Management and Leadership in KPMG Operations: A Comparative Analysis

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

MANAGEMENT AND OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................................2
LO1 & LO3....................................................................................................................................................3
INTRODUCTION.......................................................................................................................................3
LEADERSHIP AND MANAGEMENT FUNCTIONS........................................................................................3
MANAGEMENT BY OBJECTIVE.................................................................................................................4
MANAGEMENT ROLES THEORY...............................................................................................................5
LEADERSHIP TRAIT THEORY.....................................................................................................................6
STYLES OF LEADERSHIP............................................................................................................................7
HARD MANAGEMENT SKILLS AND SOFT LEADERSHIP SKILLS...................................................................7
TRANSFORMATION PROCESS..................................................................................................................8
QUALITY...................................................................................................................................................9
FOUR COST OF QUALITY..........................................................................................................................9
TOTAL QUALITY MANAGEMENT APPROACH.........................................................................................10
JUST IN TIME APPROACH.......................................................................................................................10
WASTE REDUCTION...............................................................................................................................10
CAPACITY MANAGEMENT......................................................................................................................11
CONCLUSION.........................................................................................................................................11
L02 AND L04..............................................................................................................................................12
INTRODUCTION.....................................................................................................................................12
WORK OF OPERATION DEPARTMENT IN KPMG.....................................................................................12
BACKGROUND OF MANAGEMENT TEAM IN OPERATIONS DEPARTMENT.............................................12
STRENGTHS AND WEAKNESSES OF MANAGERIAL APPROACHES...........................................................13
THREE ROLES AND DUTIES OF MANAGEMENT IN ORGANIZATION.......................................................14
OCCASION..............................................................................................................................................14
LEADERSHIP STYLE.................................................................................................................................15
TRANSFORMATIONAL PROCESS............................................................................................................15
CAPACITY MANAGEMENT......................................................................................................................16
RECOMMENDATIONS............................................................................................................................16
CONCLUSION.............................................................................................................................................17
1

REFRENCES................................................................................................................................................18
INTRODUCTION
The following report is being made to show the basic difference between the management
process and leadership skills. The report will explain the role of management and the leadership
for the following company. The report will show the importance of the Operations department
for the company and will also explain their functions in the organization. At last this report will
show that how the Operations department of the KPMG Company applies different
management theories to resolve the problem of the company, and how they motivated the
employees of the company to achieve the goal of the organization.
2

LO1 & LO3
INTRODUCTION
Management skills and good Leadership quality is always necessary to achieve success in any
business (BS, 2019). According to Kreitner’s, Management is a problem-solving process of
effectively achieving the organizational objective through the efficient use of scarce resources
in a changing environment. On the other hand according to Davis, ‘Leadership is the ability to
persuade others to seek defined objectives enthusiastically. It is a human factor which binds a
group together and motivates it towards goals.
Every organization has mainly three types of goals which are an interpersonal role,
informational role and decisive role. In the interpersonal roles, the manager has the
responsibility to motivate his employee to achieve the organizational goals. The informational
role includes collecting, receiving and circulating all the necessary information in the
organization. The third role which is decisional role includes of various roles that a manager has
to perform in the organization which are an entrepreneur, disturbance handler, resource
allocator and negotiator (Luft, 2016).
Leadership play a very important role in the organization, it is an action which motivates the
employee to achieve the organizational goals. Leadership plays very vital roles in the
performance and productivity of the employee in the company. A good leader always set a
clear vision for his employee and influences them to achieve the goal of the company
(Havermans et al., 2015).
LEADERSHIP AND MANAGEMENT FUNCTIONS
John Paul Kotter states that the Management and Leadership functions are not at all similar to
each other (MT, 2019). Difference between management and leadership are as follow:
3

Management produces order and consistency and on the other hand, leadership produces
change and movements.
Management performs planning and budgeting functions such as the establishment of agendas,
set timetables for the work and allocates the resources. On the other hand, the leader performs
various functions for the organization such as creating a vision for his employees and setting
strategies to complete the target.
Management performs the controlling and problem-solving functions such as developing
incentive schemes, generate a creative solution for a problem and take corrective actions. The
leadership performs Motivating and inspiring functions such as energize and inspire the
employee and empower the subordinates.
MANAGEMENT BY OBJECTIVE
The theory suggests that the setting of goals and action plans encourages the employee’s
participation and their commitment towards the organization goals (MSG, 2019). The term
marketing by objective was first given by Management researcher P. Drucker in his 1954 book,
the practice of management.
The benefits of the management by objectives for an organization are it improves the
performance of their employees by motivating them towards the organizational goal. It also
increases the commitment of the employee towards their work. The functions set several
principles which are, the employee should receive the feedback of his work daily, the focus
should be more on giving them rewards rather than giving punishments, the organization
should emphasize more on the personal growth and development of the employee (Islami et
al., 2018).
The KPMG Company is known for its performance and reward management system in which
they evaluate the importance of each and every job position in the company, remunerate the
employees of the company according their performance and position in the company, design
bonus schemes to motivate the employees and design a flexible and easy to implement
performance management system.
4

MANAGEMENT ROLES THEORY
H. Mintzberg breaks the management role into three parts which are Interpersonal role,
Informational role and the decisional role (AT, 2019) which are as follow:
Interpersonal role: This role helps the manager to interact with his employees for the purpose
of achieving the organizational goals. The role is furthered divided into three parts which are as
follows:
 Figurehead -The manager is the source of inspiration for its employees, and also the
person with the authority and figurehead.
 Leader – The manager is the leader of his team, and the manager also manages the
performance and responsibilities of his employees.
 Liaison – The manager has the responsibility to communicate with the internal and
external contacts, and he also has the responsibility to communicate effectively on
behalf of his organization.
Informational Category: The manager has to share and generate information with his
employee in order to achieve the organizational goals. The informational category is divided
into subparts which are as follow:
 Monitor – The manager regularly seek for the information which is related to his
organization, and he looks for the relevant changes in the environment of the company.
 Disseminator – In this part, the manager communicates useful and potential
information with his colleagues in order to achieve the organizational goals.
 Spokesperson – Manager has the responsibility to represent and speak for his
organization. The manager is also the spokesperson of his company and he transmits
the information about the organization goals to the outside people.
Decisional Category: The managers take part in the decision-making process of the company.
The subparts of this category are as follows:
 Entrepreneur – The manager is also known as the entrepreneur of his company, the
manager creates and controls the change within the organization. The manager solves
5

the problem of its employees and, creates new ideas and implements those ideas in the
organizations.
 Disturbance Handler – When an organization stuck in a difficult situation then the
manager takes charge of that problem and solve it.
 Resource Allocator – The manager has a task to determine where the organizational
resource can best be applied. This task involves of allocation of funding of the company,
as well assign the resources to the staff.
 Negotiator – The manager also takes part in the negotiation process of the company.
The KPMG Company also works on the same functions as being given in Management
role theory; to run the organization smoothly the manager of the company follows all
the roles of management given above. This helps the organization to felicitate the
working environment of the company and it also helps in achieving the goals of the
company.
LEADERSHIP TRAIT THEORY
The trait theory of the leadership mainly focuses on identifying various personality traits and
characteristics which a successful leader should possess (Carleton et al., 2018). The leadership
trait may vary from person to person but there are some common traits which are associated
with great leadership which are as follows:
 The leader should be should be an intelligent and action-oriented person and also eager
to accept the responsibility.
 The leader should understand the need of his follower and have the capacity to
motivate the people.
 The leader should be a self-confident, trustworthy and emotionally stable person.
 The leader should have the adaptability and flexibility to mold himself in any situation
and he should also be a creative person.
The leadership trait also helps the KPMG Company to achieve several milestones in the
industry. The managers of that company possess great leadership skills; they always motivate
their employee to achieve their individual as well as organization goals.
6

STYLES OF LEADERSHIP
A leadership style refers to the behaviors of the leader's characteristic when he is motivating,
directing, managing and guiding the group of the people. Different types of leader have
different kinds of leadership style. In the year 1939, Kurt Lewin led a team of the researcher and
developed different styles of leadership. The two styles of leadership are explained below:
Participative Leadership (Democratic) – The democratic leadership style is known as the most
effective style of leadership. The leaders who follow this style offers guidance to the group
members, but they also allow the group members to take part in the decision making process.
The leader of the KPMG Company also follows this style of the leadership as they also let the
employee take part in the planning and decision-making process which makes them feel more
engaged and motivated (Iqbal et al., 2015).
Delegative Leadership (Laissez-Faire) – This is the style of leadership where the leader gives the
complete authority of the decision making to its group members. The leaders of KPMG
Company rarely use this style of leadership (Khan et al., 2015).
HARD MANAGEMENT SKILLS AND SOFT LEADERSHIP SKILLS
Hard Management skills
The Manager of the KPMG Company possesses the hard skills of the management. The
manager of the company follows several skills which are mentioned below:
Planning – The manager of the company is not the only one who involves in the planning
process of the company. The manager works with other leaders of the company and set the
goals and objectives of the company (Allmendinger, 2017).
Organizing – The next task a manager has to perform after the planning process is the
organizing function. In this function, the manager of the company has to synchronize the
combination of Human, Physical and Financial resources of the company (Nilsson et al., 2018).
Controlling- The manager of the company has to set the standards, for measuring the actual
performance of the employee of the company and take corrective action (Kerzner, 2017).
7

SOFT SKILLS OF LEADERSHIP
Every leader who wants to achieve the goal of the organization should possess the soft skills of
the Leadership (Cimatti, 2016). The reason for the huge success of the KPMG Company is that
their leaders possess the quality soft skills of the leadership. The soft skills quality that leaders
should have is as follows:
Good Communicator: The leader should know how to communicate with its employee
effectively. The leader should communicate the goal of the organization very clearly with its
employee.
Decision-making skills: A good leader should always have to be good in decision-making skills.
Problem-solving skills: If a person wants to be a successful leader than he must know how to
solve the difficult problem of the company, and he must know how to handle different types of
problem that occurs in a different situation.
TRANSFORMATION PROCESS
The operation management is the processes that transform inputs into the final goods and
services. The main goal of the operation management is to maximize the efficiency of the
production of goods and services effectively and fulfill the need of the customer. If the
organization makes a good operating decision in designing and transforming its products
according to the need of the customer then there is a very good chance for that company to
survive in the long term (Hawkins, 2017). The operation management has three processes of
transformation which are as follows:
Inputs: All the components which are used with the intention of making or shaping of the
product. The resources which are used in the input process are labour, equipment, land,
building, raw material etc.
Output: The next step which is followed by the input process is the output process. The term
output means the final production of the goods, the total quantity of the goods produced and
the completion of the production process.
8

Value-added services: After the production of the goods is completed and the final product is
ready. The last process of operation management is to provide value-added services to the
customer.
QUALITY
The term quality begins with designing the product according to the specification and the need
of the customer. It also involves the established measuring standard of the product, the use of
proper raw material and also the selection of the suitable manufacturing process (Mitra, 2016).
There are several factors which affect the quality of the product which is Market, Money,
Management, Men, Motivation, Materials, Machine and Mechanization, Modern information
methods and Mounting product requirements. These components are also known as (9 M’S)
affecting the Quality of the product.
FOUR COST OF QUALITY
The quality cost is associated with the following things such as detecting, preventing and
remediating the product issues which are related to the quality. The main function of the
quality cost is to create and deliver the product that will meet the expectation of the
customers. The quality is divided into four different categories which are as follows:
Prevention cost: The preventive cost is being prepared to prevent a quality problem from
occurring. It is also the least type of quality cost and is highly recommended by the researcher.
The preventive cost includes the training of the employees to teach them assembling of the
product and also helps them to learn the statistical process control.
Appraisal cost: This cost is also maintained to prevent a quality problem from occurring. To
prevent the quality problem the company does a variety of inspection. To make the process
least expensive the company assign the inspection work to the production workers as they can
inspect both the incoming and outgoing parts from their workstations (Sarker and Faiz, 2016).
Internal failure cost: When a company produces defective kind of goods then the cost of
making those goods is known as internal failure cost.
9

External failure costs: The external cost also includes the cost of the defective goods and also
the external cost of the product such as warranty claims, field service and legal associated cost.
These four types of Quality cost help the manager of KPMG to minimize the expenses of the
company and maximize its profits. The manager also takes feedback on this process with its
employee and strategizes the process according to that.
TOTAL QUALITY MANAGEMENT APPROACH
This approach is used by the managers of the company to improve the quality and service of
their product by using the customer’s feedback (Ross, 2017). Following the role a manager
plays to improve the quality of the products. The manager felicitates the employees by helping
them to implement this approach. The manager inspects the product carefully and sees if there
are any changes required in the quality of the product.
JUST IN TIME APPROACH
In the Just, in Time Approach method the manufacturer produces the goods only when the
customer demands it. This method not just only reduces the cost of production but also helps in
the smooth flow of the production (Filippini and Forza, 2016).
WASTE REDUCTION
The waste reduction approach is used by the company to minimize their waste occurring in the
production process like producing defected goods again and again. This method also helps the
manufacturer to learn about the recycling of the product.
CAPACITY MANAGEMENT
It is management where a manager of the company estimates and sets the limit to the
organization resources such as labor resources; financial resource production resources etc.
capacity management helps the manager to allocate the resources to complete the task (Ning
and Sobel, 2017).
10

CONCLUSION
So it is concluded that operation management plays a very important role in an organization. It
can also be stated that though Leaders and managers are both very much different from each
other and both perform a different task but they both play a very crucial role in the
organization. Both leaders and the manager of the KPMG perform the management and
operation task very effectively. The reason that the company is so successful today is both the
leaders and manager of the company follows all principle of management given above.
11