Enterprise Rent-A-Car: Leadership, Operations, and Business Objectives

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MANAGEMENT AND OPERATIONS

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
(1) Overview of management......................................................................................................2
(2) Roles of leaders......................................................................................................................3
(3) Theories of leadership............................................................................................................4
LO2..................................................................................................................................................7
(4) Approaches of leadership.......................................................................................................7
(5) Evaluation..............................................................................................................................8
LO3................................................................................................................................................10
P4 Explain the key approaches to operations management and the role that leaders and
managers plays...........................................................................................................................10
P5 Explain the importance and value of operations management in achieving business
objectives...................................................................................................................................12
M3 Evaluate how leaders and managers can improve efficiencies of operational management
to successfully meet business objectives...................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

LIST OF FIGURES
Figure 1: Leadership Styles.............................................................................................................5
Figure 2: Total Quality Management............................................................................................10

LIST OF TABLES
Table 1: Role of Leaders And Managers.........................................................................................9

Introduction
Operation management function in any firm is essential as it helps the firm to attain excellence
and improvements for accomplishing their business related goals and objectives. In this report
the example of Enterprise Rent-A-Car is given car rental organization founded by Jack Taylor in
1960. The CEO of the firm Andy Taylor has focused on implementing effective leadership style
and approaches in their business operations along with allowing their employees to communicate
easily with their senior managers so that the productivity and profitability of the business can be
enhanced. The various roles of leaders and managers to increase the brand name of the firm will
also be discussed in the report below. Thus, it is important for the firm to manage the leadership
and management function to achieve success and growth.
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LO1
(1) Overview of management
Management definition
Management in Enterprise Rent-A-Car is the function of planning, coordinating and controlling
the overall resources of the firm so that the organized teams can perform their tasks in a well
organized manner and business can increase its productivity and profitability (Stark, 2015).
Management theories
Classical: This theory in Rent-A-Car firm includes various methods that can increase the outputs
of organization’s employees. The theories included in classical approach have the views of
Taylor, Fayol and Weber. The theory of Taylor suggested that Rent-A-Car should focus on
eliminating errors and selecting the best possible way or method by the leaders to perform firm’s
task. On the other hand adopting Fayol theory including some principle stated that the managers
of the firm should plan, organize, direct, control and coordinate the activities and tasks of the
firm to attain the goals of business. The theory given by Weber stated that the firm should use
scientific methods and experiments and include rational operations in the business so that the
firm can attain success.
Behavioural: As per this theory the Enterprise Rent-A-Car is required have a successful
leadership. By using techniques of behaviour modification, the leaders can be developed to learn
the specific behaviours which are required manage and motivate the teams for accomplishing
their goals (Amanchukwu et. al., 2015).
Contingency: This theory applied by leaders of Rent-A-car states that for handing and managing
the different situations in a firm related to group performances, the leaders can use different
leadership styles and as per the needs and satisfaction of their teams. They can use the styles as
per focusing the task or the organization relationships.
Leadership definition
Leadership in Enterprise Rent-A-Car should help the firm to achieve their goals by motivating,
encouraging, inspiring the teams and subordinates towards performing their tasks in an
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appropriate manner. Leadership strategies in the firm should be pre-planned and based on
effective ideas for proving proper communication within organization.
Leadership and management relationship
The leadership and management functions implemented at Rent-A-Car firm are both
interchangeable. Leadership function of the firm focus on the interpersonal behaviour within
firm and the management determined the different roles performed in the firm. Manager includes
leadership as their essential asset. Leader of the Rent-A-Car firm can become the manager but it
is not necessary that manager posses the qualities of a leader. Management functions focus on
increasing the outputs of the firm which can be done by the leader’s efforts of motivating their
efforts in enhancing their work performance (Bolden, 2016).
(2) Roles of leaders
The CEO of Enterprise Rent-A-Car, Andy Taylor has contribute in making their employees more
valued by engaging their participation with the senior managers to provide effective ideas and
can so that their confidence can increase.
Characteristics of leaders
Honest: One of the most important qualities which a leader of the firm must possess is being
honest towards performing their functions and roles. Leaders having integrity can help the firm
to gain their trust and loyalty.
Confident: if the leader of Rent-A-Car is confident enough, then their team members will follow
their commands and directions without any hesitation. Leader is required to be sure and not
overconfident.
Positive: while facing the critical situations in the firm, the leaders must remain positive and
calm so that their team members can follow his steps and remain composite as well.
Decision making quality: leaders of Rent-A-Car are required to increase their thinking ability so
that right decisions regarding managing the teams can be taken at right time (Thirumalai and
Senthilkumar, 2017).
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Effective communicator: a good leader in the firm should be intelligent enough to communicate
the necessary information and visions related to the business objectives on a prior basis so that
the team can follow and perform better.
Functions of managers (five)
Planning: For accomplishing the goals of Rent-A-Car and increase their profits, the manager of
the organization is required to plan and formulate the strategies regarding the resources involved,
tasks, job roles, techniques, etc so that they can coordinate the efforts of their employees.
Organizing: As per the formulated plan, the managers are required to manage and organize the
resources and along with organizing the teams to perform the tasks and activities (Reynolds,
2017).
Staffing function: Manager of the Rent-A-Car firm is required to coordinate with the HR
department. This will help the firm to increase the knowledge of their employees by providing
training.
Leading: Managers of a firm not only perform the planning and organizing function but are also
responsible for guiding, motivation, supervising their employees to increase their work
efficiency.
Controlling: After performing the above functions, Rent-A-Car’s manager plays an important
role of providing proper monitoring and controlling. It will help the manager to coordinate the
activities with the plan.
(3) Theories of leadership
Nature and Nurture: It is seen that for the success and growth of any business, the firms must
have good and potential leaders to manage the employees in attaining business related goals.
Enterprise Rent-A-Car observed that it is essential for their leaders to develop appropriate skills
and qualities by proper training so that they can learn effective behavioural skills manage teams.
However, not ever leader is required to get trained; some of them are born competent. They also
posses the traits of a good leaders and who is ambitious, confident and curious(Rosenbach,
2018).
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Different styles of leadership
Autocratic: This style of leadership adopted in Rent-A-Car direct their employees and teams to
perform their work as per the instructions and directions of the leaders with involving their
suggestions
Democratic: The leaders of the firm engage the participation of their subordinates to give their
suggestions and ideas to help them in decision making process.
Free-rein: The leaders in this style allow the subordinates to take their own decisions and allow
them freedom in their work but at last leader is still liable for their decisions.
Figure 1: Leadership Styles
(Source: Aimen Khalid, 2017)
Hard and soft leadership skills
Hard skills required to be adopted by the Rent-A-Car leaders is the ability of handling and
managing the new and advanced technologies implemented in the firm to provide understand to
their teams as well. On the other hand, the Soft skills required to be possessed by the leaders are
motivating, creativity, empathy, patience, and effective communication towards managing their
teams for attaining the objectives of business and enhancing the firm’s effeceincy (Wesley et.al,
2017).
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LO2
(4) Approaches of leadership
Andy Taylor, the CEO of Enterprise Rent-A-Car has implemented various leadership approaches
and styles in their firm to guide and motivate their employees towards increasing their efficiency
so that they can increase their productivity and profitability. Given below are the leadership
approaches applied in the firm along with their strengths and weaknesses.
Situational leadership
As per this approach the leaders of the organization take various decisions according to the
situations created in the firm. For example, if any critical situation or risk involved, the leaders
will analyse and identify the cause of the problem then will follow the leadership style which is
most appropriate in the current situation and organize their teams accordingly (Waldman and
Bowen, 2016).
Advantages: Adopting situational leadership in their working, the awareness of Rent-A-Car’s
leader will be enhanced along with increasing the flexibility at workplace. Such leadership will
increase the team collaboration and gain trust towards each other to perform their tasks more
efficiently.
Disadvantages: The main drawback of implementing this leadership at workplace is that it only
focuses immediate and urgent needs rather than focusing on the needs of long term. There is a
lack of information and knowledge for leaders as this theory involves problem handling in
different situations.
Task oriented leadership
This type of leadership approach applied in Enterprise Rent-A-Car focus on the tasks rather than
the interest of employees involved. The leaders will direct the employees towards completing the
tasks on time and the interaction of leaders with their team members and groups is less. The
suggestions of teams will not be given importance (Ghasabeh et.al., 2015).
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Advantages and disadvantages
The advantage of such approach is that the outcomes and results of business are accomplished in
an effective manner because of the deadlines involved. This will help the firm to increase the
profitability of business. The application of this approach in the firm can decrease the motivation
of employees and their turnover can be increased.
Chaos theory and management by objective
Chaos theory: As per this theory the leaders of the firm provide more attention to the employees
as they focus less on the organizational goals. This theory can create confusion in the firm
regarding the work accomplishments (Butz, 2018).
Merits and demerits
The main advantage of applying this theory in Enterprise Rent-A-Car is the employees of the
firm are given more importance. The presence of strict rules and standards is very less which
make the employees comfortable. The drawback is that the business can decrease their brand
image and reputation because of non-completion of their goals on time.
Management by objective: According to this approach Enterprise Rent-A-Car allows their
employees to participate in the goals setting process of the firm so that they can feel motivated
and contribute more efforts in the attainment of business objectives. Both the employers and
employees jointly determine the business goals.
Merits and demerits
M.B.O. process is beneficial for the firm in many ways as it improves the communication of
employers and employees. This approach by leaders and managers helps in optimum utilization
of organizational resources and increase the motivation and confidence of their employees. On
the other hand, it is not necessary that employees include all the skills because there is lack of
training and development activities in the firm. Also there is no flexibility in working (Wheelen
et.al., 2017).
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(5) Evaluation
Impact of leaders and mangers on Enterprise Rent-A-Car
The leaders and managers of the firm can have huge impact on the success and growth of
Enterprise Rent-A-Car. As Andy Taylor has adopted autocratic leadership styles in their
working, the firm can face its negative and positive influence both. The managers and leaders
focus on the tasks rather than the employee’s satisfaction. They instruct and direct the staff
members to perform their work with increased efforts so that their customers can get better
services. The various decisions taken by leaders and managers are circulated to the teams and
staffs so that they can follow them perform their activities. The employees of the firm can have
negative impact as their interest and needs are not taken care of. This will result in decreasing
their morale and motivation towards the accomplishment of the firm’s objectives. Their
absenteeism and turnover in the firm can be increased (Hill and Brierley, 2017).
Roles of leaders and managers and how they could improve performance and productivity
in future
Given below are the various roles of leaders and managers of Enterprise Rent-A-Car to increase
the productivity and profitability of the firm.
Table 1: Role of Leaders and Managers
Roles of managers Roles of leaders
 Formulating the effective plans and
strategies to attain business goals
 Recruit and select skilled and qualified
staff to increase the work efficiency
 Provide effective training and
development opportunities in the firm
to increase the knowledge of employees
 Monitoring and controlling the firm’s
activities for better, improved and
effective results (Nicholas and Steyn,
 Providing proper guidance to the
employees to provide better outcomes
 Motivate employees to increase the
loyalty and commitments towards
increasing the firm’s profits
 Creating the vision and communicate it
to their subordinates to meet the goals
 Setting the timeline for performing the
tasks to fulfil the business objectives at
right time
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