Developing Leadership and Management Skills: A H&M Case Study Report

This report provides a comprehensive analysis of leadership and management, focusing on the Swedish multinational retail-clothing company, H&M. It begins by comparing and contrasting leadership and management, highlighting the distinct roles, skills, and behaviors associated with each. The report then delves into the application of these concepts within H&M, examining key performance indicators (KPIs) such as store sales growth and their significance in evaluating the company's overall performance. The discussion covers the importance of effective management for achieving organizational goals and the critical role of leadership in inspiring and motivating employees. The report also touches upon management theories like systems management and behavioral theory to provide a deeper understanding of leadership styles. It concludes with an analysis of H&M's strategies and the impact of leadership and management on its success in the competitive retail industry.

Developing Leadership and
Management Skills

INTRODUCTION
Management is the organization of folks that make choices on how the commercial
enterprise can be run and worthwhile in all dimensions of the agencies or agency. In fact, those
people who are concerned in the preference making of the organisation and are referred to as the
control are responsible and responsible earlier than the strategic leadership within the
organisation (Jamieson and Donald, 2020). Management is the initiative and protection of an
investment portfolio inside the business enterprise in all the methods to fulfilment achievements.
This is the control in which the business enterprise offers with dealing of subjects in unique
sectors for enhancing the productivity and profitability in every vicinity of the agency of the
business enterprise. Management is best or artwork of influencing others or motivating a hard
and fast of human beings to the venture if you need to acquire the desires in the enterprise
corporations. Leader is the only who holds the characteristics of the management and is likewise
the person who conjures up others and directs them to do something super for not unusual
desires. People no longer only look at the leader but moreover they do this willingly and happily.
True chief takes his/her people with and jump ahead with the awesome morale and institution
spirit. For the completion of this assessment, H&M is taken into consideration. H & M Hennes &
Mauritz AB (H&M) is a Swedish multinational retail-garb corporation, acknowledged for its
fast-style apparel for men, women, young adults, and youngsters’ H&M (Hennes & Mauritz) AB
incorporates six independent producers: H&M, COS, Monki, Weekday, Cheap Monday and &
Other Stories. H&M’s format team creates sustainable fashion for all, constantly at the nice
price. The collections encompass the entirety from wonderful birthday celebration collections to
important fundamentals and functional sports clothing – for girls, guys, teens and children, and
for each season or event. In addition to clothes, footwear, bags, earrings, makeup, and underwear
there is additionally H&M Home – elegant interiors for kids and adults. As of November 2019,
H&M operates in seventy four nations with over 5,000 stores underneath the various employer
manufacturers, with 126,000 full-time equal positions. It is the second-largest global garb store,
at the back of Spain-based totally Inditex (Karagianni and Jude Montgomery, 2018). This
corporation turned into incorporated in 1947 and is situated in Stockholm, Sweden. This
assessment will discuss about the analysis and comparison of leadership and management as well
as key performance metrics of organisational sector/market/industry. Furthermore, it will explain
about the organisational leadership and performance in detailed manner.
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MAIN BODY
Analysis and comparison of leadership and management
Management and leadership are critical for the shipping of correct services. Although
the two are similar in some respects, they can also comprise precise sorts of outlook,
skills, and behavior. Good managers want to try to be fantastic leaders and correct leaders,
need management talents to be effective (Bush, Bell and Middlewood, others and evolve
techniques for realizing the vision. They inspire people and are in a function to negotiate for
property and different resource to acquire their goals. Managers ensure that the available assets
are well prepared and carried out to offer the top notch results. In the resource limited and
hard environments of many low – to middle-income international locations, a supervisor
need to additionally be a leader to accumulate pinnacle-rated consequences.
A manager is a member of an commercial enterprise company with the obligation of carrying out
the four essential features of control: making plans, organizing, main, and controlling. Most
managers also will be inclined to be leaders, however great if further they very well perform the
management duties of control, which encompass communiqué, motivation, presenting idea and
steerage, and provoking personnel to upward thrust to a better diploma of productiveness.
Unfortunately, now not all managers are leaders. Some managers have poor control tendencies,
and employees comply with orders from their managers because of the truth they are obligated to
perform that—not always because of the truth they may be brought on or inspired with the aid of
the leader. Managerial duties are normally a right a part of a interest description; subordinates
observe due to the professional choose out or designation. A supervisor’s chief consciousness is
to satisfy organizational dreams and goals; they normally do not take an lousy lot else into
attention. Managers are held answerable for their moves, further to for the movements in their
subordinates. With the call come the authority and the privilege to promote, lease, fire, concern,
or praise employees based mostly on their overall performance and behavior.
The primary difference among manage and control is that leaders don’t necessarily keep or
occupy a manipulate role. Simply placed, a frontrunner doesn’t need to be an professional
discern inside the agency; a frontrunner may be each person. Unlike managers, leaders are
determined because of their character, behaviour, and ideals (Sousa and Rocha, 2019). A leader
for my part invests in duties and obligations and demonstrates a excessive diploma of passion for
work. Leaders take a terrific deal of hobby inside the achievement of their followers, letting them
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reach their dreams to pleasure—the ones are not continuously organizational desires. There isn’t
usually tangible or formal strength that a frontrunner possesses over his lovers. Temporary
energy is obtainable to a leader and can be conditional based totally mostly on the capability of
the leader to constantly inspire and encourage their enthusiasts (Hartviksen and et. Al., 2018).
Subordinates of a supervisor are required to obey orders whilst following is optionally to be had
close to management. Leadership works on belief and trust among personnel; individuals who do
preference to have a look at their chief can also moreover forestall at any time. Generally, leaders
are people who project the reputation quo. Leadership is exchange-savvy, visionary, agile,
progressive, and adaptive. The most crucial difference among leaders and bosses is that leaders
have humans have a look at them whilst managers have individuals who art work for them.
While there are many traits that make up a strong leader, some of the key characteristics
are:
Honesty & Integrity are essential to get their people to consider they and purchase in to the
adventure they are taking them on.
Vision comprehend wherein they are, in that they need to transport and be part of their
group in charting a path for the destiny.
Inspiration inspire their team to be all they're capable of by ensuring they understand their
function in the bigger photo.
Ability to Challenge do not be afraid to project the fame quo, do topics in any other case
and feature the braveness to assume outdoor the sector.
Communication Skills preserve their crew informed of the journey, in which they're,
wherein they're heading and percent any roadblocks you can stumble upon along the way.
Some of the not unusual traits shared by way of robust managers are:
Being Able to Execute a Vision takes a strategic vision and destroys it down into a
roadmap to be observed via the organization (Marescaux, De Winne and Forrier, 2019).
Ability to Direct day-to-day art work efforts, assessment sources needed and count on
needs alongside the way.
Process Management set up paintings rules, tactics, standards and working processes.
People Focused look after your humans, their desires, concentrates to them and includes
them.
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Systems Management Theory- Systems management offers an possibility technique to the
planning and control of companies. The structures control principle proposes that organizations,
just like the human body, consists of more than one components that paintings harmoniously so
that the bigger machine can characteristic optimally. According to the precept, the success of an
organization depends on numerous key elements: synergy, interdependence, and interrelations
between various subsystems. Employees are one of the most vital components of a corporation.
Other elements important to the fulfilment of a business are departments, workgroups, and
commercial enterprise gadgets. In practice, managers are required to assess styles and activities
in their businesses if you want to decide the best control method. This way, they're capable of
collaborate on exclusive packages so as to paintings as a collective whole rather than as isolated
devices.
Behavioural concept- The behavioural management idea specializes in how leaders
behave, and assumes that those tendencies may be copied by means of other leaders. Sometimes
known as the fashion idea, it shows that leaders aren’t born successful, however can be created
based totally on learnable behaviour. Behavioural theories of management cognizance closely on
the actions of a pacesetter—this principle shows that the first-rate predictor of leadership success
is viewing how a frontrunner acts. Action in place of features is the focal points of behavioural
getting to know idea. Patterns of behaviour are found and labelled as “forms of leadership” on
this principle. Some of the kinds of management encompass mission-orientated leaders, humans-
oriented leaders, membership leaders, reputation-quo leaders, dictatorial leaders, and extra. At
the end of the day, the movements and real behaviours of a frontrunner are what define
achievement on this concept.
Key performance metrics of H&M
Key performance signs (KPIs) talk to a set of quantifiable measurements used to gauge a
enterprise’s average lengthy-time period performance. KPIs specifically assist determine a
corporation's strategic, monetary, and operational achievements, mainly as compared to those of
different companies in the equal zone. A Key Performance Indicator (KPI) is a measurable price
that demonstrates how correctly an agency is reaching key commercial enterprise targets.
Organizations use KPIs to evaluate their success at achieving goals. They reveal how
efficaciously a agency is attaining key enterprise objectives, and they can span throughout
industries, departments or person obligations. KPIs are evaluated over a distinctive time period,
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and are in comparison against beyond performance metrics or suitable norms (Jamieson and
Donald, 2020). As KPI, metric and measure are phrases that during many approaches function
the constructing blocks for how enterprise performance is both assessed and done, it’s paramount
to have a fundamental know-how of them and understanding of a way to outline the agency's
KPIs. Business metrics, also known as KPIs (key overall performance indicators) display a
measurable value that indicates the development of an employer’s enterprise desires. They are
generally tracked on a KPI dashboard. Business metrics imply whether an enterprise has
completed its dreams in a planned time frame. There several KPI which support a business to
determine their business as per their set business goals. The description of some of them
regarding H&M:
Store Sales Growth- H&M not discloses month-to-month same hold sales information. That’s
outstanding with me if we communicate approximately month-to-month data, however I would
possibly very similar to to understand what same shop income, at the least year-over-twelve
months, seem like. Especially in a case like H&M had been increase in new stores may also need
to mask the general performance inside the present day-day and vintage shop depend. Too
horrible, H&M does no longer offer those records to out of doors traders (Karagianni and Jude
Bernard Law Montgomery, 2018). Of course the relative cost of these metric declines as online
profits makes up a extra a part of standard income. But, considering the fact that H&M does now
not escape its on line sales, must out of doors passive minority buyers interpret this as a reality
that on line income makes up a non-material part of overall sales? Because if online income
made up a material and great part of overall income, shouldn’t this facts be disclosed in the
annual record? Same store sales growth is a applicable metric so long as there are physical retail
shops making up a fabric a part of standard income. And with the present day method of
preserving a excessive growth rate and increasing the entire quantity of retail shops, it appears
unreasonable to anticipate this to alternate for some time. Thus, same store income statistics is a
metric of hobby to traders and have to consequently be disclosed, at the least on an each 12
months foundation inside the annual document.
Quality of Financial Reporting- Analysing H&M’s annual document for financial 365
days 2015 gives a few extraordinary insights into the enterprise (Bush, Bell and Middlewood,
2019). Although there are a few things that an out of doors passive investor may probably very
much like H&M not discloses month-to-month same hold sales information. That’s outstanding
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with me if we communicate approximately month-to-month data, however I would possibly very
similar to to understand what same shop income, at the least year-over-twelve months, seem like.
Especially in a case like H&M had been increase in new stores may also need to mask the
general performance inside the present day-day and vintage shop depend. Too horrible, H&M
does no longer offer those records to out of doors traders (Karagianni and Jude Bernard Law
Montgomery, 2018). Of course the relative cost of these metric declines as online profits makes
up a extra a part of standard income. But, considering the fact that H&M does now not escape its
on line sales, must out of doors passive minority buyers interpret this as a reality that on line
income makes up a non-material part of overall sales? Because if online income made up a
material and great part of overall income, shouldn’t this facts be disclosed in the annual record?
Same store sales growth is a applicable metric so long as there are physical retail shops making
up a fabric a part of standard income. And with the present day method of preserving a excessive
growth rate and increasing the entire quantity of retail shops, it appears unreasonable to
anticipate this to alternate for some time. Thus, same store income statistics is a metric of hobby
to traders and have to consequently be disclosed, at the least on an each 12 months foundation
inside the annual document.
Analysing H&M’s annual document for financial 365 days 2015 gives a few extraordinary
insights into the enterprise (Bush, Bell and Middlewood, 2019). Although there are a few things
that an out of doors passive investor may probably very much likeunderstand, approximately
which H&M says nil. A few belongings you probable would like to realize approximately are:
Sales per area, in line with US, at the shop level, as well as income in line with rectangular
meter – for every principal brand inside the portfolio.
The profitability of the industrial agency – that is, earnings margins and invested capital
turnover, together making up the go back on invested capital – and any changes going on and the
reasons explaining any enormous adjustments in underlying tendencies – over again for every
essential emblem within the portfolio.
Tangible and intangible capital expenditures – each upkeep and boom – break up a few of
the principal manufacturers in the portfolio.
Revenue growth – probably on a quarterly foundation, but as a minimum 12 months-over-
12 months – in line with location, consistent with UK and at the store level – and once more
you’d want to apprehend this for each essential brand.
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Social media follower- This is an important degree if your business agency achievement
depends upon robust branding. Strong brands hold a check on there social media fans on all
platforms they utilize. The most popular ones are Facebook, Twitter, LinkedIn, Instagram,
Tumblr, Snapchat, and many others. The social media lovers artwork much like the social tribe
of the industrial company and their opposition key a eager eye on this metric. So, they should
interest on developing your enthusiasts and preserve a take a look at on it (Sousa and Rocha,
2019). The social media equipment have an in-constructed feature to classify their fanatics based
totally on pursuits and demographics. Businesses are greater concerned about their social media
follower’s growth price. Facebook, like many exceptional brands is likewise the primary
platform for social media advertising and marketing and advertising and marketing for H&M.
There are more than 32 million fans of the logo on Facebook. It posts regular updates
approximately the modern merchandise and designs further to any sports or marketing and
advertising campaigns it organizes. H&M's principal Twitter account has more than eight.6
million fans. H&M has made 3761 posts on Instagram and has 22.Nine million followers,
following its logo.
Organisational leadership and management performance
Organizational ledership is a manipulate technique in which leaders assist set strategic
goals for the agency on the same time as motivating people within the organisation to
successfully carry out assignments in provider to the ones desires. It contains a broader scope of
responsibility than conventional manage (Hartviksen and et. al., 2018). It communicates the
mission and vision, establishes the strategic plan, and evokes individuals to put forth their talents
to fulfil the desires aligned with the strategic plan and, in the end, the chief’s vision. In H&M,
organizational leadership is essential because it:
Motivates crew individuals- Team members respond in kind to the chief. They may be inspired
to mirror the boom mind-set for their businesses and themselves and keep in thoughts how they
are able to in my opinion make contributions to the forward momentum of the employer as a
whole.
Allows for a hassle-solving and choice-making attitude- In a psychologically-safe
environment in which people are not afraid to talk up, superb thoughts can emerge. When a
pacesetter entrusts the human beings hired into their roles to increase solutions and make
selections, exponential growth is feasible.
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Promotes communiqué, ethics, inclusion, and apprehend- The particularly emotionally clever
organizational leader communicates in all tactics that every employee's contributions are
professional, as every role is vital to the agency's ahead motion as a whole (Marescaux, De
Winne and Forrier, 2019). The leader shares the agency's values and models the verbal exchange,
ethics, inclusion, and respect predicted of each character.
Allows organizational leaders to stay goal-oriented- With people empowered to satisfy their
roles and broaden contemporary solutions, the organizational leader may additionally cognizance
on the larger photograph: moving the project in advance with an eye on navigating the annoying
conditions earlier.
Performance control is a corporation manipulate tool that allows managers show display and
compare employees' art work. Performance manage's goal is to create an surroundings wherein
people can carry out to the nice of their abilities to provide the incredible-quality art work most
efficaciously and efficiently (Rubens and et. Al., 2018). In H&M, a right overall performance-
control application enables managers and employees see eye-to-eye approximately expectations,
dreams, and profession development, collectively with how humans' artwork aligns with the
organisation's average vision. Generally speakme, average overall performance manages views
people within the context of the wider place of business gadget. There are a few elements which
can be taken into consideration with the aid of the management of H&M if you want to
performance management. They are as:
Aligning employees' sports with the business enterprise's assignment and goals- Employees
ought to recognize how their goals make contributions to the organisation's standard
achievements.
Developing particular pastime-overall performance outcomes- What gadgets or offerings
does my job produce? What effect employees have to their duties had on the business enterprise?
How ought to employees have interaction with clients, colleagues, and supervisors? What
methods does their job entail?
Creating measurable performance-based totally completely expectations- Employees must
offer enter into how fulfilment is measured (Jamieson and Donald, 2020). Expectations embody
outcomes—the goods and services a worker produces; actions—the approaches an worker uses
to make a product or perform a provider; and behaviours—the demeanour and values an
employee demonstrates at paintings.
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CONLUSION
Management and leadership play an effective role in the development of a business as well
as running its business activities and operations in more developed manner. Managing and
leading are unique ways of organizing human beings. Leadership is placing a new path or vision
for a group that they observe — i.e., a frontrunner is the spearhead for that new course. On the
opposite hand, leader controls or directs humans/assets in a set consistent with ideas or values
which have already been mounted. The manager uses a proper, rational method even as the chief
uses passion and stirs feelings. Along with this, the performance or business of a company can
by analyse of using different business metrics like on the base of sales, financial position and
social media followers. Organisational leadership and performance management also support in
shaping the business of establishment in amended form.
REFERENCES
Books & Journals
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Online
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