Management and Operations: Roles of Leaders and Managers in Different Situational Contexts
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This report discusses the difference between leader and a manager, their roles and functions towards a particular situation and various theories and approaches of leadership. It also discusses the role of leader and manager in key approaches and factors that impact upon operations management and their importance.
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MANAGEMENT AND OPERATIONS. 1
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Table of Contents: INTRODUCTION...........................................................................................................................3 1. Define and compare the different roles and characteristics of a leader and a manager:..........3 Manager:............................................................................................................................3 Leader:...............................................................................................................................3 Differences between the role of Manager and Leader in the company:............................3 2. Examine examples of how the role of a leader and the function of a manager apply in different situational contexts........................................................................................................6 The role of a leader to improve the situation:....................................................................6 The function of a manager to improve the situation:.........................................................7 3. Different theories and models or approaches to leadership:....................................................8 Theories of leadership:......................................................................................................8 4. Explaining the key approaches to operations management and the roles of leaders and managers in them.......................................................................................................................10 5. The importance and value of operations management in achieving business objectives......11 6. Factors within the business environment that impact upon operational management and decision-making by leaders and managers................................................................................12 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15 2
INTRODUCTION Managementistheprocedureofdealingwiththepeopleandthethingsatan organization. It brings people together to accomplish the desired goals and objectives (Mišić and Perakis, 2020). An effective operations' management can help the organization in employee engagement and define their roles and responsibilities. It is important for the organizations, as it helps in effective management, supervision and control of products, people and services of an organization. Procter and Gamble Company(P&G) is a multinational company dealing in consumer goods specialized in personal and health care, hygiene products, beauty, grooming, snacks and food beverages products. It serves worldwide expect Cuba and North Korea regions (Procter & Gamble, 2020). This report will discuss the difference between leader and a manager, their roles and functions towards a particular situation and various theories and approaches of leadership. It will also discuss the role of leader and manager in key approaches and factors that impact upon operations management and their importance. 1. Defining and comparing the different roles and characteristics of a leader and a manager: Manager: As perDzwigol and et.al., (2020),A manager is an individual or person who is responsible for a particular part or function of a company. They can be an in-charge of a function or department and the people who work under that function or department. In some cases a manager can be the owner of the business. Leader: Zaccaro and et.al., (2018) states that, A leader is who view things differently and see how these things can be improved. He unites people together to move forward for achieving the organizational and personal goals. They bring a variety of perspectives to motivate, emphasis and connect with people to turn their visions into reality. Differences between the role of Manager and Leader in the company: The difference can be explored as: 3
Illustration1Difference between a Leader and a Manager Source:Can You Spot the Difference? Leadership vs Management, 2021 In the above illustration it can be seen that a leader considers the work, collaborations, projects and deadlines as a part of his work and directs the employees towards them involving himself. On the other hand, a manager orders the employees to get the work done and does not involves himself in them. Basis for differenceManagerLeader ResponsibilitiesThey formulate structure of the organizationanddelegate authorities and responsibilities to employees. Theyprovidedirectionto employeesforperforming theirdutiesand responsibilities(Liebowitz and Beckman, 2020). Function of managementTheyperformallfunctionsof managementi.e.planning, organizing,staffing,directing and controlling & monitoring. Theyperformonlyone function of management i.e. direction. 4
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AuthoritiesThey have formal authorities to lay their role. Theyhaveinformal authorities for their role in the organization. Approaches usedThey use reactive approach i.e. they react to events after they havehappened(Grattonand et.al., 2019). They use proactive approach i.e. they focus on eliminating problemsbeforetheycan happen. Existence inThey can exist in both the formal and informal structures. Theyexistonlyinformal structures. Qualities requiredA manager is required to have boththemanagementand leadership qualities. A leader is required to have leaderships qualities. Motivational strategy usedThey use extrinsic approach i.e. rewards and incentives are used to motivate employees. Theyusetheintrinsic approachi.e.motivationis derivedfromwithinthe employeeswithoutgiving them external rewards. FocusTheirprimefocusisthe processes of the company. Their prime focus is on the peopleofanorganization (King and et.al., 2020). Strives forTheystriveforefficiencyof work and organization through the employees. They strive for effectiveness in the employees. Style of managementThey use transformational style of management i.e. transforming employeesandprocessesto achieve organizational goals. Theyusetransactional managementstyle i.e. they focusonsupervisionof performancesandthe employees. Change adoptionTheyusuallyreacttotheThey promote to adopt those 5
changesthatemerge(Wajdi 2017). changes that emerge. AimTheir aim is to direct, manage and control the employees in an organization. Their aim is to motivate and inspirepeopleinan organization. 2. Examine examples of how the role of a leader and the function of a manager apply in different situational contexts. Situation:Here the situation is that P&G is suffering huge losses due to the global pandemic. The role and functions of managers to improve the situation are following: The role of a leader to improve the situation of losses: The leader will take the following steps or measures to improve the situation of P&G:Provide a vision:The leader in this situation will provide a vision for the entire team of employees. Leader will communicate that vision clear so that the employees remain more focused and understand their individual roles to drive the success (Kozioł-Nadolna, 2020).Establishing effective communication and organizational structures:The leader will set up the clearly defined organizational structure which will include an organizational chart outlining the chain of commands for effective communication.Be an effective role model:The leader will demonstrate the behaviours which are desired from the rest of the team. They will display various practices like situational decision- making,coordinationandcaringattitudeswhicheveryemployeehavetofollow (Balcerzyk, 2021). Inspire and motive:The leader will inspire and motivate others to influence and guide employees to participate in a common effort. 6
The function of a manager to improve the situation of losses: The manager will take the following steps to improve the situation of P&G:Reading the financial statements:The manager will read all the financial statements: Balance Sheet, Income Statement and Cash Flow Statement to get a clear idea of earnings and spendings of the company (Wolniak, 2019).Calculating profitability for future projects:The manager will calculate the Net present value, internal rate of return and payback period to analyse the financial health of the company.Finding efficiencies in the process:The manager will notice expenses of the company and will analyse if there are any items which could be eliminated.Creating budget and maintaining them:Then the manager will create the budget for timeline, procedures and financial statements of the company.Conducting market research:The manager will then conduct a market research to learn about the mindsets of its customers and potential customers. This will help in creating appropriate marketing of the products (Borissov and Xhemajli, 2019).Offering bundled products to the market:The manager will analyse and then offer two or more products in a lower price than the price they were offered separately so that it could create a demand for the products. Training new staff:The manager will dedicate his time to provide training to his new hirings, so that they can bring efficiency in the organization and contribute more towards the profitability. 3. Different theories and models or approaches to leadership: Theories of leadership: Following are some theories of leadership: Situational Leadership:The situation leadership is based upon the relationships between the leaders and the followers in an organization. It provides a framework to analyse each situation based upon the willingness levels that a follower displays in his performance a certain task, objective or function (Thompson and Glasø, 2018). The leaders in P&G demonstrate the following situational leadership competencies: 7
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Firstly they diagnose an individual employee's performance willingness to complete a specific task. They adapt leader behaviour based upon the diagnosis.They communicate an influential approach in such a manner that the employees can both understand and accept. Systems Leadership:The systems leadership allows the leaders of an organization to create the conditions where the employees at all the levels of management can work productively to their potentials. This leadership theory uses appropriate principles of human behaviours to create models of a good leadership, strategies, processes and systems designs. This leadership provides the leaders tools through which they can predict employee's behaviour in the organization (Macdonald, Burke and Stewart, 2018). For example: The leaders of P&G can use Systems Leadership to build an effective system which can drive productive behaviour and lead them towards a more effective realization of the organizational objectives. Contingency Leadership:This theory of leadership states that the effectiveness of a leader can be dependent upon a particular situation which suits their leadership style. It is assumed that a leader cannot be effective in all the situations i.e. He can be an effective leader in one situation and in another situation he can be ineffective. This theory requires the leaders to be self-aware in examining each situation and decide if their leadership style will be effective or not (Yin and et.al., 2017). For example: In P&G the leaders analyse the factors like team size, scope or the date of project and then decide their leadership style that they will be using. They adapt the leadership style according to the need and type of the product. Models or approaches to Leadership: The various models of leadership can be explained as follows: Adaptive Leadership:The adaptive leadership model is the act of deploying a group of individuals to handle the problems or the challenges and then emerge successful in the end. This leadership style focus on the importance of adoption of a complex and rapidly changing 8
environment and creating the situations for good leadership and problem solving. It states that leadership is a price not a characteristic that is inherent (Obolensky, 2017). For example: The leaders of P&G have adopted this leadership style which mean they focus on coordination so that the employees can adopt the changes in market and external environments. Laissez-Fair Leadership:This leadership style states that the leader have confidence on their employees, and they can rely completely upon their employees. The employees are not micro- managed by the leaders, nor they are given too much of instructions or guidances. Leaders give them appropriate guidance and the employees take responsibilities where it is needed. The decision-making is completely in the hands of the employees (Breevaart and Zacher, 2019). For example: The employees in P&G uses Laissez-faire leadership in between the small groups of their departments. Although, they are not given full authorities instead they are given relevant authorities which are needed to perform their tasks. Authoritative Leadership:It is the most common and effective leadership model but is often controversial. In this leadership model the leaders do whatever it takes to complete a task or objective from their employees. If this leadership model is used appropriately then it can help the leaders to make quick and effective decisions and keep their employees motivated at their best levels. Here the leader have full control on goal setting, processes and procedures to reach goals of organization by getting inputs from employees (Goleman, 2017). For example: In P&G this leadership model is used in the higher level of management where all the decisions related to the production are taken by the BODs. 4. Explaining the key approaches to operations management and the roles of leaders and managers in them. Some key approaches to operations management in an organization and the role that managers and leaders have in that process is following: Kaizen:Kaizen is an approach of management which means to change for better or continuous improvement. It is the management of the processes that continuous improve the operations and involve all the employees in it. They see the improvements in the productivity as a positive and methodical process (Helmold, 2020). 9
The manager in Kaizen will be responsible for a group of employees who will work towards identifying quality improvements while the leader will be responsible for planning and helping the employees to facilitate Kaizen events. Just in Time:It a process which aims at increasing value added and also eliminating waste activities or processes by providing the environment perfect and simplified processes (Maeng, and Lucia, 2019). The manager introduces JIN in the organization to reduce the costs by eliminating wasteful or non-useful activities and processes, while the leader will help the employees to adapt to Just In Time process. Six Sigma:Six sigma is a group of tools and techniques used for process improvements. It focuses on improvements in product cycle time while at the same time reducing manufacturing defects or wastages to a certain level. The manager create and foster an environment which sets the stage for all the employees by clearly defining their roles and responsibilities, while the leader leads the overall effort and responsibility for improving the projects undertaken by the company. He is responsible for the team to go. LeanManagement:Leanmanagementisaprocessaboutcontinuouslyimprovingwork processes, people and purposes of an organization. Lean management encourages theshared responsibility and shared leadership instead of holding total control of work processes and keeping the spotlight on one thing only (Singh and Rathi, 2019). It is base upon the two pillars: Continuous improvements andRespect for all the people in the organization. The manager's role in this process is to optimize the production or service processes, while the role of leader is to raises new leaders and help the employees to embrace a culture of continuous improvements. Queuing theory:It is the approach to study the information, process, function or congestion of the waiting queues of products or processes in the management. It can help the organization to make informed business decisions on how to build efficient and cost effective workflow systems (Memon, Li and Ahmed, 2019). 10
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The managers in this process supervise the whole process and guide the employees to reduce queuing, while the role of leaders is to identify the delays in queuing lines and identify the causes. Total Quality Management:It is a management approach for long term success through achieving customers satisfaction. In this process all the employees participate in all the activities. The manager's role is to act as a facilitator in the organization while the leaders create and maintain the internal environment so that employees are completely involved in achievement of organizational goals (Pambreni and et.al., 2019). 5. The importance and value of operations management in achieving business objectives. The importance and value of operations management in achieving business objectives of a firm is as following: Maintaining product quality:Operations management is responsible for checking the durability and reliability in a product of an organization is operations management department. The department is ensures the quality of products which will best suit the needs of the customers and satisfaction after the delivery of the products. When a product gives quality satisfaction to the customers, it gives the company a corporate advantage. This corporate advantage helps the firm in achieving organizational objectives (Pilkington and Meredith, 2018). Ensures productivity:Productivity of a firm is its ratio of input to its output and through which employee'sinputisverified.Operationsmanagementensuresthatthecorporationshave appropriate amount of staffing of its employees to the resources of the corporation so that maximum output could be received. If the operations' management is effective enough then only the company can ensure productivity to achieve the organizational goals of a company. Reduces operating costs:The operations' management also have to ensure that with providing productivity, quality products and customer satisfaction the costs incurred on a product is reduced to maximum. The reduced costs lead directly to the increased revenue. With the reduction of operating costs the wastages can also be reduced (Rigatou and et.al., 2018.). Through the reduced costs the firm can maximize its output to achieve its organizational objectives. Increases customer satisfaction:The management or the managers or an employee does not emphasis on getting the utmost satisfaction as the customer does (Raghavendra, 2021). It is the 11
obligation of operations department or management to ensure this with providing a quality product.Customersmaketheorganizationsprosperandsurviveinthemarket,sothe organization needs to treat its customers well in every possible way. So the operations' management does this job by providing the best products to the customers which satisfy their needs well and thus ensures the long term survival of the organization. Inventory and Capacity management:operations management ensures the proper and best use of the inventories and capital investment of the firm. P&G uses Total Quality Management inventorystrategytosaveandeffectiveutilizationoftheresourcestoensureeffective production. Reduced capital wastages saves the capital for future use, thus the company can use this capital to achieve its future objectives (Maylor and et.al., 2018). 6. Factors within the business environment that impact upon operational management and decision-making by leaders and managers. The factors within the business environment of P&G which affected the operations management and decision-making by its leaders and managers are: Technological advancement:Technology is constantly changing and improving every day. It canimpactthebusinesscycleandthusaffecttheworkingofthecompany.Innovative technologies can help the company in installing new systems of productivity which saves time and costs to the company. The managers of the company took the decision to present their meetings in visual manner. They believe that they can make better decisions when the important data is presented visually because it can display the graphical innovations in a very exiting manner. So the operations management had to provide visual aids to the managers of the company (Fortune 500- Procter & Gamble, 2020). 12
Quality of the products:The companies have to maintain quality standards based upon the needs of its target customers in order to survive and lead in the industry. P&G's organizational objective for its strategic decision area is to apply high quality standards in operations management. These standards support the leadership in operations management and business leadership to the company. The managers of operations department uses current market data to determine the suitability of the quality standards. Location decisions:The distance between the resources, production ad target markets can impact the operations of the company as the distance can be optimal which can positively impact the business or the long distances, which can impact negatively to the company (Procter & Gamble, 2020). The facilities are located where it is easy for the company to transport its consumer goods to the retailers. So the managers maximize the benefits of high productivity in P&G. COVID-19:The global pandemic of COVID-19 affected the operations and management of every company. The companies suffered losses while some of them took this opportunity to enhance theirrevenues. The companiesare bound to follow theregulationslaidby the governments till today which affect the operation of the company. 13 Illustration2: Procter and Gamble Source:P&G provides not a warning shot, but a wake-up call,2021.
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The managers took the decisions like safety protocols and manufacturing of productive gear to keep their employees safe at their sites. The managers introduced and upgraded the network and collaboration tools and training to ensure the sufficiency and flexibility of the employees when they work remotely. CONCLUSION Management is a process of bringing the people together to achieve organizational goals. Amanagerisresponsibleforachievingtheobjectivesbyperformingfunctionsofthe organization, while a leader is someone who motivates them to achieve those objectives. A manager and a leader are different as a leader cannot become manager but a manager can become a successful leader. The manager will provide various improvements and techniques through which P&G can improve its situations like losses while the leader will be providing view to the employees on how they can adopt those processes and activities. The various types of leaderships describes the systems that a successful leader should adopt in P&G by using various approaches like Kaizen and lean management. Operations' management is very important for the organizations so the leaders and managers should analyse various factors that can impact upon business environment of the company such as COVID-19 or technology up-gradation. 14
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