Report on Leadership, Management, and Operations at KPMG

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This report delves into the core concepts of leadership and management within the context of KPMG, a consultancy firm. It begins by differentiating between the roles and characteristics of leaders and managers, emphasizing their distinct responsibilities in decision-making, goal-setting, and employee motivation. The report then explores the functions of managers and leaders in various business scenarios, highlighting the importance of delegation, employee engagement, and training. It further examines different leadership theories, such as situational leadership, and their practical application within KPMG. The report also addresses the significance of operations management, the impact of business environment factors on management decisions, and the critical analysis of operations management's application and its effects on business and society. Recommendations are provided, culminating in a comprehensive overview of leadership, management, and operational strategies within the organization.
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MANAGEMENT AND
OPERATIONS
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Definition and comparison of different roles and characteristics of leader and manager.3
M1 Analyse difference between role of Leader and function of Manager.............................5
TASK 2............................................................................................................................................5
P2 Role and functions of manager and leader in different business situations......................5
P3 Different theories and approaches.....................................................................................7
M2 Strengths and weaknesses of different approaches as per situation of business..............8
D1 Critical analyse of different theories and approaches of leadership.................................9
TASK 3............................................................................................................................................9
P4 Key approaches of operations management and role manager and leader.......................9
P5 Importance and value of operations management in achieving business objectives......11
M3 Manager and Leader can improve effectiveness of operational management...............12
TASK 4..........................................................................................................................................12
P6 Factors of business environment which affects management and decision making of leader
and manager..........................................................................................................................12
M4 Analysis of these factors on business environment and community.............................13
D2 Critical analysis of application of operations management and factors affecting business
and society............................................................................................................................14
RECOMMENDATIONS...............................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
These days the role of business is not limited to providing goods and services. It is
important that manager has to analyse external market and then make plans and policies. It is
important that manager has to give emphasis on external as well as internal factors which proves
fruitful for improving condition of company. There is important role of manager and leader in
motivating employees and provide them best guidance which help them to work with full
efficiency (Akkerman,Farahani and Grunow, 2010). There are various activities in organisation
which has to be properly aligned, this will help manager in achieving targets on time and
reduction in production cost. There are possibilities that manager may haver to change their
plans and policies as per change in environment. This report is based on KPMG which provides
consultancy services. This company was established in 1987 and have head quarter in
Netherlands. This report discusses about role and characteristic of leader and manager and how it
is different. Theories and models used for motivating employees, importance of management and
operations. These days environment is changing, how this affects to management policies and
decision making.
TASK 1
P1 Definition and comparison of different roles and characteristics of leader and manager
Manager and leader sounds to be same but there is change in their roles and
responsibilities. It is important that manager and leader has to perform task with perfection so
that they can motivate employees in achieving business objectives. The role of manger and
leader is important these days if there is change in external and internal environment plans and
policies have to change. There is difference inn plans and policies of manager and leader
(Baldwin, Allen and Ridgway, 2010). They are discussed under-
ROLE OF MANAGER
ï‚· Decision making: This is the important task which has to be done by manager. They
frame plans and policies and provide guidance to workers how to achieve it. In case of
problem facing by employees it is important that manager has to deicide how to achieve
goals in most efficient manner.
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ï‚· Setting of goals: Every organisation has its own goals and objectives and it is important
to achieve them on time. It is important that gaols musty be setted which are achievable
and fruitful in achieving targets of company.
ROLE OF LEADER
ï‚· Motivating personnel: Objectives of company can be achieved with the efforts of
employees (Barratt, Cho, and Li, 2011). But it is important to motivate employees to
work energetic and diligently. Manger has to motivate employees which aims at
achieving targets on time and this improves efficiency of workers and company.
ï‚· Training: As change ion business environment, there is requirement of modifications in
working style also. In case of KPMG, if there is change in software of keeping data of
clients, then it is necessary that manger has to train workers how to work on new
software.
Differences between characteristics of Manager and Leader in respect to business
operations
Manager Leader
Manager helps in setting goals and objectives
which has to be accomplished by workers.
Leader helps employees in achieving goals and
targets.
Manager tries to accept the scenario which are
tries and proved. They are less innovative as
compared to leader.
Managers are innovative and accept new ideas.
They plan personnel by innovating new ideas.
This will help employees in getting in
achieving objectives on time.
Manager applies policies which targets at
controlling business risk.
Leader has to perform task by minimising risk.
There are possibility of failure or acceptance
when operations are done under changed
environment.
Manager plans for short term. Leader plans for long term.
Manager creates good and familiar relationship
with team mates.
Leader sets a strict flow within which
employees has to work.
Difference between role of leader and function of manager
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Role of Leader Function of Manager
Leader leads to team workers and provide them
assistance in case of problems. They use
different leadership theories and styles for
accomplishment of assign duty.
Manager has deal with operations of company.
There responsibility is to plan, control, direct
and guide to employees in their operations.
They form strategies for achievement of goals
and targets in time and with best services.
He/ she have to take care of training method
which has to be used in company. They have
analyse cost and time of it.
M1 Analyse difference between role of Leader and function of Manager
From the above discussion it is clear that manager has to perform task as per requirement.
Leader and manager sounds to be synonyms but there is requirement to take care of external as
well as internal factors which affects business operations (Brandon and Mullan, 2013). It is
important to make employees aware about change in society and though to make long relations
with client management of KPMG has to reframe policies and it must be c9omminicated to
employees so they know the relevance of modification.
TASK 2
P2 Role and functions of manager and leader in different business situations
Leaders and managers are considered as the single authorities with the help of which
business operations are being run in a systematic manner through which companies are able to
gain success in the market. They are being considered as the highest value factors for any
organisation because they are only making the employees work in an effective manner ans as per
the rules and regulations of the company (Chevalierand et. al., 2015). In KPMG also there are
various managers who are working in an effective manner so as to make the company achieve
much higher position in the market. The numerous roles and functions played by managers are as
follows:
Leaders and managers are considered as the single authorities with the help of which business
operations are being run in a systematic manner through which companies are able to gain
success in the market. They are being considered as the highest value factors for any organisation
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because they are only making the employees work in an effective manner ans as per the rules and
regulations of the company. In KPMG also there are various managers who are working in an
effective manner so as to make the company achieve much higher position in the market. The
numerous roles and functions played by managers are as follows:
ï‚· Decision making process:- It is being considered as one of the most important factor at
workplace which says that all the employees are required to be involved in decision
making so as to get new ideas from everyone (Ergun and et. al., 2010). This process is
required to be carried out by both managers and leaders as their motivation only will
provoke the employees to coordinate with the company and its members. It is very
essential that all the activities are required to be carried out after doing proper planning
so that the goals and objectives can be achieved. KPMG will also make sure that their
managers and leaders are doing proper planning so as to complete all the activities of the
company in an effective manner. So, decision making process is very essential for every
company.
ï‚· Delegation of authority :- This is also considered as one of the most effective factor at
workplace because through this it is made sure that each and every employee is having
some responsibility so as to make sure that an healthy work environment is maintained.
The higher authorities is having the responsibility to do proper planning and analysis
before assigning it to the employees and it is essential because employees should be
given only those responsibility which they can handle so that the work operations are not
affected. Therefore managers at KPMG are also required to do proper planning before
assigning roles and responsibilities to its employees so as to make sure that work is being
performed in an effective manner (Galindo and Batta, 2013).
ï‚· Employee engagement :- It is very important for every company to make sure that their
employees are working together as a team. This is considered as the responsibility of
managers to implement various types of programmes so as to make the employees
comfortable with each other. If this will happen then it will be a very beneficial for the
company as their goals will be achieved in an effective manner.
ï‚· Training and development :- It is the most crucial step which is required to be taken by
the managers so as to develop the skills of employees so that they will be able to perform
their work in an effective manner. Through these activities employees will also get an
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idea about the kind of work which is being con ducted inside the company. So, managers
of KPMG are responsible for introducing new training techniques in the company and the
leaders are required to make sure that the employees are taking full advantage of it.
P3 Different theories and approaches
Leadership is the way of influencing the behaviour of employees and it can easily be
executed by applying various strategies and theories in different situation for effective results.
Further, it can be supported by different functions of leadership in carrying out task in
appropriate manner (Gillen, Jacquillat and Odoni, 2016). The main leadership approaches
practices used by KPMG are stated below:-
Situational Leadership:-
It is consider as most popular approach in which organisation work is done according to
the situation. Strategies adopted under this approach encourage leader to take stock of their
workforce members and choose that leadership style that fits to the organisational objectives of
company. This approach is given by Paul Hersey that describe the relationship between leaders
and followers in which framework has been made according to situation which is based on the
amount of guidance and activities leader gives, amount of support related to socio-economic
factor that describe relationship behaviour. Therefore it can be explained in four stages:-
ï‚· Diagnose:- Under this step firstly company identify problems and in order to implement
all the changes in organisation it is essential to examine present situation in order to
influence the behaviour of employees.
ï‚· Adapt: Under this step to include all the modification which arises at the external market
of organisation for better manipulation.
ï‚· Communicate: whatever the changes company implement in their organisation structure
must be communicated to whole workforce for better outcomes in future (Hamilton,
Holub and Blunt, 2011).
ï‚· Advance:- under this step advance planning has been made in order to change the
behaviour and attitude of employees related to particular situation.
The main reason regarding the choice for organisation are as follows:-
ï‚· Develop staff and individual employee of organisation.
ï‚· Create coordination and bring cohesiveness in working operation of business.
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KPMG is a big audit firm which uses leadership theory in their corporate culture in order to
bring changes in the attitude and personality of staff members. Further it help in improving the
superior quality of product which enhance the position of organisation.
Systems leadership:
This leadership approach is describes as dominant method in which different framework
regarding presentation and interpretation of mechanism and reality are made. The whole
structure of organisation is set out according to the occasion and events of organisation (Kato,
NEC Corp, 2011).
Contingency approach:-
This is consider as safety mechanism for company which can be applied at the time
when organisation facing any complex situations. In order to satisfy customers needs, demand
and preferences firm has to scan both internal and external environment for taking rational
decision making. KPMG must design this approach at the time of any unprecitable situation
occurred.
Management by objectives:-
This leadership style is given by peter Drucker in year 1954 in which organisation has to
decide all the objectives and goals in advance and clearly communicate it to all the workforce
within specified time period. For career advancement of employees manager organise training
development programmes where they provide further direction for accomplishment of task and
lastly take feedback of them for further improvement.
Critical analysation of different theories:
Lastly KPMG require to critically analyse all the situation in which they can apply different
approaches are used according to the objectives of organisation (Omansky and Kanner, Autodesk
Inc, 2014).
M2 Strengths and weaknesses of different approaches as per situation of business
Every coin has two faces positive and negative. It is important that manager has to apply
theory which is beneficial in achieving goals and targets.
Approaches Strengths Weaknesses
Situational Leadership There is proper code of
conduct to be followed.
There is no innovation, so
employees many feel boring.
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System Leadership There is proper check on
working style of employees.
This sounds to be bounded and
employees does not feel
familiar and comfortable while
working.
Contingency Leadership Contingency approach requires
regular directions and
guidance which is beneficial as
there is continuous check on
operations and corrective
measures can be taken at that
time only.
As there is regular check so
employees can not work
freely.
Management by objectives In this approach there is
important role of manager and
leader and they provide best
way to accomplish task.
Manager can not concentrate
on other important task.
D1 Critical analyse of different theories and approaches of leadership
There are different theories which are helpful in achieving business objectives efficiently.
there are various employees having different mindset so it is important that manager has to apply
theories as per requirement of situation. According to Parsanezhad and Dimyadi, 2013 it is clear
as per change in business situation there is modification in behaviour of person also. To apply
these theories it is important that employees as well as employer both have to give joint efforts in
applying changes in operations. Situational theory is most important for KPMG as it says that
reaction of person can change as per change in situation.
TASK 3
P4 Key approaches of operations management and role manager and leader
Management is the way of organising, planning , directing and controlling of all the
measures that leads to effective operation of business. It is important for manager to consider all
the activities and provide guidance to their team in better ways. Leaders and manger both are
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important person who need to coordinate all the working of organisation and communicate with
each individual to know their problem and take corrective step for better results. In order to
implement all the changes taken place in external environment different approaches used by
KPMG are stated below:-ï‚· Lean production:- This is the most efficient method used for cost administration and
done production in efficient manner. Their are different types of method in which
alternatives are used to provide best services to costumers (Peng and Lai, 2012).
Appropriate action plan are made for better decision making.ï‚· Queueing and continuous production:- this approach consider complex at the time of
applying in organisation. It is generally used in big organisation in which focus given on
continuous production with breaks for maintenance of plant and machinery. For example
a machine operate for 24 hours but machine operator can't work for whole day. In case of
t-shirt manufacturing company they apply this approach so that demand for clothes
accomplished.ï‚· Six Sigma:- under this approach different set of tools and techniques are used for
process improvement. This approach is given by Bill Smith at the time of working with
Motorola in 1986. Further main objectives is to maintain the standard quality of goods
and services which improve the efficiency and effectiveness of employees. Apart from it
organisation uses different innovative techniques in order to reduce all the default arises
in overall management operation of business.ï‚· Just in time:- it is consider as systematic approach to fix specific time period for the
production of goods and services. This techniques is given by Toyota production system
in which product are prepared according to the needs, demand and preferences of
customers so that proper result can be accomplish in appropriate manner. If management
team design schedule of production then it will help in determining other activities in
order to reduce all the wastage of resources.ï‚· Total quality management:- this term can be described as term in which organisation is
planning to provide best quality of services without any errors (Sheu, 2010). In reality no
defect is not possible but management team must focus on minimum deficiency. The
main criteria is to reduce the wastage of resources and enhance sales profitability of
company.
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Role of manager and leader in operations management
In order to accomplish the objective of organisation leader and manager are consider
most important component in order to performing all task and target in better way. KPMG is
famous audit firm which provide advice related accounting services to their clients. If any
changes occur in organisation then they give the knowledge regarding laws regulation applied in
their financial strategies in order to save their clients from heavy penalty.
P5 Importance and value of operations management in achieving business objectives
Operations management is part of management which is beneficial in providing best
services to customer (Song and Parola, 2015). KPMG is consultancy firm which provides
financial guidance to clients. It is important that manger has to frame policies as per external
environment so that they can provide best solution to their customer.
IMPORTANCE OF OPERATIONS MANAGEMENTï‚· Synchronization in actions: Operational management is important in applying activities
in best and appropriate manner. It is important that manager has to give emphasis on
checking whether the activities are properly done or not. This will help in knowing which
has to be done after what. KPMG has big name in market and it is important to maintain
that this can be done only when customer get best services.ï‚· Proper communication: Operations department helps in creating good environment in
market so there will be proper communication among employees of different personnel.
KPMG has different vision and mission which can be achieved with joint efforts of
employees. So there are teams which work on achieving business objectives.ï‚· Achievement of target: Through proper communication there will be proper flow of
activities. The role of manager in providing guidance is important and it targets at
achievement of goals and objectives. As change in business operations, it is important to
train employees this will increase efficiency and skills of employees (Stadtler, 2015) .ï‚· Improvement in quality of services: Aim of KPMG is to increase profit which can be
achieved with the help of best quality services. So management of KPMG adopt best and
latest accounting policies. There are many clients of KPMG having various problems
which can be solved through different policies. Company has to see what is happening in
market and then frame policies. KPMG has competitors so if client is not satisfied with
their services, they can switch to other professional.
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ï‚· Cost control: There are many cost incurred such as direct, indirect cost, etc. so it is
important to control them so profit of organisation increases. It is important that manager
has to check for all activities are residual and hence they must be reduced. This will help
to use resources in optimal manner and enhance image in market.
Hence it is clear from above discussion that manger has important role in managing
business operations and it is possible with the help of employees also. It is important to create
coordination among different department so there is no repetition of activities(Subramanian and
Ramanathan, 2012). This will help to improve quality and cost of services. In case of KPMG,
there are many changes in accounting policies so it is important that operational manager has to
train personnel regarding new rules and regulations.
M3 Manager and Leader can improve effectiveness of operational management
Operational management aims at achieving objectives of goals and targets. It is important
to apply leadership and motivational skills so in case of problem it can be resolved. There is
important role of manager in improving effectiveness and efficiency of employees. Workers also
feel confident in dealing with outer world. They feel confident while working in organisation. In
case there is need of training then manager opt method which most appropriate.
TASK 4
P6 Factors of business environment which affects management and decision making of leader
and manager
Business operates in society and environment has dynamic perception so it is important
to check these factors and then apply it to business operations. There are internal as well external
factors which affects business operations in positive or negative manner. There are possibilities
that individual is not ready to accept new techniques then manager must tell them the importance
of that change. There are change in decision making of manager and then it must be
communicated to lower level personnel.
EXTERNAL FACTORS
These are the factors are not in business but affects business adversely. These factors are
not in control of management of KPMG, but they have to alter their plans and policies. External
factors includes-
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ï‚· Political: KPMG operates in different parts of company so it is important that manage
has to apply policies as per government norms of surroundings. There are possibilities
that UK government and Indian government has different policies so there must be
change in strategies as well (Tang and Musa, 2011).ï‚· Economical: Economical factors means finance related policies, so it is important that
manager has to adopt sources which is most frequent and easily available. But in case
there is change in financial factors then it affects business operations.ï‚· Social: There is change in social, culture and ritual of India as well UK. So same policies
can not be applicable at both the places. There is change in policies of manager also, as
change in culture of society.
ï‚· Technological: Technological is changing very frequently. If technology changes then it
is important that it has to applied in KPMG also. Technological changes affects business
operations as there is need to train personnel and in case of any problem it has to be
solved.
INTERNAL FACTORS
These factors also affects business in adverse manner and it is important to consider these
factors otherwise it affects business growth. This affects the operations of business. Internal
factors includes:ï‚· Customer- Customers are the key for achievement of business objectives. It is important
that there are changes in plans and policies of as per requirement of customer. It is
important to accept what is current need and then portrait to customer (Ward and et. al.,
2010).ï‚· Supplier- Supplier has to power to affect business operations. KPMG is big brand so they
can not change supplier overnight so it is essential to keep supplier satisfy.
ï‚· Stakeholders- There is need of finance in business operations as it is important for
running of business. There are some people who affects from the dealings of company
hence it is important to tell them about changes which are happening in business.
M4 Analysis of these factors on business environment and community
Above mentioned factors are important as it affects business. But it is important that
manager has to analyse these factors regularly and modify plans and policies. It is not possible to
grow and expand business without knowing competitors policies. Business operates in society so
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there is affects on society also. KPMG is a company which provide consultancy services so thety
must keep up-to date knowledge.
D2 Critical analysis of application of operations management and factors affecting business and
society
Management has to b e done by top level management of KPMG and it is important that
manager has to perform their task in appropriate manner. This will help in growth of company.
According to Yang, Hong Modi, 2011 it is important to apply environmental changes in business
operations so this will help in increment of profits. As business operates in society so its factors
also affects activities of business. It is important to apply policies which are beneficial for society
and employees also.
RECOMMENDATIONS
As per above discussion, following recommendations are there-
ï‚· KPMG consultancy firm has to take care of Competitor's policies. If they do not consider
them then can loss their consumer.
ï‚· Leadership theories are important as they are useful in making employees motivated to
work with full energy.
ï‚· There is change in goals and objectives of individual and organisation. Hence, manager
has to bridge gap between both and frame policies.
CONCLUSION
From the above discussion it is clear that the role of manager and leader in business is
increasing day by day. There are numerous employees in organisation and hence it is important
to motivate them as per their perception. There are various types of leadership stylers which has
to be adopted. It is not possible that same plans and policies can be used for long time so there is
need to change plans and policies after analysing external as well internal factors. There is use
of different models and theories which are beneficial in improvement of skills and efficiency. If
manger does not modify policies then it will be out of run in competitive world. There are
possibilities that there is change in perception of employees as change in situation so manger has
to change policies so they are competent with outer world.
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REFERENCES
Books and Journals
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Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
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environmental management on business performance: An empirical study of
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Online
The systems approach to operational management. 2018. [Online].Available
through:<https://www.citeman.com/1122-the-systems-approach-to-operational-
management.html >.
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