can be minimised and it can increase its profitability share.
Production efficiency: Production is the important task which can be performed by production
manager in order to make proper utilization of the resources. Production is the key are where
company can generate more revenue over the sales in TESCO. As production cost should be
minimized to have more profits in the process. Production efficiency refers to utilizing of
resources effectively and efficiently in the process. By adopting operational management
techniques such as Six sigma, Total quality management and Lean it has become possible for
Tesco to minimise the production inefficiencies and deliver high quality goods and services to its
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customers.
Profit maximization: Every business primary objective is to generate high profits in the process.
TESCO have profits by maximizing the sales of products and services in the market (Chiarini
and Vagnoni, 2017). Company increases the sales volume by having promotion and attractive
offers to the customers in the market.
Satisfaction of customers: TESCO always focuses on satisfaction of the customer in the market
in order to deal with the competitive market. Satisfying the customer shows positive results in
the market. Every business depends upon the happy and satisfied customers which are prevailing
in the market. Without operational management approaches it could have been impossible for the
Tesco to develop services which not only meets customer expectations but also helps to gain
competitive advantage.
Management of inventory: Calculating the stock on equal interval of time in order to have
timely order of the products and services in the market. Operation management ensures the best
use of the inventories which are available in the company in order to achieve the goal. The lack
of approaches like six sigma can lead to inaccurate inventory predictions and thus managers may
fail to take accurate operational decisions.
LO4
P6 External Factors that impact upon operational management and decision making of
leader and manager
Corporate social responsibility: Operational management is affect by CSR as it has to take
various steps for benefit of society in which company exist. Operational manager of Tesco
ensure health and safety of employees taking decision to manufacture qualitative and organic
food products so that customers needs can be satisfied (Maslesa and Jensen, 2019). It has also
affected decision making of leaders as it has to think about different techniques that can be used
to motivated individual to maintain quality of products and services.
Employee’s efficiency: It is another factors that impact adversely on operational management of
Tesco as it has highly skilled, experience and qualified employees that work effectively so that
company can gain competitive advantages. On the basis of availability of resources managers at
Tesco decide to arrange sufficient raw material so that finished products can be manufactured.
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Leaders also plan strategies to inspire individual on basis of their capabilities and skill so that
maximum outcome can be gained.
Culture: Organisational culture of Tesco have also impact on overall operational management as
it helps in better performance and productivity. Employees are high satisfied and happy with
policies, rules and regulation of Tesco that contributed toward effective utilisation of their
capabilities so that company objectives can be achieved. Operational manager always take
decision to provide good and safe, secure working environment so that they can perform best for
overall success of enterprise in competitive market. On the other hand, leaders of Tesco decided
to build strong relationship with employees so that their work can be coordinated for
accomplishment of common objectives.
Values and ethics: Values and ethics also influence operational manager decision making as it
has to considered ethics while performing different function. Leaders of Tesco while motivating
employees ensure that better values, ethics are considered by each employees so that no harm
can be caused to other individual that are working in firm.
Stakeholders: There are various stakeholders such as customers, employees, supplier of Tesco
that impact on overall operational management. Manager takes decision as per needs and
demand of customers so that company can gain competitive advantages (Albertini, 2019). For
examples: Tesco has to manufacture organic food as recent customers are more concerned about
their health and wellbeing. Thus, operational manager plans various resources that would be
need for completion of particular task on the other hand leader motivated employees to accept
changes. Employees need to be fulfilled by both operational manager and leader of TESCO for
smooth operation of business.
CONCLUSION
It can be stated from above analysis that operational management is necessary for every
organisation for sustainability and growth of firm in competitive environment. Manager helps in
effective utilisation of resources so that company can achieve its particular goals. It can also be
concluded from above report that leader of Tesco has innovative and creative styles that induce
individual to put extra efforts so that company can earn sufficient amount of profit margin. At
last there are various external factors that impact on decision making of operation manager and
leaders of TESCO.
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