Leadership and Management Concepts: A Comparative Analysis

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LEADERSHIP AND MANAGEMENT CONCEPTS

Table of Contents
INTRODUCTION..................................................................................................................2
TASK 1................................................................................................................................3
TASK 2................................................................................................................................9
CONCLUSION....................................................................................................................15
REFERENCES.....................................................................................................................16
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INTRODUCTION
The report discussed the distinction between a leader and a manager of the business
organization. The duties and responsibilities of the leader are analyzed with reference to the
business. The functions and operations of a manager along with their characteristics are
examined in the report. Different theories and concepts are used by the company for
analyzing the difference between the duties and roles of managers and leaders. The various
concepts and models are applied by the business for examining the roles and functions of
leaders and managers. Further, recommendations are given in the report for evaluating the
ways through which the efficiencies of leaders and managers can be increased and
improved within the business organization. The relevance of operations management in the
company for attaining the goals and objectives of the business are analyzed in the report. At
last, the analysis of the business environment is made for evaluating its influence on the
decision-making process of the leaders and managers.
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TASK 1
INTRODUCTION
Lidl is a multinational discount chain of the supermarket which was founded by Josef
Schwarz in the year 1930. Lidl Stiftung & Co. is a private retailing company which is situated
its operations in Europe and the United States. There are around 315000 employees in the
company which is serving its customers from more than 89 years. Lidl Stiftung & Co. has
more than 10000 service location in all over the world in more than 28 European countries.
The headquarters of Lidl Stiftung & Co. are situated in Neckarsulm and Germany. Jesper
Hojer is the current Chief Executive Officer of Lidl Stiftung & Co. and Dieter Schwarz is the
Chairman of the company.
Leaders
Leaders are an individual who is in the position to influence the decision of the subordinates
and employees of the company (Business Dictionary, 2019). The goals and objectives of the
business organization are achieved by the leaders with their leadership qualities (Ward,
2019). The leader holds a dominant and influencing position in the company who
commands his subordinates to utilize their capabilities for the company.
Managers
A manager is a person who undertakes the activity of managing some activities within the
business organization. Different managerial functions are performed by the manager of the
company. The manager has subordinates working under him who follows the orders and
direction given by the manager (Business Dictionary, 2019).
ROLE OF LEADER
The main role of a leader is to successfully execute the strategies made by the top
management so that the goals and objectives of the company can be easily achieved within
the given period of time.
ROLE OF MANAGER
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The manager of the company is accountable for leading and guiding the subordinates
working under him. He has the responsibility of overseeing the performance, roles, and
responsibilities of a group of people who are working under the manager (Heathfield, 2019).
DIFFERENCES BETWEEN MANAGEMENT AND LEADERSHIP
BASIS LEADERSHIP MANAGEMENT
Meaning Leadership is the capability
of the leader which is used
for leading the subordinates
or another group of people
working under the leader
(Allen, 2018).
Management is the skill of
the manager of a company
which is used in order to
manage and coordinate the
activities of different
individuals of the company.
Activity Leadership is mainly
concerned with encouraging
the subordinates for
utilizing their skills and
capabilities so that the
human resources of the
company can be effectively
used in a better way.
Management is mainly
concerned with managing
and coordinating the
various functions and
operations of the business
organization so that the
goals and objectives of the
company can be achieved
effectively.
Strategy The strategy of working in
leadership within a business
organization is proactive
which means the actions are
taken in advance by the
leaders.
The strategy in the
management is reactive
where the actions are taken
by the managers after the
occurrence of a particular
circumstance within the
business organization.
Aim The main motive of
leadership is to inspire the
subordinates for bringing
changes and innovation in
The main aim of the
management of the
manager is to promote
stability within the
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the business enterprise. organization.
Perspective Leadership is a skill of the
leader which require
foresightedness and long-
range perspective.
Management is the
capability of the manager
which is concerned with
short term perspective
along with focusing on
current results.
Style Leadership follows
transformational style for
achieving growth and
development within the
company.
Management follows a
transactional style for the
attainment of desired goals
and objectives of the
business.
ANALYSIS OF THE DIFFERENT ROLES OF MANAGEMENT AND LEADERSHIP IN APPLICATION
TO DIFFERENT ORGANIZATIONAL SITUATIONS, SUPPORTED BY THEORIES AND CONCEPTS
Leadership and management both are a very crucial part of the business organization which
helps it in attaining goals and objectives. There are a number of theories and concepts which
can be utilized by the companies for understanding the different circumstance and apply
these theories in management. Following are the explanation of these management and
leadership theories and concepts:
Human relation theory
The human relation theory was introduced by Elton Mayo which lays emphasis on the
relationship between the human resources and management of the company (Caramela,
2018). The human relation theory is included in the behavioral management theory which
help in increasing the productivity and performance of the employees and workforce of the
business organization. The theory suggests that if the relationship with the employees are
enhanced by the management, their performance can be increased. The support of
employees can be gained by the company with the help of strong employee relation
maintained by the management (Perry, 2011).
Contingency management theory
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The Contingency management theory was developed by Joan Woodward who was a
sociologist. The Contingency management theory focused on the use of technology in a
better way of taking different management decisions in different situational context of the
business organization (Rodriguez, 2017). The theory suggests that the decisions of managers
should be taken as per change in circumstances within the business. The change in the
situation need different types of decisions to be made by the managers and leaders and
thus the contingency management theory is utilized by the company.
Administrative management theory
The administrative management theory was introduced by Henri Fayol which lays emphasis
on different principles of management which can be used by the managers and leaders for
managing different functions of the company. There are around 14 principles of
management which are suggested by the administrative management theory. The
personnel of the business organization can be managed in a better way by understanding
their requirements and applying principles of management as suggested by the
administrative management theory. There are five main components of administrative
management theory which include planning, organizing, coordination, commanding, and
controlling (Elkins, 2019).
Bureaucracy management theory
The Bureaucracy management theory was introduced by Max Weber which focuses on the
formal authority system of the business enterprise. The Bureaucracy management theory
has two main components which include the formal hierarchy of an organization and
different rules and regulations of the system designed by the formal structure of the
company. The theory believed that the goals and objectives of the business can be attained
in a better way with the help of the formal structure of the company (Caramella, 2018).
EVALUATION OF THE STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
LEADERSHIP AND MANAGEMENT TO DRAW CONCLUSIONS THAT SUPPORT THEORIES OF
LEADERSHIP
Classical approach
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The classical or the historical approach to management and leadership is focused only on
the physical and economic needs of the workforce of the company. The strength of the
classical approach is reducing the costs and expenses of the company and achieving the
goals and objectives of the business in and efficient ways. The weakness of the historical
approach to management and leadership do not focus on the requirements and satisfaction
of the employees.
Contemporary approach
There are two types of a contemporary approach to management and leadership which
include system approach and contingency approach. The system approach focuses on
organizational as a whole while taking decisions and contingency approach deal with the
decision making the process of managers in different situations of the company. The
strength of the contemporary approach is that the approach is visionary and charismatic.
This approach is transparent and authentic in its approach to management and leadership
within the company. The weakness of the approach is that it does not create strong and
effective leaders for the business (Gold, 2018).
Behavioral approach
The behavioral approach to management is an improvement over the classical approach
which does not focus on the needs of the employees. The theory lays emphasis on the
needs and requirements of the workforce which help in increasing their motivation and this
is the biggest strengths of the behavioral approach to management. The weakness of the
behavioral approach is that the theory is very complex and the manager and leaders find it
difficult to execute the approach in the company.
Quantitative approach
The Quantitative approach to leadership use statistics and mathematical calculations for
making quality decisions within the company. The past records are measured and analyzed
with the help of statistics and quantitative data of the business. The strength of this
approach is that it produces accurate findings and results and the decisions are made on
reliable information. The weakness of the approach is that every manager and leader does
not have the skills required for using statistic data.
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CONCLUSION
The operations and functions of the business organization are greatly affected by the work
performance of the leaders and managers. The productivity of the workforce of the
company can be enhanced effectively with the help of different leadership and management
styles of leaders and managers of the business. The working capacity of the employees is
improved which help in achieving the goals and objectives of the company. Lidl Stiftung &
Co. can use one or a combination of two or more leadership styles and approaches for
effectively managing its affairs. Currently, Lidl Stiftung & Co. is facing a labor issue which can
be resolved with the help of human relation theory of Elton Mayo. In order to resolve the
issue of high turnover, Lidl Stiftung & Co. can use a behavioral approach to management
which focuses on the needs and requirements of the workforce. A strong relationship with
the employees helps the company in increasing overall productivity and growth of the
business organization. Along with human relation theory, the administrative theory of
management can also be used by the managers and leaders of Lidl Stiftung & Co. by
applying 14 principles of management. The strategies made by the top management of the
company can be effectively attained with the help of these management theories. The
company such as Lidl Stiftung & Co. can get better support from its employees in executing
the strategies and policies of senior management if their requirements are fulfilled by the
business organization.
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TASK 2
INTRODUCTION
Lidl Stiftung & Co. was established for the purpose of operating different discount stores
which offer grocery, gardening, furnishing, home furnishing, apparel, electrical, and
promotional products to a large number of customers all over the world. The products are
made available to the customers at a lower rate in Germany by operating different near-by
stores (Kolf, 2018). Lidl Stiftung & Co. is a retail outlet company which serves its customers
with more than 10000 retail outlet grocery stores in 28 and more than 28 countries. The
company has a main focus on providing high-quality products and services and improving
the lives of its consumers.
DETAIL OF EACH OF THE KEY OPERATIONAL FUNCTIONS, IDENTIFYING THE ROLES AND
RESPONSIBILITIES OF MANAGERS IN THE KEY OPERATIONAL FUNCTIONS
Operation management is the activities undertaken by the company for improving the
efficiency and quality of management and functions of the organization. The activity of
operation management includes the process of converting raw materials into finished goods
and services for earning maximum profits of the company (Sanders, 2014).
The key operation function of the Lidl Stiftung & Co. include the following:
Finance
The operation function of Lidl Stiftung & Co. includes the activity of keeping financial records
of the company. The budgets are prepared for different activities and operations of the Lidl
Stiftung & Co. The reasons for the overlapping of the financial budgets set by the
department is analyzed so that proper measures can be taken for reducing the same. The
financial manager is responsible for forecasting the financial budgets of the different
departments of the company.
Accounting
The business activities of Lidl Stiftung & Co. are kept in records with the help of the
accounting function of the company. It is the activity which keeps the financial information
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of the company and interprets its results with the help of financial records. The financial
manager is responsible for carrying out the function of keeping financial records of the
activities of the company. The work of the employee is to be accounted for in the system so
that their performance can be measured effectively by the business organization.
Administration
The administration is another operational function of Lidl Stiftung & Co. which include
training and managing human resources of the company. The functions are events of Lidl
Stiftung & Co. are managed effectively by the managers and leaders of the company along
with management of the whole premises in the administrative functions of the business
organization.
Store management
The store operations management function of Lidl Stiftung & Co. includes the activity of
keeping daily records of the operations and functions of the company. The functions and
operations of store management are controlled by the store manager who is responsible for
reporting to the regional manager of Lidl Stiftung & Co. The store manager is responsible for
hiring, recruitment, and training of the employees and workforce of the company.
EXPLANATION OF THE KEY OPERATIONAL APPROACHES TO OPERATIONS MANAGEMENT
AND THEIR VALUE
The main operational approaches to the operations management of the Lidl Stiftung & Co.
are discussed below along with their value:
Business Process Management (BPM)
The business process management is an essential approach to the operations management
which involve the process of analyzing, automating and improving the functions of the
company. The steps of business process management include the following which can be
applied by Lidl Stiftung & Co. on an ongoing business process:
 Design – the whole process is broken down into smaller areas and different tasks in
the first step of the business process management by Lidl Stiftung & Co.
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 Modeling – the process of business is then presented into a model in order to give it
a visual layout.
 Analysis – the process is then put into place which is tested in a smaller group and
then presented to its users.
 Monitoring – the workflow of the process is monitored to check its efficiency and to
measure its results.
 Improving or automating – the required changes that are needed to be done in the
process is applied to make it more efficient.
Business Process Reengineering
When the improvement in the business process is not efficient, the business process can be
re-engineered by Lidl Stiftung & Co. with the help of business process reengineering
approach. The process in the change management can be redesigned radically with the help
of business process reengineering approach in order to attain a specific goal or objective of
the change management. Lidl Stiftung & Co can use this approach of operation management
to increasing growth and profits of the company. This approach can be termed as the game
changer in the company which will enhance the stability and performance of the company
(Rouse, 2018).
Six Sigma
Another approach of operation management which can be used by Lidl Stiftung & Co can be
six sigma approach which lays emphasis on the production and manufacturing process of
the company. The inefficiencies in the management can be resolved with the help of six
sigma approach which is a combination of 5 basic steps. The opportunities of the company
can be effectively utilized with the help of the six sigma approach. The main focus of the
approach is to reduce defects in the manufacturing process of the business organization.
Supply Chain Management
The modern operations management include the supply chain management approach which
is a complex process. The supply chain management includes inflow and outflow of
materials, goods, and services between different manufacturers, suppliers, retailers,
customers, and business organization. The process through which the goods and services of
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