Impact of Leadership and Management on Business Operation and Environment

This document explores the impact of leadership and management on business operation and environment. It discusses different leadership theories such as situational leadership and contingency leadership. The document also includes a case study on Costa Coffee.

Impact of leadership and
management on business
operation and environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Definitions of leadership…..
Definitions of management…..
Difference between leadership and management…….
Analysis of different leadership theory………….
Application of situational leadership and contingency leadership in different situations ......
The strengths and weaknesses of the different theories.........
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Leadership and Management is one of the important unit of business which is essential for the
control and accomplishment of all goals and objectives of organisation. This is involving the sets
of techniques and strategies to manage various task and Assets of business in order to lead the
organization into the success (Sobratee, N. and Bodhanya, S., 2018). Management is involving
different sets of business functions to effectively mange the operational function of organization
and leadership is contributing into this by providing the best suitable environment through
their effective leadership and monitoring strategies. Such as motivation, guidance, training,
regulations etc. Costa Coffee is the largest and fastest growing coffee shop business in UK. This
is a British coffee house chain, headquarter in Dunstable England. In this report relationship
between the leadership and management is going to be analyse along with the consideration of
its impact on organisation involvement and operation. The brief evaluation of leader and
manager role is done in context to the selected organization.
Definitions of leadership
According to the John Adair, leadership is about achieving the task by developing the each
individuals of organisation and by managing , building the effective team. These concepts of
the leadership is can be effective achieve through multiple functions of leadership such as
planning, briefing, controlling, evaluating and motivating ( Bush, T., Bell, L. and Middlewood,
D. eds., 2019). action-centred leadership is the approach given by the John Adair on the basis of
this leadership concept, leadership is not a quality centric it can be effectively build and utilise
by the proper application of important leading actions such as leader have to manage the team
with effective and clear task by motivating them and developing the individuals through
effective training and motivation.

According to the Peter Drucker leadership is the process and ability to make right decision,
process which should involves the innovation of new techniques and strategies inference and
motivate team for achieving desired goal. So in context to the business leadership is the ability
which can be incarnate or developed and helps in the management of team and subordinates
with clear guidelines, training and innovative way of motivation or encouragement.
Definitions of management
Management is the important part of the business which involves the different sets of strategies
and tools along with the functions to effectively manage the accomplishment of business task in
order to get success. That is involving the roles and responsibilities of manager to effectively
conduct the functions of organization goal achievements, such as objectives planning,
organizing, motivation of the team, structuring the system of Management ( Bush, T., 2018). The
concept of management is control, planning and staffing. There are the different styles of

management related to the type of business and manager preference. Such as persuasive,
democratic, transactional etc.
Henry Fayol’s function of management
In 1916 five functions of management was given by the Henry Fayol’s, which defines the brief
functional practices of manager. Such function are planning, organizing, leading and
controlling.
Planning- according to this function manager have to conduct practices like development of the
strategic objectives in order secure the future of organization goals. They must have to plan for
upcoming conditions of the business and they build the strong management strategies in context
to that.
Organising- manager have to organize the all assets and resources of the business effectively in
context to the each important function of the business. Then it’s manager function is to alien the
workforce according to the task and functional structure . Along with this that is manager who
has to manage the best staff for work task.
Leading- one of another function of the manager is commanding the workforce for each and
every guideline regulations and strategies in order to get success in particular task and function
of business. Manager have to inspire the staff members along with effective communication
regarding policies and goal ( Adams, D., 2018).
Controlling- that is manager responsibility to control the task and activities of organisation with
proper monitoring and order to assure that everything is going according to the organisation
policies and objective without any error.
Henry Mintzberg’s managerial roles
According to Henry Mintzberg’s manager of the organization is have to play various roles and
responsibilities. Which should be selected according to the situation and task. There are the ten
role given under the three important factors.
Informational role- this category is involving three roles such as Disseminator, monitor, spoke
Person. As a monitor manager have to be updated about the changing environment of business.
As a Disseminator manager have to communicate important information among the team. As a
spoke person manager have to represent organisation positive information among the outside
people.

Inter-personal role- under this category of responsibility leader have to be work as a figurehead
under which manager should inspire the team. Then another role is leader in order guide and
manage performance related task. Third roll is liaison under which leader have to work together
for improvements ( Zigarmi, D. and Roberts, T.P., 2017).
.
Decisional role- this is involving four important role related to the organisation decision
making such as entrepreneur, disturbance handler, negotiator, resources allocator.
Difference between leadership and management
Elements Leadership Management
Focus Democratic and
transformation leadership
style. Is use in Costa Coffee
which focus on getting the
opinion of employees.
Costa Coffee is having
Bureaucratic Structure, the
specialised the roles and
responsibilities of everyone
and team that who is going to
conduct, what, when and
why.
Priority Participation and employees
sportive.
Roles and responsibilities
efficient.
Team Followers and perform in
decision making.
Subordinates and department
managers.
Ethics Make right decision with
effecting and supportive
leadership.
Operate in moral manner and
expressing the commitment.
Analysis of different leadership theory
Situational leadership- according to the Hersey-Blanchard Model there is not any single
leadership strategy which can fit with all organisation task and functions. On the basis of this
theory leader should make the choice of style according to the workforce situation and factors.

This is known as the situation leadership theory which provide framework of the four
leadership style on the basis of employees and leaders relationship and task of the situation.
Such as directing, coaching, supporting and delegating.
Directive style- this is involving the goals and objectives rather than relationship rather than
relationship of leader and employee. Use by directors to provide guidelines.
Supportive style- care for the subordinates along with consideration of goals accomplishment.
Less task behaviour and higher caring and increasing behaviour.
Coaching- balanced style with simpler amount of directive and caring, people oriented.
Delegating- lower task-oriented and directive behaviour, with the higher encouragement and
people oriented approach ( Lynch, B.M., 2018).

Contingency leadership- this theory of leadership is given by the Fiedler’s, which illustrate
that there is not any single style of leadership for every department and activities of organization

and it can not be change According to the situation. On the basis of this theory leaders of the
organisation but specific styles and skills have to place at the right position related to their style.
It should be according to the leader relationship, task structure and position power given by the
organization to leader. The situation on the basis of above discuss three factors is divided into 3
category favourable, moderate, and unfavourable, in context to particular type of leadership
styles can be choose ( Shaikh, S. and Shaikh, R., 2019).
Application of situational leadership and contingency leadership in different situations
Situation leadership
Creative project- in thus situation leader is having good relationship with the subordinates and
recently they had to work on the innovative project. So in context to this supportive leadership
style of situational leadership theory should be applied. In order make collective approaches of

innovation and decision making. Where the leader perform less directive by giving the higher
importance to employees innovative skills which help to get successful in new project.
Contingency leadership
Task management with team as new leader with higher power
There in the Costa Coffee new leader is placed in the food quality department with higher power
and well stabilized task. But leader is not having the good relationship with thier subordinates
and they had to work on new project. So in context to that Contingency leadership have to be
applied with consideration of moderate category under which leader have to focus on
relationships improvement ( Salihu, M.J., 2019).
The strengths and weaknesses of the different theories
Leadership theory Situational leadership Contingency
leadership
Advantages That is personalized and have
to focus on each employees.
This help effectively manage
the immediate needs of
preceding task and activities.
That is providing the facility
of selecting different
leadership style and make
leadership flexible.
That is having a wider scope
of leadership and involves
the analysis of situations to
make appropriate decisions.
Disadvantages It is not appropriate for long
term needs.
That is not good enough for
task oriented environment.
Are having higher limitations
which concise among the
short term goals ( Lam, M.,
2020).
It can be complicated to
implement because that is
not fix.
Some time it can cause
wasted of resources, time and
money.

CONCLUSION
From the above study it has been concluded that business entities are effectively managed by the
different strategies and system of leadership and management, in order to achieve their success
goals by providing the best supports of different management functions and positive leadership
environment with motivation and commitment. Are the different theories of leadership and
different functions of management which collectively work together to make productive
environment and successful operations. Such as the other supportive management functions is
given according to the Henry Fayol's, planning, organizing, leading, controlling. The leadership
styles and theories are situational, contingency and transformation leadership.

REFERENCES
Books and Journals
Sobratee, N. and Bodhanya, S., 2018. Leading in a global context: The balancing act between leadership
and management. Journal of Business and Retail Management Research, 12(4).
Bush, T., Bell, L. and Middlewood, D. eds., 2019. Principles of educational leadership & management.
Sage.
Bush, T., 2018. Research on educational leadership and management: Broadening the base.
Adams, D., 2018. Mastering theories of educational leadership and management. University of Malaya
Press.
Zigarmi, D. and Roberts, T.P., 2017. A test of three basic assumptions of Situational Leadership® II
Model and their implications for HRD practitioners. European Journal of Training and
Development.
Lynch, B.M., 2018. The development of the Person‐Centred Situational Leadership Framework:
Revealing the being of person‐centredness in nursing homes. Journal of Clinical Nursing, 27(1-2),
pp.427-440.
Shaikh, S. and Shaikh, R., 2019. Modeling of dynamic/situational leadership for effective
entrepreneurship development. Journal of Model Based Research, 1(1), p.1.
Salihu, M.J., 2019. A Conceptual analysis of the leadership theories and proposed leadership framework
in higher education. Asian Journal of Education and Social Studies, pp.1-6.
Lam, M., 2020. Public leadership under resource constraints: an examination of the US nonprofit
sector. Journal of Leadership Studies, 14(1), pp.89-95.