McKinsey's Analysis: Leadership, Management, and Operational Contexts

This report, based on the McKinsey framework, delves into the distinct roles and characteristics of leaders and managers within organizations. It explores their functions in different situations, emphasizing decision-making, strategy building, and problem-solving approaches. The report outlines various leadership theories and models, including situational leadership, and examines key approaches to operational management, such as just-in-time and total quality management. Furthermore, it analyzes the importance of operational management in achieving organizational objectives and the impact of the business environment on operational decision-making. The report highlights the significance of resource utilization, training, and learning in enhancing organizational performance. Finally, the report emphasizes the importance of effective communication, monitoring, and employee development in fostering a productive and successful work environment.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
P1 Different Role and characteristic of leader and manager.......................................................1
TASK 2............................................................................................................................................4
P2 Role of leader and function of manager in different situation context..................................4
P3 Different theories and models of approaches.........................................................................5
TASK 3............................................................................................................................................7
P4 Key approaches to Operation management...........................................................................7
P5 Importance and values of operation management in achieving objectives............................8
TASK 4............................................................................................................................................9
P6 Factors of business environment that impact upon operational management.......................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Operation management is a process which is focuses on managing activities to produce
and distributed various produce to get effective and appropriate income easily. This is includes
product creation, management, purchase, inventory and quality control, logistic and evaluation
process as well. This process includes measurement and analysis of internal functional activity
of a organisation. Through operation and management a company concerned to convert raw
material and labour into efficient product and services for customers. This project report is based
on McKinsey which is a leading consultancy firm in London. This organisation was founded in
the year of 1926 by James O. McKinsey. They have approx. 25000 employees who provides
effective and efficient services to all individuals. McKinsey is conducts qualitative and
quantitative monitoring to evaluate personal skill of all individuals to make management
decision arccos public and private sector (Ale, 2010). This report includes role and features of
manager and leader in different organisations and their function in various situations. It represent
various theories and models of leadership approaches and some key approaches such as just in
time, cost of quality and total quality management of operation management as well. At last it
reflects impact of business environment upon a organisation and their decision making approach.
TASK1
P1 Different Role and characteristic of leader and manager
In an organisation manager and leader both are provides effective services to get business
objectives easily. They both are play a most important role to set objectives and build appropriate
strategy for them to get easily. Manager and leader are very different to other and they play
specific role in organisation to motivate their employees toward specific goal for future success.
There are various role and characteristic and of leader and manager are given below -
Manager – Manger is a individual who is works to create appropriate objective for organisation
to get higher success in future. They often has a staff of employees who works to achieve future
goals easily. Manger of different organisation has lots of responsibility to control unnecessary
activities and build positive working environment for workers. Managers are basically work
oriented and they want to get all business formulation and activities in effectual form (Baboli,
2014).
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Role of Manger – Manager in a organisation play various role with specific
responsibilities. They always build a bridge between upper level management to translating
appropriate strategy that they create for organisation and with lower level to implement them
effectively. There are some other roles of mangers are given below -
Build objective – Manager is individual who provides their suitable services in
organisation. One most important role of manager is to create effective objective and goal for
organisation that help them to achieve higher business success easily. Objective creation is
responsible work that ned a proper researches of market and competitive firms to providing
different and more satisfying services to customers. Manager needs to set clear vision for their
staff members for those they build efficient plan to achieve easily. These kind of objectives help
to provide proper guideline to employees for future benefits (Branch, 2012).
Manage activities – After creating goal and objective for organisation manager organise
various activities in different departments. It is depends on individual's skill and ability to
achieve different firm's approaches easily. Management in company also depends on manager
who work to organise business activities effectively. This process includes allocation of different
task and work to several individual's for getting appropriate outcomes for future success.
Monitoring and controlling – It is responsibility of manger to analyse business activities
appropriately. Through this process they can easily control unnecessary activities that can harm
operational and functional action of firm. This is a most important role of manager in which they
analyse skills and capability of individual's who are working in their company to provide them
appropriate task for getting higher productivity and benefits (Burke, 2013).
Characteristic of manager – Manger is a play most important role to providing appropriate
benefits and desired outcomes to overall management. There are various features of manager are
given below -
Creativity – This is a specific component of excellent success in organisation. A manager
should have to be creative in their approaches and decision making formulation to resolve
various problems easily. It is required to make specific objective and task for employees to
provide them specific direction easily.
Discipline – Manger should have to be disciplined in their working efficiency because
their employees are follow all their direction and guideline of working. This is a quality of
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manger in which they choose proper topic among various options. It is a manager and leadership
quality of leading people in a organisation.
Commitment – It is required need from a manger that they have to very passionate
toward their working approaches and commitment that they give to employees this is a only
think which is help to build trust in staff members mind (Chen, 2011).
Leader – They are Individual of organisation who work to provide motivate their co-employees
toward specific goal of company. Main motive of leaders is to reduce extra workloads on
individuals and provide them specific direction and guideline to working approaches. A good
leader always work to utilize all resources and manpower to achieve business objectives.
Role of leader – Leader of a organisation play a most important role to provide effective
direction and guideline to employees toward their own work and firm's future goal.
Communicate – Leader always build a effective and proper communication between
employees to understand their problems easily. This is very important for them to build a relation
with staff member to convey message and thoughts with them easily.
Monitoring – Leader and manager both are monitoring employees skill and working
capacity. Manager analyse this to assign appropriate work according to their ability and leader
monitor their skill to improve them for facing various challenges easily.
Employees development – This is a another role of leader in which they work to develop
employees skill and their working capacity by providing appropriate training and learning. These
kind of activities is helpful for organisation to get all business objectives easily.
Characteristic of leader – Features of leaders are very different to manager which are given
below -
Motivation – A leader is always work to motivate their employees by specific guideline
and direction. Through this process leaders build their confidence to face appropriate challenge
from target market. These kind of things help to build proper strategy and planning toward their
future objectives (Cruz, 2011).
Confident – It is a important aspect for leader to be confident in all their working
activities and approaches. Through these kind of direction they build appropriate strategy to be
successful in target market for organisation.
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TASK 2
P2 Role of leader and function of manager in different situation context
Leader and manger both are two important key element of a organisation. They are very
different to each other but their objectives are very similar to achieve future success in
competitive market. In a firm they both are provides appropriate services and contribution to get
all business objectives easily. Manager and leader are provides their services according to
different situation so for them it is very important to analyse all business approaches related to
objective and target market. There are various role of manager and function of leader are given
below according to various situations -
Decision making- manager and leader are work to analyse all business activities easily
yo make accurate decision according to them. In this process specific experience is required to
make impartial decision for employees and management of organisation. These kind of skills are
required according to different organisational approaches that can affect on operational and
functional activities of a firm. Manger is always work with full responsibility to take all business
decision properly that should have to be in favour of organisation and its employees. In this
process leader also provides their own contribution to gather all business activities that may
affect in future terms of organisation (Expósito, 2016).
Build strategies – Manager of organisation is work to create specific objective according
to competitive market to stand in market for a long time. In it leader provide their appropriate
services to make specific strategy that can help to achieve them easily. They both are implement
these strategy in working approaches to get effective outcomes. Strategies are build for some
specify working goal that need to be achieved in short term period. A business firm can easily
achieve their future objectives by specific strategy and planing that can increase values and
profit. In this process monitoring and analysis process take a important role for making specific
strategy easily (Fayol, 2016).
Problem solving approach – These kind of approach are work to getting appropriate
outcome after reducing conflicts and barriers in organisation. Problem solving skill is very
important for manager to analyse several things that can build conflicts and barriers between
employees. Manager and leader both are provide their services to solve different problem of
organisation. Problem solving skill is a important approach in which employees get higher
advantages to resolve their problems and build effective relation with others. They are helps to
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increase productivity and profitability by their product and services. Problem solving approach is
very important for a organisation to get higher business growth without any conflicts between
workforce and management staff.
Utilization of resources – In a organisation resources are uses to get appropriate income
and outcome by manufacturing process. These kind of assets are used to implement business
activities in proper manner. Manager and leader of organisation are monitor uses of resources in
different department to allocate them in exact manner to get higher growth easily. Resources
management is also a important aspect of organisation in which higher division make Strategy
and objectives according to their assets valuation and fund to get effective outcomes easily.
Through this employees provide their efficient services to get higher productivity and
profitability from target market (Handschin, 2012).
Providing training and learning – It is a important process of organisation in which
manager play a important role and leader provide their contribution. In it they both are monitor
and analyse employee skill and ability to attain various task easily. These kind of activities are
conducted by manager to organise various work in different departments. Leader of organisation
provides their services to get higher business advantages easily. After monitoring and analysis
process they conduct a training program for them to providing specific development skill.
Through this manager and leader enhance their interpersonal skill and working approaches to
face any challenges from target market.
P3 Different theories and models of approaches
In a business organisation it is very important to build a effective workforce to get
productivity and portability easily. In it leader play a specific role to get higher business
opportunities easily. Leader of organization build specific strategy and planning to get higher
business success easily in this process it is very important for a organisation to get a effective
idea about various leadership skill that can be suited on their various activities. In this process
leader of organisation is implement their business approaches according to business need and
demand. There are various leadership theory and styles are given below which is suited on
different situations as well (Lindström, 2012).
Situational leadership – These kind of leadership skill is used when organisation faces
various changes according to different situation. In this process they provide their services
according to company's need and demand for future success. In it leader are play a vital role for
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provide effective direction and guideline to their employees to faces different challenges easily.
They communicate easily with workforce to provide them creative ideas and appropriate
direction through this they can easily implement their business approaches in organisation.
Situational leadership is very appropriate theory which is working in several situation of business
objectives and future goal as well.
System Leadership – These kind of leadership is very appropriate for different system
that can help to provide appropriate benefits an income in organisation. In it leader provides
systematic direction and guideline to their employees to getting higher benefits easily. System
leadership is a kind of approach in which employees follow effective direction that help them to
reduce extra burden easily. In it leader provide them several work they they ned to done in a
group with help of other employees. In it leader monitor all the department of organisation in
systematic way to provide them appropriate training and learning which is help to improve their
interpersonal skill easily (Lisi, 2010).
Contingency theory – This leadership style is very close to systematic approach because
in it leader provide appropriate direction and guideline to their employees according to different
situation. These kind of directions are help them to get higher benefits easily. In it leader provide
them specific training to develop their inter personal skill and ability to face different challenges
from target market. Situational leadership is partially different from contingency theory because
in this leader is adopt various business approaches according to situations which is affect its
operational and functional activities.
Leadership style – leadership is concerned different kind of style according to leaders behaviour
and their attitudes as well. There are various leadership style are given below -
Autocratic leadership – They are the kind of leader who are vary straight forward in
their approaches. They take strict decision for organisational a benefits autocratic leaders are
very different to normal individual because they do not concern a lot about their employees they
only work to auto correct different situation to get higher benefits and outcomes. They do not
take any kind of decision according to their employees and their opinion because their main
motive is to achieve business objectives easily by various business approaches and strategy.
Democratic leadership – They are very fascinating toward their decision because they
only want to take appropriate decision according to their employees wants and demand as well.
They are the kind of leaders who take decision after communicating with upward and downward
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management. Democratic leader are very emotional toward their employees so they believe to
taker appropriate decision by taking employees opinion as well. This leadership skill is very
different to auto corrective leadership approach in various methods.
Hard management skill – These kind of skill is useful for manager to provide effective
direction and guideline to their employees. In this manager and leader of organisation take strict
decision for employees to provide them appropriate direction easily. In it senior authority of
organisation provide task and work to their employees that they ned to complete in particular
duration. It can be in specific deadline to get business objectives. In it employees do not show
their high interest to work with those manager and leader who behave strictly with their
workforce. It is directly affects on productivity of employees and short term modification.
Autocratic leadership style is also a part of these kind of skills (Ming, 2013).
Soft leadership skill – This is a very effective leadership style in which leaders show
their concern toward employees emotion and their working skills. They believe to analyse
employees skill and their working capacity to provide them specific training and learning. It is
not only helpful for a organisation but also for individuals to get desired success easily.
Workforce of a organisation is show their interest to work with these kind of leaders who
motivate them in specific manner toward their goal and objective.
TASK 3
P4 Key approaches to Operation management
Operational management is a specific business approaches that used to get effective
services of manager and leader in firm. In this so business approaches help to reduce extra
wastage from organisation to get higher benefits easily. Operation management help to provide
efficient services to get higher benefits easily. There are some theories of operational
management are given below -
Total quality management – This approach is all based on specific quality of product
that organisation provide to their customers. Total quality is related to specific amount of cost
that organisation provide to their customers should have to be more specific an flexible that they
can afford easily. If organisation concern about cost of their products they need to provide them
specific quality which help to attract more customers toward organisation easily (Neck, 2010).
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Just in time – According to this theory organisation need to provide their services and
products to customers according to their specific demand and need. This process is useful to
reduce extra wastage they can affect organisational cost and fund. The main objective of firm is
to provide provide higher satisfaction to their customers through effective goods and services as
well. This process is all depends on research on market activities to get proper information of
customers demand and their need as well.
Lean manufacturing – This process is all based on quality of product which is
manufacture by organisation have to be more effective to provide higher satisfaction ton
customers. This theory is all based on customers demand and their need from specific products.
It is includes productivity and portability that organisation earn from their specific good an
services. In this production services of organisation can easily manage quality to provide higher
satisfaction to customers. Through this organisation can easily earn higher profitability and
growth for long time. It can help to manage long terms customers with organisation.
P5 Importance and values of operation management in achieving objectives
Operation management is a very important and essential process in the company. It aims
in attaining final goals and set targets in proper manner. This process includes in underlining the
role of personnel in business. It aims in using efforts of each individual in best and productive
level. Similarly, McKinsey applies various methods in order to reach final goals of increase in
outcomes and productivity. Company aims in delivering proper services to their potential
customers so that their needs get satisfied and they become happy (Smith, 2010).
Coordination: This helps in establishing coordination among different functions of
management. It is a motivational factor for employees, as it helps in aligning the tasks in a very
smooth way. Coordination in a proper way helps every individual to carry out their work in
efficient and effective manner. Employees always gets attracted towards a conducive and
coordinated work environment therefore it is a duty of management to create healthy working
environment. There are majorly three levels of management which need to be coordinated in
right way.
Reducing Cost: This process aims in attracting more and more customers towards
organisation's products. It is a very important objective of McKinsey to increase production and
reduce cost to efficient level. Decreased price of products helps in pulling buyers towards them.
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This helps in building goodwill among people in market place. But it is require to realise that
company have to earn sufficient revenue in order to survive in the competitive market place.
Reduction in waste generation: Every industry operates in the society hence it is their
responsibility to protect environment. For this, company have to take care about the wastes that
are generated in manufacturing process. There are number of control measures which are
adopted by organisations to reduce waste generation. There are various forms of wastes like
wastage of water, electricity, extra labour in the company.
Proper utilisation of Work force: Employees and other resources are considered as an
important assets for the company. As they are the ones who helps in achieving the organisation
objectives and goals. It is the duty of management to identify needs of resources in organisation.
After that it allocated in proper place having roles and responsibilities attached. System have to
make sure that resources are utilised properly and set outcomes are attached.
COST OF QUALITY(COQ)
Cost of quality is a phenomenon which helps the business entity to identify the degree to
which company's resources are utilised in order to reduce pathetic quality of products.
Prevention Costs: As the name suggests, this cost is attached to process of designing,
maintaining aspects. It helps in achieving management objectives through cutting extra cost.
Appraisal Costs: This cost is calculated in evaluating quality of goods. Mangers have to
measure this quality to make decisions regarding products.
Internal Failure Costs: This cost is calculated prior to deliver of services and products
to final customers. Hence, it helps in reducing standard of quality of products.
External Failure Costs: this is attained when materials are delivered to buyers. It
involves cost related to repairs, servicing, warranty and guarantee aspects.
TASK 4
P6 Factors of business environment that impact upon operational management
Operational management is a business activities in which business affects by various
environmental activities. These kind of factors are directly affect on decision making system of
a company. These kind of terms are directly affect on organisation's productivity and
profitability. For them organisation need to manage their business approaches affectively. Some
kind of environmental factors are directly affect on decision making approaches of manager so
9

for this they can build appropriate strategy. These can reduce its negative impact on business.
Environmental factors are divide in two different factors and these are -
Internal Factors – These factors are already situated in organisation and they affect its procedure
and policy as well. Internal factors are controllable so organisation ned to build appropriate
strategy for them to get effective benefits. There are various factors of internal business
environment are given below -
Customers – They are the key element of organisation who provide their effective and
appropriate services to organisation for getting higher benefits. Customers are directly affect on
firm's decision making system because they provide appropriate feedback for their product and
service. They are the important business element who help to provide effective revenue in
organisation by their products and services.
Employees – They are services provider of organisation who contribute their
productivity to get higher success easily. They make effective strategy for organisation to
implement their working approach more effectively. They provide effective services to
customers by getting appropriate feedback (White, 2016).
Management – They are the staff members who manager business approaches of
organisation by effective and appropriate manner. Management of a firm implement business
activities more efficiently.
External Environment – They are kind of factors who impact on business activities more
effectively. These factors are uncontrollable but organisation can build strategy to reduce its
negative impacts. There are various external factors are given below -
Political and legal factor – These kind of factors are related to government activity that
can affect on decision making approach of organisation . It includes some legal aspects such as –
legislation, policies and business activities as well.
Economic and social factor- All the person have their own perception on various things
which provides others to thinks something different in this way also. Through this process,
individuals learn different things to improve their choice according to market and trends
(Winget, 2010).
Technological Factor - Strategy of firm provides ability to reach the goal of business
plan. These can be for new objectives, technological changes and customers demand etc. A
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business is always starts with many risks of market and business such as investors, stakeholders,
manufacturing. But theses are make them strong to achieve success with different strategy.
CONCLUSION
From the above report it has been concluded that operation and management is important
process of an organisation which includes creation, managing and orientation and
implementation of business activities as well. This project report is based on McKinsey
organisation whose consultant visit in various organisation and observe different kind of
approaches of organisation. Now they represent their experience that how a business deals with
operational management activities. This report includes role and features of leaders of manager
or leaders. It includes different approach of leader according to various situation that can affect
on business activities. In represent some key approaches of operational management such just in
time, quality management, reduce wastage and costs of quality that can affect managers decision
making approach. At last this represent business environmental activities of operation
management that affect decision making approach of a organisation.
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REFERENCES
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Cruz, C.O. and Marques, R.C., 2011. Contribution to the study of PPP arrangements in airport
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Expósito, A.G., and et. al., 2016. Electric energy systems: analysis and operation. CRC Press.
Fayol, H., 2016. General and industrial management. Ravenio Books.
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Neck, C.P. and Manz, C.C., 2010. Mastering self-leadership: Empowering yourself for personal
excellence. Pearson.
Smith, K.A., Rahn, C.D. and Wang, C.Y., 2010. Model-based electrochemical estimation and
constraint management for pulse operation of lithium ion batteries. IEEE Transactions
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White, P., 2016. Public transport: its planning, management and operation. Taylor & Francis.
Winget, N.C. and Thomson, A., Cisco Technology, Inc., 2010. RFID tag management and
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