Role of Leader and Manager in Different Situational Context

This report evaluates the role of leader and manager in different situational contexts. It explores the application of different theories and models in operation management. It also explains the key approaches to operation management and the role of leaders and managers. The report highlights the importance of operation management for achieving business objectives.

Management & Operations

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
LO1............................................................................................................................................3
LO2............................................................................................................................................3
P2 Role of leader and manager in different situational context.............................................3
P3 Application of different theories and models....................................................................4
LO3............................................................................................................................................7
P4 Explain key approaches to operation management and role of leaders & managers........7
P5 Importance and the value of the operation management for achieving the business
objectives................................................................................................................................9
M3 Leaders & managers improving the efficiency of the operational management for
meeting business objectives.................................................................................................10
LO4..........................................................................................................................................10
P6 Factors in the business environment impacting the operational management and
decision making by the leaders and managers.....................................................................10
M4 Relationship between management and leadership affecting the business environment
and wider community...........................................................................................................11
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
For a business organization, leadership and management is very important as it helps
in effectively utilizing the resources of the organization for accomplishing the desired goals.
In this report, Starbucks is taken as an organization which is an American coffee company
founded in 1971 in Seattle. This report evaluated different types of managerial theories and
leadership style which are applied by the organizations along with their strengths and
weaknesses. It also covers the role of leader and manager in operation management andalso
includes evaluation of the relationship between leadership and management in a business
environment.
LO1
Covered in PPT.
LO2
P2 Role of leader and manager in different situational context
The role of a leader and a manger is different for each other. The leaders are required
to take various decisions and analysing the market conditions and trends. Leaders plays an
important role in taking effective decisions and motivating the employees for improving their
performance. An organization goes through various situations and based on the different
situations, the roles and functions of leader and managers changes and also applied
differently. Some of the situations are stated below.
Slow:The growth and development of the Starbucks is little slow. This slow change
may result into delay in project completion and reduction the profits. Any changes that are
made in the internal organizational structure is all because of the changes made in the
external environment. For instance, slow profit may be the result of slow market growth.
Stable:In this situation, the growth of Starbucks is moderate and stable. The market
changes may not even affect Starbucks and there will be no change in the profits and
decisions can be taken quickly (Chiu, Balkundi and Weinberg, 2017).This situation helps in
analysing the market conditions in the right context because no major change in the market
will arise that will affect the business,
Fast:The fast and growing market have a huge impact on Starbucks. The fast and
rapid change in the market brings in new trends and also these changes can affect the
decision-making process but it also makes easy for predicting the business environment.

There are some changes that arises in both outer and inner business environment. The
inner changes which includes organizational structure, processes, policies etc. which can be
controlled by the organization. Controlling these factors effectively will help in earning
higher profits. On the other hand, there are some external factors which are outside the
control of Starbucks which includes political, social, economic, technological, legal etc.
These changes bring opportunity for the business and needs to be planned effectively to avoid
risk.
In Starbucks, along with transformational supportive leadership style is also used to
make the work more effective. In this, the employees of Starbucksget full support from the
leaders for making the work done in an effective way. According to this, the decisions are
taken according to the needs and perception of the employees and also considering the
objective of the Starbucks.
P3 Application of different theories and models
The three different types of leadership styles are stated below.
Situational leadership
This leadership model was developed by Paul Hersey and Ken Blanchard. In this the
leader assigns the task to the sub ordinates as per the skills and talent. After the complete
market analysis, the leader takes the decision (Thompson and Glasø, 2018). This theory helps
in coming up with the best solution and facing the challenges that may arise in the
market.The leadership style changes with the change in the situation.
Strengths Weaknesses
 Creates flexible and comfortable
environment for workers.
 Increases the awareness of the
leaders.
 Enhances effective team work.
 It focusses only on the short term
needs and ignores long term needs.
 This style can be ineffective in task-
oriented environment.
 It completely depends upon the skill
level of the leaders.
System leadership
It is the set of skill and capabilities that are used by the individuals and the
organizations for supporting the process system with respect to change.This leadership theory

focusses on the outcome which are obtained by the activities (Boylan, 2016).Also, all these
activities are pre-planned and only actual results are matched with the desired
results.Applying this leadership model will benefit the organization in getting a leader having
along term vision and strategies for Starbucks to help it in gaining new hights and sustainable
growth.
Strengths Weaknesses
 Increases organization’s adaptability
to changes.
 Focusses on achieving individual
goals along with organizational
goals.
 Adaptive and dynamic in nature.
 It aims at various dimensions of
management.
 Sometimes not practical and cause
delay in decision making.
 Interrelationship needs to be
classified properly otherwise it could
be counter productive.
 Not applicable to small businesses.
Contingency leadership
This form of leadership focusses on different situations that arises in the organization
Starbucks.This theory emphasizes on the effectiveness of the leadership is fully dependent
upon the leader’s style to the right situation (Bratton, 2020). This theory was developed by
Fiedler. Any random issue is picked by the Starbucks and solution for the same is found out.
This strategy is mostly used for finding out various paths that can be useful in achieving the
organizational objectives.
Strengths Weaknesses
 Innovative approach
 Regular and effective market
research.
 Provides variety of solutions.
 It helps in enhancing the leadership
and decision-making skills.
 Provides opportunity to employees
to share their ideas and opinion.
 It helps in managing the
 Requires fewer financial resources.
 It needs huge amount when it comes
to research.
 It is a complex approach in terms of
practicality.
 Reactive in nature which sometimes
become hard to handle the situation.

organizational structure.
Management by objective
The aim of management by objective model is to enhance the performance and
productivity of the organization. This can be done by clearly defining the organization’s
objectives to the employees and the management. From the Starbucks point of view, it is very
essential that the management and employees works together in harmony in order to create
and define the objectives (Waring, 2016). Also, objectives should comply with the resources
of the organization.For instance, the objective of the organization is to increase the market
share of a particular product then the organization is required to communicate the same to the
employees and also work on arranging the resources required to accomplish the objectives.
With is model, Starbucks will be able to conduct their activities in a systematic manner
because employees will be aware of their role and responsibilities.
Strengths Weaknesses
 Itencourages face to face
communication.
 Flexible enough to face different
objectives from time to time.
 Encourages greater participation
from the employees.
 It became complex and time-
consuming process to switch from
one objective to another.
 Problem in measuring the objectives
because it changes from time to
time.
Chaos Theory
According to this theory, at certain times the market undergoes changeswhich can be
related to the economic slowdown or change in customer taste and perception. This theory
stated that Starbucks should be capable enough in order to adapt to these changes as soon as
possible so as to prevent any losses to occur which is termed as chaos (Mbengue and et.al,
2018). Thus, it is very important for the management to prepared in advance to face such
chaos arising in the market.Applying this theory, will be very beneficial for the Starbucks as
it will help in developing the adaptability skill for their employees and will become efficient
enough to face the challenges.
Strengths Weaknesses

 Exchange of ideas with potential
customers and the organization.
 Ability to adjust with the changing
situations.
 Easily adapt changes.
 Requires lot of time in the
adaptation process.
 Employees may take advantage of
free time which will affect their
productivity negatively.
 No clear management as objective
changes from time to time.
Thus, it can be said that leader isanimportant asset of the organization like Starbucks.
A leader understands the needs and desire of the employees and based on which motivates
them to perform effectively.In order to do so different leadership styles is needed to be
adapted for better and effective result. Thus, Starbucks should consider these theories for
success.
LO3
P4 Explain key approaches to operation management and role of leaders & managers.
There are various approaches that may be used for understanding the importance of
operations management in business enterprise. Operation used in management operations
helps the organisation to analyse the situations and for taking appropriates actions responding
positively to different circumstances. There are number of approaches used in the
management operations for improving the performance of Starbucks are :-
Just – in – Time
Just in time approach is used by management of Starbucks in production process. The
approach is focused over completing the production process of the targeted output within the
given time. It helps the business in reducing the variances in the budgeted and actual output
set by the enterprise. Using this approach organisation tend to reduce the wastage of
resources and of output in the production process. It helps the management in utilising the
resources in the best possible manner. Just in time refers to completing the worker on time
without any delay. If the production process exceeds the specified time, cost associated with
the production tend to increase. It is also used in the production process for improving the
performance of the organisation. This is also used in improving the technical operation of the
enterprise involving proper care of the machinery and equipments so that break down or
interruptions are not incurred in the production process (Rich, Singleton and Wadhwa, 2018).

This will allow entity to deliver timely products without break in the process due to activities
that could be prevented.
Lean Production
This approach helps the business in getting the best results using t host effective
resources. There are number of factors that are affecting the output of company. For getting
the desired level of output the most important area to be focused by the management is to
reduce the wastage caused in the production process. In this method management makes the
use of resources as per the capacity and potential of the entity. For reducing the wastage
leaders and managers are required to train and educate their employees for the most efficient
use of the available resources for getting the desired level of outputs. Method not only help
the entity in getting better results but also the manager in improving the efficiency and
productivity of workforce. Managers are required to have efficient control systems and
method for establishing the process that give desired results. Using lean production system
managers could identify the areas that are causing problems in the process. On identifying the
issues creative measures are taken by the management for eliminating the defects. Starbucks
using the lean production approach identifies the areas of improvement and immediate
actions are taken for reducing the wastages. Within the use of this approach desired level of
output are achieved by the management reducing the cost of operations to produce the
product or services. For the business enterprise it is essential to have effective production
process with the least wastage.
Total Quality Management
Total quality management is process that involves planning for long term success of
business enterprise. TQM helps management in getting success by achieving reasonable level
of profits reducing the cost. The approach focus over maintaining the quality of the products
manufactured by the organisation using effective controls (Al-Ali and et.al., 2017). Using the
TQM managements maintains the quality of products so that defects and wastages are
reduced to the minimum. It establishes quality check control at the entry for inspecting
quality or raw materials being purchased. Establishing other quality check at the exit of
finished goods so that zero defective good are moved out of the business and defects
identified are rectified by the time they are in workhouse. Starbucks keeps proper control
over the production process for reducing the wastages to the minimum and providing quality
products to the consumers.

Role of Manager
Managers have to play number of role for success of the organisation. Managers are
required to analyse the processes being followed in organisations and make necessary
arrangement for their smooth flow.
They are required to ensure that the resources are being used in best possible manner
for increasing their productivity.
They have the role of completing the production process on time by setting targets.
Role of Leaders
Leaders have the role of analysing the needs and requirements of employees and
workers working in the organisation. Analysing the needs is important for motivating
the employees and making appropriate solutions for them.
Leaders are required to work continuously over increasing the productivity and
efficiency of their employees.
Leaders of entity show the workforce direction to be followed for achieving their
desired results. For the ideal leader it is important to follow the direction and path it
requires its work force to follow.
Leader establishes the values and beliefs among its workforces. Organisations do not
follow the word of leaders but the principles followed by their leader for attaining
success. Therefore it is important for leaders to have positive and influential image.
P5 Importance and the value of the operation management for achieving the business
objectives.
Operation management help the business organisation in achieving its desired
objectives and results. Starbuck sis required to understand the importance as well as value of
operation management to achieve the business objectives
To increase the revenues
Operation management help to increase the ration of profits. This is focus over
helping the business in getting profits for it product. When the products produced by
Starbuck are of superior quality they get greater market acceptance as compared with the
ones that produce lower quality of products (Rich, Singleton and Wadhwa, 2018). By giving

the market what they require they can expand their market share. This will bring new
customer base for company increasing it revenues and ultimately the profits.
Reduction in cost of sales
Operation management helps the business enterprise in identifying the unproductive
cost and non value added activities. They consume cost without generating adequate returns
for the business. Eliminating these cost costs are reduced and focus of over value adding
activities is given for improving its performance and productivity. This helps the business in
gaining competitive advantage.
Trends in market
Business environment is dynamic and requires the business to adapt these changes
successfully for remaining stable. It is important for the business like Starbucks to identify
the new trends of the market (Peck and Hogue, 2018). Strategies are to be framed on the basis
of these trends for production of products and services satisfying the needs and wants of
customers.
Efficient utilisation of resources
Operation management helps Starbucks in making the most efficient utilisation of the
available resources. It has helped the business enterprise to reduce the wastage occurring in
the production process to the minimum. With the efficient use of available resources
company is achieving the desired results.
M3 Leaders & managers improving the efficiency of the operational management for meeting
business objectives.
Managers and leaders play a significant role in Starbucks. Coordination of the
managers & leaders help the business in meeting its desired results. This is achieved by using
the resources most efficiently and effectively according to their potentials. They make
decisions after analysing the needs and wants of employees and customers and make policies
for satisfying the needs and demands. It helps business in proper planning which helps in
bringing accurate results for the enterprise. It also helps in taking effective and corrective
decisions related to the cost and increasing revenues.

LO4
P6 Factors in the business environment impacting the operational management and decision
making by the leaders and managers.
There are number if factors affecting the operational management as well as decision
making of Starbucks the following factors organisation to achieve goals and objectives of the
business.
Resources of organisation
In every organisation there are number of resources available which work together.
Resources working in the organisation are human resources and the raw materials. Resources
of the company are required to be managed by the company in a proper and effective manner
for making the right decisions. Raw material are extracted from the nature and therefore its is
essential for the company to undertake social responsibility for the betterment of society and
environments.
Social and environmental changes
Social changes are related with the employees, customers, investors and the suppliers.
Investments in the company are made only when the desired level of profit is generated by
the business. environmental changes are related with the rules and regulation of authorities
for complying with the policies related to the environment. Factories should focus over
reducing the pollution by adopting effective pollution control technologies that cause least
harm to the society.
M4 Relationship between management and leadership affecting the business environment and
wider community
Managers & leaders have the responsibility of identifying the needs and desires of their
employees. They are also concerned with achieving the objectives of organisation aligning
the needs and goals of employees. They have the role of analysing business environment and
for taking the decisions properly. Leaders have the responsibility of analysing the previous
trends and making predictions about future trends. On the manager is required to take care of
available resources to use them efficiently.
CONCLUSION
It can be summarized that there are variety of principles and approaches form for
effective operation management of Starbucks. Also, every organization should consider

various environmental factors that might impact the operational management of the
organization.Along with that there are various leadership styles which can be used for
meeting the business needs and leading to success.

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