Leadership and Management Report: Roles and Theories in Business

This report delves into the realms of leadership and management, focusing on the Arcadia Group as a case study. It begins by differentiating between the roles and characteristics of leaders and managers, highlighting their functions in various situational contexts such as conflict resolution and policy formation. The report further explores different leadership theories and models, including situational leadership, system leadership, and contingency management, and their application within the organization. Furthermore, it examines key approaches to operations management, such as lean approaches and total quality management, emphasizing their importance in achieving business objectives. The report concludes by analyzing the factors within the business environment that affect operational management and the decision-making processes of leaders and managers, providing a comprehensive overview of the subject matter.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different roles & characteristics of leaders and managers....................................................3
P2 Role of a leader & functions of a manager used in different situational context with an
example.......................................................................................................................................5
P3 Different theories and models of approach, including situational leadership, system
leadership & contingency............................................................................................................6
TASK 2............................................................................................................................................8
P4 Key approaches to operations management and role that leaders & managers play.............8
P5 Importance & value of operation management in achieving business objective...................9
P6 Factors of business environment that affects operation management & decision making by
leaders & managers...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operational management is a process performed by administration department to design
& control the production process and to enhance productivity, profitability and to achieve
objective of the firm. This report defines Leaders & Managers and compare roles and
characteristics of leaders & managers of Arcadia Group. Arcadia Group is multinational clothing
brand which includes variety of products such as cloths(Denims, shorts, tops etc.), accessories
and shoes in its portfolio. Further, this report explains role of a leader & functions of managers
in different situational context with the help of an example. Furthermore, this report includes
different theories & models of approach which includes situational leadership, system leadership
& contingency. Moreover, this report includes various approaches of operation management
such as Lean approach, Six sigma and Total quality management. Further, this report highlight
importance & values of operation management in achieving business objective. At last this report
highlights all the factors that affects operational management and decision making by leaders
and managers.
TASK 1
P1 Different roles & characteristics of leaders and managers
A Leader is a person who influence its subordinates to work and enhance their confidence
by motivating them so that they can achieve organisational objective. Main focus of a leader in
an organisation is to achieve organisational objectives (Antonakis and Day, 2017).
Manager is a person whose main focus is on task and manager always focuses on
enhancing productivity by effective utilization of resources. Leader of Arcadia Group focuses on
achieving its objective whereas managers focuses in improving productivity and output.
Comparison of Roles & Characteristics of Leader & Manager-
Leader Manager
Role of Leader & Manager  Role of leader of
Arcadia Group is to set
a vision and objective
for overall organisation
and to ensure that all
objectives are
 Manager of Arcadia
Group perform a role
of setting goal &
achieving goals and
ensures efficiency of
work by reducing the

achieved.
 Leader also analyses all
the external factors
affecting the business
of Arcadia Group.
cost.
 Role of manager is to
analyze all the internal
factors which affects
productivity &
performance of
employees of Arcadia
Group.
Functions of Leader &
Manager
 Co-ordination- A
Leader coordinate with
employees of Arcadia
Group and consider
interest of each
individual and process
that with the objective
of the organisation.
 Direction &
Motivation- Leader
motivate & direct
employees of Arcadia
Group. Thus they can
achieve objective of
organisation.
 Organizing, setting
goals and teamwork are
functions that are also
performed by Leaders
of Arcadia Group
(Graham and Potter,
2015)
 Planning- Managers of
Arcadia Group make a
structured plan as to
maximize productivity
& profits.
 Directing- Manager
form guidelines and
give day- day
directions to employees
of Arcadia Group to
improve efficiency of
task.
 Beside, this functions
manager also perform
functions such as
Organizing, Staffing &
Controlling.

Characteristics of Leader &
Managers
 Proactive- Leader of
Arcadia Group gives
guidelines, make
policies, control &
check the process.
 Personal Quality-
Everyone in the
organisation cannot
perform leadership role
because it required
skills to lead.
 Process of Influence-
Leader of Arcadia
Group induces its
subordinates to achieve
companies objectives.
 Reactive- Manager are
reactive because they
only make policies and
guidelines.
 Knowledge &
Experience- Managers
cannot perform their
role if they are not
experienced.
 Leadership- Managers
of Arcadia Group has
leadership quality
with that they motivate
its employees to
perform the task.
P2 Role of a leader & functions of a manager used in different situational context with an
example
Leaders & Managers perform various roles & functions according to different situations
arising in the work place such as, Conflict Resolution, Policy framework, change in technology
and increased competition (Schjoedt, and Valencia, 2018).
Conflict Resolution- There is a situation in the firm that leads to fights & conflicts among
individuals of Arcadia Group so resolve the conflicts managers and leaders of the company
performs various functions.
 Role of Leader- Role of Leader is to develop and guide individuals & teams through
coaching so that there is no scope of any fight or conflict. Role of leader is to resolve the
conflicts at a right time, when they have evidence or proof. Leaders in Arcadia Group
have to make different strategies & policies for each level in the organisational hierarchy
which in turn leads to less conflicts.

 Function of Manager- If any conflict or fight occurs in the work place than managers of
Arcadia group has to resolve it by taking strict action against those employees and
explain them all the rules & principles of the company and direct them to follow that
rules. Organizing is the main function of management which helps manager of Arcadia
Group to resolve conflicts in the firm by making structured decisions. Manager also
direct & control work of its subordinates which in turn reduces chances of conflicts &
fights. (Otley, 2016)
Policy Formation- Arcadia Group frame various policies & guidelines time to time for the
betterment of its employees & the firm. In this company made a policy regarding changes in
working hours, thus managers & leaders also perform various roles & functions to manage this
situation in the organisation.
 Role of Leader- If Arcadia Group made a policy as to change in working hours of the
company than it is the role of Leader of the company to communicate it to all the
individuals working in the company and ask them that they are comfortable with the new
timings or not, And if employees are not satisfied with this timing than it is the
responsibility of leader to communicate it with the management.
 Function of Manager- According to Communicating function of management,
Managers of Arcadia Group has to communicate the new policy regarding changes in
working time or hours and direct all the employees of the company to follow the new
timing. Managers also perform function of controlling & monitoring in which manager
will monitor whether the new timings are followed by all the employees or not.
(Wikström and Treiber, 2016).
P3 Different theories and models of approach, including situational leadership, system leadership
& contingency
Situational Leadership- This is the best theory of leadership in which leaders provide
directions, coaching, support & delegate guidelines to its subordinates so that they can achieve
companies’ objectives successfully. This approach benefits Arcadia Group because with the help
of proper direction & support individual’s skills are improvised and it boost morale of its
employees. According to this approach, leaders change their leadership style according different
situations arising in the organisation. Arcadia Group implement this approach by using following
styles-

 Directing- In this phase, the leader of Arcadia Group makes plans & give the detailed
information about the plan to its subordinates and direct them to do exactly what they
told to them which in turn enhances performance of the employees (Situational
Leadership, 2019)
 Coaching- In this style leaders of Arcadia Group make decisions, monitor day to day
performance of employees and give coaching to its subordinates as to increase their
morale & confidence. Arcadia Group use this approach for new & unskilled employees of
the company.
 Supporting- In this style leaders in Arcadia Group give support to its subordinates by
motivating them and by increasing their confidence level. Arcadia group use this style for
directing & supporting its old & experienced employees (Storey, 2016).
 Delegating- In this style all the task is performed by the subordinates only and the
leaders’ role here is to give feedback to them so that they can make changes accordingly.
System Leadership- Arcadia Group has its business in many countries across the world and
it has a hierarchical structure thus system leadership approach helps leader to create an
environment where individuals working at different level can complete their task effectively &
efficiently. This approach form various models, organisational strategy & processes which helps
in controlling people working at different level in a firm. This approach helps leaders to know
the behavior of individual working in the organisation. This approach of leadership helps leaders
of Arcadia Group to make an effective system which in turn enhances productivity of the
employees. System Leadership Approach also used in different situation in the organisation such
as-
 Conflict Resolution- Through system leadership approach, leader learn behavior of
individuals working in an organisation which in turn helps in resolving conflicts among
the individuals working in company.
 Policy Formation- In this approach of leadership leader make models and strategies thus
leader in Arcadia Group perform its role by making changes in the models & strategies
according to changes made in the policies.
Contingency Management- The contingency approach is an idea which says that the
personnel should change their attitude and way of working according to the different
circumstances. Thus, this theory is beneficial for the Arcadia company as it helps their

employees to learn from difficult situations and get it resolves on their own way. Thus, the
contingency management helps the company in framing different policies and reducing conflicts
that occurs between personnel by encouraging them to work effectively and efficiently in
different challenging situations. Managers of Arcadia Group train its employees in a way so that
they can easily adapt the changes and work efficiently (Senge, Hamilton and Kania, 2015).
Action Centred Theory- It is a model of leadership which helps leaders of company in
encouraging & motivating its employees. This model provide guidelines to leaders so that they
can manage task and individuals of their teams. According to this model leaders of Arcadia
Group can manage three elements as this model it is a three circle model. With the help of this
model leaders of company can achieve task in an effective & efficient manner. Further, it also
benefits company in managing individuals & teams.
Transactional Theory- According to this theory of leadership managers and leader of
business firm motivates & encourage their employees by giving them task which is in their own
interest or one in which employees are skilled. Leader of Arcadia Group motivate its employees
by giving them rewards and punishment. Employees does activities & follow instructions of
leader only and they do not work on their own.
Transformation Theory- According to this theory of leadership leaders of Arcadia
Group influence & motivate its team members to generate new ideas sop that copmpany can
easily achieve goals of company. With this theory individuals apply new ideas and make
innovation in their activity.
TASK 2
P4 Key approaches to operations management and role that leaders & managers play
Operations management is business practices that create high efficiency with in
organization. It means converting raw material and labor in goods and services and increase
profitability. Its main purpose is optimum utilization of resources.
Lean approach – it means that is a way of think about beginning and improve business
model according to plan and its focus on customer development for achieve organizational goal.
This approach is useful in continuous development through evaluate that what step not give
value in business. So Arcadia Group use this approach for improve thinking of manufacturer and
eliminate waste of time and optimum utilization of resources. Then it delivers goods and services
to exact quantities according to customer want.

 Role of leaders- it gives ideas of thinking in new way of every aspect of Arcadia Group
for successful. It also focuses on remove defects and error. They also introduce that
opportunities of improvement and increase value of workers so for this they provide
training to employees for develop skills and efficiency.
 Role of managers – its make goal and strategies for improving operations and manages
performance. It also creates environment that improve continuous bases and actively
solve problem. It plays main role in build good relationship for develop skills (Formentini
and Taticchi, 2016).
Six sigma- it is disciplined approach of operational management and it is helpful in improve
quality of current product and remove defects and error from Arcadia Group. It also focuses on
reduce cost of products and save time. Six sigma's training provide by organization to engineers
and employees so engineers knows that how to do it and employees knows about communication
with engineers for solve issue.
 Role of leaders – its play main role in remove barriers that affect successful completion
of the project and remove wastages so for that they give direction to employees.
 Roles of managers – managers evaluate that employees do works or not according to
given direction.
Total quality management – this approach is useful in manage long term success of Arcadia
Group through provide customer satisfaction. Because through this all members of organization
focus on quality, taste, trend, fashion and choice of customers and detect errors during
production. Its main purpose is that continue improve of quality of product and meet objective of
organization.
 Role of leaders – leaders improve strategy for total quality management and evaluate
factors that affect organization like internal and external factors (Graham and Potter,
2015).
 Roles of managers – Role of managers is to analyse the performance of employees of
Arcadia Group ensure that the performance is in accordance with needs of customers and
new trends.
Craft manufacturing :- it is a process that produce products without tool because it made
through with hand. Many peoples have hobbies of produce products with creativity.

Leaders improve performance and working condition of organization because it leads to all
employees and focus on timely work. Handicrafts sale on very high price that helps in increase
revenue and managers manage time cost and focus on optimum utilization of resources like
lobar.
Mass production :- it means that organization produce large number of products through use of
technologies. So that it helps in save cost because if organization produce large number of
products and huge quantity so that provide huge benefits to organization.
Leaders lead to employees for produce mass products so they give supports to employees and
make new and different strategies and managers of organization motivate to them for produce
large products through provide benefits and rewards.
Modern period approach :- this approach helps in produce products and services according to
modern period. That helps in attract customers and produce products according to customers
choice and fashion and latest trend so it produces through technologies.
Leaders evaluate and analyse market for knows about the latest technologies and innovation.
Managers also focus on adopt modernization through new technologies for improvement and
development that helps in increase sales and profit.
P5 Importance & value of operation management in achieving business objective
Operation management is process of planning, organizing and controlling process that
helps in meet objective of organization. Objective of Arcadia Group is to retain customer loyalty
and increasing market share by offering high quality & fashion frenzy products in the market.
Importance of operations management:
Product quality – operation management is important for improve quality of product and
it also manages quality so it can help in removing errors from the process of production. That is
important in deliver product with quality to customer and fulfill their needs for establish long
term relationship with customers. Through this sales and profitability increase and cost save. So
it is helpful in achieve Arcadia Group's objectives.
Customer satisfaction- customer satisfaction and production and sales is interdependent
with each other because operations management works for satisfaction of customer so that it
research about market condition, choice of customers and latest trend and produce according to
their needs on reasonable price. After research of markets it produces products and services

according to their needs so these things helps in attract customers. So Arcadia Group easily
achieve their goal (Piran, 2016.).
Revenue increase – operation management also focus on increase revenue. They provide
customer satisfaction and produce quality product so its helps in increase revenue because
through this it builds their reputation in market and its helps in attract customers. Through this
market share increase of Arcadia Group and growth increase.
Waste reduction – it helps in meet objective of Arcadia Group because operation
management use approach of six sigma, lean and TQM for improve their product and reduce
wastage and detect errors who create barriers in improve and increase of profitability. It is also
reduces wastage and cost of product.
Optimum utilization of resources – operation management give direction to
organization's employees for optimum utilization of resources because its remove wastage and
companies main purpose is to create maximum output with limited resources and increase
profitability because organization produce products according to demand and choice of customer
so it invests capital according to production and it helps in save cost. Its helps in easily achieve
organizational goals.
Planning the system – operations management important for planning of systems that
how to change process of product, adopt of changing, according to demand of customers. So the
company make plan and strategy which enhances production with quality product and detect all
traditional things and errors that create barriers in create value for customers.
P6 Factors of business environment that affects operation management & decision making by
leaders & managers
Most factors that affects to operation management and decision making by leaders and
managers like external and internal factors. Arcadia Group use tool for analyze factors that affect
externally that is PESTLE analysis. Its stands for P- political, E- economic, S- social, T-
technological, L- legal and E- environmental factors and SWOT analysis also tools of analyze
internal environment that affect performance of Arcadia Group. Its stands for S- strength, W-
weakness, O- opportunities and T- threat. Through this analysis organization knows about
strength that is good for organization and helps in achieve goals. Weakness is shows that what
factors present in organization that affect in negative way and create problem in achieve goal.
Opportunities shows that organization has positive things that helps in meet objective and

improve and develop so it gives direction to organization for expand their business and
productivity. Threats is also a factor that affect organization from increasing competitors of same
size and same product.
Political factors- political factors affect to decision making and operation management
because tax rates, legislation and political instability are flexible matters so its affect to decision
making. Arcadia Group has its business at global level and if suddenly tax rate changes so it has
to face difficulties and it also affect decision of manager and leaders about quantity and quality
of production. Company also has to face trade restrictions(Shin, 2015).
Economic factors – it includes economic growth, interest rate, inflation rate and
exchange rate etc. it all things direct affect to operation management and decision making of
manager and leader because if inflation rate increase so its effect of production due to increase
of raw materials rate. Exchange rate effect on export and import of Arcadia Group because if rate
of exchange is increase so it reduce their supply and its face difficulties in decision-making of
company about production and making profitability.
Social factors – Arcadia Group management and its decision making majorly affect
from social factors like population growth, choice, fashion, latest trend and taste of customers.
Because its majorly works of evaluate markets, improve product and detect errors that who
create barriers in achieve organizational goals. So its affect to their production and supply and
distribute of product in systematic manner to customer.
Technological factors – Day by day technology increasing and due to this competition in
manufacturing is also increasing. So Arcadia Group has to also adopt latest technology to
improve their product so it consume more cost. It affects to production because company use
cheap quality raw material in production and also has to provide training to their employees. So
it also consume more cost and more time.
Legal factors – legal factors includes quota, taxation, import and export and resources.
So through these reasons company has to follow all rules related to company and its process. So
its mainly affect to decision making and operation management of Arcadia Group. Because
government make policy and create barrier for control on import. Government evaluate economy
time to time and for control on all matter it is make policies. So company has to follow and
managers and leaders has to work with policies so its direct affect to their decision making
(Walker, 2015.).