KPMG Leadership and Management Styles: A Comparative Analysis
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MANAGEMENT AND
OPERATIONS
OPERATIONS
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TABLE OF CONTENTS
Introduction................................................................................................................................1
LO1............................................................................................................................................2
Differentiate between the role of a leader and the function of a manager.............................2
Functions of leader and manager...........................................................................................2
Management by objective......................................................................................................3
Management roles theory.......................................................................................................4
Styles of leadership................................................................................................................5
Hard and soft leadership skills...............................................................................................5
LO2............................................................................................................................................6
Apply the role of a leader and the function of a manager in given contexts..........................6
Departments at KPMG...........................................................................................................6
Strength and weakness of leadership approaches..................................................................6
Roles and duties of management in KPMG...........................................................................8
LO3............................................................................................................................................9
Demonstrate an appreciation of the role leaders and managers play in the operations
function of an organisation.....................................................................................................9
Transformation processes in operations management...........................................................9
Approaches to Operations management...............................................................................10
Conclusion............................................................................................................................12
LO4..........................................................................................................................................13
Benefits of operation management.......................................................................................13
Factor affecting operation management...............................................................................13
Recommendations................................................................................................................14
Conclusion................................................................................................................................16
References................................................................................................................................17
Introduction................................................................................................................................1
LO1............................................................................................................................................2
Differentiate between the role of a leader and the function of a manager.............................2
Functions of leader and manager...........................................................................................2
Management by objective......................................................................................................3
Management roles theory.......................................................................................................4
Styles of leadership................................................................................................................5
Hard and soft leadership skills...............................................................................................5
LO2............................................................................................................................................6
Apply the role of a leader and the function of a manager in given contexts..........................6
Departments at KPMG...........................................................................................................6
Strength and weakness of leadership approaches..................................................................6
Roles and duties of management in KPMG...........................................................................8
LO3............................................................................................................................................9
Demonstrate an appreciation of the role leaders and managers play in the operations
function of an organisation.....................................................................................................9
Transformation processes in operations management...........................................................9
Approaches to Operations management...............................................................................10
Conclusion............................................................................................................................12
LO4..........................................................................................................................................13
Benefits of operation management.......................................................................................13
Factor affecting operation management...............................................................................13
Recommendations................................................................................................................14
Conclusion................................................................................................................................16
References................................................................................................................................17

LIST OF TABLES
Table 1: strength and weakness of leadership approach............................................................6
Table 1: strength and weakness of leadership approach............................................................6
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LIST OF FIGURES
Figure 1: Different Functions of leader and manager................................................................2
Figure 2: Management by objective...........................................................................................3
Figure 3: Fayol's fourteen principles of management................................................................4
Figure 4: Operation management...............................................................................................9
Figure 5: Transformation process............................................................................................10
Figure 6: Elements of TQM.....................................................................................................11
Figure 1: Different Functions of leader and manager................................................................2
Figure 2: Management by objective...........................................................................................3
Figure 3: Fayol's fourteen principles of management................................................................4
Figure 4: Operation management...............................................................................................9
Figure 5: Transformation process............................................................................................10
Figure 6: Elements of TQM.....................................................................................................11
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Introduction
The area of operations and management support in designing and controlling the process of
production and ensuring that the business activities are effectively conducted, KPMG is
among the big four auditors providing professional services. It employees around 207,050
employees all over the world and hence the role of leader and manager is vital to support its
huge level of operations. The role of manager and leader differs in various situational context
and their roles enable in achieving business objectives. The current report will focus on the
role and function of leader and manager and the relationship between leader and manger in
various business situations. Further, it will also consider the aspects of role of leaders and
manager in the operations function of the organization.
1
The area of operations and management support in designing and controlling the process of
production and ensuring that the business activities are effectively conducted, KPMG is
among the big four auditors providing professional services. It employees around 207,050
employees all over the world and hence the role of leader and manager is vital to support its
huge level of operations. The role of manager and leader differs in various situational context
and their roles enable in achieving business objectives. The current report will focus on the
role and function of leader and manager and the relationship between leader and manger in
various business situations. Further, it will also consider the aspects of role of leaders and
manager in the operations function of the organization.
1

LO1
Differentiate between the role of a leader and the function of a manager
Manager can be defined as a central body at KPMG that organizes various functions of
planning, organizing, staffing and monitoring of activities that supports in effective
achievement of organizational goals and motivation. In other words, management can be
defined as the sole authority responsible for designing organization’s structure and
determining the interaction of various elements. Leaders are personnel that use their skill and
ability to do the right thing (Hammond et.al, 207). They are responsible for setting up a
vision and direction for the employees so that innovation can be done and a dynamic and
win-win team can be created. They set directions so that management goals can be achieved.
Functions of leader and manager
Figure 1: Different Functions of leader and manager
(Source: Author)
According to J. Kotter, there is a difference in the role that is played by the managers and
leaders in the organization. The function of manager at KPMG is to plan effective strategies
such as setting up aim and objective so that organizational goal can be achieved. They then
adopt proper channels of verbal and formal communication to ensure plan is well
communicated to the employees. The functional areas of manager include ensuring proper
distribution of roles and responsibilities among departments and employees with proper
2
Differentiate between the role of a leader and the function of a manager
Manager can be defined as a central body at KPMG that organizes various functions of
planning, organizing, staffing and monitoring of activities that supports in effective
achievement of organizational goals and motivation. In other words, management can be
defined as the sole authority responsible for designing organization’s structure and
determining the interaction of various elements. Leaders are personnel that use their skill and
ability to do the right thing (Hammond et.al, 207). They are responsible for setting up a
vision and direction for the employees so that innovation can be done and a dynamic and
win-win team can be created. They set directions so that management goals can be achieved.
Functions of leader and manager
Figure 1: Different Functions of leader and manager
(Source: Author)
According to J. Kotter, there is a difference in the role that is played by the managers and
leaders in the organization. The function of manager at KPMG is to plan effective strategies
such as setting up aim and objective so that organizational goal can be achieved. They then
adopt proper channels of verbal and formal communication to ensure plan is well
communicated to the employees. The functional areas of manager include ensuring proper
distribution of roles and responsibilities among departments and employees with proper
2
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allocation of resources (Dumitru et.al, 2015). They take both negative and positive steps to
ensure employees achievement of goal.
The leaders are the positive motivators of employees that set up guidelines so that their work
commitment and loyalty is enhanced. They are the guiders of employees so that they
maximize their skill contribution towards the achievement of determined objectives. They
communicate effectively with their team so as to develop a proper understanding of their
issues and provide a proper solution.
For example, in KPMG, the manager sets out the policy of auditing a particular company
accounts and the leaders ensure that the skills of the team are groomed to conduct proper
activities.
Management by objective
Management by objective is an effective process designed by the one of the management
disciples Peter Drucker which states that the organization sets up a future objective and then
prepares guidelines to achieve the same. It is then communicated to the employees so that the
objectives can be attained in sequence. This process assists manager to take activities on
priority and develop a sense of achievement (Islami et.al, 2018).
Figure 2: Management by objective
(Source: iedunote.com, 2019)
For example, it was observed in KPMG that the manager has set proper priorities in
achievement of goals such as becoming the market leader, followed by setting up profit goals,
3
ensure employees achievement of goal.
The leaders are the positive motivators of employees that set up guidelines so that their work
commitment and loyalty is enhanced. They are the guiders of employees so that they
maximize their skill contribution towards the achievement of determined objectives. They
communicate effectively with their team so as to develop a proper understanding of their
issues and provide a proper solution.
For example, in KPMG, the manager sets out the policy of auditing a particular company
accounts and the leaders ensure that the skills of the team are groomed to conduct proper
activities.
Management by objective
Management by objective is an effective process designed by the one of the management
disciples Peter Drucker which states that the organization sets up a future objective and then
prepares guidelines to achieve the same. It is then communicated to the employees so that the
objectives can be attained in sequence. This process assists manager to take activities on
priority and develop a sense of achievement (Islami et.al, 2018).
Figure 2: Management by objective
(Source: iedunote.com, 2019)
For example, it was observed in KPMG that the manager has set proper priorities in
achievement of goals such as becoming the market leader, followed by setting up profit goals,
3
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increasing the number of audit and accounting contracts of organizations, increasing
employee retention by up to 5% and then finally enhancing asset debt ratio by 15%. This plan
will ensure step by step achievement of objectives.
Management roles theory
Fayol’s theory: The father of management Henri Fayol stated that the manager plays six
different roles in an organization that involves planning, forecasting, organization,
commanding, coordinating and controlling to fulfil management objectives. He stated that the
manager must be assigned with specific departmental duties in KPMG so that faster decisions
making and lengthy process can be avoided. In KPMG, the manager of the training
department was responsible for effectively educating audit department teams about the
changes in auditing policies and structures (Hatchuel and Segrestin, 2018).
Figure 3: Fayol's fourteen principles of management
(Source: Author)
Organizational theory: This theory states that bureaucracy is one of the most efficient ways
in managing tasks. This theory focuses on assigning authority to the subordinates instead of
giving them the power of decision making. This will result in increased obedience and ethical
behaviour. In KPMG, the responsibility of final passing of audit was in the hands of head
manager of the department instead of individual charters (About management theory, 2019).
Scientific management: This theory emphasizes on conducting proper research activities to
analyze individual behaviour and develop a fixed rationale on how the task is to be achieved.
In KPMG for every specific work the managers were asked to employ a professional so that
production could be increased.
4
employee retention by up to 5% and then finally enhancing asset debt ratio by 15%. This plan
will ensure step by step achievement of objectives.
Management roles theory
Fayol’s theory: The father of management Henri Fayol stated that the manager plays six
different roles in an organization that involves planning, forecasting, organization,
commanding, coordinating and controlling to fulfil management objectives. He stated that the
manager must be assigned with specific departmental duties in KPMG so that faster decisions
making and lengthy process can be avoided. In KPMG, the manager of the training
department was responsible for effectively educating audit department teams about the
changes in auditing policies and structures (Hatchuel and Segrestin, 2018).
Figure 3: Fayol's fourteen principles of management
(Source: Author)
Organizational theory: This theory states that bureaucracy is one of the most efficient ways
in managing tasks. This theory focuses on assigning authority to the subordinates instead of
giving them the power of decision making. This will result in increased obedience and ethical
behaviour. In KPMG, the responsibility of final passing of audit was in the hands of head
manager of the department instead of individual charters (About management theory, 2019).
Scientific management: This theory emphasizes on conducting proper research activities to
analyze individual behaviour and develop a fixed rationale on how the task is to be achieved.
In KPMG for every specific work the managers were asked to employ a professional so that
production could be increased.
4

Styles of leadership
Participative leadership: This style of leadership ensures participation of stakeholders in
decision making and providing their input. The team members in this style of leadership feel
engaged and motivated, it provides creative ideas to overcome organizational issues. In some
of the projects taken up at KPMG, the issues were resolved through innovative ideas of the
team members (Leadership approaches, 2019).
Authoritarian style of leadership: This style of leadership provides a clear view of what a
stakeholders is supposed to perform. It strongly focuses on commanding the employees about
what is to be done and how it is to be performed. The authoritarian leader makes decisions
without much consultation of others. In KPMG, the manager was responsible for assigning
the roles to subordinates depending on their skill instead of asking the employees about their
area of interest, this sometimes lead to dissatisfaction and increased turnover.
Hard and soft leadership skills
The leader at KPMG utilizes various hard and soft skills to get work done by the employees
in an effective and efficient manner. The hard skills include regulations that are necessary to
increase the profits of organization, they include increasing computer proficiency through
training, directing towards improving operations on machine and others. While the soft skills
support in developing an emotional connectivity with the employees through increasing work
flexibility and effective communication so that a positive work environment motivates
employee performance (Marques and Dhiman, 2017).
For Example, the employees of KPMG are given flexibility to conduct audit activities at
client place as per their convenience of time so that they do not feel pressurized.
5
Participative leadership: This style of leadership ensures participation of stakeholders in
decision making and providing their input. The team members in this style of leadership feel
engaged and motivated, it provides creative ideas to overcome organizational issues. In some
of the projects taken up at KPMG, the issues were resolved through innovative ideas of the
team members (Leadership approaches, 2019).
Authoritarian style of leadership: This style of leadership provides a clear view of what a
stakeholders is supposed to perform. It strongly focuses on commanding the employees about
what is to be done and how it is to be performed. The authoritarian leader makes decisions
without much consultation of others. In KPMG, the manager was responsible for assigning
the roles to subordinates depending on their skill instead of asking the employees about their
area of interest, this sometimes lead to dissatisfaction and increased turnover.
Hard and soft leadership skills
The leader at KPMG utilizes various hard and soft skills to get work done by the employees
in an effective and efficient manner. The hard skills include regulations that are necessary to
increase the profits of organization, they include increasing computer proficiency through
training, directing towards improving operations on machine and others. While the soft skills
support in developing an emotional connectivity with the employees through increasing work
flexibility and effective communication so that a positive work environment motivates
employee performance (Marques and Dhiman, 2017).
For Example, the employees of KPMG are given flexibility to conduct audit activities at
client place as per their convenience of time so that they do not feel pressurized.
5
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LO2
Apply the role of a leader and the function of a manager in given contexts
KPMG is a financial service provider; it is a multinational organization that hires a large
group of employees to support its operations. The organization is constituted of various
departments such as administration, accounting, auditing and training each headed by a spate
manager to monitor and control various activities. The leader is appointed for different teams
to handle work pressure and motivate employees for increasing production, profits and
growth.
Departments at KPMG
The departments of KPMG are divided into external and internal teams. The internal
departments are the cost centres that is the IT and human resource departments. The other
external departments include Tax, advisory and audit. The departments’ members focus on
technological changes so that the clients can be served with best services. The Audit
department is concerned with visiting client place and checking the authenticity and accuracy
of the various operations and systems that is adopted. They ensure proper controls within
organizations (Fairchild et.al, 2019).
The operational success of KPMG lies in the efficient performance of the audit department of
the organization. The manager and leader ensures that proper candidates are selected that can
efficiently handle activities of audit. They provide directions to the employees and lay down
procedural steps for achieving timely audit targets. The implementation of various theories of
operation management support in the accomplishment of department’s objectives
Strength and weakness of leadership approaches
Table 1: strength and weakness of leadership approach
LEADERSHIP STYLE STRENGTH WEAKNESS
Participative Leadership style Increased
participation in
decision making
mean increased
commitment towards
work thus enhancing
productivity.
This type of
leadership leads to
slower process of
decision making as
many people are
involved.
6
Apply the role of a leader and the function of a manager in given contexts
KPMG is a financial service provider; it is a multinational organization that hires a large
group of employees to support its operations. The organization is constituted of various
departments such as administration, accounting, auditing and training each headed by a spate
manager to monitor and control various activities. The leader is appointed for different teams
to handle work pressure and motivate employees for increasing production, profits and
growth.
Departments at KPMG
The departments of KPMG are divided into external and internal teams. The internal
departments are the cost centres that is the IT and human resource departments. The other
external departments include Tax, advisory and audit. The departments’ members focus on
technological changes so that the clients can be served with best services. The Audit
department is concerned with visiting client place and checking the authenticity and accuracy
of the various operations and systems that is adopted. They ensure proper controls within
organizations (Fairchild et.al, 2019).
The operational success of KPMG lies in the efficient performance of the audit department of
the organization. The manager and leader ensures that proper candidates are selected that can
efficiently handle activities of audit. They provide directions to the employees and lay down
procedural steps for achieving timely audit targets. The implementation of various theories of
operation management support in the accomplishment of department’s objectives
Strength and weakness of leadership approaches
Table 1: strength and weakness of leadership approach
LEADERSHIP STYLE STRENGTH WEAKNESS
Participative Leadership style Increased
participation in
decision making
mean increased
commitment towards
work thus enhancing
productivity.
This type of
leadership leads to
slower process of
decision making as
many people are
involved.
6
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It enhances the level
of job satisfaction and
fulfils the need to self
esteem (Cote, 2017).
Increase in the level
of job satisfaction and
commitment ensures
in developing a
positive work
environment.
The stakeholders are
given an opportunity
of communicating
and giving feedbacks
so that various issues
can be resolved and
quality enhanced.
Requirement of less
supervision ensures
cost reduction in
management
activities.
The essential facts
and information are
known to many so
leads to security
issues.
Authoritarian decision making Small groups
supports in bringing
consistency in work.
There is time saving
as one sole authority
is responsible for
taking decisions.
This method of
leadership can
enhance the level of
This style of
leadership reduces the
morale of employees
due to lack of
motivation.
Sometimes the
leaders think that they
are highly
knowledgeable and
skilled thus leading to
7
of job satisfaction and
fulfils the need to self
esteem (Cote, 2017).
Increase in the level
of job satisfaction and
commitment ensures
in developing a
positive work
environment.
The stakeholders are
given an opportunity
of communicating
and giving feedbacks
so that various issues
can be resolved and
quality enhanced.
Requirement of less
supervision ensures
cost reduction in
management
activities.
The essential facts
and information are
known to many so
leads to security
issues.
Authoritarian decision making Small groups
supports in bringing
consistency in work.
There is time saving
as one sole authority
is responsible for
taking decisions.
This method of
leadership can
enhance the level of
This style of
leadership reduces the
morale of employees
due to lack of
motivation.
Sometimes the
leaders think that they
are highly
knowledgeable and
skilled thus leading to
7

organizational
productivity.
It supports in
minimizing the
number of risks and
issues as specific
instructions are
followed (Timming,
and Johnstone, 2015).
insecurity.
There is a lack of
proper
communication and
feedback collection
system so the
problems of
employees are not
resolved.
Roles and duties of management in KPMG
In the audit department at KPMG the manager roles and duties are as follows:
The main role is to identify flaws and differences in the audit activity so that proper
solutions can be generated to maximize efficiency. The manager is responsible for
monitoring the various activities so that there is no issue with the reliability and
accuracy of data (About roles and duties of manager at KPMG, 2019).
The audit procedure needs to comply with certain set standards to ensure that proper
operations are being conducted. The manager is responsible for complying with the
confidentiality policies of own firm and the applicable authorities.
The manager performs the activities of documentation of final papers and supervision
of audit work. They use suitable IT systems and tools to fulfil the requirement of
Audit methodology. Further, proper training is provided to team members about the
use of same.
8
productivity.
It supports in
minimizing the
number of risks and
issues as specific
instructions are
followed (Timming,
and Johnstone, 2015).
insecurity.
There is a lack of
proper
communication and
feedback collection
system so the
problems of
employees are not
resolved.
Roles and duties of management in KPMG
In the audit department at KPMG the manager roles and duties are as follows:
The main role is to identify flaws and differences in the audit activity so that proper
solutions can be generated to maximize efficiency. The manager is responsible for
monitoring the various activities so that there is no issue with the reliability and
accuracy of data (About roles and duties of manager at KPMG, 2019).
The audit procedure needs to comply with certain set standards to ensure that proper
operations are being conducted. The manager is responsible for complying with the
confidentiality policies of own firm and the applicable authorities.
The manager performs the activities of documentation of final papers and supervision
of audit work. They use suitable IT systems and tools to fulfil the requirement of
Audit methodology. Further, proper training is provided to team members about the
use of same.
8
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