Importance of Management and Leadership in Business Operations

This assignment assesses the significance of management and leadership in business operations, examining how they contribute to effective decision-making, productivity, and stakeholder satisfaction. It discusses various operational measures that can be undertaken to meet business objectives and highlights the importance of corporate culture and stakeholder expectations. The assignment also draws on theories and concepts from management research to support its analysis.

Management & Operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Introduction to organisation and its management structure...............................................3
2 Definition and roles of managers and leaders with the difference between management and
leadership................................................................................................................................4
3. Roles of management and leadership with different organizational situations with suitable
theories and concepts..............................................................................................................5
4. Evaluate strengths and weaknesses of various approaches of leadership and management6
5. How managers and leaders have made an impact on the organisation with proper future
recommendation.....................................................................................................................7
TASK 2............................................................................................................................................8
1 Key operations of Toyota....................................................................................................8
2 Define each organisational functions and identify roles and responsibilities of managers.8
3 Key approaches of operations management and its value...................................................9
4 Impact of external business environment on decision making by managers and leaders...9
5 Improvement of operational efficiencies to meet the business objectives of the firm......10
6 Conclusion and recommendations for future improvements.............................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management within an organisation plays a very deep role in carrying out of the
operation which are been taken by the enterprise. The operations include the functions or
objectives that are set carried out in organisation that will impact their performance and hence
will look after the proper carrying out of services and other action plans. The proper handling or
management of operations within a firm is an undeniable priority for an organisation. The
present report is presented with regard to Auto mobile manufacturing giant, Toyota. With the
advancements of the technologies in automobile market, the company had also launched Hybrid
and electronic cars and is one of market leaders in Hybrid car segment. The company had the
profit of £5.29 billion in previous financial year. With the advance technology, now the
organisation can produce 310,000 units is a year.
The report will cover the details of management structure of the organisation with roles
of both, managers and leaders and the differences between management and leadership. The
strength and weakness of different approaches to leadership and management with different
models and theories. Also, their role on the future improvement is been presented. The key
operational functions and impact of external environmental factors by managers and leaders is
been taken. Improvement measures of business objectives are been taken.
TASK 1
1. Introduction to organisation and its management structure
Toyota is a Japan based car producer and is one of the largest auto mobile manufacturing
enterprise in the world. It is also Japan's leading company by capitalization (Slack and Brandon-
Jones, 2018.). The firm is known for its good quality and technically advance auto mobiles and
its products. The automobile enterprise is known for its highly advanced and quality oriented
cars. The organisation follows divisional management structure. Management and leadership
have a very deep and crucial role in handling of various situations that will help in carrying out
of business activities within Toyota. This will help in proper assessment and carrying out of
operations within the firm. Some major organisational situations are:
Decision-making and implementation:
Role of management: The management within Toyota will follow the system theory of
management in order to disintegrate the complete organisation within smaller elements and thus,
facilitates a proper decision-making and its implementation within the firm (Chiarini and

Vagnoni, 2015). This will also assist the management to keep an effective monitoring on the
operations that are been carried out. Under behavioural approach to management it could be
included that it is duty of manager to concern with the aspect of human behaviour in Toyota.
Role of leadership: In order to have a proper and suitable decision making, Toyota will adopt
suitable democratic leadership that will help in proper assessment of the operations that are been
carried out within the firm. It will help the organisation to enhance the quality of services that are
been taken within Toyota. In situational leadership leader will be leading their subordinates as
per given or applied situation like at time of decision making leaders will motivate all their
employees.
Recruiting the work force within firm:
Role of management: the management will look after the requirements of their organisation and
will undertake the suitable operations within the organisation that will help in carrying out of
proper recruitment process. As per the Human relationship theory of management, organisation
will look after suitable planning and execution of services within the firm.
Role of leadership: Toyota will also look after the behavioural theory of leadership which will
help in suitable assessment of capabilities of a person and how he/she can execute a given task
within the firm. Also, it showcases the extent of motivation within an individual for the firm.

Illustration 1: Toyota's Divisional organisational structures
(Source: Divisional performance, 2019)
The divisional structure of the Toyota will help the enterprise to manage the business
operations of every division or part of an organisation in a very effective and hierarchical
manner. This will help to look after their operations and managing their functions and other
operation's to maintain the product or service quality. The structure of firm is divisional which
help each function or department of Toyota to achieve their aims and objectives.
2 Definition and roles of managers and leaders with the difference between management and
leadership
The managers and leaders within an organisation play a very deep and significant role in
carrying out of operations that will help in suitable rise in operations within the firm.
Manager: A manager is an authorised person who looks after all the business operations
which are been taken within a business entity like Toyota.
Leaders: Leaders are the personnel within the enterprise that operates and guides the
work force within a business firm.

At Toyota, both leaders and managers will work in an effectively to induce and inculcate
effective operational measures. Both leaders and managers will have certain roles which are as
follows:
Manager's role Leader's role
They make important decisions and policies
that influence the overall operations of firm.
They will motivate and guide the team
members at workplace.
They will monitor and control the operations
and look after carrying out of the business
operations and other related activities.
They interact with management and apply
different decisions to employees.
They allocate proper responsibilities and
resources within a team or department.
They also work for team building management
of team mates.
Managers also see through the training and
development measures for employees.
They act as a communication channel between
the management and leaders.
There are certain differences between leadership and management such as:
Bases Management Leadership
Meaning It includes the process of carrying
out different functional
operation's and activities,
effectively.
It includes the imparting of
motivation, guidance and
monitoring within a team.
Based on It is incorporated all over within a
firm.
It is based on a team or divisional
level.
At Toyota, both leaders and managers will work in coordination with each other that will
help in guiding the proper management of the OM and other actions that are been performed
within the selected automobile manufacturing enterprise.

3. Roles of management and leadership with different organizational situations with suitable
theories and concepts
Management and leadership have a very deep and crucial role in handling of various
situations that will help in carrying out of business activities within Toyota. This will help in
proper assessment and carrying out of operations within the firm. Some major organisational
situations are:
Decision-making and implementation:
Role of management: The findings of Chiarini and Vagnoni (2015), management within Toyota
critically follows the system theory of management in order to disintegrate the complete
organisation within smaller elements and thus, facilitates a proper decision-making and its
implementation within the firm. This will also assist the management to keep an effective
monitoring on the operations that are been carried out. Under behavioural approach to
management it could be included that it is duty of manager to concern with the aspect of human
behaviour in Toyota. As per the Scientific theory, management of Toyota will look after the
involvement of work force within the organisation that will help in carrying out workflow of the
organisation in most effective way.
Role of leadership: On the other hand, Hitt, Xu and Carnes, 2016 suggests that in order to have
a proper and suitable decision making, Toyota will adopt suitable democratic leadership that will
help in proper assessment of the operations that are been carried out within the firm. It will help
the organisation to enhance the quality of services that are been taken within Toyota. In
situational leadership leader will be leading their subordinates as per given or applied situation
like at time of decision making leaders will motivate all their employees.
Recruiting the work force within firm:
Role of management: As per the views of Langabeer and Helton, 2016, management will look
after the requirements of their organisation and will undertake the suitable operations within the
organisation that will help in carrying out of proper recruitment process. As per the Human
relationship theory of management, organisation will look after suitable planning and execution
of services within the firm. As the scientific theory lays effective emphasis on the labour
productivity, it will help in carrying out the recruitment process within the organisation and look
after suitable measures to train the workforce.

Role of leadership: Bazargan (2016), critically states that Toyota will also look after the
behavioural theory of leadership which will help in suitable assessment of capabilities of a
person and how he/she can execute a given task within the firm. Also, it showcases the extent of
motivation within an individual for the firm.
4. Evaluate strengths and weaknesses of various approaches of leadership and management
Different approaches of leadership and management will be undertaken within the firm
that helps the form to carry out a wide range of operations and other business functionalities
within the firm. These approaches will help in maintaining the operations of Toyota and achieve
their operational goals within the firm. Some major approaches of leadership and management
that can be implemented within the selected firm are:
Approach of leadership:
Situational approach of leadership: This approach of leadership will help in suitable adoption
of the situations that will help in carrying out the business operation within the organisation. It
will help in enhancing the performance of the organisation that will support Toyota to maintain
the quality standards.
Strength: It improves the organisational capabilities and improves the effectiveness and
operational efficiency of workers within the firm. Also, it improves the adaptability of Toyota
towards different situations.
Weakness: This approach sometime create confusions in the organisation. Employees may get
confuse when leader ask them to change their working style or make alteration in the process due
to change in circumstances.
Autocratic approach of leadership: Under this approach, leader make all the decision and input
from other employees are hardly considered by decision maker. Subordinate have to follow the
orders given by superior without raising any questions.
Strength: Quick decision making can be considered key strength of this approach. It avoid
confusions in the organisation and create clear chain of command.
Weakness: This approach promote resentment in the organisation and it ignores expertise of
employees.
Approach of management / Management by objectives

Contingency approach of management: This concept states that there are no universal
principles of management which can be followed by an enterprise for attaining desired result.
Company have to manage their operations according to the specific situation and they do not rely
on single managing style.
Strength: It is most practical approach and it provides flexibility in task structure. Another
importance of this theory is that it open doors for all employees who wants to become leader and
different type of leading style is required in different circumstances.
Weakness: Contingency approach may promote flexibility in organisation but it is a complex
method of managing enterprise. It does not have adequate literature and it is a reactive approach
instead of proactive.
Behavioural approach of management: This will help in meeting the individual needs and
operations which help the organisation to have a good assessment of the nature or behaviour of
an individual. It helps in inducing suitable motivations or encouragement that helps the
organisation to develop better workplace for their employee's.
Strength: as this approach involves the employee betterment, it will help in proper rise in
worker's satisfaction level and hence, will help in proper increase in business enterprise.
Weakness: The lack of proper communication and expert to manage this approach may lead to
the failure of this approach within Toyota.
The Hawthrone study by Elton Mayo suggests that the suitable behaviour of the
organisation will lead the organisation to set the objectives and encourage the workers to achieve
them in most comfortable way. This approach is known to improve he productivity of the
organisation.
All these approaches of leadership and management which are been carried out and taken
within the firm, will help in suitable rise in performance of the firm by managing different
conditions and the employee's behaviour at work place.
5. How managers and leaders have made an impact on the organisation with proper future
recommendation
Mangers and leaders at Toyota will look after the proper planning of operations and
hence will lead the organisation to maintain the quality of services and maintaining the quality
standards at workplace. The managers will perform different assessment to identify the needs
and scope of improvement and will help in maintaining the quality of operations within the firm.

They will also see through the requirements of training or development measures within Toyota
and make suitable arrangements, accordingly. Their main aim is to improve productivity and
revenue generation of the firm.
Leaders on the other hand, will also have a crucial part to perform. They will not only
communicate the policies and decisions which are been undertaken by the management of firm
but will also ensure its effective implementation at the workplace. They will also see through the
implementation of different growth and motivational measures which are been carried out within
the auto mobile enterprise. They also inculcate different innovative approaches which will help
in increasing the employee engagement approach and ensuring high satisfaction level of
employee's.
Even so, certain recommendation can be adopted and applied within the auto mobile
enterprise to have future improvements are:
 Suitable communication can be facilitated that will help in proper assessment of the
operation's and thus will lead then organisation to have high level of customer
satisfaction level.
 Improvement measures can be undertaken within the firm that will influence the setting
of operational goals and thus leads to planning of services and or products to be offered
by the firm.
TASK 2
1 Key operations of Toyota
Being a major auto mobile manufacturing enterprise, Toyota will look after the proper
assessment of different business activities and operations. Different functionalities will be
performed by the managers and leaders of Toyota like setting up of a plant, designing a new
product, performing market research to identify the needs and feasibility, allocating the
resources, developing the product (Car), executing promotional measures and provide after sells
services to their customers, if needed.
2 Define each organisational functions and identify roles and responsibilities of managers
Various organisational functions are been carried out within the organisation that helps
the firm to improve revenue of the firm. All this measures are been taken within the organisation
to sustain the product or service quality of organisation. This will help in proper assessment of

business operations and carrying out of operational functions effectively. The managers and
leaders at Toyota will look after a wider range of operations. Some major functions are:
 Designing and developing products: This is the most important factor or element that is
been carried out at the auto mobile manufacturing firm that will help in proper
assessment of operations and carrying out of operations. The managers will perform
market research to design and develop the products accordingly that helps the
organisation to produce high quality products and services (Ravindran, 2016).
 Maintaining supplies and inventory: While producing the goods and once the goods
are been produced, the raw materials and finished goods are supplied to different
departments and dealers in order to generate revenue. The managers will look after the
proper resource allocation and delivering the goods in order to maintain the customer
satisfaction level and handling profitability of the firm.
 Sustaining quality and supply chain: They will also handle the quality standards to be
followed by the firm and handle the supply chain. Managers at Toyota will follow strict
measures to ensure the delivering of good quality product or services and maintain the
market presence of the firm.
3 Key approaches of operations management and its value
Different approaches of operations management are adopted within the firm that impacts
the overall performance and quality standards of the firm (Langabeer and Helton, J., 2016).
Some major operation's management approaches that are been carried out within the organisation
that will help in maintaining the overall performance within the firm. Some key approaches of
operations management that is been carried out within Toyota are:
Lean management: This approach of operations management is undertaken within Toyota to
carry out effective production processes that will have the minimal wastage of the available
resources or raw material within the firm. This approach is of great importance and significance
within Toyota as it is an automobile manufacturing enterprise and thus, has to look after suitable
planning of its production process to reduce the wastage of raw material by the firm. This will
prove out to be a cost and resource effective approach for the firm.
Total Quality Management: This approach is also undertaken by Toyota that will help to
produce and provide high quality products and services that will help the firm to improve the
quality of services and products that are been carried out by the organisation to meet their

customer's demands. This will help the organisation to ensure delivery of high quality product to
their customer's. The managers at Toyota will make sure that after implementation of this
approach, the delivered product or service is full proof and provides a good satisfaction level to
their customers. It is important because it will help to sustain customer trust level and revenue
generation.
Just in time (JIT): This approach of OM will lead the selected organisation to manufacture and
delivers its products and services in a stipulated time frame and this helps in carrying out the
effective management of manufacturing operations of the organisation.
4 Impact of external business environment on decision making by managers and leaders
The external business environmental factors will impact the overall performance of
Toyota. They have a deep influence on the operations of decision making of managers and
leaders (Radnor and et. al., 2015). It will guide the organisation to enhance the quality of
products and services in order to have a sustainable revenue generation. A good decision making
will also help the firm for enhancing their quality and meeting of operations. Some major impact
of external environmental factors on the decision making is:
 Business ethics: It is one of the most essential factor that influence operations of
business to great extent. Toyota emphases more on ethical aspects such as using quality
raw material, giving respect to all employees, maintaining transparency etc. It engages
itself in fair business practices which helps in producing quality products. This helps in
satisfying needs of consumers and offering them standard goods and services. It
positively influences operations by improving decision of managers and aids in retaining
image of firm.
 Corporate social responsibility: This is another factor which impacts on operations of
Toyota. Company uses recycling system to minimise wastage and enhancing utilisation
of resources. By implementing these CSR activities firm becomes able to reduce its
dilemmas in decision making which helps in raising operations errors and improving
quality of operational process. Raw material is purchased by Toyota by looking at
environment and social aspects, by this way it has become able to make people positive
towards brand and protecting environment as well.
 Stakeholder expectations: Customers like to get high quality products at reasonable
prices, investors want high return over their investment. Hence each stakeholder has

different expectation from business. Toyota take care of needs of all its stakeholders and
design its practices in such manner so that wastage can be minimised and operational
efficiency can be raised. This aids in meeting with the needs of customer, investors,
suppliers etc.
 Corporate value: supply chain system is the main strong point of Toyota, this value of
firm helps the enterprise in utilising correct raw material and generating expected output.
This transformation influences the operational efficiency in positive manner.
 Corporate culture: This is the major factor which impacts greatly on business operations
of Toyota. Culture of Toyota is very good; employees are very happy by the friendly
atmosphere in workplace. They all share their feeling and work together in order to meet
the organisational goal. They are committed towards the firm and always emphases on
raising quality of products.
 Political: Managers and leaders at Toyota has to look after the political conditions in
Japan as well as other countries of operations in order to decide suitable policies and
meet the operational needs of the organisation. It will guide the managers and leaders at
Toyota to plan suitable strategies and policies to decide proper management of operations
by the firm.
 Economic: Financial conditions are also required to be evaluated within the firm that will
help in proper assessment of business operations and thus, will lead the setting up of
proper action plans to handle monetary functions of the firm. Managers and leaders will
decide measures to handle economic operations of the firm.
 Social: The setting up of employee roles and improving their performance by the means
of training and other developmental measures. That will help in improving the overall
goodwill of the firm. Hence, the managers and leaders will look after the recruitment and
training measures of the firm.
 Technological: Advancement of technology is very important for carrying out of the
business operations of the organisation. Managers and leaders at Toyota will look after
the effective planning of implementing technological tools to improve the enterprise's
performance.
 Environmental: Being in the automobile industry, the firm has to look after the proper
planning of environmental concerns that will help in maintaining the brand image and

equity in market. Managers and leaders will look after the development of low emission
vehicles to counter out this factor.
 Legal: The legal measures involves all the obligations which are been taken in
consideration by the firm. Managers and leaders will see through the management of
effective measures that can be adopted within the organisation to facilitate a hassle free
operations of firm.
5 Improvement of operational efficiencies to meet the business objectives of the firm
Various operational measures are been taken within the organisation that will help in
proper assessment of the objectives of the firm. It will help Toyota to identify their scope of
improvement and make suitable changes within the firm. Different management and leadership
approaches are been taken within the enterprise (Bazargan, 2016). Operation management will
be very much important as this will help in improving overall productivity of organisation. Thus,
if company is using all type of operational management approaches like that of TQM or lean
then this will be adding up value to success of business. Some of them are:
Management of objectives: This management approach will help in proper handling of the
goals and objectives that will help in proper assessment of the business operations and carrying
out of business activities within the firm. It will help in setting up of goals and taking the
measures within Toyota. The specific objective of the firm is to provide high quality product or
service to their customer's. Operating with application of management of objective approach will
help the enterprise to set suitable goals and pursue them in order to have a good productivity and
performance.
Democratic approach of leadership: This approach is been carried out within the firm that
impacts the overall performance and carrying out of business operations and thus will lead the
proper following of the operations. It will assist the firm to involve the work force in decision
making and improve work performance of the firm.
If the company is using correct type of management and leadership approaches then they
would be easily analysing need ad want of their employee's which will help in improving
operational efficiencies to successfully meeting business objectives using them. With the help of
Fayol’s 5 Functions of management leaders ad managers can improve efficiencies of operational
management in meeting business objectives

6 Conclusion and recommendations for future improvements
This can be concluded from the management and operations are interlinked to each other
and thus, will help in proper assessment of the business operations that are been carried out
within the organisation. The operations that are been carried out are quite effective and involves
the proper planning which is induced by Toyota.
Certain recommendations can be incorporated that will help in growth of the firm are:
 Market research and operational measures can be incorporated within the organisation to
maintain the proper planning of the management of operations.
 The employees can be trained and incorporated within the firm that assist the
organisation to have a good productivity.
There are many factors which impact the decision-making process like corporate culture
which means that culture of company will impact the way in which people are intended to work.
The corporate value of company will also be impacting the way in which employer is
maintaining their relationship with employee. There are many types of stakeholders which are
there within and outside the organisation like that of shareholders, government and suppliers so it
is important that company is standing by their expectation. Like shareholder will expect that they
are getting best return out of their capital invested which is the duty of company to provide them.
CONCLUSION
On the basis of the assessment, this can be further said that management of business
operations within the firm will help in suitable growth of the activities that are been carried out
within the firm. The importance of management and leadership with the effectiveness of the
operations is been analysed with different theories and concepts. Also, their impact on
organisation and effective recommendations are been presented. Other than this, key operational
measures can be undertaken within the firm with their effectiveness to meet the business
objectives of the firm.

REFERENCES
Books and Journals
Bazargan, M., 2016. Airline operations and scheduling. Routledge.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with
Toyota production system from a strategic management, management accounting,
operations management and performance measurement dimension. International Journal
of Production Research. 53(2). pp.590-606.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Langabeer, J.R. and Helton, J., 2016. Health Care Operations Management: A Systems
Perspective. Burlington, MA: Jones & Bartlett Learning.
Radnor, Z.J. and et .al., 2015. Public Service Operations Management: A Research Handbook.
Routledge.
Ravindran, A.R., 2016. Operations research and management science handbook. Crc Press.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Online
Divisional performance. 2019. [Online]. Available through: <http://knowledgegrab.com/learners-
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