Leadership and Management Strategies at ALDI: A Comparative Analysis

This report provides a comprehensive analysis of leadership and management practices within the context of ALDI. It begins by contrasting the roles and characteristics of leaders and managers, highlighting their distinct responsibilities and contributions to organizational success. The report then delves into practical examples, illustrating how leadership and management functions are applied in various situations, such as new product launches and conflict resolution. Furthermore, it explores and applies different leadership theories, including situational, contingency, and system leadership, to demonstrate their impact on ALDI's operations and employee management. The report also discusses the significance of operations management and its impact on the business environment, providing a holistic view of ALDI's strategic approach to achieving its objectives. The conclusion summarizes the key findings and emphasizes the importance of effective leadership and management in driving organizational performance and adapting to the dynamic business landscape.

Management and Operations

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Part 1- Management.........................................................................................................................1
P1 Contrast the role and characteristics of leader and manager..................................................1
P2 Discuss with examples the role of leader and manager by referring to different situations. .4
P3 Apply different theories of leadership....................................................................................5
Part 2- Operations............................................................................................................................7
P4 Discuss different approaches of operation management........................................................7
P5 Significance of operation management..................................................................................8
P6 Impact of business environment on operation management..................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management and operations aid in managing an enterprise and involve optimum use of
inputs such as labour or materials and convert them into finished product for accomplishment of
task in a short period of time (Gibson and Parkman, 2018). Moreover, it involves proper
planning and coordination to facilitate smooth conduct of activities and assist the firm in making
a decision to gain competitive advantage by identifying positive and negative aspects by
combatting threats and grabbing opportunities. This report is based on ALDI which is renowned
bread in UK that deal with wide range of goods or services such as groceries and other
household essentials. This report comprises of comparison of role of leader and function of
manager in accordance to different situations. Various theories of leadership are also covered in
his report. This includes approaches and significance of operation management for attainment of
business objectives and its impact on business environment.
Part 1- Management
P1 Contrast the role and characteristics of leader and manager
Both leadership and management play a different role in a workplace but at the same time
both have common purpose of accomplishment of task in a short span of time. The human
resource manager recruit and hire a potential candidate who work with greater zeal and thus
enhance the efficiency and productivity of an organisation.
Leader is the person who lead the whole group and maintain proper coordination so as to
facilitate smooth operations of a business (Heizer, 2016). Also, it directs the subordinates by
preparing an appropriate strategy and fulfil the needs and requirements of company and it also
promote team spirit. The roles and characteristics of leader are presented as follows:
Role of leader
Create Vision: The leader of ALDI prepares a vision that is to be the most valued
business and emphasise on providing quality products to gain maximum satisfaction.
Improve overall performance: the leader of respective firm through proper guidance
provide effective training to their staff and also emphasise on rendering an effective solution by
taking fast decision ability.
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Delegator: The best leader delegate and establish authority relationship among both
employees and employers so as to conduct overall operations of a business in a smooth and
efficient manner.
Active Listener: This is one of the effective roles of leader in ALDI as it considers the
ideas and opinions of subordinates so that best decision could be taken and lead to fulfilment of
task in a respective time period.
Characteristics of Leader
Excellent communication skills: It is crucial for leader to have proper communication
skills as it handles several conflicts and disputes in a workplace. The leader of ALDI through
proper planning and coordination divide the work among their staff in an efficient manner as it
avoids confusion and misunderstandings.
Strong commitment: Commitment towards the objectives is necessary as it bring loyalty
and built trust among employees and help in fulfilment of task within a limited time.
Problem solving skills: The leader should possess this type of skills and also cope up
with pressure and stress with calmly and patiently. The leader of ALDI has problem solving
skills that guide and direct the behaviour of subordinates and render an innovative solution in an
efficient manner.
Management is an art of getting things done from people and focus on achieving
organisational objectives with limited usage of resources effectively and efficiently (Meredith
and Shafer, 2019). Manager is regarded as a core functional unit as it encompasses proper
planning, organising and controlling the activities in a proper manner that enhance growth and
productivity in a workplace. The role and characteristics of manager both are presented as
follows:
Role of Manager
Planning: This help in deciding an appropriate course of action among the various
alternatives by setting objectives for a given time period. The manager of ALDI decides the task
to be performed in advance and deal with uncertain events in a best possible manner.
Controlling: This function of management is considered as indispensable role as it
indicate the corrective deviations and shape the deviations towards the organisational goal. The
manager of ALDI judges the activities of staff and motivate them to give better performance.
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Organising: The manager of ALDI divides the work among their subordinates in
accordance to specialisation so that duplication could be eliminated, and burden of work can be
shared among the employees.
Characteristics of Manager
Multi-dimensional: the manager of ALDI should perform multi task functions like
dealing with employees with diverse behaviour and should enable them for accomplishment of
task by making their strength effective and their weakness irrelevant.
Proper use of time: The manager of ALDI fixes the deadline of project which ensure
success and facilitate coordination by assigning responsibilities, preparing budgets and prepare
long term vision.
Optimum use of resources: There should be judicious usage of resources such as
manpower, material, method, machine so as to ensure greater transparency and efficiency.
Comparison of Leader and Manger
Basis Leader Manager
Decision making ability The leader in case of ALDI
implement the decision made
by top management and thus
minimise the performance gap
by eliminating deviations, if
any.
In ALDI, the top management
make proper and effective
decisions that help in
fulfilment of task.
Style of leadership It adopts transformational
style of leadership as leader
come with new and innovative
ideas and facilitate changes in
an efficient manner.
The manager adopts
transactional style of
leadership as it emphasises on
both rewards and punishment
so that task is accomplished
efficiently.
Purpose The purpose of leader in
ALDI is to guide and train the
subordinates so as to make
them capable of handling
heavy equipment’s.
The purpose of manager of
ALDI is to make planning and
controlling the activities in an
effective manner which
enhance the productivity and
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thus promote growth.
Role of leader and function of manager with the help of several theories
In according to democratic style of leadership, the manager of ALDI considers the view
and ideas of their staff so that they feel that their presence is important as they would work with
full potential and zeal (Battini and et.al., 2016). The leader through proper guidance inspire and
motivate their team members in order to enable higher performance and thus improve the
productivity in an organisation. According to Kotler’s management theory, the senior manager of
ALDI assign work in such manner that matches their talent and skills and thus achieve greater
job satisfaction. In this case, the role of leader is strongly committed towards the objectives and
form a vision so that task is performed with potential and zeal. In case of situational style, the
leader in ALDI could work in a dynamic environment and provide training to their staff so as to
inculcate confidence among them. The manager of ALDI makes proper planning and focus on
recruiting best employees which enhance the productivity and ensure success in future.
P2 Discuss with examples the role of leader and manager by referring to different situations
It has been analysed from the comparison of leader and manager that both have different
set of responsibilities and unique perceptions in their own way. In the context of ALDI, the role
of leader and function of manager applied in various situations are prescribed below:
New product launch: In an era of globalisation, changes are taken at a fast pace as there
is advancement of technology, changes in needs and wants of customers and many more
(Ravindran, 2016). The manager of ALDI adapts changes by making new and innovative
products so as to gain competitive advantage across the globe. Launching a new product require
manager to do proper planning and market research so that it could generate more sales and
profitability within the confines of retailing industry. In this case, the leader provides complete
information regarding merchandise to their clients with its excellent communication skills that
aids in conducting smooth operations of a business in an effective and efficient manner.
Conflict resolution: There are several reasons for conflicts to be taken place in ALDI
such as clashes of culture, changes in policies and procedure which create misunderstandings and
conflicts and thus results in negative consequences in a workplace. To deal with such situation,
the leader would find innovative and effective solution and listen the grievance of both parties
with its active listening skills and handle the situation vary calmly and patiently. The senior
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manager of ALDI facilitates proper coordination and cooperation that simplify the working
procedure and thus improve the overall performance and bring productivity to produce desired
level of output.
Innovative technology: This is one of the crucial factors as the manager of firm has to
implement several changes in a workplace by bringing new and advanced technology which
simplify the overall working procedure of a company. The manager of ALDI promotes
innovative technology in a firm so that it could ensure greater transparency and accountability
and also it promote new and innovative machines which facilitate smooth operations of a
business. This reduce the burden on employees and help in attainment of a goal within a short
span of time.
P3 Apply different theories of leadership
The role of leader is to provide a proper guidance to their team members so that they
could work beyond their potential and in an efficient manner. There are several theories that are
applied in an organisation so as to get desired level of output. In the context of ALDI, same is
presented as follows:
Situational leadership: In this style of leadership, the leader adapts different way of
working in a workplace depending on a particular situation upon a prevailing environment
(Bazargan, 2016). Also, this approach aids manager to adapt maturity on an immediate situation
which ensure greater success in future. The manager of ALDI accepts changes in such a manner
so that its business operations is not affected.
Strength
 This style of leadership provides a comfortable working environment to their
subordinates so as to retain them for longer period and enhance greater job satisfaction.
 It also promotes a sense of team spirit among the workers and thus minimise the chance
of conflict and misunderstandings.
Weaknesses
 One of the weakness is that management does not adopt changes quickly which prove to
be a burden as same policies and rules are followed in an organisation.
 This approach focuses on short term objectives rather than long term needs of an
organisation.
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Contingency leadership: In this style of leadership, management take immediate actions based
on their knowledge, skills and behaviour and prepare an appropriate strategies for achievement
of goal in a predetermined manner (Goulet, 2017). The manager of ALDI emphasises on
providing effective solution to their clients which facilitate smooth conduct of activities in an
efficient manner.
Strength
 The business environment in which management carry out its operations is regarded as
dynamic and also it brings transformation in working procedures and policies.
 The scope of this theory is wider and provide an opportunity to management to make
decisions based on particular situation.
Weaknesses
 This theory is complex and difficult to understand as there are several constraints like
time, cost and resource.
 One of the major weakness is that this theory does not support situations that are based on
real life scenarios as it creates controversy.
System leadership: This theory is a combination of skills that define the inter-relation between
several parts of an organisation and the manager assign duties and responsibilities among the
workers in such a manner that promote a sense of team spirit (Wills, 2018). With reference to
ALDI, the leader tends to be smart and honest as it provides proper guidance and training to their
staff which help in proper functioning of overall working procedure by implementing proper
systematic approach and coordination for achievement of task.
Strength
 This aids the company to maintain consistency in decision making by taking into
considerations of micro and macro environment.
 This theory emphasis on dynamic approach which assist management to resist several
changes in an innovative manner that produce an effective and desirable results.
Weaknesses
 This theory is not applicable in smaller organisation as it creates various complexities.
 Several existing rules and regulation provide several restrictions to the company as a
result the productivity and efficiency is minimised.
Application of theories based on different situation
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New product launch: When a manger of ALDI plan to launch a new product in the
market which is based on contingency theory as it provides greater opportunity in future and thus
increase the productivity and profitability of business enterprise. The leader provides proper
guidance and render effective training to their team members which inculcate determination and
confidence among them. Based on system theory, the leader assigns the work among the
subordinates in according to their specialised skills so that they could work with greater zeal and
develop products in such a way that enhance the growth of an organisation.
Conflict management: Based on situational theory, the leader of ALDI would behave
differently in according to prevailing situation and handle the situation very calmly so that
conflict is resolved in an effective and efficient manner (Cheong, 2017). In case of contingency
theory, the leader prepares an appropriate strategy and create vision for the accomplishment of
goal in an effective and efficient manner. In this case, the manager monitors and control the
activities of subordinates that ensure transparency and success.
Part 2- Operations
P4 Discuss different approaches of operation management
Operation management involve managing and administrating the activities of an
enterprise in order to facilitate smooth operation of activities in an organisation. In the context of
ALDI, various approaches of operation and management are described below:
Total Quality Management (TQM): this involve continuous improvement of products by
minimising the errors in supply chain management and thus improve the overall quality of
finished product (Holkar and et.al., 2016). With reference to ALDI, the manager focusses on
developing best quality of products by making judicious usage of resources which help in
accomplishment of organisational goal. The role of leader is to provide effective training to their
subordinates so as to enable better performance and seeks to avoid wastage that save cost.
Lean Production: This approach is designed in such a manner that focus on reducing
defects and errors and generate a greater value of product or services. The manager of ALDI
emphasises on minimising errors and accelerates the speed through constant efforts which in turn
boost sales and improve the productivity. The leader always comes up with innovative ideas and
provide effective solution of reducing waste that save cost and time and therefore, adds value
among the large group of individuals at a global level.
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Six sigma: It is a quality management technique that focus on improvement of
merchandise by making optimum use of resources such as manpower, machine and money and
avoid wastage. In the context of ALDI, the leader develops a good culture by decreasing the
variance and provide better guidance to their employees with its excellent communication and
problem-solving skills. The manager ensure that it would provide excellent quality of products at
a reasonable cost so as to gain large access of customers from different locations.
Just in time: This is a management technique that emphasise on conducting fast
operations of production activities with an aim of decreasing the waste as it helps in
accomplishment of task within short period of time. With reference to ALDI, the manager
focusses on making judicious usage of resources by not producing excessive products as there is
chance of spoilage and waste. The leader of a firm guides their team members for to deliver
sufficient inventories among the customer as per the demand so that wastage is minimised.
P5 Significance of operation management
Operation management involve the process of transformation of raw materials into
finished merchandise and facilitate proper control and distribution in such a manner that ensure
maximum profit and achieve organisational goals in a limited time period (Majumdar and
Manohar, 2016). With reference to ALDI, the importance of operation management is given
below:
Best use of resources: The manager of ALDI scrutinizes and monitor the activities of
subordinates and check that there is no wastage of resources (Robinson, 2017). In this regard, the
leader guides and direct the behaviour of employees by making a strategy which save time and
cost. It also ensures clarity of action by detecting deviations and take corrective measures to deal
with them.
Achievement of goal: for this, the manager of ALDI makes a proper planning and
organising the work through specialisation so that task is achieved in a short span of time
(O’Neill, Sohal and Teng, 2016). The role of leader is to render an effective training to their staff
which aids in accelerating their skills and knowledge base and thus enable better performance for
accomplishment of task within limited time period.
Improve productivity: The manager of ALDI provides rewards and compensation
benefits to their staff and also appreciate their benefits so that they could feel motivated
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(Mukhopadhyay, 2020). This provide greater job satisfaction and boost the morale and enhance
their productivity. In this, leader act as guidance and consider the suggestions of employees
which help in taking better decisions. In addition to this, the manager of ALDI adapts changes in
a dynamic environment and ensure quality specifications so that it could met the requirements of
customers and thus increase the sale and profitability.
Minimising cost of production: The manager of ALDI acquires raw materials in bulk
quantities from suppliers at less cost which decrease the overall cost of production and thus
increase the profit margin. This also develop brand image of respective firm in different parts of
the country.
P6 Impact of business environment on operation management
Business environment play an important role in an organisation as it includes both
internal and external factors that have direct impact on business enterprise and also it assesses
the availability of resources for achievement of goals in a predetermined time period (Nicholas,
2016). In the context of ALDI, the impact of business environment on operation management is
given below:
Corporate social responsibility: It is understood as commitment by business to behave
ethically and improve the quality of life of workforce that contribute to economic development
and provide human welfare (Vasconcelos, 2018). This approach affects the decision-making
ability of a firm and meet the expectations of different shareholders in a society. In today’s
economy, ALDI aims to deliver excellent quality of goods or services among their customers as
it improves the public image across the globe. CSR strategy not only improve employee
performance but also enhance the productivity within the confines of retailing industry. This
generate positive reputation as the concerned firm use renewable source of energy and ensure
quality specification and make use of paper bags to achieve sustainable development in along
run. The leader creates a strong vision and assign the roles among their staff in order to produce
effective results.
Business ethics and sustainability: The manager of ALDI assure excellent quality of
product or services by making optimum utilisation of resources which save cost and time and
ensure maximum customer satisfaction. Managers and Leaders are highly ethical in performing
business operations as it increases productivity and minimise cost of production. Leadership with
efficient knowledge and skills focus on doing the things in a right manner and need to be
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impartial so that task is achieved in a limited time period. The senior management of ALDI
should abide all rules and regulation and follows proper code of conduct to facilitate smooth
flow of activities.
Value culture: This involve norms, code of conduct and ethics that are important in an
organisation as it ensure smooth flow of activities in a workplace. The manager of ALDI
implements all policies and procedures and promote the interest of employees through health and
safety laws and employment laws which increase the satisfaction level of employees and also
retain them for a longer period of time.
CONCLUSION
From the above information, it can be comprehended that both management and
leadership play a crucial role in an organisation, but both have common purpose of
accomplishment of objectives. Also, there are several theories of leadership that is applied to
different situation such as contingency, system and situational leadership. Various approaches of
operation management is discussed which focus on quality specification by minimising errors
and defects from products. The impact of business environment on operation management is
analysed that ensure proper rules and regulation must be followed which ensure smooth flow of
activities.
REFERENCES
Books and Journals
Gibson, P. and Parkman, R., 2018. Cruise operations management: hospitality perspectives.
Routledge.
Heizer, J., 2016. Operations management, 11/e. Pearson Education India.
Meredith, J.R. and Shafer, S.M., 2019. Operations and supply chain management for MBAs.
Wiley.
Battini, D., and et.al., 2016. Sustainable humanitarian operations: closed-loop supply
chain. International Journal of Services and Operations Management, 25(1), pp.65-79.
Ravindran, A.R. ed., 2016. Operations research and management science handbook. Crc Press.
Bazargan, M., 2016. Airline operations and scheduling. Routledge.
Goulet, J.S., 2017. La gestion de la colère dans l'exercice du leadership auprès de subalternes:
le cas de managers chinois (Doctoral dissertation, HEC Montreal (Canada)).
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