Leadership and Management: Theories, Approaches, and Operations

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This report delves into the critical distinctions between leaders and managers, outlining their respective roles and responsibilities within an organizational context. It highlights the importance of effective leadership and management in driving business success, using Starbucks as a case study. The report explores various leadership theories, including situational leadership, systems leadership, and contingency leadership, analyzing their applicability in different scenarios. Furthermore, it examines key approaches to management operations, such as Total Quality Management (TQM), Just-in-Time (JIT) inventory systems, and the Kaizen approach to continuous improvement. The report provides a comprehensive overview of these concepts, offering valuable insights into how organizations can optimize their operations and achieve their objectives through strategic leadership and management practices.
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Management and
operations
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Comparing role of leader and manager .................................................................................3
P2 The role of Leader and Manager in different situation..........................................................5
P3 Different theories and models of approach............................................................................6
Task 2...............................................................................................................................................7
P4:Key approaches to management operations...........................................................................7
P5 IMPORTANCE OF OPERATIONS MANAGEMENT IN ACHIEVING BUSINESS
OBJECTIVES. ...........................................................................................................................9
P6 :FACTORS INFLUENCING OPERATION MANAGEMENT AND DECISION-
MAKING..................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...................................................................................................................12
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INTRODUCTION
Proper management is very important for a company to succeed in the long run.
Managers and leaders of a company play a very important role in the organisation. A company
cannot work properly if there is no manager in it. It depends on manager to take various
organisational decisions of planning, organising, directing, and controlling. Leader is an
important person of a company. They leads the employees of the company towards the success.
They motivates the workers to achieve the organisational objective. Starbucks is a good example
of proper management and good leadership firm. Starbucks is an American coffee firm which
was founded in Seattle, Washington in 1971. Starbucks was founded by Jerry Baldwin, Zev
Siegl, Gordon Bowker as a coffee serving venue. It has now over 30,000 venues all over the
world. Kevin Johnson is the present CEO of Starbucks. There are plenty of coffees available in
Starbucks. The company employed 2,90,000 workers approximately in the year 2018 across the
world. The company hierarchy is unique of Starbucks.
TASK 1
P1 Comparing role of leader and manager
Leader is a person who helps the company in leading, who holds the high rank in the
company, and whose decisions are accepted by everyone working in that company. A leader just
by seeing his subordinate should be able to lead his subordinate.
Manager is a person who is in charge of a certain group of company and people report to
him in every case. People by their will follow a leader and by their duty follows a manager. It is
the responsibility of a manger to take the organization from where it is to where it wants to be in
the future.(Little and et.al., 2016.)
Basis Role of a Leader Role of Manager
Meaning A leader is a person who
motivates his subordinates to
achieve the target
Manager manages the working
of an organization and sees all
the planning, organising,
directing and controlling.
Subordinates People willing follow a leader. Employees work under him.
Decision-Making Leader helps in decision Manager makes all decisions.
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making.
Focus Leader focuses on the future.
He is always thinking of future
goals.
Manager focuses on the
present. He is thinking of the
present position of the
company.
Applicability Leadership is applicable in
both formal and informal
groups.
Managership is only in formal
meetings.(Özduran and
Tanova, 2017.)
Aim The aim of a leader is the
achievement of the results with
maximum social and
organisational welfare.
The aim of the manager is to
grow and develop the
organization.
Changes Leaders promote a healthy
change in a company which is
beneficial for all the
employees.
Managers react to changes that
occur in company.
Goal The goal of leaders is to strive
for effectiveness.
The goal of manager is
maximum efficiency.
Scope Leader has a narrow scope as a
Leader cannot be a manager.
Manager is a broader scope as
manager can always be a
leader.
Responsibility Leaders are not held
responsible for any losses of
the organization
Managers are held responsible
for any losses in the
organization.
Skills required To become a leader an
individual should have good
communication, motivation
and leadership skills.
To become a manager an
individual should posses
excellent management skills,
decision making skills and
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must be keen to learn.
Plan execution At the time of plan execution
leaders motivates the
employees and satisfy their
needs.
At the time of plan execution
manager monitors changes,
finds the problems, and solves
them.
P2 The role of Leader and Manager in different situation.
The leader and mangers play a very important role depending on different situations. The
situation can be on macro level as well as micro level. Managers must change the responsibility
again and again so that different roles are assigned to different employees. In this way employees
will be ready for different situations. There occurs different situation in front of managers and
leaders in which they have to take decisions regarding the organization. Every manager has
different working style and the way of seeing a threat.(Bolden, 2016. ) Different situational
context are:
Sales decline: The manager of Starbucks plays a very important role in the case of sales
decline. The manager should find out the reasons of reduction in sales. They should take
various steps to boost sale by increasing promotion of its products, optimum utilisation of
resources, improving quality of products etc. The leader can motivate the employees for
producing more and better quality products. They should inspire them to work hard. They
should direct the employees towards the success of the organisation.(Rahim, 2017.)
Staff Turnover: Staff turnover of company is really high. Turnover is a very expensive
for a company. A company has to do expenditure on recruitment and selection again and
again. There are different ways to reduce employee turnover. A manager should find the
reasons' for employee turnover. They should be polite with employees, They should
promote them time to time seeing their work, They should organize various training
programmes for the employee etc. there is also an important role of leader in reducing
employee turnover. They can provide healthy working conditions, he can talk to
employees about their problems, he should act as a friend of the employee not as a
dictator. Some other reasons for turnover can be less remuneration, long working hours,
late night shifts etc.
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Technological changes in company: Company changes technology only after it is being
obsolete. Changing technology in a company takes time as well as money. No company
wants to change the technology again and again as it takes time for employee to get used
to new changes. A manager should help the employee with the new changes by helping
them in proper training and taking the feedback from them. Role of leader is that they
should not be in hurry to implement changes. Starbucks has made many technological
changes in the digital sector. Starbucks most revenue is coming from this source only.
Starbucks has invested a lot of funds in this sector as there is a wide growth here in the
future.(Northouse,2017.)
Increased competition: Competition means when there is a company in the market
producing same type of product and selling it at same or less price. Today there is
competition in every market (Keough, 2015). There are very few companies left with no
competition. A manager can implement changes in the company to survive in this market.
He can bring innovation in the product or he can launch a new product. A leader should
motivate the employees to achieve competitive edge over others. They can motivate them
by giving monetary and non-monetary rewards.
P3 Different theories and models of approach
Situational Leadership: This type of leadership is very comfortable and flexible. The main
feature of this approach is the adaptability of it to the existing environment. Situational
Leadership is based on various skills of the leader and how he modifies it for the benefit of the
organization. It is not applicable where leaders are not able to change their style of leadership.
The leaders must have the ability to change the style according to the strategy that fits the
organisation and which are beneficial for the team members. There are different types of
situational leadership used in different fields. Some various situational leadership are described
by Goleman, Paul Hersey and Ken Blanchard. No single leadership style is best. It depends upon
the situation and manager to choose the leadership style.(Anderson and Sun, 2017.)
Systems Leadership: System leadership is a style which is applicable at all the stages in which
such conditions are created that people can work productively to their maximum potential. The
manager of Starbucks creates such working environment that employees are comfortable to share
their ideas, reduction in labour turnover is aimed, good working environment is created for the
employees etc. The role of leader here is to retain the employees, using the innovative ideas of
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the employees for the benefit of the organisation or inspiring them to work hard so that they can
get promoted to higher post etc. Leaders should always try to remove conflicts between the
workers as conflicts between the employee reduces the profits of the company. System
leadership in the organisation help leaders in predicting the behaviour of people working in the
organisation.
Contingency leadership: This leadership theory says that the styles of leadership are fixed and
they cannot be modified according to the leader. The leader should not mould himself according
to the situation and style. A leader is effective when his style of leadership is similar to the
situation and environment around him. The situation or goal should be matched with the style of
the leader. Manager should try to make the situation according to the comfort of employees. A
manager should be educated and he should know how to convert a wrong situation into the right
one.(Amanchukwu and et.al.,2015.)
Task 2
P4:Key approaches to management operations
Different approaches to management are
Total Quality Management
Justin-Time
Continuous approach ( Kaizen approach )
Illustration 1: Total quality
management
Source: (Total quality management,
2019)
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Principles of TQM
Total Quality Management deals with continuous quality improvement of products and
services using continuous feedback approach and is very extensive and structured management
approach. TQM consists of some principles such as Customer Focus helps the company in
determining its customer base Employee involvement will make the flow of the changes smooth
Centred Process where every employee has to report to one superior in the process department.
Systematic and Strategic approach towards improvement would help the company in achieving
its objective in a competitive way. Communication, encouraging team work and mutual respect
would increase the efficiency of the workforce. Decision-making based on factual figures will
avoid wastage of the inputs and materials.
Justin-Time (Kim, 2017).
Justin-Time is a system of managing inventory where material, labour and goods are
scheduled to be available exactly as and when they are needed without any wastage of time. The
main objective is to remove hurdles and obstacles of the production process. It reduces the
carrying cost of the company for materials and tries to reduce the buffer stock, determining
proper lot sizes and proper adjustments of order frequency
Elements of JIT
Continuous improvements
Detecting fundamental problems and all those things that are not adding value to poduct
Simplicity of the process will be easy to manage , understand, and the no of mistakes tend to
come down. Proper orientation of the layout so that time is not wasted on parts and materials
movement. Quality check processes be laid down at the time of input and ensuring that workers
take the responsibility of their own output. Waste Elimination Ideal time will be effectively used
to prevent time wastage. Overproduced goods should be sold out at considerable prices before
they are outdated. Waste from defective products will increase the costs of the company. Proper
checks should be laid down in the production process to reduce production waste
Continuous Improvement ( Kaizen Approach )
Continuous improvement is an approach of constant introduction of incremental changes
to the business for improving the quality and efficiency of organisation. It may be characterized
by by many improvements over time. Leaps are seen when new technologies and production
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method are introduced. Targets are set for individuals or teams to come with up with the new
ideas over period of time.
Key features
Ideas coming from the workers themselves face less resistance and more easier to
implement than direct implementation of radical changes.
Improvements should come with small changes rather than from the research and
development that bring radical changes as they will face resistance.
Major changes would require more capital investments compared with the small changes
Role of Managers and Leaders in the above approaches
Leaders and managers of Starbucks provide training to their staff on TQM principles and
asking their commitment towards its roll-out.
Managers and leaders of Starbucks lay down the core values and principles of the within
the scope of the organisation for the employees to follow.
Management and the leaders focus on developing new strategies to develop new
approaches for better utilisation of resources
Management and leaders have to ensure that they bring changes that are easily acceptable
without much resistance and and thereby help in achieving the main objective of wastage
reduction and reducing handling cost.
Management and leaders provide the organisation and staff a proper vision ,proper
management system for optimization of the workflows.
Provide the employees with problem solving structure to enable the learning process
along with solving the problems (Levesque, Bell and Calhoun, 2017).
Managers and leaders can also implement the PDCA cycle ( Plan-Do-Check-Act) ther by
adding one more step to the continuous improvement process.
Managers have to understand the problem exactly and try out for solutions from the
employees that would help in reducing the communication gap and help the management in
wiping out the root cause behind any problem.
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P5 IMPORTANCE OF OPERATIONS MANAGEMENT IN ACHIEVING BUSINESS
OBJECTIVES.
For producing professional managers that are capable in performing strategic roles in an
organisation the importance of operation management cannot be under estimated. Operation
management refers to managing activities like planning leading, organizing, control of
organisational operations. Importance of management operation can be mainly focused for two
operations. In improving the production as it is having direct influence over the financial health
of the organisation. Second, help the organisation in meeting competitive priorities of the
customer. Few years go operation management was considered as the most important necessity
of any organisation. Productivity can be termed as input output ratio which can be termed as a
measurement scale of efficiency of the organisation. How effectively the managers and leaders
are able to use scarce resources of the organisation in the best possible way to for the production
of goods and services. Quality movement like continuous radical changes in the organisation
affects the efficiency and the production process.
Operation management is important as it could be termed as the lifeblood for any
organisation as it deal;s with controlling the whole system of operations. It is concerned with
designing, operations and continuously improving the existing system for delivering the best of
the firm's products and services. Finance and marketing are the functional fields of the business
that require intense management control over its processing. Starbucks uses operations
management to ensure that the organisation have an sustainable effectiveness and efficiency.
Starbucks ensures that resources such as inputs and expertise are effectively utilised without
considering the motive behind their deployment. Operation management is essential as they
apply equally to both the service sector and the production sector. . Operation management is an
expensive part in any organisation as it is concerned with expanding the opportunities for
improving profitability and to provide better services to the community.
Operation management is also important as it includes the task of encouraging people to
improve organisational performance. Teamwork and participative management are becoming the
essential part of the operation management. Operation management is important as it brings new
plans and strategies that help in building a competitive advantage in this ever emerging
competitive world. With an effective management only Starbucks is able to gain a sustainability
in the market.
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P6 :FACTORS INFLUENCING OPERATION MANAGEMENT AND DECISION-MAKING
Sustainability- Long term sustainability of business to the stakeholders and making strategies are
the key factors in decision making of the managers and leaders, keeping in mind the
environment. Challenges are faced in many streams like economic, technological, political,
social and the environmental issues. Sustainable development goals made by the managers, for
acceptance from all stakeholder are properly ensured with the Corporate Social Responsibility.
CSR- CSR plays an important role in making the accountable for the impact based on its various
operations. When ethical behaviour is engaged in operations it becomes a critical component part
of the CSR. Operational objectives are influenced by the human resources as the radical changes
of the company may face resistance from the employees.
Culture is an important business issue nowadays, . The company should have social awareness so
that any decisions taken can turn out to be effective for the company. Every leader and manger
has a obligation towards its company, company's customers and to the employees. Decision of
providing less to the consumers than the commitment can highly affect the image of the
company. Improper treatment of the employees by the administrative staff and the superiors can
demotivate the workforce as a result of which productivity and efficiency will face a downfall
(Craig and Dibrell, 2006). Growing diversity in workforce have to be kept in mind for
establishing effective human resources as it have a high influence on the decision making of the
company. Managers and leaders are the top personnel’s of the company so they have to take
every decision of the company keeping in mind the society, employees and the ultimate
consumers of the company.
CONCLUSION
Carrying out the above study it can be concluded that Operation Management is a very
important and crucial part of the organisation. As it deals with the each and every process of the
company. The operations can be improved by using various strategies and approaches such as
Total quality management approach, Just in time approach, and the Continuous improvement
approach. Managers and leaders play an very important role as they have to take decisions
keeping in mind each and every aspect connected with the company be it consumers,
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employees , impact on the environment and the society. Cultural and ethical issues now have an
significant consideration in every decision taken by the company.
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