Business Report: Leadership and Management in a Global Context

Desklib provides past papers and solved assignments for students. This report analyzes leadership and management in a global context.

Business Report on approach to leadership and management in
a global context
1

Contents
Introduction......................................................................................................................................3
Question1. Functional areas and hierarchy of management of Verdant leisure..............................4
Question2. Communication in leadership and management...........................................................7
Question3. Drivers of globalization and their impact on business..................................................9
Question4. Comparison of styles of leadership management........................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
2

Introduction
Verdant leisure limited, the medium-sized enterprise is a holiday park company offering self-
catering lodge and holiday home and caravan holidays which is operating in Scotland and north
of England. In this business report, different functional areas of Verdant Leisure and its hierarchy
has been described in detail. The importance of communication in the management and
leadership is explained elaborating about the interdepartmental communication within an
organization. Description of the current drivers of globalization and how they impact the
business is made. Two styles of leadership including the autocratic and demographic have been
described. The reports end with the conclusion.
3

Question1. Functional areas and hierarchy of management of Verdant leisure
Functional areas are the grouping of processes and activities on the basis of the need for the
accomplishment of one or more tasks and it is also referred to as the alternative term for the unit
of business. Verdant Leisure's functional areas include the following-
 Human resource- The most important asset of Verdant leisure is its human resource and
is considered as the heart of the organization. The responsibility of the HR department is
to recruit the right people with the required experience, qualifications and skills and is
responsible for the determination of salaries of the company's different positions (Menz,
2012).
 Customer service support- the department of customer service of Verdant leisure is
responsible to interact with customers in relation to their complaints, orders, and
inquiries.
 Marketing and promotion- the responsibility of the business promotion are with this
department which helps in the company's growth and generates sales. Various marketing
strategies are created by them and also plan the promotional campaigning of Verdant
Leisure.
 Financing and Accounting- the finance of the company organization, planning, auditing,
and accounting are performed by this department. The financial statements of the
company are also made by them.
 Health and Safety- visitor's health and safety is the focus and it mainly aims at providing
and maintaining the highest practical standards of safe conditions of working throughout
its operations. It also considers all the safety measures both for the visitor and the
employees (Sevilla, 2015).
 Informational Technology support- installation of the information technologies is made
in Verdant Leisure holiday parks to ensure that all the staff members have appropriate
equipment for being able to work efficiently and providing high-quality services to the
customers.
4

Source: By Author, 2019
Hierarchy of management
Currently Verdant leisure limited consisted of the four active directors and one active
secretary and have two shareholders.
The hierarchy of management consists of three levels -
Top-level managers of Verdant Leisure limited include board of directors, CEO, and vice-
president. Controlling and overseeing the entire organization are their responsibility.
Strategic plans, policies of the company, developing goals and making a decision on the
business direction are developed by them. They are also accountable to the general public
and shareholders (Subramanian and Ramanathan, 2012)
Middle-level managers of Verdant leisure include general managers and department
managers whose accountability is towards top management for their functions of the
department. Their more time is devoted to organizing and directing the functions as
5
Fucntional
areas
Human
resource
Customer
service
support
financing
and
accounting
health and
safety
Informatio
n and
technolog
y support
Marketing
and
promotion

compared to the top level managers. They execute the plans of the organization with policies
of the company and top management objectives.
Low-level managers includes supervisors, foreman andsection leads who mainly focus on
directing and controlling. They are responsible for assigning tasks to employees, up
challenging problems of employees, making suggestions and recommendations, supervising
and guiding employees on day-to-day activities. They are considered as the employees' role
model (Quain, 2018).
6

Question2. Communication in leadership and management
Communication is a continuous process of two-way, exchanging non-verbal and verbal
messages. Effective communication is important for both the leadership and management in an
organization.
1. It is the basis for the decision-making and planning and with the help of effective
communication policies and plans of management can be implemented properly.
2. For the smooth operations of the process of management, it serves as a lubricant
fostering. Subordinates actions can be regulated and changed by the management in the
desired direction through communication.
3. Communication effectiveness through the exchange of information and ideas helps in
bringing the unity of actions facilitating coordination in pursuit of common purpose.
4. Managerial efficiency and managerial capacity get increased due to effective
communication (Heibutzki, 2018).
5. Controlling can be performed in a better way by the effective tool of communication.
6. Job satisfaction is created among the employees due to the effective communication and
it also increases the mutual confidence and trust between employees and management.
7. It saves efforts and time and also increase productivity and helps in reducing costs.
8. It allows demographic management. Workers participation can be achieved in the
management by the involvement of workers in the decision-making process.
For effective leadership, it is the main core function for the leader to have effective
communication with its team members by which they can motivate and inspire them. To
maintain the relationship of man to man in leadership communication is absolutely necessary. It
helps in establishing the close contact of leader and subordinates (Okoro and Washington, 2012).
Interdepartmental communication refers to the process by which messages sending and receiving
takes place among various departments. Effective interdepartmental communication must be
implemented by the department of customer service handling customer service concerns and
issues. For making the budget required for the advertising and promotion, the advertising
7

department has to communicate with the finance department for getting the information about
the required finance available so that the budget can be prepared accordingly.
By effective interdepartmental communication, Verdant Leisure Limited will have effective
management and leadership functions. Communication works as an information highway for
leaders (Beaven, 2012).
8

Question3. Drivers of globalization and their impact on business
Globalization is the process of integration of economies of the nation through investment, trade,
capital flow, and technology and labor migration. Nation’s inter-dependence around the globe is
forecasted through free trade. There are various drives of globalization which are affecting the
business to the great extent include the following-
Technological drivers- modern globalization has been shaped and founded by technology.
Effective communication and computing can be enabled at a low-cost level through invention in
the area of telecommunication and microprocessor. During the last decades due to the progress in
the technology cost of communication and transportation has decreased strongly. Without
reduction of costs global value chains, outsourcing and long-distance trade would not be
possible.
Political driver- foreign direct investment, and lower tariffs have been leaded all over the world
due to liberalized trading deregulated markets and rules. GATT institution, 1947 and ongoing
privatization and operations in Eastern Europe are a few examples of this. Due to the political
decisions different trade barriers in goods, services, capital, and labor has been reduced or even
eliminated which has led to the opening of new markets by international companies, privatization
of the industries in the countries of former communist and has opened the economies for the
global competition (Frynas, 2015).
Market drivers- consumers groups in different region and countries of the world has emerged
due to the contribution of the communication and information technology, international tourism
development, improved living standard, and widespread cultural exchange, in many developing
countries. Great opportunities have been opened for the companies for offering their products in
the global market because of the combination with the global channels of distribution availability
and international trade globalization.
Competitive drivers- for the reason behind joining of the global strategies is gaining and
maintaining the competitive advantage in the markets of foreign countries and avoidance of
competition in the domestic market. By opposition of competitors in the international markets or
9

premature intrusion in the competitor’s domestic markets, competitive positions are improved by
the companies for destabilizing or suppressing developments.
Cost drivers- cost drivers to globalization involve opportunities for building global scale
economies and cost of high product developments. Companies are forced for the activities
planning by considering the global markets due to the need of introducing a new product,
research investment, innovation, and development, reducing the costs and accessing the cheaper
raw-materials (Patel.et.al, 2012).
Hence, the business has been impacted to the great extent due to these drivers the trade barriers
have been reduced, companies can cater demands in the new markets with the product which is
existing, shifting of the open market economy. Completion has been increased and greater
awareness of the needs of consumers and increased mergers and joint ventures.
10

Question4. Comparison of styles of leadership management
Leadership is the ability to lead the group of people successfully in an enterprise. Autocratic and
democratic leadership styles are the two most common leadership styles used in the business at
the present time.
Autocratic leadership is a classical style of leadership characterized by the control of an
individual over all the decisions. Managers have control and authority in decision-making; they
seek to retain the responsibility rather than utilizing complete delegation. They simply work on
the task in hand. It is considered as a flexible style of leadership. No inputs are preferred to be
taken by the autocratic leader from the members of the other groups, group leaders distribute or
dictate all the responsibilities and tasks among other employees and no recognition or reward is
given to the employees for boosting their morale. This type of leadership style can be used at the
time of crisis and constant changes in the business. Due to its quick ability of decision-making
and streamlining of the organizational structure this leadership style will be able to do the prompt
reaction to the situation as compared to the other styles of leadership (Amanchukwu, 2015).
Demographic leadership is referred to as shared leadership and participative leadership. In this
style of leadership, the group members take a participative role in the process of decision-
making. This can be applicable to any organization. Creativity is rewarded and encouraged,
group members feel more process engaged and are encouraged for sharing opinions and ideas.
But there is some disadvantage also of this leadership style as it may result in poor decision-
making by the group who are unskilled (Cherry, 2018).
Basis Autocratic Leadership style Democratic leadership style
Quick decisions Decisions are made quickly and
are best for situations where
rapid decisions are often
essential
Reviews and consultation often
slows down the moment
required to make choices which
are rapid and arrive at a
situation
11

Work environment Unsatisfactory work
environment
The happier work environment
is created which increase the
productivity of the employees.
Power centralization Centralized power A delegation of authority to
members of the group
Behavior-oriented Task-oriented Relation oriented
Sustainability Appropriate in case
subordinates are obedient,
unskilled, and uneducated.
Appropriate when members of
the team are qualified,
experienced, and professional
(Gonos. and Gallo, 2013)
For the modern global organization, demographic style of leadership will work as best styles as
employees are the most important part of the organization. No organization can work smoothly
without making their employees satisfying. This style promotes responsibilities sharing,
delegation exercise, and continuous consultation. Full responsibility and control are given to the
subordinates for the tasks. They have high productivity which ultimately results in the growth of
the organization in the global world.
12