Barclays Bank: PESTLE Analysis, Leadership, and Operation Management

This report analyzes Barclays Bank's operation management, focusing on key aspects such as operation management processes, leadership styles, and the roles of managers and leaders within the organization. It includes a PESTLE analysis to assess the impact of political, economic, social, technological, environmental, and legal factors on Barclays' operations. The report examines how factors like regulatory changes, Brexit, technological advancements, and environmental concerns affect the bank's performance. Furthermore, it defines different leadership styles, including democratic, strategic, and transformational leadership, and identifies the differences between leaders and managers. The conclusion highlights the importance of operation management in Barclays' growth and profitability, emphasizing the role of technology and sustainability in the banking sector. References from academic sources support the analysis.

MANAGEMENT AND
OPERATIONS
PART B

INTRODUCTION
 The present report is based on Barclays bank in UK, it justified PESTLE analysis of company.
 It explains the impact of factor on operations of company and define leadership and its types.
 This presentation justified differences between leader and manager in company.

OPERATION MANAGEMENT
 Operation management is a process that focusses on how organization produces products and services effectively and efficiently. It
refers to the business operation and production process through which product and services are created.
 Operation management is the management of business practices to create the highest level of efficiency in an
organization.
 It is concerned with the process of converting raw material into finished goods as efficiently as possible with the objective of
maximising profit.

Cont..
 Operation management helps Barclays in effectively operating its production process. It helps in managing its products and services
and also helps in effective management.

KEY APPROACHES TO OPERATION
MANAGEMENT AND THE ROLES OF
LEADERS AND MANAGERS
 The different approaches are used by the organization to understand the operation management better.
 These approaches helps in evaluating the current situation of the organization and according to which relevant actions are taken.
 Three most widely used methods are stated below.
Total quality management:
 It is an approach used by the organization for long term success through customer satisfaction.
 In TQM, all the members are involved in improving the production process, products, services and culture in which employees
work.
 It is implemented by Barclays, which helps in detecting and reducing the errors.

Cont..
Role of manager:
 To recruit skilled workers.
 To manage the resources for the production.
 To monitor the production activities to be completed on time.
Role of leader:
 To increase the potential and productivity of the employees.
 To analyse the needs of the employees and motivating them on that basis.
 Providing guidance to the employees to achieve the desired goals.

PESTLE analysis of organization
 Political factor- One of the most challenging year for Barclays was 2016, characterized by new regulatory business rules from UK
government and introduction of new 8% surcharge on bank profitability.
 Economic factor-Economic uncertainty and risk of UK exit from Europe poses significant impact and barrier to Barclays.
Depending on eventual global agreements between Britain and other European Union member states affect firm
 Social factor- This factor includes some changes in lifestyles, demographics and in labour or social mobility.
 Technological factor- Banking sector has reached a top point where digital technologies and abilities are accelerating evolution of
banking so fast that actually every facet of bank can now be done online.
 Environmental factor- The demand of UK government and consumers to reduce carbon foot print is the key environmental factor
that affect Barclays business and operations
 Legal factor- Changes in employment Law is legal factor affect current employment policies of Banking industry in which
Barclays operate their business and manager operations effectively.

Factors affect operations of Barclays
 Changes in regulation- It impacts on Barclays business operation negatively in short term period.
 Brexit bring challenges- It impact negatively as Barclays depend on international agreements with other EU members state, after
Brexit they cannot be able to work with them it impacts on their banking operation, it decreases its consumers base as well as profit
margin.
 Demographic changes- The number of ageing population over last 40 years increased which is quite beneficial for Barclays, the
more median age increased the more they save money in banks.
 Technology Advancement- This factor put positive impact on Barclays online banking transaction operation positively, they can
make transaction effectively and it contributes to build strong relation with consumers.
 Demand to reduce carbon Foot print- It impacts on Barclays banking operation positively, as by reducing carbon foot print and
energy consumption through sustainable development funding, firm sustain in market for longer
 Employment act- According to Equality Act 2019, Banks provide equal and fair salary packages to its employees that impact on
existing salary structure, leader identify the qualification and abilities of staff and then manager decide wages accordingly without
making differences based on age and gender.

Define leadership and types of leadership
 Leadership is about inspiring and motivating people to do work they never thought they could. In simple term, it is a art
of motivating team of individual at workplace to act towards achievement a set objectives and common goal.
Types of leaderships-
 Democratic leadership- It is one of the best and most effective leadership styles because it permits lower level staff members to
practices authority they will need to use wisely in the future position they hold.
 Strategic leadership-It is desirable leadership style in many firms because strategic thinking help diferent types of workers at once.
 Transformational leadership- This leadership is always improving and transforming upon organizations conventions. It is considered
as highly encouraged type of leadership among growth minded firm because transformation leadership motivates people to see what
they are able of.
 In context of company, strategic leadership is existed in Barclay Bank, that help to gain competitive benefits to business and enhance
productivity. Leaders in company with this leadership set dangerous precedent with respect to how many workers they can hep at once.

Differences between the leaders and managers
in company
 The differences between leader and manager in company is based on their role which they play. For example, leader
role is to examine needs of employees, on the other hand, manager role is to analyse the need to company related to workforce.

CONT..
 The role of manager is to manage resource accordant to their potential and skills, meanwhile, leader role is to work on increasing
productivity and potential of staff.

CONT..
 Manager function is to look after activities to be accomplished on time along with desired outcomes. Leader role is
to take care of guidelines to show to staff so that they can move upon it and reach desired results.