KPMG Management & Operations: Applying Leadership Principles

This report provides an analysis of management and operations at KPMG, examining the roles of leaders and managers within the organization. It differentiates between leadership and management functions, utilizing John Kotter's perspectives, and explores the application of Management by Objectives (MBO), including its process cycle and limitations. The report also delves into Mintzberg's Three Management Role Theory, highlighting interpersonal, informational, and decisional roles with examples from KPMG's leadership. Furthermore, it discusses leadership trait theory, various leadership styles (Executive, Situational), and essential management skills. The report also covers operational aspects, including transformation processes, quality management, Just in Time approach, waste reduction, and capacity management methods. Finally, the report provides an overview of KPMG's Operation Management Department, its strengths and weaknesses, and offers recommendations for improvement, emphasizing situational leadership, transformation processes, and the impact of capacity management.

Running head: MANAGEMENT OPERATION
KPMG
Management Operation
3/26/2019

MANAGEMENT OPERATION 1
Table of Contents
Introduction................................................................................................................................3
LO1 & LO2................................................................................................................................3
Role of Management..............................................................................................................3
Role of Leadership.................................................................................................................3
Difference between Leadership and Management Functions................................................3
Table of Leadership and Functions of Management..........................................................4
Analysis of Management by Objective..................................................................................5
MBO Process Cycle...........................................................................................................6
Limitations of Management by Objectives........................................................................8
Three Management Role Theory...........................................................................................8
Leadership Trait Theory.......................................................................................................12
Two Styles of Leadership.....................................................................................................13
Executive Leadership.......................................................................................................13
Situational leadership.......................................................................................................14
Hard Management Skills......................................................................................................14
Soft Leadership Skills..........................................................................................................14
Three Transformation processes in operations management...............................................14
Quality..................................................................................................................................15
Role of Manager in Total Quality Management..................................................................15
Just in Time Approach.........................................................................................................16
Waste Reduction in Operation.............................................................................................17
Methods of Capacity Management......................................................................................18
Business Capacity Management......................................................................................18
Service Capacity Management.........................................................................................18
Component Capacity Management..................................................................................18
Conclusion................................................................................................................................19
LO2 & LO4..............................................................................................................................19
Overview of KPMG.............................................................................................................19
Operation Management Department....................................................................................19
Management Team in Operation Management Department................................................20
The strength of Operation Management Department...........................................................21

MANAGEMENT OPERATION 2
Weaknesses of Operation Management Department...........................................................21
Role of Operation Manager..................................................................................................21
Real Occasion to Highlight Role of Management...............................................................22
Situational Leadership..........................................................................................................22
Transformation Process........................................................................................................22
Impact of Capacity Management.........................................................................................23
Service Capacity Management.........................................................................................23
Business Capacity Management......................................................................................23
Recommendations....................................................................................................................23
References................................................................................................................................25

MANAGEMENT OPERATION 3
Introduction
The aim of this report is to discuss the role of a leader and function of a manager in KPMG
Company. The role of the leader and the function of the manager is being discussed based on
the given organization scenario. Besides this, it demonstrates an understanding of the
relationship between management and leadership in a contemporary business environment.
LO1 & LO2
Role of Management
The role of management is very vital in an organization. The organization’s success is based
on the ability of the manager in exploiting the resources for attaining the pre-determined
objectives (Kelly, 2017).
Role of Leadership
Leadership is all about receiving results for the followers. If the leader gets the results, people
start supporting him/her. Leadership is a role which is essential and performed at each
management level (Envall, 2015). At the top level, leadership is essential for getting co-
operation in the creation of policies and plans, at the middle and lower level, it is necessary
for explanation and implementation of programs and plans created by the top management.
Leadership could be applied through direction and counseling of the assistants at the
execution of planning.

MANAGEMENT OPERATION 4
Difference between Leadership and Management Functions
According to John Kotter, Management is a procedure that maintains the functioning of an
organization. They put their maximum efforts in order to hit the numbers of the quarter. The
procedure is comprised of planning, staffing, measuring performance, budgeting, problem-
solving, and clarifying jobs at the time when results of the performance are not according to
the planning (Ratcliffe, 2013).
Leadership is different from management. It is all about aligning people or employees with
the vision of the organization that means buy-in and communication, inspiration, and
motivation. For instance, Churchill is of the great example of a successful leader; however, it
is not a manager. He is not much-loved since he is known for making bureaucracy function.
A good manager can be a good leader, and a leader can be a good manager, however, both of
them not always goes hand-in-hand (University of Minnesota, 2019). In numerous
companies, managers can concentrate on confirming that, their workers are scheduled; have
structure, understanding of the procedures, resources in order to attain precise objectives. A
leader focuses on a big picture and vision of the organization, confirming motivation and
encouraging team members.
Source [(University of Minnesota, 2019)]
Table of Leadership and Functions of Management
Leadership – Movement and Change Management – Consistency and Order
Establishing Direction Planning
Manager Does Things
Right Leader Does the Right
Thing

MANAGEMENT OPERATION 5
 Framing Vision
 Highlighting the big picture
 Framing Strategies
 Introduce Agenda
 Scheduling
 Resource allocation
Aligning People
 Communicating objectives
 See Commitment
 Build teams and alliances (University
of Minnesota, 2019)
Organization/Staffing
 Offer Structure
 Job Placements
 Forming process and rules
Motivating and Inspiring
 Motivate and strengthen
 Empower assistants
 Satisfy unmet needs
Controlling/Problem Solving
Improve incentives
Make creative solutions
Take corrective action
Analysis of Management by Objective
Management by objective is said to be a model of strategic management that is aimed
towards enhancing the organization’s performance by evidently describing goals that are
settled by both employees and management. As per the theory, having a rough idea of
objective setting and action plans inspires involvement and pledge among employees, and
aligning goals in the organization. Management of Objective term was initially drawn by the
guru of management i.e. Peter Drucker in his book, “The practice of Management”.
(Akdeniz, 2015)

MANAGEMENT OPERATION 6
MBO Process Cycle
Source [(Drucker, 2012)]
Peter Drucker has introduced 5 steps in order to put into practice the Management by the
objective tool:
Define or review the organizational goals
Strategic organizational goals are the initiating plugs of MBO i.e. Management by
Objectives. These objectives are aligned with the vision and mission of the organization. If a
company has yet not formulated its vision and mission, then there is no sense to move
towards the second step (Drucker, 2012).
Communicating or translating the objectives of the organization to all the employees
To make the objectives of the organization organization-wide, it is important that they are
translated to the employee level. In order to ensure efficiency, Peter Drucker makes use of
SMART (Specific, Measurable, Acceptable, Realistic and Timely) Goals. Acceptable is very
important in the Management by Objectives because it is regarding agreement on the

MANAGEMENT OPERATION 7
objectives between organization and employees. The principle of MBO does not permit the
management of the company to define the goals or objectives by themselves.
Increase employee participation in defining the objectives
The initial consideration is all about involving the employees in defining the personal
objectives that are linked with the organization’s objectives. This practice offers the best
results when the organizational objectives are shared at all the organizational levels such that
all the employees understand the reason behind the expectations of the management. Through
this, everyone could understand what part they have to perform in attaining the objectives.
This practice increases the employee's involvement as well as commitment towards
objectives (Ntanos and Boulouta, 2012). This participatory procedure meets the personal
objectives along with general team objectives, unit objectives, and eventually organizational
objectives.
Monitoring of Progress
Since the objectives are SMART, they are eventually measurable. If they are not measurable,
then a system needs to be established with activated monitoring function when the objectives
are different. Detection should be done timely such that huge issues could be prevented. On
the other hand, it is essential that the settled objectives do not result in the employee's
abnormal behavior. For instance, a service call should be managed in seven minutes;
therefore, employees end these calls after 6 minutes and 59 seconds in order to meet the
obligation (Ntanos and Boulouta, 2012).
Evaluate and reward achievements
MOB has created to enhance the performance at each level in the organization. A complete
system of evaluation is thus essential. As objectives have been formulated by keeping in
mind the SMART approach that has supported in making the procedure of evaluating easy.

MANAGEMENT OPERATION 8
The workforce is assessed and content for its achievements in terms of set objectives and
goals. This also comprises precise feedback. MOB is all about why, when, and how
objectives could be attained (Ntanos and Boulouta, 2012).
Limitations of Management by Objectives
At some point, it disregards the predominant culture and working circumstances of the
company.
It gives more importance on objectives and targets. It only expects from employees to attain
their targets and meet the goals of the company deprived of worrying about the current
workplace environment. Workers are expected to work and meet their targets. Many times,
the MBO procedure treats individuals like machines (Management Study Guide, 2019).
The procedure of MBO upsurges the chances of comparisons between individuals in the
organization. Workers need to depend on offensive politics and different unfertile tasks to
outperform from their colleagues. Workers are only enforced to do work as per the
instructions of their superiors. Hence, their work lacks in creativity, innovation, and becomes
monotonous.
Three Management Role Theory
The manager role seems to be very simple, but the person who serves as a manager
understands its complexity. Being a leader in the company like KPMG is one of the most
challenging and complicated works that could take a range of forms based on the requirement
of the organization (Management Book, 2019). This manager has to follow different roles.
Based on this, Mintzberg's Management Roles has been introduced comprise of ten
management roles which cover a spectrum of responsibilities that a manager should
undertake.

MANAGEMENT OPERATION 9
Source [(Management Book, 2019)]
The ten roles have been divided into three categories that are interpersonal, informational,
and decisional.
Source [(Management Book, 2019)]
Figurehead
Being a figurehead for the entire team is one of the essential role performed by a leader. John
Veihmeyer has been one of the best leader and a figurehead, who has successfully
strengthened KPMG with his promise to integrity and quality, and his concentration on the
global organizational culture (Linkedin, 2019).

MANAGEMENT OPERATION 10
Leader
A manager has to lead people of his or her team to guide them towards a precise objective.
John Veihmeyer always uses to interact with the employees in order to explain what needs to
be done and when it must be done (Linkedin, 2019). Besides this, he used to organize the
structure in order to highlight the particular skills that everyone must possess.
Liaison
The final role that a manager performer, is to act as a liaison. This reflects that the manager
should positively interface with a number of people in and outside the organization in order
to maintain smooth operations.
Source [(Management Book, 2019)]
Monitor
Performing like a monitor is the initial managerial role in the category of informational. As
the word indicates, Bill Thomas the present Chairmen of KPMG is responsible for tracking
the alterations in the field in which the company operates (KPMG, 2019f).

MANAGEMENT OPERATION 11
Disseminator
The manager of the company works as a disseminator, who gathers information effectively
and quickly for the entire team and not for himself.
Spokesperson
Being the global head, Bill Thomas represent the entire group when it comes to
announcements, meetings, etc. He works as a spokesperson as well as the face of KPMG
which is one of the huge roles (KPMG, 2019f).
Source [(Management Book, 2019)]
Entrepreneur
Bill Thomas, being a manager at the global level in an organization like KPMG is like
operating a small business (KPMG, 2019f). While the company has other managers too, who
work at lower levels, but he stills needs to work as an entrepreneur in regards to quickly
resolving the issues, getting key ideas, etc.
Disturbance Handler