Leadership and Management in Organizations: H&M Case Study Report

This report delves into the core concepts of leadership and management, emphasizing their roles, functions, and the theories that differentiate them. It examines the differences between managers and leaders, highlighting their reactive versus proactive natures and contrasting their approaches to organizational tasks and employee motivation. The report explores various leadership theories, including trait theory and democratic and transformational leadership styles, and their application within a retail context using H&M as a case study. It further analyzes how leadership principles are applied in real-world scenarios, such as conflict management and policy implementation, demonstrating how leaders at H&M utilize these strategies to enhance employee performance, foster a positive work environment, and achieve organizational goals. The report concludes by emphasizing the importance of leaders in driving organizational success through strategic planning, employee development, and proactive problem-solving.

ORGANIZATIONS AND
LEADERSHIP &
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Difference between concepts of leadership and management................................................1
2. Trait theory of leadership........................................................................................................3
3. Management development program........................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Leadership and management both are the elementary part of an organization and need to
work collaboratively to achieve competitive advantages. Leadership and management have
significant roles and functions that delivers strategic outcomes within any company (Teece, D.J.,
2018). This report will focus on the concepts and other related theories of leadership and
management. It will be based on activities conducted within any UK retail industry or company
and will cover general theories related to leadership and management. It will describe some basic
leadership theory in the context of “H&M” which is a UK based retail industry with around 5000
stores across the world. The company have its headquarter in Sweden and have 1,50,000
employees working under it. The study will cover differences between leaders and managers
with inclusion of certain workplace development program and the role of leaders for that
program,
TASK
1. Difference between concepts of leadership and management
Concepts of leadership and management includes their roles, functions and various
interlinked theories that differentiates between it.
DEFINITION
Manager is a person who has the responsibility of managing whole organization and
generally tend to plan, control, coordinate and direct employees to perform different
organizational activities (Paredes and et.al., 2018). On the other hand, Leader is an individual
who lead a team by developing their productivity and influence his other team to achieve goal by
supporting and involving into the team work.
Role of leaders and managers
Managers act as a resource provider and tend to provide all required elements to perform
any task within the organization. He or she has an authority to develop or alter organizational
activity in terms of need of the company. Manger inhibits a role to control and delegate tasks to
employees as per designed organizational plan (van Assen, 2018).Whereas, Leaders play a
crucial role of motivator or supporter for the team and act as a guide for the team. The main role
played by leader within any company is to deliver strategic risk management. Leaders is
generally acts as an innovator and design required for business activities and employees'
performance as well. For instance, role of manager at H&M is to develop a strategic plan for
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company's success and that of leader is to devise strategies for the success of company as well as
employees.
Another role that can be generalized for Managers and leaders of any company is their
reactive and proactive nature or characteristics. Manager of any company is reactive by nature,
he or she tends to give feedback and results for performed tasks (Su and Baird, 2018). Unlike
managers, leaders are proactive by nature, they are known to engage themselves with employees'
tasks and generate desired outcomes. For example, managers at H&M control and manage
employees performances by providing them reviews and feedback. Similarly, company's leaders
used to be extremely involved with team members, foreseen existing loopholes and raise their
quality of performances.
Functions of leaders and managers
A manager tend to create all the principle tasks related to assess present organizational
needs and plan the change accordingly. For example, manager of H&M design business
activities with respect to profit margins the company need to meet. On the other hand, Leader
tend to plan a long term objectives and tactics and set clear vision to provide sustainability for
future (Boiral, Raineri and Talbot, 2018). For instance, leader of H&M is responsible to plan and
set new objectives for the company with respect to the changing trends within retail industry.
Along with this, manager also responsible to do proper staffing functions for performing
organizational a business activity. For example, manager of H&M develops and select proper
staff for each of its departments to perform organizational operations in a specified manner
(Grewal, 2018). Leaders are responsible to lead a team in a way to accomplish all the allotted
tasks as per given deadlines and sustain a close contact with team members. For instance, leaders
within H&M company has developed utmost friendly approach and continuously motivate team
members to deliver real time services to customers with high quality maintenance.
Purpose of leaders and managers
Leaders and managers generally have similar purposes of increasing company's
organizational success, differences lie in the pattern of taking actions. Managers lay emphasis on
the organizational success and motivate, retain employees by devising attractive compensation
packages (Schippers, West and Dawson, 2015). On the other hand, leaders increases
organizational success by developing productivity of employees and other related operations.
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Basic theories that differentiate between leadership and management
Any organization such as H&M may attain desired goals and objectives by the support of
its managers and leaders and application of appropriate theory or models. For instance,
Democratic leadership style generally adopted by leaders which effectively represent the
attributes of leaders implicating open communication, suitable work environment and other
supporting factors for organization as well as employees (Su and Baird, 2018). On the other
hand, Transformational leadership style can be embraced by leaders as well as managers where
an individual with qualities like great vision, inspiring and risk takers can be an effective
transformation leader.
Another theory which is commonly adopted by managers is Transaction leadership
theory where a manager tends create motivation by providing monetary rewards and feedback
unlike leaders (Boiral, Raineri and Talbot, 2018). This is more authoritative than transformation
leadership style.
There are number of other theories also that have been proposed to reflect the attributes
of a mangers and leaders that have devises standard principles that must be followed in any
organization (Grewal, 2018). Mangers may develop employees' motivation by the application of
two management theories namely: Maslows theory and Herzberg's theory (Hur, 2018). While,
leaders tend to adopt Situational- Leadership model and different suitable leadership styles to
increase employees' motivation level.
Maslows and Herzberg theory deliver information to managers about additional
motivational factors other than financial rewards that need to be given to employees for strategic
motivation. Similarly, leaders uses Path- Goal theory to efficiently direct and motivate the
employees to reach to designed goals and objectives (Paredes and et.al., 2018). As per the theory,
leaders may support their team members to reach to a specific goal by choosing the most
appropriate path.
2. Trait theory of leadership
Trait theory of leadership is based on the skills and characteristics of organizations
leaders both unsuccessful and successful. This model show results list of traits are then compare
to those of potential leaders to assess their childhood of failure or success. It is one of the best
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approach that help to identify demographic, personality, intellectual and task related
characteristics of leader. These traits are essentially seen as condition that endow individual with
leadership potential (Lee, 2018. This theory assumes that leaders are born due to their ability and
belief, those that have the right traits and qualities are better suited to leadership. It also often
determine behavioral characteristics that are commonly founded in leaders of any organizations.
Trait theory of leadership focus on identify various characteristics and personality traits that are
linked to successful leader across different of situations. For example, H&M leader encourage
employees in workplace and support them for doing their work effectively. It will improve their
work performance and develop skills more than now. They give high level of efforts that raise
organization position higher than the others. Leader has high level of ambition and motivate
team to become stronger as compare to others companies people.
H&M leader make the smart choice that moves team forward and help them to achieve
desired organizational goals. They have tended to be higher in extroversion things and self
confidence that help to encourage others in company. Strong communication is one its best
characteristics that place at the top level of their behavior. They have clear vision of what they
want to trying to complete and explain team and other members easily. Leader of H&M convey
their vision and aim with its colleagues and team that will be almost possible to connect them
with organizational goals and business objectives. By developing skills and ability to clear
describe what they want to done make employees feel comfortable in workplace.
They are passionate about their work that help to make them as successful leader in
H&M. Enthusiasm of its mission will get employees excited because they are feel and see their
dedication. On the other side leader always include commitment to mix of their strategic
leadership ability because both get their job done. Commitment is one of their best quality that
help to stay focused on what will make business and organization successful. Hennes & Maurtiz
company leader play their role as problem solver in various situations and deal with range of
employment conditions. For example-
Situation 1- Conflict management
Conflict management is procedure of limiting negative facet of conflict while maximize
positive aspects of combat. The aim of this process is to enhance team outcomes, including
performance and effectiveness in organizational setting. In H&M conflict become arise between
the employees and higher authority that create negative environment in workplace.
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In that situation leader ask workers what they want and talk with other employee about the
reason of rising issues. They resolve conflict through communicate with them that improve staff
performance and working ability after solution (Harrison, 2018). Leader arrange place where
they meet with each and every individual and ask their opinions that make them as a part of
company. By listening staff opinions and thoughts they can resolve the issues easily in
manageable way.
Situation 2- Implement policy
Implement policy is next step after designing and making policies in the organization that
is very essential for business growth and success. It is the process of solve problems and improve
quality of performance better in way.
H&M make policy in organization which need to be follow by all the members that is
necessary but workers deny for following it. In that situation leader work as supportive position
in which they encourage employees for adopting policy and implement in their working styles.
Leader describe benefits of policies and advantages that help to make them comfortable in work
area easily. They motivate workers consistently and solve their problems as well as personal
issues that encourage all of them. Listen what the staff is saying instead of giving any reaction
that effects on the behavior of other people.
Leader of H&M adopt trait leadership theory in their working styles and act according to
it that help to enhance workers productivity and increase profitability of business more than the
others. They join staff members in their work that will develop its team work ability and produce
quality results. They work along with them which increase team motivation significantly that is
beneficial for company. Leader putting staff at the same level of efforts where they will achieve
desired organizational goals and objectives. To provide their commitment they show that hard
working is need to be done at every stage of organization. Another idea that seen in H&M leader
is balance scorecard company is to always carry version of their strategy map. This will permit
leader to regularly ask employees and colleagues where they fit in on strategy and how they
consistently support.
H&M leader carry positive attitude in workplace that solve problem of conflict
management and implement policy. They lead team efficiently through create positive
environment in organization and surrounded workplace that will encourage workers work harder
and be happier. Leader of company consistently focus on employment problems rather than other
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and conduct set of strategies review meetings. They do their best efforts to create healthy,
positive and supportive environment during work days. Through monitoring performance and
work activities of workers they consistently be aware of issues and problems that can impact on
working abilities of the others.
Act as trait leadership theory innovation is one of the best skills or characteristics of
H&M leaders which they always carry with them in organization for improving and developing
business growth more than another. They make innovations that is required for the job position
which make employees more capable. Leader execute workers about the innovation and explain
them who to adopt in working style that raise productivity. They adjust themselves in any
business environment and also encourage or motivate people for adjusting itself to current
business atmosphere which is valuable skills of them (Allen, 2018). They always adopt new
challenges and ready to being open to change because that it give competitive advantage to them.
Collaborative is one of the traits of leadership that make leaders of any organizations
successful and powerful. H&M leader make collaboration with their workers that help to know
about their behaviors and thoughts. It creates transparency in H&M which enhance productivity
of employee and retain staff with company for longer time of period. Leader connected with their
team and genuinely interested in collaboration with them that will know what are they thinking.
Collaboration is lead to good relationship, understanding and trust that will be more liable to
support leader vision. To make collaborative environment at workplace they make some small
tasks or projects and put others in charge that will create positive environment and reduce
negativity that impact on staff performance and profit margin of H&M. Leader always give
respects to the approach and ideas of its employees and encourage them to make participate in
the process of decision making that make them feel as important part of firm. They are praising
individual and team for their hard working performance that motivate them as more than now.
Strong leaders always take on responsibility of anything which has been done by them
and try to solve it faster. H&M leader stand by its success and take ownership of their mistakes
that will make them on of the successful leaders who lead their team efficiently. Leader
positively influence staff members of team that motivate them for hard work. They always try to
understand workers needs and requirements. Pay attention to team and care about helping them
for succeed and accomplish given tasks. They act as supporter and want each of them in team or
unit to succeed and grow in career and also play role in moving the whole teams forward where
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they achieve organizational desired goals and objectives. Excellent interpersonal skills of leaders
are necessary for leading group of individual effectively. They know how to communicate well
with other members of organization as well as with its staff member. H&M leader need to
improve and develop capacity of motivation that help to inspire individual and motivate them to
do the best performance that will raise company position in marketplace better than other
organizations.
3. Management development program
Management development program is important for every manager and leaders working
within any organization or sector. It supports them to build specific strategies to increase
company's profit margins and to develop employees motivation level. This program consists of
different strategies with respect to executives' traits and personal attributes. This plan can be
generated on the basis of the requirements of any company. In other words management
development system refers to overall concept that define various ways in which companies help
workers develop their professional and personal skills either as leaders in management job. It is
very essential for H&M to develop it because well trained leaders can play role in firms future
success and development. MDP allow leaders to influence employees morale and performance
that will be improve in better way and also help to achieve organizational desired goals. As
H&M leader that must drive outcome that directly influence growth and success of business and
communities that they serve.
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Management development program develop leadership skills and abilities in H&M
leaders that help to manage whole functions and work activities of staff efficiently. As mention
in above illustration this system help leader to develop leadership ability in which they will
monitor process of work in workplace. MDP contribute in meaningful ways of success of
company and make it at higher position. According to this program leader connect with its peers
form across individual locate and share challenges and perform together to find out the best or
effective solutions. It is one of the best dynamic method wide training program that designed to
strengthen and enhance leaders and manager leadership capabilities in H&M core ensure and
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Illustration 1: Management Development Program
(Source: Management Development Program, 2017)

competencies it has the knowledge and skills and resources to effectively engage, lead and
develop team.
H&M organization organize Career 360 management development programs in which
they develop leadership skills and ability of manager. In this system they give training to
manager about how to enhance employees, identify workers preferences and build good
employee relationship in workplace. Competitive environment need strong team who support
business for achieving goals and business objectives that will gain competitive advantages more
than another. The main purpose of MDP is intended to develop and improve leadership skills on
aspects and facilitate strategies for growth and survival in the competitive time.
Management development program help to improve leadership skills of H&M managers
in which they get aware of the changes in workplace that impact industry both positive and
negative side. With the help to this program they will manager the whole functions of
organization effectively and also organized team skills and performance in managerial ways.
Company manager develop and improve their leadership capabilities more than now that support
them for building strong employee relationship in workplace. Employee relationship
management is one of the most essential things that need to be manage by the leaders and
managers of firm. MDP contribute in this process in which manager can build good and effective
connect with staff members. Workers relationship management is the collection of strategies,
practices and techniques that H&M and their manager used to manage workers interactions
through employees' life cycle with the aim of improving worker facilities relationships in better
ways.
Through the MDP manager will be able to exposure new techniques and methods that
will reduce employee turnover and increase engagement of workers with the organization. It
makes them capable to motivate staff members for developing and improving their skills and
knowledge more than now. It helps H&M to raise their position in marketplace much better than
the another. With the help of this system they can motiavte and support people which will boost
up their morale and drive them towards achieving organization desired goals and objectives
(Storey, 2016). This program will develop leadership skill of manager in which they share its
thoughts and experiences of innovative ideas. It helps to overcome with the challenges in
business environment that has been face by the organization for some times. Sharing ideas and
experiences of work give workers a reason to care about the aim and mission of H&M. By
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developing mutual understanding in workplace manager gain trust of staff members that help to
gain positive results. Through sharing process they will reduce communication difference
between organization and workers that make their trust stronger towards H&M.
Management of H&M motivate their employees that help to enhance them towards
increase work performance abilities more than now. They pay benefits, incentives and rewards to
staff members in which workers are considered on the base of their performance and working
abilities. They provide correct directions and guidance to worker how to accomplish given tasks
that will encourage all of them. Management make workplace environment more flexible in
which each of the individuals get collaborate with any other and help in their work without any
restrictions. Incentives and reward system raise motivational levels of people in company that is
very beneficial for H&M growth and success in marketplace. Authority give all the efforts that
develop skills and knowledge of workers more than the another teams. They communicate with
staff and try to solve their problems that is one of the best possible implications.
For developing team and all the members skills and knowledge H&M management
provide training to workers that will make them stronger and capable for facing future
competitive environment at workplace effectively. Leadership ability is one of the best thing that
help to manage people in company without any issues. Management give them directions of
work and guide for better improvement. Coaching and training make staff capable of hard work
and also accomplish given tasks on deadline. Rewards on performance base help to retain
employees with the organization for longer time which is one of most effective way that reduce
employee turn over and attract other people towards them. With help of management
development program managers and leaders will develop capabilities of leadership and learn
how to lead people in company.
Management of H&M recognize and appreciate workers for doing job well that is the
best technique of future development (Garavan and et.al., 2016). They praise and recognized
employees with the purpose of reinforce particular efforts that helps business. They give
importance to specific behaviour that is valuable for H&M and growth of workers. Management
encourage all the members for taking up a part of decision making process that will manage
recent and future change in field of people management.
In H&M conflict management is one of the biggest issue that need to be solve by leaders
through make different ideas and concept of resolution. They must define the responsibilities and
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