KPMG Case Study: Examining Leadership and Management in Operations

Desklib provides past papers and solved assignments for students. This report analyzes leadership and management in KPMG's operations.

1
MANAGEMENT & OPERATIONS
Unit 4 - Management & Operations
Student Name:
Student Id:
1

2
MANAGEMENT & OPERATIONS
Executive Summary
Operations management is necessary to increase the profitability of an organisation by
decreasing the generation of wastes. The productivity or yield of an organization can further be
enhanced if the leaders and the managers are strong enough to manage change and deal with the
adversities effectively. Managers and leaders can refer to certain leadership and management
theories for making decision related to the organisation. The employees and the working
environment can be managed by the help of making transformations through various
transformation processes. In this way, the organisational objectives can be attained easily by
effective functioning of managers and leaders in the organisation.
2

3
MANAGEMENT & OPERATIONS
Table of Contents
Introduction......................................................................................................................................5
Discussion........................................................................................................................................6
LO1 Differentiate between the role of a leader and the function of a manager..............................6
An introduction with some definitions of the roles of management and leadership...................6
Differentiate leadership and management functions according to J. Kotter................................6
An analysis of the Management by Objective process as discussed by P. Drucker....................7
Illustrate the three management roles theory as discussed by H. Mintzberg...............................7
Analyse leadership traits theory and discuss two styles of leadership........................................8
An analysis of ‘Hard’ management skills and ‘soft’ leadership skills........................................9
LO3 Demonstrate an appreciation of the role leaders and managers play in the operations
function of an organisation..............................................................................................................9
A discussion of three transformation processes in operations management...............................9
An evaluation of what the term Quality means and the four costs of quality for managers in
achieving business objectives......................................................................................................9
A discussion of the role managers plays in the Total Quality Management approach..............10
A discussion of Just-in-Time approach and waste reduction in operations...............................10
Three methods managers can adjust for Capacity Management in operations..........................11
A short conclusion with your evaluation on the role of managers and leaders.........................11
LO2: leader’s roles and function of a manager in a provided situational context (P2 &P3).........11
LO4: Comprehend the interconnection among leadership and management in an organisational
environment (P6)...........................................................................................................................11
1. Overview of the selected organisation...................................................................................11
2. The roles of various departments in operations.....................................................................12
3. Setting of management in the department.............................................................................13
3

4
MANAGEMENT & OPERATIONS
4. Strengths and weaknesses of manger/leader approaches.......................................................13
5. Roles and duties of management in KPMG..........................................................................14
6. Example of one event where managements’ role was magnificent for application of various
management theories and approaches as depicted in lecture.....................................................14
7. Assess leadership style theories, applied to the management................................................15
8. Exhibit the common transformation procedure for your organisation, by providing examples
...................................................................................................................................................16
9. Assess the influence of adjustments on organisation for capacity management...................16
10. Recommend ways in which, management can be improved in future................................16
Conclusion.....................................................................................................................................17
Reference List................................................................................................................................18
4

5
MANAGEMENT & OPERATIONS
Introduction
Operations management is the heart of an organization because it makes sure that there are
minimum wastage and maximum efficiency. The main purpose of operations management is to
make sure that the raw materials are completely converted into useful products without any
waste. Proper management of the operations department of an organization makes sure that the
efficiency or the productivity of an organization increases. Operations management in an
organization is crucial since it aids to improve its overall productivity or yield. It assists in
making proper use of resources like raw materials, labour or workforce and finances.
In this report, the difference in the roles of leaders and the managers has been discussed along
with the description of leadership traits theory and leadership styles. Soft and hard leadership
skills have been discussed along with strengths and weakness of the leadership and management
approaches practised in the organization considered, KPMG. Recommendations have been
provided that is required in the department of operations management in the concerned
organization.
5

6
MANAGEMENT & OPERATIONS
Discussion
LO1 Differentiate between the role of a leader and the function of a manager
An introduction with some definitions of the roles of management and leadership
Leaders are not the same as mangers. There is a difference in their roles and functions.
Leadership can be defined as a process or procedure that involves guiding or leading a group of
folks or people in an exact direction such that the goals and objectives that have been determined
can be achieved efficiently (Western, 2019). A leader communicates or transfers the information
regarding the aims and objectives that have been devised along with the strategies that have been
developed in order to achieve the goals to the team members.
Management is an important practice that makes sure that an organization grows and flourishes
by combining the efforts put by the employees who are working in that particular firm. A
manager is a person who makes people work in a way such that the goals and objectives that
have been devised are effectively achieved (Brett et al. 2016). A manager is responsible for
organizing the tasks that are to be completed and supervising the activities that are done by his or
her subordinates.
Differentiate leadership and management functions according to J. Kotter
The distinction between the functions of leaders and managers as per J. Kotter has been
discussed below:
Criteria Management Leadership
Center of attention A manager lays attention on
the development of goals and
objectives along with the
strategies that can aid to
achieve the goals.
A leader mainly focuses on
improving the performance of
the team members thereby
increasing their productivity.
Functions A manager makes sure that the
systems, processes and the
structures that have already
Leaders make sure that the
team members deliver their
best performance and devise
6

7
MANAGEMENT & OPERATIONS
been developed are strictly
followed and adhered.
new methods or stress in
innovation such that they are
incorporated in the current
system to enhance the
efficiency of the organization
(Kotter, 2013).
Managing risks Managers are responsible for
devising ways such that the
threats imposed on an
organization are effectively
controlled and that it remains
stable in such situations.
Leaders do not hesitate to take
risks since they are the one
who is responsible for
implementing changes or
modifications in the system of
a firm.
Table 1: Difference between leadership and management
(Source: Created by the learner)
An analysis of the Management by Objective process as discussed by P. Drucker
Management by objective developed by Peter Drucker explains that management can be made
effective by setting objectives and communicating it with the employees of the organization such
that apt ways are devised to attain them thereby leading to growth and development of the
association. Peter Drucker first coined the term “Management by Objective” in 1954 in his book
“The Practice of Management”. It aids an organization to create a positive and healthy working
environment in an organization by increasing the confidence of the employees since in this case
they are empowered to make decisions regarding the strategies or plans that need to be followed
such that the goals and objectives that have been developed are effectively met (Drucker, 2012).
In this way, the growth of the association is enhanced as it increases the dedication of the
employees towards their work as they get a sense of ownership.
7

8
MANAGEMENT & OPERATIONS
Illustrate the three management roles theory as discussed by H. Mintzberg
Henry Mintzberg illustrated the various roles of management through several functions that must
be practised by the managers in an association. The three categories into which the roles of
managers have been divided are:
Processing Information: A manager is liable for the transfer of information or data through
various processes by observing several sources whether internal or external. A manager is the
representative of an organization who is in charge of communicating with its various
stakeholders. The manager of KPMG is responsible for communicating the new policies or
measures taken by the organization with the customers, executives, or employees.
Making decisions: The managers have the liability of making decisions in order to improve the
efficiency of an organization (Mintzberg, 2013). For example, the managers of KPMG are
responsible for the apt allocation of resources and deal with disturbing situations.
Interpersonal contact: It is of prime importance that the managers are able to develop and
maintain a positive and healthy relationship with his or her subordinates such that he or she can
motivate them to work together and achieve the goals developed.
Analyse leadership traits theory and discuss two styles of leadership.
Leadership trait theory aids to evaluate the attributes of aspiring leaders based on the success or
failures of previous leaders. This theory will assist to evaluate the accomplishment or
disappointments of the leaders in KPMG and fathom the methods that will enable them to deal
with a variety of situations.
Leadership Styles
The two styles of leadership have been described below:
Authoritarian leadership: This form of leadership is also termed as autocratic leadership in
which the sole responsibility of decision-making is in the hands of the leaders, and the
subordinates are not allowed to take part in the process of decision-making (Amanchukwu et al.
2015).
8

9
MANAGEMENT & OPERATIONS
Participative Leadership: This form of leadership is termed as democratic leadership that
involves the employees of an organization or the team members to take part in the process of
decision-making such that they can have a sense of ownership that will motivate them to exhibit
better performance thereby improving the productivity of the firm.
An analysis of ‘Hard’ management skills and ‘soft’ leadership skills
Hard management skills or hard skills are defined as the ability of a person that can be
calculated or measured. These skills can be like reading skill, mathematical skills, writing skill,
typing speed, and others. It involves the rules and regulations that determine the ways in which
the skills can be used.
Soft leadership skills can be defined as the abilities that cannot be calculated or computed. Soft
skills are those abilities that defines the personality of a person in terms of his or interpersonal
skills like patience, time management, flexibility, hard work or persuasion, teamwork and others
(Balcar, 2016).
LO3 Demonstrate an appreciation of the role leaders and managers play in the operations
function of an organisation.
A discussion of three transformation processes in operations management
The process of implementing changes or modifications in the procedures of an organization in
order to increase the profitability and productivity of an organization is termed as transformation
process. Transformation process involves the efforts, the procedures and the outcomes that will
aid it to enhance its business operations. The various forms of transformation that can be adopted
by an organization are transport transformation, supply transformation, manufacture
transformation and service transformation (Uhl and Gollenia, 2016). These transformations aid
to increase the productivity of an organization by enhancing its business operations. Manufacture
transformation is the process of transforming the manufacturing process in an organization while
supply transformation is the process of transforming the supply of materials or resources. Service
transformation is the process of transforming the service delivered to the customers while
transport transformation is the process of modifying the progress of materials or customers.
9

10
MANAGEMENT & OPERATIONS
An evaluation of what the term Quality means and the four costs of quality for managers in
achieving business objectives
Quality is defined as the attribute of a particular product. It is used to compute the superiority of
the products and the services that are offered by an organization to the consumers or customers.
It aids to measure the level of satisfaction derived by the customers from the consumption of a
particular product of an organization.
Cost of quality is defined as the procedure of evaluating the utilization of capital in different
activities or task in order to improve the quality of the products or the services that are offered to
the consumers. The four costs of quality have been described below:
Appraisal costs: The costs associated with the monitoring of different practices that are linked to
the quality of the products and services that are provided are termed as appraisal costs.
External failure cost: The expenditures that are made in order to rectify or improve the attributes
of the products after the consumers have identified them are termed as external failure costs.
Internal failure cost: The expenditures that are made in order to rectify the defects related to
quality that has been figured out in a product before they have been delivered and consumed by
the customers are called internal failure cost (Dale and Plunkett, 2017).
Prevention costs: The expenditures that are made by an organization in order to prevent the
occurrence of any sort of defect related to the quality of a product are termed as prevention costs.
A discussion of the role managers plays in the Total Quality Management approach.
Total quality management is defined as the enhancements that are made in the procedures
adopted by an organization in order to improve the quality of its products (Bolatan et al. 2016).
The managers are responsible for apt allocation of resources as well as finances among several
departments of an organization such that its efficiency is enhanced. A manager ensures that the
standards of quality are achieved in a product appropriately before it is offered to the customers.
A discussion of Just-in-Time approach and waste reduction in operations
The just-in-time approach is the activity practised by an organization such that its inventory can
be managed efficiently. It aids to decrease the cost of inventory in an organization thereby
10

11
MANAGEMENT & OPERATIONS
increasing its profitability by aligning the vendors of the resources that are required with the
agendas that have been developed for the process of production (Filippini and Forza, 2016).
Waste reduction is a process that is followed by the organizations to increase its efficiency by
converting maximum resources or inputs into useful products. Just in time plays a major role in
minimizing the production of waste in an organization.
Three methods managers can adjust for Capacity Management in operations.
Capacity management is the method of organizing IT services in an organization in order to
increase its efficiency of business operations. The methods of capacity management are as
follows:
Assess the current state: The managers are required to understand the areas that need
modification in order to improve capacity management.
Capacity plan: The current issues in the operations department must be addressed effectively
such that better strategies are devised to meet the objectives that have been set (Gurvich et al.
2019).
Forecast future trends: It is an important function of a manager to predict the future
requirements effectively, that have to be met in order to increase the efficiency of the
organization.
A short conclusion with your evaluation on the role of managers and leaders
The managers and leaders are essential for the efficient operation of an organization; however,
the roles of the managers differ from the roles of the leaders. Both managers and leaders adopt
several measures in order to increase the productivity and profitability of an organization
nevertheless they are different. The manager intends to maintain the stability of an organization
and does no focus on innovation, but in case of leaders, the case is opposite as they their primary
focus is innovation to enhance the performance of the employees or team members.
11

12
MANAGEMENT & OPERATIONS
LO2: leader’s roles and function of a manager in a provided situational context (P2 &P3)
LO4: Comprehend the interconnection among leadership and management in an
organisational environment (P6)
1. Overview of the selected organisation
KPMG is a Swiss cooperative type organisation operating in the professional services industry.
The professional services organisation was found by William Peat and James Marwick, in the
year 1987. KPMG provided professional service like financial audit, advisory and tax services.
Headquarter of this professional services company is situated in Amstelveen of north Holland in
Netherlands. KPMG is an acronym of Klynveld Peat Marwick Goerdeler, which is a
collaboration of two companies i.e. Peat Marwick and KMG. The company has been recognised
and awarded many times for its extraordinary consultancy and outsourcing services. The
company encompasses of 207,050 employees in its workforce and functioning all over the world.
2. The roles of various departments in operations
According to Goetsch and Davis (2014), the operations in an organisation are only carried in
prosperous way, when there is effective involvement of employees and different departments of
the organisation. The department of tax helps the individual as well as corporate taxpayers in
complying and staying competitive in the market. In this department, various types of tax advices
are provided to the clients for resolving their tax related issues or fulfilling their tax related
requirements. The advisory department of KPMG helps their clients in facing the impacts and
challenges of unstable economic conditions. As mentioned by Noe et al. (2017), various types of
advices are provided to the clients for tackling the consequences of unstable economic
conditions, which helps them running their business operations without of much disturbance.
The advisory department of KPMG also provides training to the employees of organisations for
enhancing their performance and contributions in various types of organisational operations. As
stated by Maister (2012), these trainings are provided in CMMI, testing, six sigma and many
other management approaches and concepts. The services related to advisory are generally audit
advisory, tax advisory and risk advisory. The department of consulting help their client
organisations to develop their management structure and monitor their performance and growth.
As opined by Northouse (2018), this is mainly done by the means of complex structural
12