Leadership and Management are important equally

  Both the manager and the leader play crucial roles in how an organisation operates. The managers of an organisation are in charge of planning and supervising the work necessary to achieve the organization's objectives. Since the beginning of social organisations, management has played a crucial role in ensuring that individual efforts are coordinated in order to achieve group objectives.

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Table of Contents
1. Introduction:............................................................................................................................3
2. Discuss different theories of leadership in relation to the management activities in different
organisations....................................................................................................................................3
3. Explore different theories of management in relation to the management and leadership
activities in different organisations..................................................................................................3
4. Assess different leadership and management styles and their application in a range of
business situations in different organisations..................................................................................4
5. Examine the factors that influence the development of the culture in organisations..............5
6. Conclusion:..............................................................................................................................5
7. References:..............................................................................................................................6
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1. Introduction:
In the operation of an organization, both the leader as well as the manager have important
roles. The managers of an organization are responsible for designing and managing work to
achieve the goals of the business organization. Leadership is responsible for influencing and
empowering employees to perform well in the organization. As a recruiter at Harvey Nash,
specializing in applied IT, your role is to use social media platforms to contact and recruit
potential clients and employees for your clients to meet. surname. Specifically, you'll review
CVs and filter candidates, and interview and evaluate their skills to see if they're the best fit
for the job. As part of the hiring process, you must understand different leadership and
management theories to prepare you for the executive search. To better understand this
process, both Coca Cola and Pepsi are good candidates for analysis.
2. Discuss different theories of leadership in relation to the management activities in
different organisations.
Most people are capable of taking on leadership responsibilities, but some are better than
others. Leadership was once thought to be a natural attribute, something individuals are born
with. However, research on leadership has led to more advanced theories on the subject as
well as societal recognition of leadership traits. These theories can help you choose which
leadership style is best for certain situations.
Fiedler's contingency theory suggests that one person needs a specific leadership style for
different situations and that most leaders have only one style. Specifically, he hypothesized
that if the organization is facing a new challenge for which the current leader may not be
suitable, the person should consider changing the leader or changing the leader. the
conditions of the problem (Contingency Leadership approaches - Fundamentals of
leadership, 2022). According to Fiedler's theory, Indra Nooyi (chairmen of Pepsico) has a
good leader-member relation, which is the leader's degree of trust and confidence. She
attended communication training to improve her ability to speak in public, meet with her
boss, and interact with customers. She was extremely skillful in persuading her employees.
For example, she has created a friendly work environment and a culture of trust that allows
each employee to use their potential and abilities to serve the organization. In an interview
for her podcast, she said that a good leader must be transparent and honest. If a leader doesn't
tell the truth to his employees, he or she must explain why. Furthermore, in difficult times,
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Indra Nooyi always trusts her employees and tries to relinquish control and allow them to
make decisions. Besides Nooyi, Jack Stahl, former CEO of Coca-Cola, also deserves
attention. The hallmark of Stahl's leadership is his ability to focus on situational details. Stahl
refutes a common assumption that, in today's world, contingency leaders are not physically
aware of all the variables of the situation. In Stahl's view, increasing volumes of data
facilitate the delivery of fallback leadership initiatives, while the leader's task is to tailor
information systems to individual needs. organization.
3. Explore different theories of management in relation to the management and leadership
activities in different organisations.
Management is a critical role that has existed since the development of social organizations
in order to ensure the coordination of individual efforts with the purpose of accomplishing
common goals. Furthermore, the intricacy of structured groupings has heightened the
significance of management. As a result, management theory is seen as critical in managers'
approaches to managing complex businesses such as Coca-Cola and Pepsi. According to
Henry Fayol (1841-1925), the management function includes organizing, coordinating,
planning, directing, and controlling (Groth, 2013). His contributions to traditional
organizational theories are important in understanding the role of managers in a social
organization (Groth, 2013). Both firms are involved in the five functions that contribute to
Coca-Cola and Pepsi's success.
McGregor explained employee categories and the role a company plays in shaping their
behavior using Theory X and Theory Y. He grouped personnel into two groups, Y and X, in
his contribution to management theory (Groth, 2013). According to his study, according to
Theory Y, which views labor to be natural, workers commit to their employment if they are
happy, employees may learn to respect responsibility, intellectual capacity, and so on.
Employee intelligence is only utilized in conjunction with other variables (Groth, 2013).
Theory X, on the other hand, says that people are typically lazy and avoid labor at all costs,
that people want direction and stability and despise responsibility, and that people must be
controlled and tested. a provocation to work hard. While Theory X is often seen as outdated,
large corporations like Coca-Cola may find its implementation inevitable due to their huge
employee bases and demanding goals. . They must answer. McGregor's second approach
emphasizes that to get things done and creative, individuals must be responsible, inquisitive,
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and self-motivated. The proponent argues that it is important to change the traditional
approach of employees who are seen as stupid. Changing these stereotypes allows leaders to
tap into their enormous human potential. McGregor stressed that what matters is how people
are treated in the workplace. The Coca-Cola Company allows its workers to participate while
remaining accountable In contrast to Coca-Cola, Andy Pearson's (Pepsi's) change in
management style symbolizes a transition from Theory X to Theory Y. It highlights the
necessity of a leader. is skilled at developing an organizational culture in which people are
valued and like working for the firm. Andy Pearson, the CEO of PepsiCo at the time, was
rated one of the ten hardest employers in America in 1980. Every year, he fires between 10%
and 20% of his least performing employees. Despite his rigorous leadership style's success,
he built a new leadership style centered on employee appreciation. Control stifles innovation
and long-term happiness. 'If I can release the strength of everyone in the organization, instead
of just a few, what can we achieve?' he says of the change in management style. We'll be a
far better firm as a result."
4. Assess different leadership and management styles and their application in a range of
business situations in different organisations.
A company's leadership style has a substantial influence on its performance and
competitiveness in the market in which it operates (Ahmed, Nawaz & Khan, 2016).
However, the importance of a leadership style changes depending on the scenario.
Organizational management employs a variety of styles, which may be classified as either
transactional leadership style or transformational leadership style. A transactional leader
emphasizes a compensation plan while conveying to followers what a company wants of
them. The transactional leadership style consists of three components: management by
exception, either actively or passively, and dependent incentive (Ahmed, Nawaz & Khan,
2016). Transactional executives use contractual agreements to motivate employees.
Furthermore, they use extrinsic rewards as a motivator for employees. Several studies have
found that this sort of leadership has negative consequences. The leadership style is said to
stifle employee innovation and, as a result, discontent with their positions. However, as
previously said, the sort of leadership might be beneficial in one company but not in another.
As a result, this form of leadership is appropriate, particularly when the scope of work is
modest and does not need significant knowledge (Ahmed, Nawaz & Khan, 2016). A
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transformational leadership style, on the other hand, includes connecting the individual
worker's contribution and the organizational level (Ahmed, Nawaz & Khan, 2016). This form
of leadership is thought to boost workers' self-esteem and self-actualization, among other
benefits. As a result, the employees' dedication to organizational operations includes an
element of risk-taking. These leaders encourage a healthy employee-employer connection in
which people are enabled not just to serve the business but also to attain their own objectives.
The management team's effectiveness in encouraging its employees to reach their goals is
determined by the management style they use. There are three types of management styles:
authoritarian, democratic, and laissez-faire. PepsiCo's President Indra Nooyi exemplifies
democratic leadership built on mutual respect. This is a form of participative leadership since
it is viewed as a collaboration between the leader and his or her followers. It entails
participation in decision-making and needs their employees to assume a high level of
responsibility in the company's management. Every employee is welcomed and given the
chance to participate in decision-making, in an environment where ideas are openly
discussed. The more the leader's confidence in his or her staff, the more willing employees
are to take risks. As a result, the leader may obtain the finest decision from them. Indra
Nooyi employs this leadership style in order to empower her people to thrive without stifling
them with rules and restrictions. She is more open in that she encourages discussion among
members and tries to accommodate their needs. However, although she practices democratic
leadership, when it comes to the decision-making process, she is capable of autocratic
leadership because she is the ultimate decision maker. Just like ms Nooyi, Kent is Coca
Cola's CEO and chairman of the board. He is known as a democratic/participative leader. He
is famous for seeking input from others on important decisions. He is committed to
improving management processes and production efficiency as well as teamwork. In part, he
worked to improve the company's productivity by doubling the output of Coca-Cola's
bottling operation. As CEO, Kent has formed collaborative management teams to address
sluggish sales growth and challenges from global competitors. This reflects a mixture of
autocratic and democratic styles.
5. Examine the factors that influence the development of the culture in organisations.
In Schein's 1985 book, Organizational Culture and Leadership, a consideration noted by him
were observable values codified through formalization such as policies that develop
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emotional intelligence, improve employee engagement, life-long learning, negotiation tactics,
and decision-making. To codify these values companies provide mission and vision
statements that often refer to their Corporate Social Responsibility plans related in their
annual reports. Coca Cola statement “to refresh the world in mind, body, and spirit, to inspire
moments of optimism and happiness through our brands and actions, and to create value and
make a difference.”. Their vision statement continues: “to craft the brands and choice of
drinks that people love, to refresh them in body & spirit”. In contrast Pepsico states “our
mission is to create more smiles with every sip and every bite”. Additionally, their vision
statement “Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder value by
making PepsiCo a truly sustainable company. At PepsiCo, we're committed to achieving
business and financial success while leaving a positive imprint on society - delivering what
we call Performance with Purpose”.
6. Conclusion:
From the analysis of management and leadership theories, it is clear that there is no one-
size-fits-all theory. Instead, the influences of the situation will determine the behavior and
actions of leaders and managers. Autocratic leadership styles and bureaucratic management
have advantages in increasing discipline and control of employees, but many people prefer
transformational leadership and people-based management styles. It is expected that as the
organization matures, it will shift to a leadership and management style that will put
employee motivation first.
7. References:
Pepsico. n.d. [online] Available at: <https://www.pepsico.com/about/mission-and-vision>
Blazek, K., 2010. Leadership Profile: Indra Nooyi, CEO of PepsiCo. [online]
Truscore.com. Available at: <https://www.truscore.com/resources/a-refreshing-take-on-
leadership-indra-nooyi-ceo-of-pepsico>
Cherry, K., 2012. Why Do Some People Become Great Leaders?.[online] Verywell Mind.
Available at: <http://psychology.about.com/od/leadership/p/leadtheories.htm>
Coca-colafemsa.com. n.d. [online] Available at: <https://coca-colafemsa.com/en/about/we-
are-coca-cola-femsa/mission-vision-values/>
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Groth, L., 2013. Overview of theories on organization and management. [online] Available
at: <http://www.uio.no/studier/emner/matnat/ifi/INF5890/v13/material-todownload/lecture-
presentations/Feb_6_organization-and-management-theories/overviewof-theories-on-
organizations-and-management-inf5890-v2013.pdf>
Leadershipahoy.com. n.d. The Situational Leadership Model Explained by a CEO –
Leadership Ahoy!. [online] Available at: <https://www.leadershipahoy.com/the-situational-
leadership-model-explained-by-a-ceo/>
Mathe, H., Pavie, X. and O'Keeffe, M., 2012. Valuing people to create value. Singapore:
World Scientific.
Nawaz, A., Khan, I. and Ahmed, Z., 2016. (PDF) Leadership Theories and Styles: A
Literature Review. [online] ResearchGate. Available at:
<https://www.researchgate.net/publication/293885908_Leadership_Theories_and_Styles_A_
Literature_Review>
Naylor, J., 1999. Management. Harlow: Financial Times.
Schein, E., 1985. Organizational culture and leadership.
Stoyanov, S. and Diderich, M., n.d. The Human Side of Enterprise.
Whipp, L., 2016. Profile: Muhtar Kent, Coca-Cola. [online] Ft.com. Available at:
<https://www.ft.com/content/409b0e52-1a08-11e6-b286-cddde55ca122>
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