ALDI: Comparing Leadership and Management Roles in Business Operations

This report provides a comprehensive analysis of leadership and management roles within ALDI, a prominent retail supermarket chain. It begins by defining and comparing the characteristics of leaders and managers, highlighting their distinct responsibilities and contributions to the organization. The report then explores how these roles differ in various situations, considering factors like technological changes and market trends. It delves into different leadership theories and models, including situational, system, and contingency leadership, and their application in the context of ALDI. The report further examines key approaches to operations management, emphasizing the roles of managers and leaders in achieving business objectives. It also explains the importance and value of operations management in driving business success. Finally, the report assesses the impact of external factors on operational management and the decision-making processes of managers and leaders within ALDI, offering insights into how the company adapts to changes in its environment.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define and compare different roles and characteristics of leader and manager....................1
TASK 2............................................................................................................................................4
P2 How the role of leader and function of manager differs in situations...................................4
P3 Different theories and models including situational, system and contingency leadership....7
TASK 3............................................................................................................................................8
P4 Key approaches to operations management and the roles of managers and leaders..............8
P5 Explain importance and value of operations management in achieving business objectives
...................................................................................................................................................11
TASK 4..........................................................................................................................................12
P6. Impact of External Factors on Operational Management and Decision-making Process...12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Management includes planning, organising, coordinating and controlling business
activities. Operations means activities which assist in attaining goals and objectives. In
organisation, there are different activities which assist in managing business operations. In ALDI
some departments such as marketing, production, sales, purchases etc. which helps to earn good
profits and resist in society. Managers and leaders plays vital role in enhancing business
operations (Barbosa, Sadre and Pras, 2012). As there is change in external environment, so it is
responsibility of managers to alter working style. In this report, the chosen organisation is ALDI
that deals in retail super market chain. This report highlights difference between roles of leader
and functions of manager, approaches of operations management, its importance in achieving
targets. At last it tells about impact of external environment on operations management and
decisions of managers and leaders.
TASK 1
P1 Define and compare different roles and characteristics of leader and manager
Introduction to the organisation and management structure
ALDI is the retail organisation works as discount supermarket chain. This is the
organisation which has around 10,000 stores in about 20 countries (Brown and Bessant, 2013).
This organisation was established in 1946 which is headquartered in Germany and operates in
Italy, China, Austria, Switzerland etc. Products offered by ALDI are food, beverages, sanitary,
household articles etc.

(Source: Organisational Structure of ALDI, 2018)
Organisational structure of ALDI is flat. There are different departments headed by
various directors such as trading, finance, store operations, logistics etc. Advantages of this
structure is that there is less possibilities of miscommunication and equal power is distributed to
all employees. Main disadvantage of this structure is some personal conflict arise among
employees which affects team performance.
Manager
A manager is the individual who headed over some employees to control and manage the
work. Subordinates report to managers. There are different activities performed by employees,
then for its outcome they are responsible to managers (Crevier, Cordeau and Savard, 2012). In
case of positive results, it is responsibility of managers to appreciate and provide reward to them.
Leader
Illustration 1: Organisational Structure of ALDI

Leaders are individuals who lead a team, unit or group of individuals. This is the person
who holds uppermost and dominant position in organisation. As there are different operations
which has to be performed in organisation so it is responsibility of leader to guide personnel and
provide best way to perform operations.
Role of leader
Setting a clear vision- Leader is responsible for setting clear vision. This provides
guidance to subordinates to attain goals and objectives. This helps to create synchronisation in
business activities which is relevant and significant for getting positive results.
Motivating employees- Motivation of employees is one of the important role performed
by leaders. Employees are asset for ALDI so it is important to motivate them in order to get
positive outcome (Ghiani and et. al., 2014).
Building morale- At workplace, ethics, morale are essential component which affects
business operations as well as organisational environment. Leader is responsible for building
morale of employees.
Role of managers
Hiring and staffing- Mangers of ALDI works to hire personnel. There are different
vacancies which arise in different departments. Hence, it is responsibility of select correct
personnel at correct place according to his/ her skills and capabilities.
Training new employees- In ALDI, there is requirement of employees in various
department. So after hiring, it is responsibility of managers to train them. This training helps to
know about organisation's working environment and working style.
Monitoring and controlling expenses and budgets- ALDI is a big brand in retail sector.
There are different expenses occurred such as marketing, production etc. in order to perform
business operations. Hence, it is responsibility of managers to work within such budget. This
maintain profits and revenue of ALDI in appropriate way (Greene and et. al., 2014).
Difference between leadership and management
Basis Leadership Management
Definition Leadership means guiding
team mates in order to attain
goals and objectives of ALDI.
Management involves
activities of planning,
organising, staffing,
controlling and directing

business operations.
Rigid/ flexible Leadership is flexible as there
is no step steps to lead a team
of ALDI.
While management is rigid
because there are steps to
manage business operations.
Evaluation/ coaching Leadership is about building
trust which helps to attain
goals and objectives.
Leadership is done to coach
workforce as they can perform
operations in effective way.
Management's main objective
is to facilitate business
operations of ALDI. Manager
of firm is liable for conducting
market research to resolve
those issues.
Difference between managers and leaders
Basis Leader Manager
Motivator/ Director Leaders of ALDI are the
motivators for team.
Managers are directors for
team.
Change acceptors/ controllers Leaders are the person who
accepts changes and
alterations.
Managers of ALDI are the
people who controls risk.
Path makers/ path followers Leaders make paths to perform
operations in new and
innovative way (Hillier and
Price, 2013) (Hisette,
Jochmann and Bronsart, 2014).
Managers of ALDI are path
followers. They are the people
who follows standards and old
methods to conduct business
operations.
Familiarity Leaders of ALDI are more
familiar with team mates as
compared to managers.
Managers are bind by official
responsibilities. Hence, they
are less familiar with
subordinates.

TASK 2
P2 How the role of leader and function of manager differs in situations
There are different roles and responsibilities in ALDI which helps to perform operations
in effective and efficient way. ALDI is the organisation which operates in different parts of
country so they have to make alterations according to nation's policies. These days demand of
consumers are changing frequently so leaders and managers are responsible for cope-up with it.
A business organisation like ALDI has to face numerous business issues such as change in
market trends, alteration in technological changes etc. ALDI analyse market trends and then alter
their business policies which will helps to make good image in market. Here are discussed the
basic role of leaders and function of manager as per distinct business consequences emerged in
industry discussed as below:
Fast situation- in business operations of ALDI, there are some situations which are
changing quickly (Hitt, Xu and Carnes, 2016). Hence, in this case, managers and leaders has to
regularly analyse market. For instance: Technological changes are taking place rapidly so it is
important for ALDI to alter working techniques. Up- gradations in online portal of ALDI helps
to perform operations in effective and relevant manner.
In this case, managers are responsible to train employees. Managers are responsible for
planning training event for workforce. Leaders has to motivate employees to work with latest
techniques.
Moderate situation- Moderate situations are circumstances which do not changes
frequently but changes take place slowly. ALDI is the company which deals in retail sector.
There is difference in demand of customer as per change in climate.
For instance: carrot, sweet potatoes, mushrooms etc. are more in demand in winters as
compared to summers. At the same time, woollen dresses are in trend as per climatic change.
Hence, in this case, managers are responsible for replacing stock and alter stock. In this
case, staffing and organising are done by managers which helps to reduce cost and earn good
profits. Leaders has to plan operations in order to reserve and store old stock or sale it at
discounted price in order to get preserve it.
Stable situation- ALDI is the company which follows proper rules and regulations in
order to avoid excess government control. This helps to improve image in industry and maintain
long term relations with customers (Hoyos, Morales and Akhavan-Tabatabaei, 2015).

For instance: There is alteration in rules and regulations of organisation such as change in
employment law, safety and security act etc. These variations are rare but affect the business
highly.
In such cases, it is responsibility of managers to control and direct employees so alter in
business plans and policies can be implemented successfully. This helps in working according to
market trends. Leaders are responsible to convey changes to subordinates. In case of any doubt it
must be clear to them.
CLASSICAL THEORIES
This theory can be understood with scientific management theory. There are some
changes which has to be taken ion order to manage business operations of ALDI.
Scientific management theory is effective and relevant for lower level personnel. This
theory was propounded by Fredrick Winslow Taylor. Hence this theory is known as ''Taylorism''.
Scientific management theory emphasise on activities occurred in environment (Jacobs, Chase
and Lummus, 2014). There are possibilities that due to alteration in policies, there is negative
impact on individual's performance. Major principles of scientific management theory are-
 Difference in planning to perform operations of company.
 There is requirement of eight supervisors which gives proper guidance and direction.
 Improving working condition and improve standard of working environment.
 Proper hiring of employees according to their skills and competencies.
 Financial incentives must be provided to employees in order to get positive return from
them.
If these measures are used by managers of ALDI then this is helps workers to give
positive outcome. Brand image of ALDI gets improved and this ultimately helps in sustainable
development of organisation.
BEVAOURIAL THEORIES
Behavioural theory is also known as human dimensions from achieving targets. As per
this theory, it is clear employees performance can be improved with motivation, team work, etc.
This theory can be understood with there help of Elton Mayo’s Hawthorne Effect.
Elton Mayo’s Hawthorne Effect theory talks about improving in production. This can
be done with the help of proper motivation and guidance rather than lighting or good working
condition (Krishnan and Laporte, EMC Corp, 2014). As per this theory employee want some

social relations with external parties. In case of ALDI when there is proper activities for
entertainment, then this makes good and positive relations among employees ans they give their
best. This helps in sustainable development and growth of ALDI.
P3 Different theories and models including situational, system and contingency leadership
Business organisation is the place where operations are conducted in order to attain
business aims and objectives. Sometimes, there are possibilities that due to alteration in business
environment then this affects business operations. Hence there is requirement of leadership and
motivation to employees. ALDI has good brand image in industry, so it is essential to perform
well so image of ALDI gets improved (Kuklinski, 2014). Some models of leadership are
discussed as under-
Situational Leadership- This theory declare that there is no single leadership style is
high-grade. This theory is developed by Hersey and Blanchard which says that managers and
leaders of ALDI have to implement various style of leadership in difference circumstances. It
depends on a situation that which type of leadership is best for a specific situation. As per this
theory, effective leader have quality to accommodate style of leadership in different situation.
Advantages and disadvantages of situational leadership
Advantage Disadvantage
Main advantage of situational leadership is that
it make a strong team unity and make
environment more comfortable and effective
(Greene and et. al., 2014).
There are different situations arises in ALDI.
Due to lack of experienced team, it is difficult
to face out demographic situations.
Leaders play an important role to improve
motivation of employees and involve them in
decision making.
Some situations are interrelated with different
factors which create confusion among team
members.
Systems Leadership- Systems Leadership was introduced by Dr Ian Macdonald. It utilise
a secure rule of human behaviour to make a model of great leadership. Leaders of ALDI create
an environment where every levels of people can work effectively and efficiently. It improve
style of leadership, social process and organisational strategy. It also helps to analyse the
behaviour of employees within organisation (Hillier and Price, 2013).

Advantages and disadvantages of systems leadership
Advantages Disadvantages
It provide a framework to build ideas and
clarify complexity of the environment.
It is a complicated and lengthy process which
includes various inter-connected parameters.
It helps to interpretation of development and
experience.
It is accepted by very few leaders that's why it
is not so popular.
Contingency Leadership- This theory explains that how leadership style match with the
situation. It emphasizes the value of both leader's attribute and situation in which leader take an
action. In this theory leaders are categories into two types: task oriented and people oriented.
leadership style of a leader is evaluated and also analyse their behaviour (Hisette, Jochmann and
Bronsart, 2014). Leaders of ALDI are go through out a test that define an individual who is most
ambitious in working environment.
Advantages and disadvantages of contingency theory
Advantages Disadvantages
It make management style more flexible and
focus on particular characteristic of leader.
It is more complex to determine situation in
which leader's action is involved.
Effectiveness of a leader is directly depends on
their employees and it covers overall culture of
ALDI.
This model is suffer from inadequate literature,
because there are different types of actions and
situations which create confusion.
CONCLUSION
From the above discussion it is clear that managers and leaders plays crucial role in
performing business operations. There is requirement of some alterations which are relevant and
signifiant for organisational growth. In case of ALDI as there are changes taking place, so
managers are liable to implement it. They plays important role in growth and development of
business.
RECOMMENDATIONS
It is recommended to organisation that innovative training methods must be used. On the
job training methods are more effective as compared to off the job. Technological changes must

be done at work place so employees remain satisfied that they are working with latest techniques.
Managers must plan games so good culture and environment can be maintain in ALDI. Leaders
must personally interact with workers to know about mindset. This helps to implement best
techniques in organisation.
TASK 3
P4 Key approaches to operations management and the roles of managers and leaders
Operations management means making strategies in order to perform business operations
in appropriate way. In ALDI there are different departments which are working in order to attain
high profits and brand image (Lewis and Brown, 2012). There are many changes which are
taking place in business environment, so It is essential to make alterations which are essential
and signifiant for performing business operations. There are some approaches which are used in
order to get positive return from employees. ALDI uses total quality management, six sigma, just
in time, continuous improvement, etc. In order to improves working style and reduces
possibilities of defects. These model helps to give best and hence satisfaction and brand image of
ALDI gets enhanced. Some models are discussed as under-
Total Quality Management:
Total quality Management define a management approach for long-term success through
consumers satisfaction. In TQM, all employees of ALDI company give efforts in their
performance for improving products, culture, services and processes. In this, employees
continuously improve their quality to provide effective services and products to the customers.
The target of Total Quality Management is hold all parties include in the production procedure
accountable for the overall quality of the finish service or product.
The roles which is followed by leaders in this approach is mentioned below:
 Establishing the action measurement for the processes.
 To ensure effective usage and involvement of the entire manpower.
 To remain up involved and committed administration to provide long term support from
top level to bottom level.
The roles which is play by managers are mentioned below:
 To treat the suppliers as firm partners (Littlefield and et. al., 2016).
 To ensure UN-wavering focus on both external and internal customers.

 To ensure continuous improvement of the production processes and the business of
company.
Just-in-time inventory:
Just-in-time inventory is describe as a strategy which increase the efficiency of products
and reduce the wastages as well as reduce the inventory cost also. In operation management, JIT
inventory is a system which use a strategy that adjust raw-material orders from suppliers
immediately with production program. This approach helps to managers for accurately forecast
the demand.
The roles which is followed by leaders in this approach is as follows:
 To ensure that all the employees are properly aware of their duties and roles in complete
activity and process.
 Make sure that the goods receives are not wasted and properly used in the manufacturing
process.
 To check and monitor the conditions of all the machineries which is used in
manufacturing process.
The roles which is play by managers are as follows:
 Firstly analysing the demands then after orders the right amount of goods.
 Order the goods at the right time from suppliers (Pohl, B., 2014).
 Maintain a good relation with the suppliers for receiving the quality and desired amount
of goods.
Continuous improvement or Kaizen:
It is an approach to creating continuous improvement based on that idea which is build
positive changes for effective and major improvements. It was developed in the production
sector to eliminate waste, promote innovation, lower defects, boost productivity and encourage
employees accountability and purpose. It is based on commitment and cooperation in contrast to
approaches for achieving transformation and radical changes.
The roles which is followed by leaders in Kaizen approach is mentioned below:
 List findings for both the benefit of the team and individual (Schönsleben, 2016).
 Identify the people for ensure that which people will be in the group for the particular
task.

 To assist the workers in any kind of issues and problems and arrange the delegation of
work.
The roles which is play by managers are mentioned below:
 Ensuring that every employee is aware of what the Kaizen group is working upon.
 Determine the scope of a project.
 Measuring the success of the Keizen group.
Six Sigma:
Six Sigma is a statistical-based, continuous improvement, data-driven approach and
disciplined methodology and techniques for eliminating defects in service, process and product.
In operational management, six sigma is apply for minimizing the defects by achieving the
maximum consumer satisfaction., improve production process, improve return on investment and
sale, prevent defects in the production process, achieve stock value growth and employment
growth. It is involved in a more general business-management philosophy which is focused on
sustaining and improving business services and products (Singhal and Singhal, 2012).
The roles which is followed by leaders in this approach is as follows:
 Driving six sigma task and projects.
 To convey the value of six sigma.
 Supporting and recognizing workers participation.
 To invest in six sigma resources and training.
The roles which is play by managers are as follows:
 To supervise the execution of the six sigma approach in the company.
 Consider six sigma cost saving in management reviews and objectives.
 Giving support and review to the workers as well as the top management.
From the above discussion it is clear that managers and leaders plays important role in
running business in effective and relevant manner. In order tom improve efficiency of
employees, six sigma and continuous improvement are best. ALDI has outlets at different
locations, so managers and leader has to analyse external market and then guidance must be
given in order to get positive result (Sira, 2012). This can be done when managers motivate
employees through monetary or non monetary benefits.

P5 Explain importance and value of operations management in achieving business objectives
Operations management means planning business operations in order to get positive
result. There is positive impact on business operations of organization with continuous analyzing
market. Importance of operational management are as under-
Distribution and control systems: ALDI is the organization which deals in different parts
of world. There is requirement of stuff to satisfy customer demand. Hence with the help of
operations management, it is easy to manage distribution and logistic. For instance: there is
requirement of beverages then operations managers has to contact with purchase and sales
managers in order to order appropriate quantity of beverages. This helps to maintain operations
of ALDI and good profits can be earned (Winter and Knemeyer, 2013).
Proceedings of raw material into finished products: ALDI is the organization which
deals with changes in appropriate way. There is requirement of proper planning which helps to
maintain production of product. With maintaining balance between production and sales, quality
of product can be maintained.
Managers and leaders could be effective in improving operational efficiencies
There are some issues which arise in performing operations of association. There are
many employees which are working in order to attain goals and objectives. But there is
difference in their thought process. As per example ALDI is facing lack of efficiency, so in this
case managers of ALDI must use following measures-
Creating incentives programs: There must be provision of some incentives which
motivates employees to give best. In order to motivate lower level subordinates managers must
use financial benefits such as bonus, commission, etc. While in order to improve efficiency of
upper level employees of ALDI non monetary benefits must be used such as promotions,
transfer, etc.
Clearing labor redundancies: At work place, there are possibilities that some issues
may arise, so in this case it is responsibility of managers of ALDI to analyse those barriers and
resolve them (Barbosa, Sadre and Pras, 2012). This provides satisfaction to employees and hence
make good and long term relations with them. This maintain efficiency and maintain quality of
product and services.

TASK 4
P6. Impact of External Factors on Operational Management and Decision-making Process
There are some factors of business environment that impact on operational management
and decision making by managers and leaders of ALDI. Business environmental factors are
Political, Economical, Social, Technological, Legal and Environmental (PESTLE). Detailed
explanation of these factors are as follows:-
(Source: PESTEL Analysis, 2017)
 Political Factor- Political factors are includes government policies, taxation system and
rules and regulations made by government. It make a large impact on operation
management of ALDI because it is a business of food and beverage which is influenced
by tax policy, political stability etc. It create difficulties for the managers and leaders of
ALDI to make decision because rules and regulation are changes and company also
change their strategy as per government policy. Economical Factor- Economic factor includes economic growth, national income, GDP,
interest rate, inflation and deflation rate etc. These factors influence the business
activities of ALDI (Brown and Bessant, 2013). For example: An organisation invest a
particular amount on an investment. Rate of return is 10% but due to deflation, interest
rate is reduce up to 5%. In, this situation, ALDI has to face loss and it also affect cost of
Illustration 2: PESTEL Analysis

capital and financial resources of a firm. Managers and leaders have to make very
important decision regarding investment and return by analysing economic condition of a
country. Social Factor- Culture and climate of society that affect operational management of
ALDI is known as social factor. These factors includes population growth, career
attitude, taste and preference, culture and norms etc. It make a direct impact on food and
beverage industry to adopt demographic changes, trends in living, working and thinking
life of people. Customers are the main source of earning for ALDI so, leaders and
managers have to make decisions by determining taste and preference of their customers
and also focus on health conscious people to earn profitability and long term
sustainability. Technological Factor- It improve efficiency and productivity of an organisation. It
includes technological advancement, mechanisation, influences of information
technology etc. It make both positive and negative impact on operational management of
ALDI because, innovative technology improve productivity and run a business activities
more smoother and faster (Crevier, Cordeau and Savard, 2012). Sometimes, it also make
negative influences that employees have to face out new problem related to technology
due to lack of knowledge and proper training. Managers and leaders of ALDI have to
make decision regarding to adoption of new technology and its benefit like reduce cost
and time, increase productivity with better quality. Training should also provide to
employees by which they aware about new technical equipments. Legal Factor- Legal factors are related to laws and legislation which are made by
government for an organisation. ALDI is follow their business activities by applying
these laws. It make impact on food and beverage industry on their operational
management system with weather condition, environmental condition seasonal changes
etc. In respect of ALDI, managers and leaders have to make decisions with follow laws
and legislations. They also follow labour law, environmental law, health and safety law
etc.
 Environmental Factor- It refers to those activities which helps to protect environment.
ALDI follow wider ecological system to give their contribution to make ozone-friendly
environment (Ghiani and et. al., 2014). Different laws and regulations make positive as

well as negative impact on operational management and also make impact in decision
making by managers and leaders of ALDI. They have to implement those decisions
which help to protect environment. It increase brand image and become a strength of an
organisation.
CONCLUSION
From the above discussion it is clear that operations management is one of the essential
component which helps to maintain synchronization in business operations. Leaders and
managers plays crucial role in fast changing situation because it affects business operations in
negative way. Situational leadership is best because it helps to lead team with most effective way
as per circumstances. Total Quality management and continuous improvement are best for
maintaining profits and defects from operations. With the help of PESTLE analysis external
business environment can be evaluated.

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