Operations and Management Report: J.P. Morgan Chase

Page 1 of 14
ASSISTANCE IN COMPILING OPERATIONS
AND MANAGEMENT REPORT

Page 2 of 14
Table of Contents
J.P Morgan Chase - An introduction to the company.......................................................3
P1..................................................................................................................................... 3
Henry Fayol's theory........................................................................................................ 3
Mintzberg's theory............................................................................................................4
Three Differences between leaders and managers.........................................................4
P2..................................................................................................................................... 6
Leadership style by Blanchard.........................................................................................6
P3..................................................................................................................................... 7
P4..................................................................................................................................... 8
Operations Management..................................................................................................8
P5................................................................................................................................... 10
P6................................................................................................................................... 12
Conclusion..................................................................................................................... 13
References.....................................................................................................................14

Page 3 of 14
J.P Morgan Chase - An introduction to the company
JP Morgan Chase & Co is a US MNC which is headquartered in New York City. It
specializes in Investment Banking and Financial Services. It has various divisions like
Investment Banking, Asset Management, and Private Banking etc. The asset
management division of the company has a net worth of $2.789 trillion. The Hedge fund
division is the second largest in the US (Hatfield, 2015).
JP Morgan follows a flat management structure, unlike other companies which follow a
complex one. It starts at the associate level followed up by other positions like Manager,
Managing director, Executive director, Vice chairman, chairman etc. Hard work is
always rewarded and one can expect to move up the corporate ladder very fast.
Here I am going to discuss the differences and main characteristics between a leader
and a manager. I will be providing the definition and I will also give proper examples to
justify my point. The main difference between leader and manager is that leaders are
always followed by other people whereas people work for a manager. Leadership is the
art of influencing others while management or a manager gets the work done by his
subordinates. Managers or management is applicable to the formal group of people
whereas leadership is applicable for both formal as well as the informal group of people.
P1
Henry Fayol's theory
Henri Fayol was the person who described the functions of management. According to
him every manager uses these functions in his normal work. Let’s understand briefly
what these functions are:
A. Planning
Managers must plan for the future. Irrespective of which department a manager works
It's very important that he plans for the future. Planning may encompass working for the
Future so that in case of any contingency the company or his department is secures
and most importantly prepared to deal with any unforeseen events. For example Jp
Morgan's Managers are always encouraged to plan from before to tackle any kind of
problems which May arise in the future (Shafritz et al. 2015).
B. Organizing
Organizing may mean the managers capability to recruit or manage a diverse
workforce.
He should recruit a skilled workforce and then make sure that the employees are given
work or trained in a field in which they have expertise. JP Morgan’s recruitment division
for example, are organized in such a way so that they are always in a good position to
recruit quality candidates (Edward, 2017).
C. Leading
The managers should encourage the employees to work towards a common goal and
also monitor their work on a regular basis. The manager should carry out his day to day
work which confirms to company policies and guidelines? JP Morgan's managers
always lead from the front and ensure that they solve the problem in the first instance
before it reaches the higher management level (Efthymiou and Yacoub, 2016).
D. Controlling
The managers must ensure that his or his subordinates’ activities are in line with the
Overall Company’s mission and vision. He should also keep track of any deviation and

Page 4 of 14
make sure to make necessary corrections in this regard. JP Morgan always follows the
concept of a transparent system which facilitates open interaction between a manager
and his subordinates (Uzuegbu and Nnadozie, 2015).
Mintzberg's theory
Mintzberg outlined 10 different roles of a manager which has been widely accepted.
Managers’ work can be divided into three parts like Interpersonal roles, Informational
roles and decisional roles (Daniel, 2018). Let us discuss them on by one
Interpersonal roles
This role encompasses three distinct characteristics of a manager like
a. The figurehead who actually performs various important activities like going out
with some official for lunch, attending business meetings with important
delegates etc.
b. The leader is responsible to motivate and encourage the subordinates and
ensure that they are always engaged in the process (Gronseth et al. 2015).
c. The liaison connects with third parties outside the organization for company's
benefit. It may be for several reasons like striking a business deal with somebody
on behalf of the company etc.
Informational roles
a. The monitor reaches out to the market to collect new information which may be
very important like collecting information for market intelligence etc.
b. The disseminator spreads information to the subordinates who can use it for
various purposes (Pigé, 2017).
c. The spokesperson whose main job is to disseminate information to the outside
world on behalf of the company. JP Morgan has a group of such people who give
this information to outsiders like shareholders or other stakeholders.
Decisional roles
a. The entrepreneur is often the person who finds out various ways to improve his
process by taking the active part in various projects etc.
b. The disturbance handler who reacts proactively to various internal or external
problems to which the company may be a part of like strikes, untimely death or
injury of a key personnel etc (Bonnafous-Boucher and Rendtorff, 2016).
c. The resource allocator allocates the work to various subordinates. He is the
person who assigns the work to various people based on his or her skill sets. It
helps in finishing work within guidelines.
Three Differences between leaders and managers
The first difference is managers get the work done by their subordinates but the leaders
influence other people to follow their footsteps.
The second difference is that leaders see a vision or a larger picture and involve others
to accomplish that goal whereas managers set short-term goals and allocate tasks to
subordinates and set timelines to finish that goal (Wheelen et al. 2017).
The third difference is that Leaders are risk takers. They know that they may fail but
they still try Managers, on the other hand, try to control the risk element so that the loss
can be reduced.