Analysis of Leadership and Management in an Organizational Context

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This report delves into the realm of operational management, examining the distinct roles and characteristics of leaders and managers within organizations, particularly in the context of Mark & Spencer (M&S). It elucidates the differences in their functions, highlighting how leaders set visions and directions while managers utilize established principles to control resources. The report explores various leadership and management theories, including situational leadership, system theory, and classical theory, analyzing their strengths and weaknesses in different work environments. It provides examples of how leaders and managers at M&S handle various situations, from introducing new product lines to resolving staff disputes and adapting to economic changes. The report also discusses the importance of aligning management practices with organizational objectives to achieve optimal performance and growth. Furthermore, the report emphasizes the significance of leaders and managers possessing skills and qualities to apply these theories effectively, thereby contributing to the smooth functioning and long-term success of the company.
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MANAGEMENT AND
OPERATIONS
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INTRODUCTION
Operational management in the companies has boosted their development by increasing the
efficiency of their procedures. Leaders and managers are the ones who carries the operational
management. They have different characteristics and roles in the organisation. The report aims to
determine the roles and duties of leaders and managers and a description of the difference between
their functioning and characteristics (Ashforth and et. al., 2014). A detailed understanding of
different theories of leadership and management approach which improves the efficiency of leaders
and managers. Importance of operational management and different factors that affect the decision
making of leaders and management of operations has been done.
TASK 1
P1- Definition and comparison of leaders and managers on the basis of their roles and
characteristics in context to M&S
Leaders and managers both contribute in the development of the Mark & Spencer (M&S).
They both have different roles and influences on the cited company. Leaders of the cited company
set a new path, a vision and directions for particular groups. Leaders act as the spearhead of new
direction that has been set by them for their followers. On the other hand, managers of the cited
company use principles, values and guidelines which have been set by that company to control
employees and the resources. Managers are responsible for directing the staff and resources and
leaders are the ones who are followed by the employees and are responsible to guide them and
direct them (Bridges and Bridge, 2017). Leaders work by setting examples and if they go against
those example they get a set back whereas managers dictates expectations and if they go against that
command it will not affect their positioning.
Leader and managers both are important for the company and both have their own roles and
characteristics. A leader is an innovator whereas a manager is an administrator of the company.
He/she works on his original directions and guidelines but a manager follows the principles of
company. The manager of the cited company are responsible for business maintenance and the
leader works for development of the organization. The role of leader is to focus on the group
members or employees and the role of manager is to emphasize on the structure and functioning of
the company.
Characteristics of a leader are inspiring, trust worthy, motivating other, encouraging group
members, developing new ideas and methodology etc. whereas that of a manager are controlling
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others, having complete view of the business, expecting performance from the employees etc. A
manager carries a bottom line vision but a leader carries the vision of horizon. He carries short term
views for the company but on the other hand a leader carries a long term views for the company. A
manager will always ask employees about how and when but a leader will always ask about what
and why. A manager will always accept the status whereas a leader will challenge it.
Both the leaders and managers are significant for smooth functioning of M&S. Since,
leaders have long term goals and future vision to transform the organisation, the importance of
leader becomes slightly higher than that of manager. He/she can control the managers and their
actions for benefits of M&S. Similarly, managerial attributes are completely limited towards daily
operations and handling of tasks which are responsible for everyday administration. They do not
worry about future consequences or situations much as compared to leaders.
M1 Analysis and comparison between functioning of leaders and managers by applying range of
theories
The functionalities of a manager and a leader differ in the situations. At the time of risk the
leaders will motivate team members and encourage them to work efficiently even in the situations
of risk and pressure (Bryman and Bell, 2015). A manager in such situations will manage and direct
employees and administer their functioning for obtaining the best possible outcome in case of risk
or workload.
The functioning of leaders and managers are two different aspects. For instance, M&S is
facing difficulty in recruiting sufficient candidates in its new retail store. The manager reported this
issue to leader and seeks solution. The role of leader is to resolve company issue and come up with
effective solution while manager can also provide suggestions for implementation to the leader.
This depicts major difference in functions. The role of manager is to resolve minor problems at his
end and look after the fact that functioning of company is not hindered. On the other hand, leader
looks after large scale problems and consequences.
Every organisation must have a leader and a manager when it comes to managing business
activities. The leader has a vision and a purpose for which he drives the organisation while the
manager helps in accomplishing smaller goals for fulfilling this purpose. On the contrary, both
leaders and managers must have some sort of correlation in terms of qualities and skills. If any of
the skills and qualities are missing then efficient training programs shall be incorporated. The leader
is the first person whose decision is prominent for the entire company while the manager's functions
are confined to his/her area of operation.
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P2 Activities of a leader and the functionalities of a manager in various situations with special
reference to the M&S
The duties and actions of the managers and the leaders in M&S are different in all situations.
For example, there are situations in the cited company when new themes of dresses is to be included
in the stock. In such circumstances there is a risk that whether the introduced concept will be liked
by customers not. In these kinds of conditions the role of leaders and managers is to manage the risk
and work with a way which reduces risk and direct as well as motivate the team members to work
in this methodology. If there is a dispute between the staff members then they have to resolve it so
that a better team work can be achieved which is required for efficient working and process. There
are cases where tough decision needs to be taken and that decision may be or may not be accepted
by the staff members. In these kinds of stages, it is the duty of managers and leaders to work in their
own way and persuade the deputies to accept the decision and remove conditions of disagreement
and reluctance (Buckingham and Coffman, 2014). Also, there are where quick and important
decision for the company are required to be taken so they have to use their decision making skill
quickly and manage that decision amongst the workers. There are many other such possibilities in
which leaders and managers works to maintain smooth functioning of the company and obtain the
utmost beneficial outcomes in every circumstance whether it is good or bad.
Managers and leaders both have their own ways to deal in the situations. They both work
depending upon the authorities they have been provided. In every situation, a leader can adopt the
guidelines to gain efficient performance and then at that time the manager has to take care that in
every situation the employees are organised and meet the expected performances. Manager directs
operations of the organisation and leader takes care of the group members, their performances and
functioning, their motivation and their efforts (Chemers, 2014).
There can be variable situations due to global factors like technology and economy which
can impact the growth and stability of company. For example, advancing technology brings in up-
gradation in software and devices. The manager and leaders must be capable of handling such
situations and then introduce these changes in the company. On the other hand, economy is crucial
factor which can turn the situation in any way depending on the nature of its impact. For example,
economic breakdown or inflation is a situation which enforces organisations to rise their pricing
standards and limit the number of individuals working currently. In such situations, both manager
and leaders have to take strategic and collaborative step in selecting the right solution.
P3- Distinct theories and models of approach with special reference to M&S
Various management and leadership approach theories in the quoted company include
system leadership, situational leadership etc. Fred Fiedler's theory shows that the actions and duties
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of managers and leaders changes in different situations. This model suggests that they need to
possess different traits according to the different situations. Like, if the environment of the work
place is strict and task oriented they are likely to possess qualities like discipline, commanding, etc.,
and if the environment of the work place is open and idea driven they are likely to possess qualities
like creativity, risk taking etc. The CTR (Cognitive Resource Theory) explains the situations where
members have to show their skill, knowledge, ideas efficiently. The situational analysis of Fielder
has three categories:
1. Relationship between leaders and members – This includes trust, respect, belief, and
confidence between leaders and their followers. A healthy and interactive relationship
between the team members and the leader helps in smooth functioning of all the operations
in the company.
2. Task Structure – The level or status up to which the procedures, functions, roles are specified
and explained formally.
3. Power Of Leader position – The amount of authority and power of leaders and managers
affects the company depending on their role in the group
System theory approach by the leaders and managers is not only in terms of manner of work
they do but it is in the terms of the determination they show to factorize their skills in the external
environment in terms of maintaining the relationship within the organisational elements.. A leader
may apply system approach when he wants to work in unpredicted and complex situations. It
provides a scenario of understanding complex variables that influences. It reveals the complex web
of relations in the process of achievement of goals (Harper, 2015). It helps to predict the future
elements which can be expected to be meaningful.
There are many other models of approach like the modern trait theory includes different
traits of leaders such as experience, intelligence, efficiency etc. Behavioural theory includes self
confidence, ego, attitudes of leaders and managers. In full range theory there are four qualities that
are essential in the leaders and managers. These are as follows - individual considerations, influence
of the ideas, diplomatic stimulation, motivation and inspiration. Any of the theory could be adopted
by the leaders and managers to improve the efficiency of their work. They have to possess many
qualities and improve their skills in order to action upon any of the theory.
Classical theory: Scientific management theory is also referred as classical theory which
implies that employee productivity is a significant factor to be focused by leaders and managers for
bringing development and growth in the company. This theory helps in managing labour according
to their skills and knowledge and then utilising it for benefit of organisation. Autocratic leadership
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is highly influenced by classical theory.
Management by Objectives: This theory of management is focused on preparing or devising
objectives which are set by managers or leaders for members so that their actions are aligned with
company objectives.
Both these theories have their own role in successful functioning of companies. M&S can
achieve great results if productivity and objectives are more focused as compared to profits. It shall
strengthen internal functioning and help organisation to accomplish set goals.
M2 Capabilities and weaknesses of various approaches to situations occurring in the work
atmosphere
The situational approach have strengths such as it helps in improving the efficiency and
performance of the leader, keeps them motivated every time. However, adopting these style may
result in excessive pressure and burden on leaders and there may be possibility of disagreement by
the other members (Martin and Siebert, 2016).
The critical analyses of situational approach in M&S shows that enhances the performance
of the leaders but at the same time increases pressure on the individual.
Situational Approach: Often organisations develop certain tactics for training leaders. In
these conditions, situational leadership approach is most frequently used and the effectiveness of
this approach is examined through this aspect. Flexibility is achieved by the leader in this approach
and better command over different situations is also addressed by the leader. However, major
strength of this approach includes lack of confidence generation amongst the followers which
deteriorates the internal structure.
System Leadership Approach: The purpose and definition of different tasks and activities in
in this approach of leadership is clearly defined which helps in developing effective communication
channels. On the other hand, the employees or followers of this type of leadership are more
subjected to loosing their creativity and innovation. Risks are not taken which means organisation is
subjected to demoralisation.
Contingency Approach: The leadership which are developed through contingency approach
are more effective and less confusing as compared to situational approach. It is predictive and
provides appropriate information about the attributes of the leader. However, the contingency
approach at times results in subjective judgement which means that proper analysis doesn't take
place.
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TASK 2
P4 Functions of managers and leaders and various approaches to operational management with
reference to M&S
Management of process is the act of managing the goods or service offered by the company.
It includes predicting, scheduling, quality assurance, employee motivation, positioning of facilities,
buying of resources and equipments, maintenance of resources etc. It is the procedure of conversion
of raw material, labour and energy into quality goods or services. Leaders and managers controls
the production process and operations of business in the best way possible. Operational
management works on four theories: Business Process Design, Reconfigurable Management
Systems, Six Sigma and Lean Manufacturing.
Business Process Design is commonly known as BPR theory. It was created in 1993. It
mainly focuses on analysing, controlling and structuring of the business activities in the cited
company. The main aim of a BPR approach is to severely reorient the organisation designing the
procedures of the business from bottom to top level.
Structure of the organisation, hardware components and software constituents are subjected
to quick changes in the company (Moran, Abramson and Moran, 2014). The Reconfigurable
Manufacturing Systems theory is about production systems that are designed to consolidate these
swift fluctuations. This theory allows adjustment of the changes quickly in order to match the
ability such that they can carry forward the process and functions according to the market changes.
Six Sigma approach is the model that emphasizes the quality of the goods or services offered
by the cited company. It was first formulated by Motorola for two years from 1985 – 1987. This
approach gained great popularity in the market after it was initiated by General Electric in 1995.
The term “six” is the controlling elements that are kept at a distance of six between the normal
mean distribution and standard deviations. A six sigma project in every company has fiscal goals
and defined step sequence which includes increment in profits, reduction in costs, etc. The tools
used for this approach are the latest charts, potent defect calculations and other ratios.
Another approach is the Lean Manufacturing approach (Ratcliffe, 2013). It is an organised
procedure of removing unwanted elements from the manufacturing process. Waste in the process is
created due to overburdening and uneven workloads. This approach accounts for elimination of this
kind of waste. It sees usage of resource for any reason except value creation for consumers. It seeks
to remove wasteful resource expenses of the company as much as possible. Leaders and managers
applies these theories for the operational management and are responsible for the whole procedure.
They know the whole process, analyse the linkages, function on the trade off's, explain and teach
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others about the process, trains the workers, measure the procedure, and make the necessary
changes to improve the procedure.
Following are the approaches to operations management with the functions of manager and leader
in these aspects:
TQM (Total Quality Management): Total quality management is an approach to operations
management which is based completely on the improvements in quality within one stable system of
the organisation unless and until the desired outcome is received. TQM is used in manufacturing
and production processes fr\or gaining the best quality products which are further utilised for
achieving customer satisfaction.
Just-in-Time Inventory: Just In Time Inventory refers to the operations management
approach which is used for managing the amount of inventory or supply of goods and services in
the company. Often there are situations in which excessive goods are accumulated and less supply
exists or the vice versa. The company suffers losses in both the situations. When applying JIT as the
principle of operations management approach then minimum required production takes place. It
helps in reducing the amount of wastage and no loss of excessive manufacturing.
Kaizen: This approach of operations management is based on continuous improvements
which is based on a long term basis. The basic aim of this approach to improve the efficiency and
reduce the cost which is involved in production. When good quality product is obtained by the
customers then their preference will be inclined towards M&S which is good for the organisation.
P5 Significance and value of operational management in order to achieve Business aims with
reference to M&S
Operational management is a vital key in the performance of the company and providing the
quality service to its customers (Smith, Maull and CL Ng, 2014). It involves various functions like
planning, staffing, controlling the employees and procedures, directing them, motivating and
organising the workers, etc. Operational management ranges over the company as a part of its
strategical and tactical operations. The business objective of M&S is to change the shopping
experiences of its customers and introduce an easy, accessible and outstanding home shopping
service. In order to attain this objective it is important to perform operational management
(Oakland, 2014). Operational management works on two principles: customer service and resource
utilisation. In order to meet the organisational objectives these principles can be followed as they
will ensure that customer’s demands and needs are fulfilled and the available resources are utilised
efficiently. In this company the various procedures includes understanding the customers needs and
demands, getting a feedback so that accordingly they can convey manufacturers. There are different
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employees designated to perform the procedures of the business. It is important for them to
synchronise their work so that they are able to provide the best possible service to the customer. For
example the marketing team will generate a report of demands and needs of customers. This data
will be collected and analysed by another team. Then the collected data will be matched with the
existing resources. Accordingly, then the manufactures of the different items offered will change
their scheme. Also, proper and efficient use of resources can reduce the cost of the production. In
case there is lack of resources or lack of stock to be sold than the company would not be able to
provide its quality service and will fail to achieve its objectives. Hence, it is necessary to manage
the resources and available stock and to provide quality service. Thus, to achieve the objective a
synchronised and efficient procedure needs to be followed which can be done by operational
management.
M3 Evaluation of improvement in operational management efficiency of mangers and leaders to
attain business objectives
Enhancement of operational efficiency of managers and Leaders can be done by proper and
detailed understanding of the process and matching the process with the needs and demands of
customers by synchronising all the working units (Slack, 2015.).
P6 Factors influencing operational management and decision-making of Leaders and managers in
business environment with reference to M&S
The factors that can affect the operational management can be internal or external. The
internal factors are :
ď‚· Corporate objectives- It is the most important objective. Operational objectives should not
conflict with corporate objectives. There must be a harmony between these two.
ď‚· Finance- Operational decisions includes investments and costings. The financial position
like liquidity, profitability, cash flow etc. affects the choices available for operational
management.
ď‚· Human Resources- The quality and capacity of labour is a significant factor in the cited
company. Targets setted for production will be affected by the investment required for
training and effectiveness of the employees.
ď‚· Marketing Issues- The operational set-up is determined by the nature of product. Continuous
changes in marketing strategy will affect the operations.
External factors affecting the procedural management are :
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ď‚· Economic environment- Sudden fluctuations and short term changes in customer demand
affects the capacity and productivity of service (Pyzdek and Keller, 2014). Changes in
interests rates affects the cost of capital funding.
ď‚· Technological change- The innovation in technology which are costly affects the production
process as company needs to use the latest technology .
ď‚· Legal and Environmental change- New challenges are faced due to change in rules and
regulations and fluctuations of environment.
ď‚· Competitors- Better quality service provided by the competitors in the market increases
pressure on operations to produce more quality and comfortable service.
Decisions of leaders and managers are also impacted by the different factors in the business. These
factors can be categorised into three groups: Perception issues due to different perceptions of
people, issues within the organisation and issues concerning the environment. Issues of opinions are
the ways individuals interpret their environment. Perception can be influenced by the person
according to his background, values, expectations and interests. Also, by the object which could be
an event, item, person and by situations like time, location etc.
Organisations have workers with different values, interests and ethics which forms the basis
for politics. Organisational issues are the policies and procedures, organisational hierarchy and
politics in the organisation. Politics is done to the reactions of persons and groups that impacts
others. Teams and persons use politics in order to enhance their career like gaining promotions and
rewards, to enhance their ideology and interests, to gain appraisal from the higher authorities etc.
Environmental issues includes the market in which operation of organisation is taking place, the
economy and legislations and the reaction of customers to its products and services (Rothaermel,
2015).
M4 Factors impacting the business environment and wider community
Business environment and the wider communities affects by these factors as they affect the
complete process and existing materials which impacts the costing and wider community decisions
fluctuates accordingly. Political, social and economic factors gives influences on the overall
operational activities that are performed. Policies formed by government are essential to be
followed and economic conditions also gives impact on the overall performance of the business.
Needs and preferences of consumers are vital to be considered so that all the activities can be
performed as per the requirement of buyers.
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D2 Critical assessment of operations management applications and factors influencing wider
business environment
Critical assessment of the operational management shows that it is essential and applied in
every industry whether it is manufacturing sector or service sector. It provides better control and
decision making of the operation but implementations of the decision in this is a very delicate task
as proper research needs to be done prior to the decision and outcomes of the decision should
analysed before implementation of the decision. Six sigma, lean manufacturing and total quality
management are tools that supports for performing the operational activities in effective way. It also
helps for reducing wastes and making positive improvements in operational practices that are
performed in the company.
CONCLUSION
Hence, we have successfully analysed the different roles and duties of leaders and managers
in an organisation and determined the ways of their functioning in the context of different
situations. Also, theories of leadership approach has been evolved which will help them to improve
their efficiency and performance. Importance of operational management in an organisation has
been pictured and the different factors that affect the decision making of leaders and operational
management has been determined. The report shows that more focus on the role of leaders and
operational management needs to be given and factors affecting them should be analysed and
measuresss should be taken towards these to provide better quality and efficient service (Scott and
Davis, 2015).
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REFERENCES
Books and Journals
Ashforth, B. E., and et. al., 2014. Ambivalence in organizations: A multilevel approach.
Organization Science. 25(5). pp.1453-1478.
Bridges, W. and Bridges, S., 2017. Managing transitions: Making the most of change. Da Capo
Press.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, US
Buckingham, M. and Coffman, C., 2014. First, break all the rules: What the world's greatest
managers do differently. Simon and Schuster.
Chemers, M., 2014. An integrative theory of leadership. Psychology Press.
Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.
Martin, G. and Siebert, S., 2016. Managing people and organizations in changing contexts.
Routledge.
Moran, R. T., Abramson, N. R. and Moran, S. V., 2014. Managing cultural differences. Routledge.
Oakland, J. S., 2014. Total quality management and operational excellence: text with cases.
Routledge.
Pyzdek, T. and Keller, P. A., 2014. The six sigma handbook. McGraw-Hill Education.
Rothaermel, F. T., 2015. Strategic management. New York, NY: McGraw-Hill.
Scott, W. R. and Davis, G. F., 2015. Organizations and organizing: Rational, natural and open
systems perspectives. Routledge.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Smith, L., Maull, R. and CL Ng, I., 2014. Servitization and operations management: a service
dominant-logic approach. International Journal of Operations & Production Management.
34(2). pp.242-269.
Online
Ratcliffe, R., 2013. What's the difference between leadership and management?. [Online]. Available
through:<https://www.theguardian.com/careers/difference-between-leadership-management>.
[Accessed on 7th March, 2017].
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