Management and Operations Report: KPMG Case Study Analysis

This report provides a comprehensive analysis of the management and operations within KPMG, a prominent professional services firm. It delves into the roles of management and leadership, differentiating between them based on J. Kotter's framework, and explores the management by objective process. The report examines H. Mintzberg's three management roles theory, leadership traits, and the distinction between hard management skills and soft leadership skills. Furthermore, it investigates transformation processes in operations management, quality management, total quality management, the just-in-time approach, and capacity management. The analysis extends to KPMG's human resource department, management team, and the application of leadership styles in various scenarios, including cases of fraud or misconduct. The report also covers transformation processes within KPMG, capacity management in the context of HR, and concludes with operational recommendations for future improvement. The report uses frameworks and theories to analyze different aspects of management and leadership.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1.) Roles of management and leadership....................................................................................1
2- differentiate between leadership and management function according to J.kotter.................1
3-Management by objective process...........................................................................................2
4.) Three management roles theory as discussed by H. Mintzberg. ..........................................3
5.) Leadership traits theory.........................................................................................................4
6- hard management skill and soft leadership skill.....................................................................5
7.) Transformation processes in operations management...........................................................5
8- quality meaning and four cost of quality for managers in achieving the business objectives 6
9- role of manager in total quality approach-..............................................................................6
10.) Just-in-time approach...........................................................................................................7
11- manager adjust capacity management in operation management ........................................7
12- evaluation on the role of manager and leader.......................................................................7
MAIN BODY...................................................................................................................................8
1.) Introduction of KPMG company...........................................................................................8
2- human resource department and its role in operation ............................................................8
3.) Background of management team.........................................................................................9
4.) Strengths and weaknesses of manager/ leader approaches....................................................9
5.) Specific roles and duties of human resource department....................................................10
6.) Situation where role of HR management was excellent to apply........................................10
7.) leadership style theory applied in case of fraud, misconduct and manipulation of data.. . .11
8.) Transformation process of KPMG company......................................................................11
9- capacity management in the context of HR..........................................................................11
10- operational recommendation to management for future improvement .............................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Management operation consists of those business practices which help them create high
degree of effectiveness and efficiency. It is done effectively to maximize the profitability and
productivity of the company.
This study highlights leadership and management functions, management by objectives,
management roles theory, leadership traits, hard and soft leadership skills, transformation
process, quality, total quality management, just-in-time approach and capacity management in
operations.
MAIN BODY
1.) Roles of management and leadership.
Management of the KPMG company lays down the structure and guidelines within which
organization need to perform their activities to achieve organizational goals and objectives.
Management focuses on planning, organizing, staffing, directing and controlling. They aim at
delegating responsibility to their subordinates in different departmental structure perform work
effectively and increase operational efficiency and productivity.
Leadership focuses at guiding employees and motivate employees of KPMG company in
performing works effectively. Their main roles is to create vision and clearly define goals and
objective of the company(Slack and Brandon-Jones, 2018.). They focus on executing strategy
and coaching potential of each employee of the KPMG company to enhance performance and
achieve operational efficiency.
2- differentiate between leadership and management function according to J.kotter
basis leadership Management
nature Leadership copes with changes
which is required for company
Management copes with
complexity process of
company.
Prepare agenda Leaders establish direction to
employees and creating vision
for future and making effective
strategy for achieving the
Manager make planning ad
budgeting and efficiently
allocating the resources.
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stated goals (Cascio, 2015) .
Focus Leaders focus on people so
that they aligning the people
and communicate strategy and
influence team to work upon
the pre- determine goals of the
company
KPMG manager establish
structure of organization and
staffing and provide policies to
achieve the plan.
Execution KPMG company leader
monitoring and motivating to
people for achieve the goals
and if any problem found then
they give motivation and
influence them.
Manager compares actual
performance and standard
performance and then make
planning to solving problem by
take corrective action.
Result Leader motivating employees
and solving problem and not
give order. They can easily
cultivate the new approaches.
They prepare long term plan
and look into the future.
Manager give instruction to
employees and achieve target
and increase profitability. No
any changes done by manager.
They prepare short term plan
and work on present, does not
focus on future (John Kotter's
Leadership vs. Management
Theory.2019).
3-Management by objective process
Management by objective (MBO) is a management model which helps to allocating
duties and responsibility as per their interest , qualification and skills so that will improve
performance and also helps to aware and understand about their responsibilities that will guide
to them to achieve target at a predetermine time frame. Management by objective ensure
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effective communication within all department and also satisfy their employees and boost their
morale so KPMG company can achieve goals and objective of the company (Petrick, 2017).
4.) Three management roles theory as discussed by H. Mintzberg.
Management is the process of planning, coordinating, formulating, controlling and
monitoring the strategic plan in order to increase productivity and efficiency of KPMG company
in order to accomplish goals and objectives of the organization. The success of the organization
depends on the strategic decision set by management to achieve operational efficiency.
Roles of management define the success and working of the organization. It further includes:
 Interpersonal role: This role of management is concerned with the relationship of
management with others both inside and outside the organization. It further includes three
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Illustration 1: Management Principles - Role of Managers
Source: Management Principles - Role of Managers, 2019

roles within this management roles are figurehead, leader and liaison(Management
Principles - Role of Managers, 2019).
Figurehead: This role keeps people connected in the organization. They perform
activities greeting people and attending functions, appraising outstanding employees of
the organization by handing out award and certificates.
Leaders: this role of management involves leading and guiding employees to perform
effectively to perform particular task willingly and effectively.
Liaison: They build networks both within the organization and outside the organization to keep
business business running effectively.
 Information role: this role is performed by management to effectively collect
information and distributive them for effective working of the organization.
 Decision role: Making strategic decision is the most crucial role of management to
achieve desired goals and objectives effectively. Further four more roles are performed in
this, that are, entrepreneur, conflict handler, resource allocator and negotiator.
5.) Leadership traits theory.
Leader is born with inbuilt characteristics and quality to guide people to perform
particular task effectively to increase operational efficiency and productivity. Leader should be
motivated and has desire to lead employees to gain efficiency. He should have complete
knowledge about the operations of business and have an ability to make strong analytical
decisions . Personality traits like understanding needs of individuals and take effective action
according to the situation.
Leadership styles
 Democratic leadership style: This leadership style is also known as participative
leadership or shared leadership where every member of the KPMG company participate
in exchanging ideas and opinion freely for better decision making. This helps
encouraging employees of the organization and keep them engaged by rewarding and
appraising them for their outstanding performance. Democratic leadership style in the
organization leads to more creative solution with high degree of productivity and
commitment which leads to lower level of absenteeism.
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Example: Implementation of new technology in organization. Leader has to take views of the
employees for effective implementation and use of technology to improve operational
efficiency(Hitt, Xu and Carnes, 2016).
 Autocratic leadership style: This leadership style is also known as authoritarian
leadership where leader centralizes power of decision making and take all necessary
action to formulate and implements such strategies in the organization to take effective
decision. Individuals or employees of KPMG company have no control over these
decisions and have to work in accordance with the guided principles set by leaders. This
leads to clear and directive leadership which
Example: In case of misconduct, fraud and conflict leaders has to make strict action plan to
resolve the conflict(Yahaya and Ebrahim, 2016).
6- hard management skill and soft leadership skill
 Hard management skill- manager of the company follow proper structure and regulation
within the organization. They give order to employees and pressured them compete their
work in specified time and manager doesn't concern with their needs and wants.
Manager of the company prepare budget and make planning and policies to achieve
goals.
 Example- KPMG company adopt hard management skill they prepare budget then
compare with actual performance that helps to achieve target , but hard management skill
doesn't focus on employees needs and pressurized them to compete their target. It will
reduce morale then do not provide better services to customers.
 Soft skill leadership skill- leaders always adopt soft skill they focus on employees need
and wants they cop up with changes and doesn't follow proper structure . Leaders doesn't
give order to employees but they work with employees and support, motivating them to
do work for accomplish the goals (Noe and et. al., 2017.).
Example- KPMG company leaders follow soft skill in this they build team and motivate them to
provide better services to customer that helps to enhance profits. Leader doesn't follow particular
structure, they motivate and communicate strategy to achieve their goals.
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7.) Transformation processes in operations management.
Transformation process is an activity which transforms raw material into finished goods.
This activity helps in transforming inputs into outputs and add value to the products. KPMG
company offers various professional services which helps customers get financial and
consultancy services. It mainly consists of three inputs, i.e., materials, information and customers
whereas output can be in any form of customer services,treatment and quality which improve
operational efficiency and productivity.
8- quality meaning and four cost of quality for managers in achieving the business objectives
Quality – it means company provide quality services at which price that customer willing to pay
and also satisfy them . It helps to enhance profits and customer retention. Quality of cost incurred
for preventing protecting and remedy for improving quality.
Four cost of quality which is follow by KPMG company-
 Prevention cost- KPMG company protect and prevent poor quality problems. Improving
quality and protect cost process done by preparing quality planning , quality assurance
and maintenance the program that help to manage quality.
 Appraisal cost- it incurred to measuring and monitoring the quality. It includes
verification of upcoming material , process and also audit the quality that ensure that
quality system function correctly and also reducing the appraisal cost.
 Internal failure cost- this cost incurred when company fail to reach standard quality
before transfer the product to customer. It could include scrap value , wastage of
resources due to poor communication etc (Formato And et.al., 2017.).
 External failure cost- this cost incurred to remedy defect which is discovered by
customers. It includes repair and replace services , handling cost and warranty claim.
9- role of manager in total quality approach-
 Manager have to do research and make plan before implement the total quality practices
because it enhances quality of the product.
 Manager prepare budget for total quality management with help to compare with actual
performance so performance of the KPMG can be improve.
 KPMG company manager also communicate to all member regarding benefits of total
quality management (Noe and et. al., 2017.) .
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 Manager have to make effective strategy that will improve quality and meet out the
customer demand.
 Effectively allocation to resources by manager that helps to minimize the cost and
improve total quality.
10.) Just-in-time approach
This helps KPMG company in applying this approach to the production of services. The
main objective of this approach is to reduce wastage of time and money which helps in providing
services to its customers on a timely basis. This approach helps in increasing high volume of
services in the most cost effective and time effective manner. KPMG company aims at
customizing their services according to the needs of customers which help in providing high
quality and customer oriented services. It also helps to manage their operations by providing
uniform services and handling grievances if any(Filippini and Forza, 2016).
11- manager adjust capacity management in operation management
Capacity management is a process of analysis ,monitor and optimize information
technology information to meet current demand and future demand of the customer. It is
important to improve performance , delay and eliminating to redundant work.
Document the current state – documentation is important to mange capacity in operation which
measure capacity and monitored and plan to manage operation work and improve to such
activities which is taken by manager (Ways to Improve Your Capacity Management.2019.).
Review the current metrics- apart from documentation collect matrix and evaluate which
ascertain about the level of capacity and use as a monitoring tool.
12- evaluation on the role of manager and leader
financial operation report summarized that manager and leader both play significant role
in KPMG. Leader build relationship with team leaders and manager build process ,system and
policies which company have to follow for achieve the stated goals and objectives. Above report
also concluded that management by operation is important to essential which concerned to
provide better financial services to customer that will increase customer base and profits. In
KPMG company adopt autocratic and democratic leadership style it enhance employees morale
and motivation that helps to business sustainability. It also concluded that cost of quality is
important to achieving the business objective. It also explained total quality management is
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better way to provide better quality product with lower price and management also focus on
lower wastage of raw material cost, labour cost and time that helps to reduce cost and
productivity capacity .Manager should adjust capacity management that is essential to better
utilization of information technology in provide services (Petrick,2017).
MAIN BODY
1.) Introduction of KPMG company
KPMG company was founded in the year 1987 by William Barclay Peat and James
Marwick. It is one of the fourth biggest professional services company who provide services like
actuarial, assurance, audit, legal services, financial services, legal, tax advice and consulting.
KPMG company is a type of Swiss cooperative which is headquartered in Amstelveen,
Netherland. They provide professional services all over the globe with operations in more than
150 countries. It is UK based limited liability partnership company with 22 offices across the
country and employing around 14000 people.
2- human resource department and its role in operation
Human resource department who handle different function like recruitment , selection ,
training and also manage payroll and benefits of employees.
Role of human resource in operation
 Human resource manage payroll , data of employees and manage to risk of the KPMG
company.
 HR department recruit and select suitable people in company that essential for smooth
operation of the company,
 They carefully examine to job content and duties which is given by operational
department that is imFormation and important to recruit right people at a right time that
helps in optimal use of resources.
 HR of the company ensure proper communication among employees and employer
ultimately it impact on KPMG business . Company can provide better and effective
services to customers .
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3.) Background of management team.
Human resource department carry on various operations which assist in recruiting and
selecting the right candidates for the job who can perform task effectively and efficiently in
orderly manner to achieve operational efficiency accurately.
Management team of human resource consist of placement manager, international HR
associate, labour relation specialist, HR consultant, training and development manager, human
resource manger, human resource director and Chief HR officer.
The top amongst them are chief HR officer who is responsible for making strategic plan
and policies within which operation should be done to attain organizational goals and objective
effectively.
Human resource director is responsible for implementing such policies in the KPMG
company and keep employees motivated to perform effective professional services. Human
resource manager ensures that all operations are in compliance with policies.
4.) Strengths and weaknesses of manager/ leader approaches.
a) Autocratic leadership approach
STRENGTHS:
 This type of leadership style helps in clear set of command which are implemented by
human resource management to guide employees of the KPMG company in order to
increase operational efficiency and productivity.
 This leadership style also improve quick decision making and helps in motivating
inexperienced employees by providing them proper training and development programs
and sessions which help them enhance their skills and knowledge(Amanchukwu, Stanley
and Ololube, 2015).
WEAKNESSES:
 Autocratic leadership style can lower morale and motivation of employees when human
resource department ask them to follow strategic set of rules and policies which leads to
lower operational efficiency and productivity.
 This style of leadership is bad for those who are highly skilled and motivated. Employees
of the KPMG company are highly dependent on leaders and will only work effectively
when leader is present.
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b.) Democratic leadership style
STRENGTHS
 It is beneficial for the KPMG company in taking ideas and opinions of all the group
members of human resource department and employees which help in effective decision
making and helps in solving complex problems.
 It helps build stronger team and business which foster more creative environment which
helps human resource department in retaining prospective employees ion the organization
and lower the rate of absenteeism.
WEAKNESSES
 This process is time consuming which leads to lower operational efficiency and
productivity. This often leads to inefficient management and delay of work.
 This leadership style does not offer best possible solution to the problem which leads to
inefficiency in the organization(Nawaz and Khan_ PhD, 2016).
5.) Specific roles and duties of human resource department.
 The key role of human resource department is to recruit and hire those employees who
have desired skill sand knowledge to perform particular work effectively to attain KPMG
company goals and objective.
 They work together as a team to protect confidential information of customers and reduce
risk of internal theft and collusion of data. They work in compliance with legal laws to
secure bank from any misconduct which leads to smooth functioning of organization.
 They aim at giving proper training sessions to increase performance of the employee
which leads tower absenteeism and a sense of commitment towards organization(Why
Human Resource Management is important for banks, 2016).
6.) Situation where role of HR management was excellent to apply.
In case of fraud, misconduct and manipulation of data.
Human resource management plays a key role in securing confidential data which are necessary
for the development of KPMG company. Human resource management of the organization helps
in reducing conflict in the organization. Human resource department aims at recruiting right
candidates for the job who have desired skills and knowledge in the organization who has the
capability to deliver efficient services to the customers(Zakaria, Nawawi and Salin, 2016). It
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aims at giving proper training to employees and how to work in compliance with various laws
for smooth functioning of the organization.
7.) leadership style theory applied in case of fraud, misconduct and manipulation of data.
Autocratic leadership style is followed to guide employees of the KPMG company in
guiding them to work in the prescribed set of rules and policies to increase operational efficiency
and productivity of the organization. This leadership style gives clear set of guidelines to how to
perform their in order to reduce misconduct and fraud in the organization. This theory helps
motivate employees to perform particular work in a timely manner. This approach gives clear
guidelines to the people who are inexperienced. This helps management in reducing
manipulation of data by applying to various laws like General data protection regulation, Act
2018 which protects confidential data of the organization and customers which increase brand
image of KPMG company and customer loyalty(Omar, Nawawi and Puteh Salin, 2016).
8.) Transformation process of KPMG company.
It is important for the professional services KPMG company in finding out or screening
valuable customers to whom they can provide their financial services like actuarial, assurance,
audit, legal services, financial services, legal, tax advice and consulting. Management team
assist in managing operations of the KPMG company by understanding need of customers and
providing them services according to their customized need. They aim at recording and
protecting the data provided by customers and monitor their data. They also focus on integrating
data and providing them services according to their need and requirement. It aims at using
developed software and adapt to technology making strategic plans. It aims at optimizing the
cost and process designing which helps in providing effective professional services to customers.
KPMG company has a unified performance management platform which helps them monitor the
performance and results(Finance transformation , 2019).
9- capacity management in the context of HR
 HR department take decision by documentation it is important to measuring capacity ,
monitor to activities that KPMG company provide better services to customers.
 Company HR collect data which is used in determine level of capacity available. Review
the performance metrics as per the standard set and if there any gap exist then taking
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corrective measures to fill the gap. So that KPMG company achieve goals as per the
strategies made and the standard set (Lee and Gunderson, 2018).
 HR recruit and select to skill and experienced people so company can reduce the cost of
training and improve the performance of the company. HR providing training program to
employees that will enhance performance ultimately it helps in capacity management.
 Develop certain plan , projects and improve current capacity then execute them in
company will able to provide better services to customers and provide all products at the
available time that helps to increase loyal customer.
10- operational recommendation to management for future improvement
KPMG company can improve their business by many innovative idea and skills.
Operational function play critical role in company that impact on overall performance of the
company like solving financial position and build image. There are many recommendations to be
follow by company that are-
Advance technology- KPMG company can improve their services and capacity by using
advance technology. Company can increase productivity and provide better services to customer.
Company can capture market by providing services and increase customer base that may helps in
profits of the company. If company will use advance technology so it will reduce in cost also
that build company image that will increase market share (Bailey and et.al., 2018. ).
Providing quality product – company can enhance performance by providing quality services at a
lower cost , nowadays customer prefer quality product so company prepare better strategy to
reducing the cost. By this recommendation KPMG company capture huge market and build
image so that will enhance in profitability and growth of the company.
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Zakaria, K. M., Nawawi, A. and Salin, A. S. A. P., 2016. Internal controls and fraud–empirical
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