Leadership and Management in Lloyds Bank: HRM 13 Report

This report provides an in-depth analysis of leadership and management concepts within Lloyds Bank PLC. It begins by defining the roles of managers and leaders, highlighting the key differences between leadership and management characteristics. The report then delves into various management and leadership theories, including classical, behavioral, and modern management theories, as well as transformational, transactional, and adaptive leadership theories. It examines the application of these theories in different organizational situations, supported by concepts of leadership and motivation, such as goal-setting theory. The report also discusses the strengths and weaknesses of different approaches within the work environment and explores key approaches to operations management, including the application of situational, system, and contingency leadership theories. The report concludes with recommendations for further improvements in leadership and management practices within the organization.

Running head: HRM
Leadership and Management Concepts
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The objective of the report lies in investigating the roles played by leaders and managers in
Llyods Bank PLC. The report provides an analysis on the leadership and managerial roles
through highlighting the differences between the leadership and management. There is also
discussion of the management and the leadership theories. The report further examines the varied
roles of the leadership and management in context of the various situations of the organizations.
The report also discusses the strengths and the weakness of the various approaches within work
environment. In addition to this, the report also provides an insight into key approaches of the
operations management and role played by the managers and the leaders. This has been followed
by a conclusion and the recommendations for the further improvements.

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Table of Contents
1. Introduction:................................................................................................................................3
2. Definition of Roles of Manager and Leader and Differences between Leadership and
Management in terms of Characteristics.........................................................................................3
3. Discussion of the Management and Leadership Theories...........................................................5
4. Different Roles of Leadership and Management with respect to Different Situations of
Organizations Supported by Theories and Concepts of Leadership and Motivation......................8
5. Strength and Weakness of the Different Approaches to Situations within Work Environment.
.......................................................................................................................................................10
6. a. Key Approaches of Operation Management and Role Played by Leaders and Managers....11
b. How Theories Of ‘Situational Leadership’, ‘System Leadership’ And The ‘Contimgency
Leadership’ Applied To Organization And Supported Growth and Sustainable Performance.....12
7. a. Conclusion.............................................................................................................................12
b. Recommendations:....................................................................................................................13
References:....................................................................................................................................14

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1. Introduction:
The report aims at analyzing the impact of the leaders and the managers on the Lloyds
Bank PLC operations (lloydsbank.com 2020). It is one of the biggest retail bank of Britain that
has wide network of ATM and branches across Wales and England. The bank was found in
Birmingham in the year 1765 which underwent expansion during the nineteenth and the
twentieth century by taking over smaller banking entities. In the 1995, the bank was found to
merge with Trustee Savings Bank and began to be traded as Lloyds TSB Bank PLC between the
year 1999 and 2013. The bank has however been one the key subsidiaries of the Lloyds Banking
Group that was formed in the year 2009 through acquisition of the HBOS PLC by Llyods TSB
Group. The bank not only offered a 24 hour online and telephone banking service but also put
across a 16 million small business and personal customer account.
Llyod’s organizational structure has been quite similar to power structure since it follows
a hierarchy with António Horta-Osório remaining at pinnacle who is responsible for filtering all
the information on its way down to the branches and the processing colleagues (lloydsbank.com
2020).
2. Definition of Roles of Manager and Leader and Differences between Leadership and
Management in terms of Characteristics.
A manager represents a member with the organization who holds responsibilities. He
builds strategic vision and breaks it into roadmap to be followed by his team (Ashkenas et al.
2015). The manager is also responsible for the daily efforts and also reviews the required
measures. Managers holds the authority of establishing the work process, values and standards.
They are also known for looking after and catering to the needs of the people. On the other hand,

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leaders does not occupy or hold a management position. The leader must however possess a
stout vision where he must know the place where he stands, where he wants to reach and the
trends for involvement (Jones, Mackey and Whetten 2014). Leaders should not only possess
honesty and integrity but also be inspirational thereby helping the team in understanding their
values. Leaders must also possess communication skills and keep the team informed about the
happenings.
Thus, Manager represent a member of the organization who can responsibly carry out
four key functions of management that includes organizing, planning, controlling and leading.
Managers tends to act as leaders only when they largely carry the leadership responsibilities that
includes motivation, communication, inspiration and guidance thereby encouraging the
employees towards higher productivity levels. However, all managers does not act as the leaders
since some of the managers have poor qualities of leadership. In such cases, employees follows
orders from the managers since they remain obligated to.
In other words, managerial duties form the part of the job description and the
subordinates follow it as a result of professional designation or title. The chief focus of the
manager lies in meeting the organizational objectives and goals. They are known to hold
responsibility of their action as well as the actions of the subordinates. They also possess the
privilege and authority of promoting, hiring, disciplining, firing or rewarding the employees
based on the behavior and performance.
The key difference between leadership and management is that the leaders does not
necessarily occupy or hold a position in management. In other words, leaders does not hold an
authoritative figure within an organization (Bush, Bell and Middlewood 2019). Unlike, the

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managers, the leaders are usually followed due to their behavior, belief and their personality. It
has been found that leaders mostly invests in projects and tasks thereby demonstrating a passion
for his or her work. Besides, the leaders also undertake immense interest in determining the
success of followers that helps them in reaching the goals of satisfaction which might not always
represent the organizational goals.
3. Discussion of the Management and Leadership Theories
Management theories act as visions of diverse ways in running the business depending
on the varied assumptions regarding the systems and how the people operate. There exists three
key classification of the management theories that includes classical theory of management,
behavioural theory of management and modern theory of management.
Classical Theory of Management: This theory helps in focusing on the operations and
creation of standards for increasing the output. However, some of the theories that makes up the
above theory includes (Zawiła-Niedźwiecki 2015):
a. Scientific Theory: This theory was put forward by Frederick Taylor. The approach
made use of measurements and data for making the organizations effective. Evaluating and
observing the process in the numerical terms enabled the managers in distilling informing that
helped them in running the business profitably and efficiently. The dependence on data enabled
the designing of management strategy based on reward and punishment. The approach worked
quite well for mechanized operations.
b. Bureaucratic Theory: The theory was put forward by Weber and it focuses on the
designated roles of the management and employees based on the hierarchy that streamlines the

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authority. This theory could not be simply reduced to systematized and mechanical approach for
managing the human beings. Nevertheless, the inherent dangers of the theory has been the
unrestricted hierarchical bureaucracy.
Behavioural Theory of Management: This theory portrays that a highly complex
organization or industry leads to an increase of the human interest within workplace. One of the
prominent theory in this category includes (Schlüter et al. 2017):
a. Theory of Human Relation: This theory emphasized the significance of aligning
needs of workers with needs of company and adoption of policies aimed towards the mutual
benefit.
Modern Theory of Management: This theory looks forward towards incorporating
exponential complexity and continuous change. One of the prominent theory under this category
is mentioned below (Dent and Bozeman 2014).
a. System Theory: This theory looks forward to the holistic patterns in the scientific and
the metaphysical context. The management approach to the system theory focuses towards the
achievement of balanced and integrated whole in the business. The features of the theory lies in
identification of overall organizational goal, working and the understanding of the cycles
regulating the inputs and outcomes of the system. This theory is effective in leveraging and
recognizing the patters operations of a firm.
Leadership Theories represent process where an individual is able to influence group of
individuals for achieving common goal. Some of the commonly used leadership theories are
mentioned as follows:

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Transformational Leadership Theory: Here the leaders’ remains connected to the
followers in such manner that it is able to raise the level of morality and motivation committed
towards a collective good (Ghasabeh, Soosay and Reaiche 2015). The four factors that plays into
the transformational leadership includes idealized influence, intellectual stimulation,
inspirational motivation and the individualized concern.
Transactional Leadership Theory: This theory represents a leadership style where the
leaders are seen to promote compliance by the followers through punishments and rewards
(Odumeru and Ogbonna 2013). The system of punishment and reward in transactional leadership
will keep followers motivated for short-term.
Leader Member Exchange Theory: This leadership theory is based on the fact that
there are two groups that stands in opposition, the in-group and out-group (Breevaart et al. 2015).
The theory also portrays how leaders should retain their position within the group and the way in
which they would develop relationships with the other members thereby contributing to the
growth or hindering development.
Adaptive Leadership: According to this theory, a leader represents one who remains in
a position of mobilizing people for acting on tougher challenges even when the solutions to
challenges are not apparent (Nicolaides and McCallum 2013).
Servant Leadership: The theory is put forward by Robert Greenleaf. According to this
theory the leaders considers the need of the others over the self-interest of the others. Here the
idea remains in serving by shifting power towards those being led (Parris and Peachey 2013).

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4. Different Roles of Leadership and Management with respect to Different Situations of
Organizations Supported by Theories and Concepts of Leadership and Motivation.
Scenario: The manager of Lloyds Bank PLC has been assigned the task to overview that
all the employees must work towards a single and common goal within organization.
Leadership and Motivation Theory:
The leadership theory applicable here is the transformational leadership where the
leaders possess the innate ability of understanding the people, defining the goals and aspirations
of the team members and brings everyone together in making a difference. These leaders act as
visionaries in their own manner of thinking thereby possessing communication skills that allows
them in articulating the thoughts in a clear and inspiring manner. These leaders also has the
ability of creating a positive work culture for the employees. This leads to assembling the right
kind of people for working together thereby expressing the opinions and thoughts. Under this
leadership, the employees also feeling safe in sharing creative and the innovative ideas that
would benefit an organization.
The motivation theory applicable in this case is the goal setting theory. This theory
emphasizes on setting goals that remains essentially linked to the performance of task (Lock and
Latham 2019). This involves development of action plan for motivating and guiding the group or
person towards goal. In other words, goals indicates and provides direction to the employees
about the things that needed to be done along with an estimation of the efforts.
Situation: When the manager of the Llyods Bank has been asked to instruct the
employees to perform a task in a specific manner using a specific method.
Leadership and Motivation Theory:

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The leadership theory applicable here is the transactional leadership where leaders can
manage the subordinates through setting specific objectives and goals followed by punishment or
reward for encouraging and motivating the performance. This leader possess the authority of
leading a group who also agrees in following him for the performance of the predetermined
activity in return for specific outcome known as rewards. The theory is primarily used by the
middle level management in larger organizations like Lloyds. According to this leadership
theory, the successful completion of the task results in the material rewards like job security,
compensation and promotion as well as intangible rewards like praise and recognition. Failure
on the other hand leads to negative results like loss of benefits and compensation or disciplinary
action. Various organizations employs combination of leadership styles at different
organizational levels. Employing transactional leadership in larger organization includes
tendencies of the leaders in focusing towards making an organization increasingly efficient and
in dealing with the day to day corporate affairs. These leaders contributes towards development
of the improved process, managing huge employees as per the set regulations and rules and
ensure optimum use of the company’s resources.
The motivation theory applicable here is Maslow’s hierarchy of needs (Lester 2013). In
context of this motivational theory, the transactional leadership works towards the basic levels of
the needs satisfaction and usually focuses on lowers levels of hierarchy. These leaders have been
found to make use of exchange model comprising of the rewards given for the good work or the
positive outcomes. On the other hand, leaders can also punish the poor work or the negative
outcome till the problem gets corrected. One of the ways in which the transactional leadership
focuses on the needs of the lower level is via stressing on the specific performance of task.

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5. Strength and Weakness of the Different Approaches to Situations within Work
Environment.
The strength of the transformational leader lies in the ability of selling benefits along
with morality of change through creation of new and inspiring vision and getting the people in
buying it (Lee 2014). This approach to leadership focus on positive impact of change and
instructs people the ways of contributing it. This enables the employees in easily embracing the
change and thereby enjoy it.
The weakness of the approach lies in the fact that this leadership style is able to inspire
some people while the others consider its presence as constant pressure. This kind of leadership
stresses too much on the aspect of authenticity which implies living and breathing the culture and
values of the company. The continuous pressure of achieving a grant vision and in continuously
taking pride in the achievements of the company results in burnout and demotivation of some of
the employees.
The strength of approach put forward by the transactional leadership lies in the clear and
the concise structure (Afshari and Gibson 2016). Here the leaders informs the employees about
their expectations by setting clear instructions and expects to follow the chain of command that
enables them in knowing the suitable channels. This approach also alerts them about the rewards
and the punishments attached to the completion of their task.
The weakness of the approach lies in the fact that it does not encourage creativity. As the
leadership style is quite rigid and does not bend principles, rules and listen to the suggestions
from the people, it hampers the creativity of members of the team who have effective and sound

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recommendations for betterment of organization. The focus on the short term goals makes it
harder for the leaders to remain open to creative ideas that does not go with existing goals.
6. a. Key Approaches of Operation Management and Role Played by Leaders and
Managers
Operation management represents the area of management that remains connected to the
designing and operation of business processes for the production of the goods or the
services(Reid and Sanders 2015). In other words, operations management is known to serve the
functions of the managing process that involves conversion of inputs including the material,
labor and energy into the outputs comprising of goods and the services. The key approaches of
operation management comprise of designing or planning, organizing and supervising the
functions. These approaches are known to involve assst, cost and human resource and remains
preceded via thorough analysis of the process.
As far as planning is concerned, managers plays the role of setting the goals of the firm
that complies with the increase in the revenue. The leaders plays the role of communicating the
roles to the employee that enables the employees to focus in the accomplishment of the goals and
the objectives.
When it comes to organizing, the managers organizes and utilizes resources of an
organization in an efficient manner for fulfilling the goals of the organization. Leaders on the
other hand plays the role of effectively allocating the resources and motivating the employees
towards performance so that available resource get utilized for achieving best outcome.

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As far as supervising is concerned, managers plays the role of directing the employees to
the task that neeeded to be performed whereas the leaders plays the role of creation of a team
thereby directing the ways in which the work would get accomplished.
b. How Theories Of ‘Situational Leadership’, ‘System Leadership’ And The ‘Contimgency
Leadership’ Applied To Organization And Supported Growth and Sustainable
Performance.
Situational leadership refers to the style of leadership when manager or leader of the
organization are found to adjust the style in order to fit development level of followers
(McCleskey 2014). This kind of leadership plays a key role in resolving any issues faced by the
organization therby supporting growth and sustainable performance.
Systems leadership represents set of capacities and skills that organizations might use
for catalyzing, enabling and supporting the process (Macdonald, Burke and Stewart 2018). To
support the growth and the sustainable performance these leaders can control workings of
employees and mak them work towards the needs of the firm.
Contingency leadership represents a kind of leadership where effectiveness of leaders
remains contingent upon how his or her style of leadership matches the situation (Shao, Feng and
Hu 2016). To ensure growth and sustainable performance, the leaders plays a key role in
influencing employees to bring about changes in operations for meeting the prevailing challenges
in market.
7. a. Conclusion
On a concluding note, it can said that, a leader tends to motivate the people in performing
at maximum capacity while the manager is seem to monitor schedule, maintain the departmental

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paperwork and resolve dispute. Managers have a direct influence on employee they manage and
play a key role in shaping the culture of the organization. They act as a link between the senior
management and the people operating at the grass root level.
b. Recommendations:
 For ensuring future improvements, managers should effectively define the vision thereby
broadcasting it for engaging the team in delivering best of the abilities.
 For ensuring future improvements, leaders must be proactive.

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