Amazon Leadership and Management Styles: A Comparative Analysis

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Management and Operations
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Table of Contents
Introduction................................................................................................................................4
LO1 Differentiate between the role of a leader and the function of a manager.........................5
LO2 Apply the role of a leader and the function of a manager in given contexts.....................6
Conclusion................................................................................................................................10
Reference List..........................................................................................................................11
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Executive Summary
Leadership and management are crucial in the operational management of an organisation.
Amazon is a huge multinational business in the e-commerce world and has its presence
globally. Hence it is essential for the organisation to properly manage and lead their
employees in order to gain higher productivity and performance to ensure the growth of the
company. This report has studied the differences and similarities in the operations of the
leaders and managers in Amazon and the different leadership and management approach
undertaken by them to effectively motivate the team members to accomplish the objectives of
the business.
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Introduction
With the increase in the competition in the business environment across the globe, it has
become substantial for organisations to accurately manage all their operations in order to
become the market leader in their specific industries. Effective strategies should be
formulated to gain a competitive advantage in the industry. Operations management is the
handling of business activities and functions so that an organisation is able to gain the highest
level of efficiency and productivity. This will also increase their share in the market. This
report will focus on gaining an insight into the operations and management of Amazon, a
leading multinational corporation. Apart from this, the difference between the managers and
leaders will be identified and their contribution to the development of the organisation will be
evaluated. Different models and theories will be applied and analysed to understand the
difference between the roles played by the managers and leaders of Amazon. Lastly, the
strengths and weaknesses of the theories and models will be identified and assessed.
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LO1 Differentiate between the role of a leader and the function of a manager
Define and compare the different roles and characteristics of a leader and a manager
(P1)
Leaders and managers form a crucial part in the operations of an organisation. Amazon is a
leading multinational e-commerce organisation operating in the international market. Being a
large organisation, it is essential for the authorities of the organisation to effectively manage
its operations to maintain their position in the market and earn more profits. Although
leadership and management go hand in hand, there is a stark difference between the roles
played by the two and the functions undertaken by them. Having effective managers and
leaders in an organisation will lead to higher profitability and productivity of the organisation
(Grint et al., 2016).
Manager
The managers within an organisation are responsible for designing and allocating the tasks to
the employees and overlook the process of completing the tasks within time. A manager must
understand the organisational targets and objectives set by the authorities and develop
strategies and policies and implement them in the functions within the organisation to
enhance the productivity and performance of the team members. The managers at Amazon
allocate different tasks and responsibilities to the team members and ensure that the teams
display efficient working capabilities while carrying out the tasks (Denhardt et al., 2018).
Leader
A leader is responsible for influencing and leading the followers along with maintaining
cordial and healthy interpersonal relationships with them. Their role is to motivate and
encourage the subordinates or followers to accomplish the objectives and targets set by the
organisation. The leader follows a specific vision and influences all the followers to work
towards that vision. Leadership is a process of developing a vision that is useful in
accomplishing the organisational objectives and targets. Using appropriate leadership styles
will help the organisation to enhance their productivity and performance (Northouse, 2018).
The below table will highlight the differences between the function of a manager and the role
of a leader-
Areas The functions of a manager Role of a leader
Definition Managers are responsible for
planning, organisation, staffing
and controlling of the
employees and team members
in different departments of an
organisation.
The role of a leader is to
influence and encourage
followers to accomplish the
objectives set by an
organisation.
Vision The vision of the managers is to
guide the team members in an
organisation to carry out the
organisational tasks efficiently.
The leaders set a vision for the
development of the
organisation and inspire the
subordinates to work towards
the vision.
Strategy Managers formulate strategy in
order to achieve the targets set
by the authorities and enhance
The strategy of the leaders is
long-term as they have the
risk-taking abilities and
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the productivity of the
company.
mitigate those risks.
Governance/Power The managers possess the
power to control and manage
the employees in different
departments.
The leaders have the power to
controlling the teams in all the
departments to carry out the
tasks efficiently.
Emphasis Managers emphasise on getting
the work done by the
subordinates.
Leaders emphasise on
motivating the employees to
enhance their personal and
professional development.
Employee relations They offer training and
development sessions to the
employees and maintain formal
relationships with them.
Leaders train the employees
and maintain a more informal
relationship with them.
Effectiveness Managers are responsible for
guiding the employees.
The employees are being
coached by the leaders.
Opportunities The managers enhance the
available opportunities for the
team members.
The role of a leader is to create
new opportunities for their
followers.
Table 1: Differences between the function of a manager and the role of a leader
(Source: Created by the learner)
Analyse and differentiate between the role of a leader and function of a manager by
effectively applying a range of theories and concepts (M1)
Although there are many differences between the roles and functions between a leader and a
manager, there are some similarities between the two as well. They both work towards
achieving the organisational objectives and goals set by the authorities. They develop
strategies for the organisation to survive in the competitive environment and increase the
market share of the organisation. Various theories were developed to identify the differences
in the roles of both managers and leaders. According to the Scientific Theory of Management
developed by F. Taylor, scientific methods should be incorporated by the managers while
handling and managing the employees (Thorpe, 2016). On the contrary, the Administrative
Theory of Management developed by H. Fayol stated that there are five functions that are to
be undertaken by the managers to enhance the flexibility and commitment of the team
members towards the operations within the organisation. The Situational Leadership Theory
states that different leadership styles can be undertaken depending on the situation and need
of the hour. According to the Trait Theory of Leadership, leaders possess specific
behavioural characteristics and traits that make them easier to become a leader and motivate
and encourage others to follow their path and vision.
LO2 Apply the role of a leader and the function of a manager in given contexts
Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts (P2)
Different situations can arise for Amazon at times and these must be tackled by the managers
and leaders of the organisation for the development and expansion of the company. The
managers are responsible for establishing sales targets for the team members and provide a
specific time for achieving those targets. The managers also guide the employees towards
attaining their goals. The managers also resolve the conflicts that may arise among the team
members. During a period of crisis such as low sales or high employee turnover, it is the role
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of a leader to motivate the employees along with offering them certain benefits which will
retain them within the organisation. Both the leaders and managers work in the same
direction to attain and fulfil the organisational objectives and targets. Amazon is facing a
crisis due to the increase in the prices of the equipment and fuel are increasing rapidly and
this poses a threat to the operations of the organisation as they might have to increase the
prices of their goods. In this situation, it is essential for the company to incorporate the
leadership and managerial skills and create strategies that will enable the organisation to
maintain its expenditure so that the prices of the goods and services can be maintained. The
contemporary theory of management can be applied by the management and the leaders can
undertake the democratic leadership approach to handle the situation. By taking the opinions
and decisions of the employees and team members, the management will gain a better
perspective of handling the situation and overcoming it (Bush et al., 2019).
By cutting down inventory costs and expenses, the organisation will be able to maintain its
budget and profit levels. The leaders and managers can also interact with the suppliers and
increase their number of suppliers who will offer the materials at lower costs and follow
various waste management and reduction techniques to reduce their wastes. The leaders can
follow several leadership approaches to encourage and motivate the employees and
implement advanced technology to carry out daily operations. They must also enhance the
communication between the supervisors and subordinates and emphasis on building an
environment of trust.
Apart from that, the managers can also apply the management by objectives theory as it
emphasises on the efforts put in by both the managers and the team members to attain the
objectives of the company. The leaders delegate the roles and responsibilities to the
employees and the managers set the performance standard in order to achieve the highest
productivity. A situation can arise where the department managers are assigned a new task by
the authorities and the manager must complete the task with the help of the team members. In
this case, the scientific management theory can be applied by the managers to plan their
activities along with enhancing the skills of the employees to achieve the maximum outcome
for the assigned task. Amazon is also trying to uphold their brand image in the international
market as there are many new companies emerging in the e-commerce business (Waring,
2016). Hence, the leaders can apply the transformational leadership approach to implement
changes within the organisation so that the level of productivity can be maintained and
improved along with retaining the efficient employees by motivating and encouraging them
through rewards and benefits. The contingency approach can both be used by the leaders and
the managers as it will enable them to develop plans and strategies along with perceiving the
resources required for future situations.
Apply different theories and models of approach, including situational leadership,
systems leadership and contingency (P3)
The various models and theories related to the management of operations are described
below-
Models
Autocratic- In this model of leadership, the leaders have the complete power over all the
decisions and no opinions are taken from the followers. The autocratic leaders take decisions
based on their judgments and ideas and do not follow the advice and viewpoints from others.
Absolute control is being exerted over the group of followers (Iqbal et al., 2015).
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Democratic- In this leadership model, the group of followers are involved in problem solving
and decision-making processes. The group members participate in the various activities and it
is beneficial for the organisation as the leadership capabilities are shared and they gain new
perspectives on tackling various issues (Iqbal et al., 2015).
Task-Oriented- Here the leaders emphasise on achieving the tasks by motivating and
encouraging the employees to work productively (Nawaz and Khan, 2016).
Transactional- In this leadership model, the leaders often handle international projects or
large organisations such as Amazon. They are responsible for managing the supplies and
team members in an organised manner and achieve the objectives within the stipulated time
(Yahaya and Ebrahim, 2016).
Theories
Situational Leadership Theory- Depending on the situation prevailing within the
organisation, the leaders choose a leadership style that will be feasible for handling the
situation. It is essential for the leader to quickly adapt to the leadership styles by
understanding the situation and gain the optimum output from the tasks. This theory of
leadership was formulated by Kenneth Blanchard and Paul Hersey and there are four
principles which support the theory- coaching, delegating, directing and supporting the
followers. This leadership approach can be incorporated in Amazon as it will enable the
leaders to change their leadership styles according to the situation along with motivating the
employees to reduce their resistance to change. It will also lead to an easy accomplishment of
the objectives and targets set by the authorities. Using this leadership style also encourages
the employees to accept the changes taking place within the organisation and tackle the crises
by improving their outcome in an optimum manner. A holistic development will also take
place within the organisation (Thompson and Glasø, 2015).
Systems Leadership Theory- Developed by Dr Ian Macdonald, this leadership theory
emphasises on creating specific conditions within an organisation so employees at all the
levels can enhance their productivity and performance by utilising their optimum potential.
Principles of human behaviour are utilised to develop the strategies and social processes
which will be carried out in the operations of the organisation. Using this leadership
approach, the leaders can predict the behaviour of the employees with the help of tools which
increases the productive behaviour and help in the achievement of the objectives of the
organisation. This theory can be followed by the leaders of Amazon to maintain the balance
in the input and output of the organisation. Effective communication is encouraged within the
organisation between the supervisors and the team members and group work yields better
results than individual contributions (Macdonald et al., 2018).
Contingency Leadership Theory- According to this theory, the effectiveness of the
leadership styles depends on the contingent situation and the way it must be handled by the
leaders. It is the role of the leaders to understand in which leadership style the leader is best
in and what styles of leadership can be adopted in case of contingent situations. This theory
states that there is “no one best style of leadership” and the success of the crisis situations
determines the effectiveness of the leader in handling the situation. It also states that the
success of the organisation such as Amazon is dependent on the internal and external
environmental and organisational factors. Due to the changing market situations, leaders must
formulate contingency plans to tackle any unforeseen situation (Fiedler, 2015).
Assess and evaluate the strengths and weaknesses of different approaches to situations
in Amazon (M2)
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There are various advantages and disadvantages of the different leadership theories and
models. The autocratic leadership model helps in faster management of crisis along with a
faster decision-making process. Moreover, it reduces the pressure from the subordinates as
the leader holds complete power. However, the limitations of this leadership style are there is
a lack of accountability and may contribute to the creation of a negative organisational
culture. The democratic leadership is beneficial as it fosters empowerment among the group
members and the responsibility of the team is delegated. It aids in accurate decision making.
On the other hand, it can be time-consuming as considering the decisions of the team
members takes some time. Situational leadership theory enhances the flexibility within the
organisation and creates a working environment that is viable for the employees. However,
long term needs cannot be addressed through this leadership theory. The dynamicity of the
contingency leadership theory allows the leaders and managers to adapt and change the
policies depending on the situation. On the contrary, it is a very complex approach and might
not be feasible when practised in practical situations (Lussier and Achua, 2015).
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Conclusion
This report has highlighted the difference between the roles and functions of the leaders and
their contributions to the operations of Amazon. Various types of leadership theories and
models have helped in perceiving their utilisation in different situational and organisational
contexts. Moreover, these leadership styles were discussed and their positive and negative
aspects were analysed. Hence, leadership and management are the two most important
aspects in the operations of an organisation as they lead to the expansion and growth of the
business along with retainment of the efficient employees. It also contributes to the
improvement in the organisational outcome and attaining a loyal consumer base.
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Reference List
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Management. SAGE Publications Limited.
Denhardt, R.B., Denhardt, J.V., Aristigueta, M.P. and Rawlings, K.C., 2018. Managing
human behavior in public and nonprofit organizations. CQ Press.
DuBois, M., Koch, J., Hanlon, J., Nyatuga, B. and Kerr, N., 2015. Leadership Styles of
Effective Project Managers: Techniques and Traits to Lead High Performance
Teams. Journal of Economic Development, Management, IT, Finance & Marketing, 7(1).
Fiedler, F.R.E.D., 2015. Contingency theory of leadership. Organizational Behavior 1:
Essential Theories of Motivation and Leadership, 232, pp.01-2015.
Grint, K., Jones, O.S. and Holt, C., 2016. What is Leadership. The Routledge Companion to
Leadership, p.3.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review, 5(5), pp.1-6.
Lussier, R.N. and Achua, C.F., 2015. Leadership: Theory, application, & skill development.
Nelson Education.
Macdonald, I., Burke, C. and Stewart, K., 2018. Systems leadership: Creating positive
organisations. Routledge.
Nawaz, Z.A.K.D.A. and Khan_ PhD, I., 2016. Leadership theories and styles: A literature
review. Leadership, 16, pp.1-7.
Northouse, P.G., 2018. Leadership: Theory and practice. Sage publications.
Thompson, G. and Glasø, L., 2015. Situational leadership theory: a test from three
perspectives. Leadership & Organization Development Journal, 36(5), pp.527-544.
Thorpe, R., 2016. Gower handbook of leadership and management development. CRC Press.
Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment:
literature review. Journal of Management Development, 35(2), pp.190-216.
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