Leadership and Management Operations: A Report on Tesla's Strategies

This report provides a comprehensive analysis of leadership and management practices within Tesla, focusing on operational strategies and their impact on achieving business objectives. It begins with a clear distinction between the roles of leaders and managers, emphasizing their differences and responsibilities. The report then delves into the application of leadership theories, such as situational leadership, system leadership, and the contingency approach, within the context of Tesla's operations. Key approaches to operations management are explored, highlighting their importance in driving efficiency and quality in production. The report also examines how the business environment influences operational decision-making by leaders and managers, offering valuable insights into the challenges and opportunities faced by the company. Furthermore, it discusses the implementation of various management theories, including the Theory of Management by Objectives, to enhance employee performance and productivity. The report concludes by summarizing the critical factors contributing to Tesla's success in the electric vehicle market.

Management and
Operations

Table of Contents
Management and Operations.......................................................................................................................1
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
P1 Definition of leaders and managers and differences between them....................................................3
P2 The role of a leader and the function of a manager in different situation............................................5
P3 Different Theories and models of approach........................................................................................6
P4 the key approaches to operations management...................................................................................7
P5 the importance and value of operations management in achieving business objectives......................9
P6 The factors in the business environment that impact on operational management and decision-
making by leaders and managers...........................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12
INTRODUCTION
Operations and management are most important factors of the organization’s strength.
Operations and management activities helps in utilizing the resources effectively and to achieve

the objectives and goals of organization by applying various models and strategies. In the every
organization, leaders and managers have very major role. They play a crucial role which helps
the organization in the development of high quality of goods and services and also improvement
in the efficiency of production. This report include the study of Tesla, it is an American clean
energy and electric vehicle company. Tesla is specialized and famous in electric vehicle
manufacturing. This report will include difference between the function of a manager and the
role of a leader and its application in the situational context. This report also highlights the
different models and theories of approach such as systems leadership, situational leadership and
contingency. This report will also present the key approaches to operations management and also
the role of operation management in achieving business goals. This report also include the
factors in the business environment that impact on the decision making and operational
management by managers and leaders.
MAIN BODY
P1 Definition of leaders and managers and differences between them
Manager
As the definition of the manager have been stated is, “Managers are the person in the company
who manage and design the work of an organization and they define the objectives and goals of
the company”. The manager has the major level of responsibility in establish and develop the
relevant policies and strategy. The various levels of the organizations they manage and create
efficiently in the company. Manager will manage all the task of the whole department (Gibson
and Parkman., 2018).
Leader
As the definition is considered, leader is one who have the art of motivating the group of the
peoples to act towards in achieving the common goal. This can be extended to have directing the
worker for the respective strategies to meet up the company needs. Leader play a crucial role in
the organizations to motivate the employees and workers by their effective communication skills
and leadership. Leader is an individual who manage all works and operations that completed by
employees in the company. The major goal of leader is to inspire and employees to increase their
productivity and efficiency.
Differences between the Managers and Leaders
Managers Leaders
Manager defines and set the objectives of the
organizations.
Leader persuades the goals and objectives
defined by the management.

Manager explain and describes polices to the
leader (Ferguson and et.al., 2017).
Leader explains and influences the workers to
work as per the policies.
Manager provides direction to the group of
the employee.
Leader gives direction to the team of the
employee.
Manager creates the goals and ideas for the
successful and betterment of the
organizations.
Leaders play the effective role of
implementing the ideas into actual situation.
Mangers direct and provide the works and
operational activities to the workers and
employees.
Leaders encourage the workers of the
company towards the operational activity.
Managers are administrative in nature in the
organization.
Leaders are innovative in nature in the
organization.
Managers focus on structures and system. Leaders focus on the individual or people.
Managers possess a short time view in the
company.
Leaders possess a long term prospective in the
company (Gillen, Jacquillat and Odoni.,
2016).
Manager’s eyes focuses on the bottom line of
the task in the organization.
Leaders focus on the horizon of the task in the
organization.
Managers generally ask how and when
regarding a task.
Leaders generally ask what and why about a
task.
Role of leaders and functions of manger in the organization are as follows :
Organizing:
The manger of Tesla, utilize and organize the resource of the company in a very well
manner in order to fulfill the organizational goals. The role of leaders is to motivate the workers
and employees and efficiently provide the resource.
Planning:
The main function of managers of Tesla company is to set the goals or objectives and
planning for the operations that complies to increase the sales of electric vehicle and revenue.
The role of leaders in Tesla company is to explain the roles of employees that are set by mangers
and focus the effort of workers and employee to achieve objectives and goals.
Coordinating:
The manager of company coordinates the function of the organizations for best outcome
in a very effective manner. They conduct the functions of many departments such as finance,

production department etc. the role of leader in the function of coordinating is to creation of
better practices in developing activities with their good leadership skills (Shevchenko and et.al.,
2018).
Controlling:
The strategies created by the managers and the adopted by the leaders in the company.
This are monitored and controlled by the managers and the leaders verify all outcome of the
performance of employees.
Directing:
The manager’s gives effective directions to the employees to performed their tasks but
the leaders of the company develop a good team and direct them how to accomplish the work in
very effective way.
P2 The role of a leader and the function of a manager in different situation
As per the different-different situation, the role and function of a leader and manager is
also different.
Change in the strategy to reduce the cost of production.
This is the situation; the company will have the efficient level of need for the role of leader and
function of manager. For example, it the Tesla faces the situation where the prices of equipment
and electric material are enhancing rapidly than in that situation. In such situation the role of a
leader is to apply their skills to plan and implement various strategies. On the other hand, the
function of a manger is to effectively manage the strategies that can control the manufacturing
costs and increase the sales and revenue of the organization.
To take the manufacturing decision
The company tesla which is immensely having the grabbing of the electric car market segment
have the need to take the effective manufacturing decision to gains more level of competitive
advantage along with grabbing the differential opportunities from the market.
The role of a leader is to make Tesla manufacturing operations in the needed direction
towards the accomplishment of the goals of the company. On the other hand the manager have
functions for the effecting function over the different department which re interlinked to each
other for better functioning of the operations of management (Kumar Mangla, Bhattacharya and
Luthra., 2018). There are several management theories which implied with the leadership styles
that make the company develop its operations. In such situation the manager have there
establishment of Behavioral theory of management. In this theory, the managers of the company
follow the policies to focus on employee’s abilities and skills. On the other leaders of the Tesla

implement the transformational leadership style, in which they communicate with the staffs and
the policies are effectively described to the employees.
Motivation situation
This have consider to be the important aspects of the company in order to motivate the
employee to have the wok in the increase level of pressure. In this situation, the Tesla
manufacturing company applied the contemporary theory of management to deal with the
present situation of the enhanced extra costs of the production and purchase. In such situation,
managers of the Tesla can plan and set the strategies such as approach the suppliers who can
offer the materials and equipments at lower cost. On the other hand, the leaders of Tesla use
their trait to encourage the workers to adopt effective technologies to reduce the unnecessary cost
of manufacturing and remove the resistance to modify among the workers by developing a trust
environment with good communication skills.
In the situation for the improvement in the performance
Classical management theory also adopted in the Tesla organization, where manager sets
the policies to improve the performances and productivity. The role of managers of the
organization also created the strategy such as KAIZEN, in which they take necessary efforts for
the effective management and improve the employee’s production activities. On the other hand ,
leader encourage the workers of the company towards the operational activity.
P3 Different Theories and models of approach
Situational leadership
In the situational leadership, according to the changes in the situation the leaders may
also change their style to meet the requirements of the organization. In the Tesla Company,
leaders can opt four leadership styles in the operational activities such as telling, participating,
selling and delegating. As per the current situation of the company, Tesla facing many issues of
the high cost of electric equipments, material etc., and situational leadership can play an
important role in this situation (McGuckin and et.al., 2017). The main benefit of this theory is
that the model is easy to use and understand. This situational leadership is important because this
approach can create a productive environment and build morale among employee.
System leadership
System leadership applies in Tesla company, the leader control the operations of the staff
to explain the situations of the organizations and inspire the workers to work according to the
needs of the company. This style helps the Tesla to make effective change in the operation and
adopted for strategies for fulfillment of objectives and improves the activities related to the
manufacture of the cars. This theory assists for innovation and promoting creativity in the
manufacturing activities of Tesla and encourages the workers and employees to think differently

in particular task. System leadership theory focuses on not only the welfare of the company but
also to provide the facilities to employees for the development and growth of the organization.
Contingency Approach
Contingency model of leadership states that there is no such better leadership style is
suitable for all the operations of company. Therefore, the optimal course of action depends upon
the external and internal factors of the company (Huang and et.al., Microsoft Technology
Licensing LLC, 2018). By the applying the contingency approach of leadership, the company
can grab advantages in many ways, it could increase the productivity of the workers and
employees by applying task oriented model and develop the work culture of the organization.
Contingency theory fully focused regarding the changes in strategies as per the changes in
situations. The leaders of the Tesla organization play an integral role by motivating the workers
to adopt the changes in the operational activities in order to accomplish the challenges prevailing
in the whole market. The managers of the company identified the reasons behind the increased
cost of manufacture and take essential actions to apply the theory to adopt changes in the work to
bring down the cost of equipment ad materials received from suppliers (Ravinder and
Kollikkathara., 2017).
Theory of Management
Theory of Management by objectives focuses on the included efforts of the employees and the
managers for the achievement of objectives. The managers take necessary actions to conduct the
operations with the workers and develop the performance standards. In this situation, leaders
allocate the duties and works to the employees and implement various policies to motivate them
to complete their tasks in a very effective manner.
P4 The key approaches to operations management
The operations management is an important part of the company in order to administer
the activities of the organizations and improve the effectiveness or quality in production of the
organization. Operational management is the process to effectively utilize the resource of the
organizations in a very well manner and the main function of this management is to increase the
quality and productivity of the company with least resource implied. Operational management
involves the activities which convert the raw material into the final service and product.
Six sigma
Six sigma is defined as an approach which is disciplined in data driven and nature
approach. It is a methodology for eliminating defects in the process ranging from products to
services and manufacturing to transactional across different level of organization. The
implementation of six sigma in the company, they can achieve maximum customer satisfaction
by minimizing the defects, improve return on sales, and achieve employment growth and
improve production process.

Role of leader in six sigma approach:
 Supporting and recognizing employees and workers participation.
 To invest in six sigma training and resources.
Role of mangers in six sigma approach:
 Giving support and review to the workers as well as the top management.
 To monitor the implementation of the six sigma approach in the company.
Total Quality Management
Total quality management is the process to bring efficiently in the production of the
company. This approach focus on the continuous improvement in the services and quality of the
product offered by the organizations considering the demands and need of the customers
(Schnepp, Vidal and Hawley., 2017). Total quality management include many principles such as
strong leadership, customer focus , systematic approach to management, people involvement,
mutually beneficial suppliers relation and continual improvement.
Roles of leaders in total quality management
 To remain involved and committed in management to provide top to bottom
organizational support.
 To ensure effective utilization and involvement of the entire work force.
 To establish performance measurement for the processes.
Role of Managers in total quality management
 To treat the suppliers a business partners.
 To ensure continuous improvement of the business and production processes.
 To ensure un-wavering focus on both external and internal customers.
Just-in time inventory
Just in time inventory is a strategy which increase efficiency and decrease wastes. It helps
to reduce the inventory costs. The continuous improvement process suggests the improvement in
the services, product, processes and system for the better achievement of the company. Just in
time management helps the company in reducing the storage space of the company as the goods
is only stored at the time of use and save the money of the organization (Enyinda., 2017).
Role of manager in just in time inventory

 To maintain a good relation with the supplier in order to ensure that the supplier supply
the desired amount of goods.
 Order the goods from the suppliers at the right time.
Role of leaders in just in time inventory
 To check and monitor the condition of all the machineries used in the production process.
 To ensure that all workers are properly aware of their responsibilities and roles in
completing the process.
Lean production
Lean production system is a systematic and simple method which helps in the elimination
of wastes within a manufacturing system and implementation of the lean process in the
production which can helps the company in the operational management by improving the
quality of the product and increase efficiency in the production processes. It also useful to reduce
the use of manpower, provides safer work environment and helps in the elimination of problems
of TESLA company.
Role of Leaders in lean production
 Monitor the process of elimination wastes.
 Assist in giving directions to the subordinates to increase the production.
 Helps the employees to understand their actual responsibility in lean production.
Role of Managers in lean production
 Provide a Report of the progress to the higher authority (Calais and et.al., 2017).
 Carries out analysis’s about the effectiveness of product.
P5 the importance and value of operations management in achieving business objectives
Operation management helps the organizations in utilize the company resources
efficiently and effectively and it is very vital part of the company. Leader and managers plays an
important role in the operational activity in the TESLA. The effective operational management
helps to gain competitive benefit from the market and to improve the manufacturing quality of
automobile. Proper Operation management helps to improve the quality of the product and
services in manufacture activity of the organization. With the operations management, raw
material is converted to the final finished good in a very low cost. It improves the manufacturing
activity of electrical vehicles and equipments and also increases the performance the worker.
Operation management help the TESLA to eliminate the wastes during manufacturing

activity and to gain customer satisfaction by the effectively adopted operation management in the
organization. It helps in increasing revenue and profit and also helps in explore the business in
many areas and making new ideas to achieve the targets of the company.
Leaders and mangers have a significant role to control, mange and develop the effective
operation management activities in a organization. They also take necessary action to allocate the
operation or work to the employees as per their interest, qualification and skills, these all
activities of the leaders and mangers helps to create a proper operations management in the
TESLA organization (Dekker and et.al., 2018). Proper operation management also encourage
and motivate the employees towards the increasing production activity and it can directly
improve the company's total sales and revenue.
Operation management includes many function such as the distribution and controlling
and that are vital factor in the operations management. Operations management provides a better
production process in order to fulfill the objectives of the Tesla. It also helps in control and
manages distribution system by implement the strong control system. The important function of
operation management is the transformation of raw material into finished goods and services by
analyzing the customer demands and desires of the product and utilizing the resource of the
organization in an efficient manner.
P6 The factors in the business environment that impact on operational management and
decision-making by leaders and managers
The business environment of the company gets affected by various factors which
influence the business’s operations and also the decision making process of the organization. It is
very essential for the company to find out the impacts of factors on the operational management
so that the leaders and managers of the company can adopt effective policies and strategies to
decrease these effects. These factors also affect the Tesla’s operational activities and impact on
the company in achieving the goals and objectives. The various factors are discussed below –
Financial status
Financial status of the company is a main factor that affects the operational management
and decision making procedure of managers and leaders of Tesla. The high financial status
assists the managers and leaders to create effective strategies and to operate it in a very effective
manner (Stratton, de Leeuw and Sabet., 2016). All the decisions in the company that are related
to the cost of manufacturing activities and services provided to the customers and all financial
activities of the Tesla being affected by the total profit and cash flow.
Market trends
In the present scenario, various trends are emerges in the market regularly. These market
trends affect the operational management and all the decision making of the leaders and
managers of the Tesla organization. According to the market trends leaders and managers have

to change their decisions and it will directly affect the operational activities of company. The
leaders and managers should have to take their operational decisions after analyzing the market
and on the basis of current market trends, so that they can identify the needs or desires of
customers. It will directly improve the company’s operations management.
Political and legal factors
Any changes in the political decisions and legal factors influence the decisions of the
Tesla Company that was taken by their managers and leaders. It affects the whole planning and
management activities of the company. In this situation, the leaders of the company have a role
to forecast the future changes and the managers accomplish its roles by managing and arranging
the resources.
Technological changes
The several technological changes emerge in the external environment every day. The
many motor company adopted these Advance technological changes in their operational
activities. It directly influences the Tesla’s total sales and revenue (Gupta, Yang and Jain., 2018).
According to the changes in technologies the manufacturing activities are also affected. The
technological changes also affect the decisions that were taken by the leaders and managers. So
that, they should have to take necessary actions to predict the key technological changes and
apply these in their planning and operations management.
CSR
Corporate social responsibility help in the aims in the contribution in the social goals along with
supporting there volunteering or ethically-oriented practices. This make to have the effective
curatively decision as the changes in the policies and rules of affects the company’s operational
management and the company also have to adopt these policies and change their planning and
decisions according
Organizational culture
There is more level of culture tends to be generally have the heling of the widely shar
settings an the bendlet which is tended to be more level of supported there strategy and
structure. There is the employee have the top level of managements have the expert the
responses along with rewarding the demonstrating the organizational values.
CONCLUSION
From the above report, it is concluded that the leaders and managers are the main pillars
of the company. The role of a leader and the function of a manager are most important in any
operational and functional activities of the Tesla. It is also concluded that according to the
different situation, the role of a leader and the function of a manager is also different. The leader

and manager of the Tesla apply effective theories and leadership style as per the current
situation. Effective operations management is very vital in achieving the business goals and
objectives. Leaders and managers also take necessary actions to develop a proper operations
management in the organization. It is also analyzed that the leaders and mangers should have
predicted the future changes to reduce the impact of business environment on the operational
management and decision making process.
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