Management and Operations Report: Leadership, Management, and Business

This report provides a detailed analysis of management and leadership within a business context, focusing on the distinctions and overlaps between the roles of leaders and managers. It explores various functions performed by both, including figurehead, liaison, monitor, disseminator, spokesperson, entrepreneur, resource allocator, and negotiator roles. The report differentiates between transactional and transformational leadership styles and discusses the application of hard and soft skills in management. It also examines the influence of leadership and management on business operations and innovation, using examples like the changes at Heathrow airport. The report emphasizes the importance of adapting to change and implementing strategies like total quality management and just-in-time systems to improve business performance. The report also references the consulting company McKinsey to highlight the importance of management accounting and its impact on decision-making. The report is structured into tasks, defining and comparing leaders and managers, and exploring the roles of leadership in different situations and factors affecting business operations.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and compare leader and manager..........................................................................3
TASK 2............................................................................................................................................9
P2 Role and functions of a leader and manger in different situations:...................................9
P3 Theories and models of approach......................................................................................9
P4 Approaches to operation management ..........................................................................10
P5 Different operation functions:.........................................................................................12
TASK 3..........................................................................................................................................15
P6 Factors affecting business operations..............................................................................15
CONCLUSION..............................................................................................................................28

INTRODUCTION
The following report is prepared in order to understand how management and leadership
help the business in achieving its goals. Although both are a different concept but can not be
separated fully. There are various similarities between both as both the concepts are followed in
an organisation in order to achieve the ultimate goal of the business. McKinsey is a consultant
company which help the different sector business to carry out their business by providing them
suggestions and quality information(Dumaset et.al., 2014). This report will help in understanding
what are the different roles and functions performed by the leader and mangers in an
organisation which are of great help. Also the learner will get the clear idea that how by adopting
the different techniques of management one can achieve the objectives supported with total
control in cost.
TASK 1
P1 Define and compare leader and manager
Management accounting is a process of preparing different reports for the different
department so that the concern departments get the required information on time. This
information provided by the management accounting help the managers in McKinsey in taking
various decisions which may be short term and even long term decisions. The information
provided by the process of management accounting is mainly used by the internal users of the
business whereas financial accounting provide the statistical information to the external users of
the same company. Annual reports are prepared by the organisation which help in calculating the
total amount available with the company, inventory, outstanding debts etc. The users of
management accounting are mainly the department managers and other chief executive officer's.
The roles of management and leadership:
Different roles are performed by the managers and the leaders in the organisation depending
upon the need and situation like:
1. Figurehead role- Mangers are the representatives of business. They welcome the externals
like their visitors, investors, etc. as a important business unit. They although don't take
the important decisions of the company but do the important communication required to
reach at the ultimate decisions.

2. Leader role of manager- Manager also play an important role of leader in the
organisation. Different department managers take the responsibility of their concern
department and help the subordinates in achieving the set goals.
3. Liaison role of manager- Mangers play different roles in the organisation as a leader like
psychological feature, communicating, inspiring the team to work together so that the
whole organisation work together in a coordination . In order to perform this function
managers of Sainsburry also communicate to the managers of different other companies
so that the can recessive quality information and help if required. Therefore we can say
that manager is sole body who represents the business in all the formal matters.
4. Monitor role of manager: In any organisation managers gets to know what is happening
in the internal environment of the organisation by scanning. Manager keeps on
monitoring the environment so that he can collect the quality information. For this the
manager also go through the magazines and take the public response so that he can get
the idea of the market trends and preferences.
5. Discriminator role- Manager circulate the collected information to the subordinate using
various means. He can convey the information directly to the employees through meeting
or like. In cases where there is no communication in the employees the information is
received through this source only (Council, 2013).
6. Manger as spokesperson: When the manager is representing the organisation in front of
the outsiders he is also performing the role of a spokesperson. He transmit the
information on behalf of organisation about the policies and plans of the company. He
gives the feedbacks of the developments taking in the company to the superiors who need
to be informed timely so that they can further inform the investors and the different
shareholders. Apart from these there are other parties also who need to be informed about
the innovative or any new product like customers need to know about the changes made
in the quality, government officials need to be informed about the carrying out of law.
7. Entrepreneurial role of manager- Managers takes the initiatives to bring change in the
business environment so that it can be developed, performance can be improved and also
new projects can be started.
8. Handel's the disturbance- Managers take the strict actions against the previously
unexpected trouble. Managers voluntary handle the problem when the pressure increases

as he can not afford to ignore the situation. There are situations which need to be resolved
as early as possible like strikes, demonstrations, bankruptcy and manager need to take the
action against these situations can be avoided.
9. Resource allocator- Manager also perform the role of resource allocator. As resources
need to be allocated effectively the manager follow the open door policy in order to get
suggestions from all. Different recourse like time, finance, physical resource has their
own priorities they need to be allocated after doing proper research so that the business
can receive the best results (Vogel and Fricke, 2012).
10. Negotiator Role of manager- The manager do the bargaining and negotiation with the
externals in order to provide the business different advantages. He motivates the
employees to improve their commitment and loyalty towards the business so that
cooperation and coordination can be improved as it has direct impact on the productivity
of the business.
Difference between management and leadership according to J. Kottler
It is a debate that weather management and leadership is same or a different concept.
Therefore several scholars contributed in this debate by giving their views about how both these
are similar and different from one another.

Management Leadership
Management is a set of process which
includes planning, organising,
staffing, controlling, clarifying jobs
and solving of problems.
Leadership is process of
motivating, communicating and
inspiring the employees so that
they can work with a clear vision
of achieving organisation goals.
Managers are more bossy with their
employees as they believe in
maintaining senior subordinated
relation on the other hand leaders
works as a team.
They treat everyone equal and
give the subordinate equal
chances to express themselves so
that better and effective decision
could be taken.
Managers are appointed on the basis
of their knowledge, skills and
capabilities and therefore they
consider themselves as hero among
all on the other hand leaders do not
pride of their position
They believe in making others
hero so that they can contribute in
improving the performance of the
business.
Mangers set targets for their concern
department.
Leaders help the management in
achieving the targets that are set
by the managers
Difference between Transactional and Transformational Leaders
Leadership is a quality of an individual to influence others and motivating them to
perform a particular task in a specific manner. There are different theories of leadership from
which transactional and transformational are the two which are significant. Transactional theory
is the one in which importance is given on the group action between leader and its associate. On
the other hand in transformational theory of leadership reasons for the need of transformation of
employees is give.
Basis TRANSACTIONAL TRANSFORMAT
IONAL

Concept Relation with followers is the
main emphasis of the leaders.
Belief, thought,
ethics and need of
the followers are
given importance
by the leaders.
Nature Activated Retroactive
Suited for Settled surroundings Troubled
surroundings
Numbers of leaders Single More than one
The two styles of leaderships
Different leaders adopts different styles of leadership depending upon their comfort and
situation. A great leader is one who use different leadership styles at the same time as this was he
can bring more effectiveness in the business. From these there are two styles which are very
effective and beneficial for the business.
Achievement oriented style Participative style
It is an effective and interesting
style of leadership. In this style
leader push the followers
towards achieving the higher
goals.
It is a style of leadership in
which leader encourages the
followers to participate in
decision making.
It is a positive approach in
which improvements are done
on regular basis.
This help the leader in getting
collective suggestions which can
be implemented in organisation.
Employees are given autonomy
with an assumption that they
will feel recognized in the
This encourages the morale of
employees as they find that they
are important for the

organisation and this improve
their performance also.
organisation.
‘Hard’ management skills and ‘soft’ leadership skills:
Different skills are utilised by the managers and the leaders in order to carry out their
work in the organisation.
Hard skills Soft skills
Managers use the hard skills style for the
purpose of management in which they
they are expected to give the best results
to the management.
Soft skill leadership styles are
entirely different. These are the
personality traits of an individual
like nature, habits, behaviours
which a person display while he is
on work.
Employees are taught how they have to
communicate with one another,
teamwork, patience, leadership and
flexibility are also considered in the hard
skills management.
Theses skills helps the leader to
continue his work in the
organisation.
M1
Both the mangers and leaders are different from each other. Although both work towards
the common objective of achieving the organisational goal their styles are different. Manger
perform the important functions of the business and leaders help management in achieving the
targets set by different mangers by influencing and motivating the employees. For this leader
perform different roles of motivation, inspiration and like in the organisation which helps in
getting the best results from the employees.
D1
There are different theories and approaches to leadership which help the management of
McKinsey in achieving its goals and bringing change in the management system. These

approaches help the management in tackling the different situations as there are different theories
for different system, situation etc. As these theories are based on past experiences there are more
chances that they give positive results to the company (Miletić, Bogdanović and Milanović 2016)
TASK 2
P2 Role and functions of a leader and manger in different situations:
Managers and leaders help the organisation in adopting change and also convincing the
employees to adopt the different strategies like total quality management system just in time
system etc. so that the overall performance of the business can be improved. Different
innovations took place at Heathrow airport which helped it to improve its services. Earlier they
used to interact personally with the customer in order to get their feedbacks. This was considered
as a method of improving the work but later it was found that it is not a right method. The
management realised that customer are more happy if they get on the plane without any
discussion with the staff. Later an application was developed which helps the management in
allocating the resources of airfield but it was found difficult as communicating from one place to
another is difficult when the other person is not available at the same time. Therefore innovation
has its mix impact on the business ((Embry et.al., 2012).). If it is implemented successfully and
the business starts getting positive results than only it can be said that innovation is helpful
otherwise it is not necessary that every time by adopting innovation one can be beneficed
(Gogoulos et.al., 2013).
Operation management is another system which helps in overseeing, designing and
controlling the human activity in the process of production. IKEA is a private world wide
cooperation that is specialising in retailing the domestic products like different kitchen products
etc. The management of IKEA is using this system of operation management in dominating,
designing, and supervising the different functions of the business like the production process.
The system of operation management also helped this company in increasing the total efficiency
and effectiveness as through this system the resources were allocated in a more efficient manner.
There are different aspects in the system of operation management like material planning, cost
control, productivity analysis etc.

P3 Theories and models of approach
There are different theories and approaches to management which provide a clear
framework of how leadership and management works in any business. In order to understand
them better there is a need to study each in detail:
1. Behavioural theory- This theory is based on different behaviours learned. This theory
says that any leader to be effective needs to be capable enough to change his style and
traits according to the situation that arises. If the leader is mature enough to modify
himself according to the situation that arises than he can face any situation with more
effectiveness. Under the behavioural theory the leader shows different behaviours like
telling where the leader show high guiding behaviour and low subsidiary behaviour. Than
selling where the leader demonstrates both high behaviours of supportive and directing.
After this the third behaviour is of participating behaviour where the leader shows less
directive and more supportive nature and in the last delegating where the leader
demonstrate both low behaviour in directive and supportive (Hoffmann et.al,2016). In
situational leadership the leader once gets the overall idea of the individual behaviour and
than accordingly adjust his behaviour so that the employees can be managed in the most
effective manner.2. Holistic theory-it integrate the various elements of different theory. It helps in solving the
different problems of the client of IKEA.(Becker-Peth, 2012).
3. Cognitive theory- It is nearly related to the situational approach. This theory gives
importance to both the leaders and to the situation in which the leaders lead the business.
It has majorly two broad outlines for the type of leadership and they are task-motivated
leadership and the other is relationship- motivated. Leader-member relations, task
structure and the position power are the three centres of this theory of leadership.
4. Humanistic Approach- According to this approach the client should be given `
maximum care. This approach believes that no energy should be spent on past or on
negative behaviours rather goodness of people and person's self growth should be given
more emphasis.

P4 Approaches to operation management
There are different approaches to operation management and these approaches help the
business mangers and leaders to perform their function in an organisation with more developed
techniques and procedures. These approaches are as follows:
1. Empirical or case approach- It is a past based approach. In this managerial experiences
and cases are studied and therefore known as case approach also. It helps the mangers
and the leaders in acquiring the most conventional skills. Mangers finds it easy to
develop the management principles in the business environment (Duarte, Cosgrove and
Hardiman,2015).
2. Human behaviour Approach- Under this approach the nature and behaviour of an
individual is studied so that the employee is provided with the required working
environment. It is an important approach as management is getting things done through
others therefore it becomes important to understand their nature and behaviour. Only if an
individuals behaviour is known management can provide motivation to them as source of
motivation is different for different people.
3. Social system approach- As the organisation is a system where people of different caste,
background creed work together under the same roof. It makes a social system. This
approach has significance to the practising manager that they operate in a social system
and in order to achieve the organisational goal it is important that the needs and desires of
the society is fully recognised (Thonemann, 2010).
4. Socio-technical system approach- Although in business there is need to fulfil the needs of
the individual, it is also important that the technology is updated timely and whenever
required. Although it is not a new approach as people from past is following it with same
importance.
5. Decision theory approach- This approach suggest that decisions play an important role in
any business in maintaining its quality. Mangers and leaders are the one who take
different decisions and solve the problems that are faced during the course of action.
Various tools are provided b this approach which assist managers and leaders in
demonstrating their roles effectively (Moons et.al., 2016).
6. Management-science approach- This approach has contributed in developing orderly
thinking in the business. Sampling, linear programming, waiting line theory are the

different mathematical tools which are used in problem solving by the management. This
approach has the limitation that it requires extra talented expertise and skilled
management system (Harten, 2013).
7. Operational approach- This approach is also known as management process approach. It
is a study of management that how does it operates. It studies the various management
functions and different concepts which are involved in it.
P5 Different operation functions:
1.Operation management- It is a technique which helped many different organisations
managers in increasing their performance and developing an effective environment in the
organisation. Under this technique different managers and employees work in coordination with
one another. They monitor the goal for a particular time period. In order to achieve
organisational goals individual goals are set at different departmental levels. In an organisation
flow of command take place from top to bottom. Proper planning is done by the management in
the organisation so that every situation can be faced with more efficiency (Almajal et.al.,2016).
Savoy Hotel managers use this technique to increases their services and their quality. As through
process of operation management management set their objective in advance which helps
employees to remain focus and goal oriented. Also when goals are set in advance it becomes
easy to do planning accordingly. Once the goals are set it becomes easy to compare the final
performance with the desired results. This way the faults in the production process are easily
encountered and then they can be improved which gives the business long term benefits(Eom
Gudigantal aand Mitchell,2015).
2.Continuous improvement - Expanding worldwide rivalry over the previous decade has
constrained BMW factory to enhance quality and effectiveness. Utilizing the administration
instruments that are important to the association's needs has turned into a key issue for
organizations in today's aggressive condition. The venture quality can be seen in various ways.
The main concern is constantly dictated by customers or stakeholders requirements. By picking
and applying the best administration instruments among an excessive number of administration
apparatuses, organizations can enhance their exhibitions and at that point increment consumer
loyalty and pick up pieces of the overall industry (Akter2016). Administration is portrayed due
to its worldwide and extensive approach; it is and authoritative technique and administration