Principles of Leadership and Management: A Comprehensive Report

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Principles of leadership and management

Table of Contents
Introduction......................................................................................................................................3
AC1.1 Explain the importance of defining the objectives, scope and success criteria of the
decisions to be taken....................................................................................................................3
AC1.2 Assess the importance of analyzing the potential impact of decision making.................4
AC1.3 Explain the importance of obtaining sufficient valid information to enable effective
decision making...........................................................................................................................4
AC1.4 Explain the importance of aligning decisions with business objectives, values, and
policies.........................................................................................................................................4
AC1.5 Explain how to validate information used in the decision making process.....................5
AC1.6 Explain how to address issues that hamper the achievement of targets and quality
standards.......................................................................................................................................5
AC2.1 Explain the difference in the influence of managers and leaders on their teams.............6
AC2.2 Evaluate the suitability and impact of different leadership styles in different contexts...6
AC2.3 Analyse theories and models of motivation and their application in the workplace........6
AC3.1 Analyse a manager’s responsibilities for planning, coordinating and controlling work. .6
AC3.2 Analyse theories and models of motivation and their application in the workplace........6
AC3.3 Explain how a manager's role contributes to the achievement of an organization's
vision, mission, and objectives....................................................................................................6
AC3.4 Analyse theories and models of management..................................................................6
AC3.5 Explain how the application of management theories guide a manager’s actions...........6
AC3.6 Explain the operational constraints imposed by budgets.................................................6
AC4.1 Explain the relationship between business objectives and performance measures..........7
AC4.2 Explain the features of a performance measurement system...........................................7
AC4.3 Explain how to set key performance indicators (KPIs)....................................................7

AC4.4 Explain the tools, processes, and timetable for monitoring and reporting on business
performance.................................................................................................................................8
AC4.5 Explain the use of management accounts and management information systems in
performance management............................................................................................................8
AC4.6 Explain the distinction between outcomes and outputs....................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................10

Introduction
The management and leadership are the leaders or manager's set of values and beliefs about the
work and people. These values and beliefs are needed to be followed to manage the work
accordingly. In this report, various aspects of management and leadership are discussed. It will
discuss every detail of the project and its importance, like the importance of scope, objective, and
success criteria. The discussion is done on how the performance of the business is measured
using the PMS and for it how the KPI is set. Many more principles are discussed in the report.
AC1.1 Explain the importance of defining the objectives, scope and success criteria of the
decisions to be taken
Objective
This is defined as the final result of the company's goal. These are future-oriented which results
in state affairs. These are the results, aims, and profits (Bush, et. al., 2015). Objectives are very
important because of the following reasons:
 Satisfaction of consumers
 Share in the market is high
 Cost control
 Hovel ideas
 More output
 Cooperation everywhere
 Different product types
 Loyalty of employers
Scope
Developing the scope of the project is the first phase of the planning process. It includes a list in
which all the requirements are pen down. The list includes the goal of the project, deliverables,
tasks, functions, costs, features, and deadlines (Chang, 2016). The scope is important as it allows
stakeholders and clients to stay on the same page. It avoids problems like:
 Budget overrunning

 Changing requirements constantly
 The project is back of the schedule
 Requirements that require a rethink in the middle of the project
Success criteria
These are the standards of the project on which basis the project is judged to decide it’s been
successful or not for the stakeholders. It is important as it helps to build strong relationships with
the team. It also helps to define the goals of the project and also to track the progress of the
developing project (Graham and Kaye, 2015).
AC1.2 Assess the importance of analyzing the potential impact of decision making
Every decision has its own impact. This can affect the changes and others and therefore can have
many risks involved. The decisions might have cost and time implications. The assessment of
the potential impact includes:
 Financial implication because of the too less or too much resources being used
 Work is being allocated to many specific peoples who are the expertise and has the
correct knowledge of the projects and the tasks. If all this is not according to the
requirements of the project and not towards the right track, then the project will not be
completed on time and will get delay (Gunasekaran, et. al., 2015).
 Being the manager, the full understanding and knowledge of the task and project should
have. If not, then the incorrect decisions can be made which can jeopardize the project or
a task as a whole.
AC1.3 Explain the importance of obtaining sufficient valid information to enable effective
decision making
The importance of getting sufficient valid information is:
This will allow the managers to know about the part of the project or the task which requires
being dealt on a priority basis. This will tell and help to decide which part of the project has to
allocate to whom. This can allow the manager to allocate a particular time to the person for a
particular task which can ensure the meeting of deadlines by all the individuals (Harbour, 2017).
The manager can also do the analysis of the risks that can act as the barrier to hinder the

development of the project. If the obtained information is not sufficient, the completion of the
project cannot be successful and has to be compromised because the team can be distracted from
the goal due to misinformation.
AC1.4 Explain the importance of aligning decisions with business objectives, values, and
policies
The importance of the decisions alignment with the values, objectives, and policies of the
business are:
 To make ensure the project under work will highly benefit the business in productivity,
sales, and meeting the satisfaction and requirements of the customer.
 To make ensure that the work under progress will meet its moral, ethical, and financial
view of the company. It will lessen the negative impact of the risks externally.
 The manager can make ensure the standard of the work and that the work is being done
with proper rules and regulations. This can be done by the proper following of the
organization's procedures. Hence, the risks of non-compliance can lessen that may be
organizational, regulatory, and legislative (Laudon and Laudon, 2016).
AC1.5 Explain how to validate information used in the decision-making process
The systematic approach for validating the information is:
 Create an environment that is constructive
 Detailed investigation of the situation
 Produce god alternatives
 Explore the options
 Select the solution that is best
 Evaluate the plan
 Communicate the decision and implement actions (Parmenter, 2015)
The two ways to validate the information in the process of decision making are:
 The integrity of the site or person information came from
 Checking the information against the specification and details of project or task
requirements

AC1.6 Explain how to address issues that hamper the achievement of targets and quality
standards
The learner has to first identify the issues that need to be addressed. These might be people,
financial, or resource-based (equipment, information, or time). These issues might hamper the
target's achievement and standard quality. If the budget is not sufficient, then the quality of the
service or the product will compromise. This can impact the resources and people directly which
in turn can impact the target and it might be missed (Tabitha, 2019). This is due to the lack of
resources and persons for the project.
These issues can be addressed by:
 The issues have to discuss professionally and openly with stakeholders and others to
enable the compromises to be agreed upon.
 The budget should be cleared at the initial phase, the resource allocations should be done
in advance, and also the analysis of the equipment. There should be an analysis done to
know the lack of resources or knowledge in advance so that the alternatives can be made
ready beforehand (Bush, et. al., 2015).
 Continuous monitoring should be done on the project's progress for the early
identification of issues.
 Communication with all the personnel should be clear and proper and every individual
should have a proper understanding of requirements and objectives.
AC2.1 Explain the difference in the influence of managers and leaders on their teams
There are major differences between leading and managing people.
Leaders make relationships whereas managers make process and systems: Leaders are mainly
focused on people and the team. Whereas mainly focuses on the necessary structures to achieve
objectives.
The manager directs, leader coaches: leaders see the team as competent and capable. Managers
assign the wok and provide a set of guidelines to do the work.
Managers create employees, leader create fans: With the supportive nature, leaders create fans.
Mangers just have a staff that only follows the direction and seeks for the salary (Arruda, 2016).

AC2.2 Evaluate the suitability and impact of different leadership styles in different contexts
There are mainly 3 types of leadership style to lead the employees at the workplace:
Authoritarian leadership: IT refers to a top-down manner of leadership. This refers that all the
decisions are taken by senior management. This improves the workability, efficiency, and
productivity of employees.
Participative leadership: It is also known as democratic leadership. This leader takes suggestions
and ideas from the team before making the decision. This is an ideal leadership style for a small
organization. The employee feels valuable and confident.
Delegate leadership: It refers to a “laissez-faire” leadership style. It enables the employees to
take own decisions, establish standards and determine the goals. This can cause a lack of
direction and conflicts in the team. This style can be adopted in an environment when things
become awry (Quain, 2019).
AC2.3 Analyse theories and models of motivation and their application in the workplace
There are several theories and models of motivation which can be used to improve the
performance and efficiency of employees at work. Some of them are described below:
1. Maslow’s Need Hierarchy Theory: This is the most well-known theory which is based on the
human’s requirements. There are 5 need levels which hare self-actualization, esteem needs,
social needs, safety needs, and physiological needs.
In essence, if the need for one level is satisfied then it will not be helpful to motivate the
man. Then the next step is to activate the level.
2. Herzberg’s Motivation Hygiene Theory: Herzberg labeled the job satisfiers as motivators
and dissatisfies as hygiene. According to Herzberg, removing of dissatisfying factors is not
required to make the jobs satisfactory and today is hygiene is tomorrow’s motivators.
3. Vroom’s expectancy theory: This theory describes that the employee will be motivated if
they get the value of effort, achieved performance and rewards and outcomes.
Valence, expectancy, and instrumentality are the key constructs of this motivation theory.
This can be applied to improve the performance of the employees.

AC3.1 Analyse a manager’s responsibilities for planning, coordinating and controlling work
The manager is responsible for planning, overseeing and directing the operations in an
organization. The major responsibilities of the manager include:
 Safety and health of the workforce
 Carrying and achieving the goals and mission
 Department development
 Planning staff levels
 Provide direction and oversight to the employees
 Empowerment of the employees
Foster the teamwork spirit
Create a workplace culture (Connor, 2017)
AC3.2 Analyse theories and models of motivation and their application in the workplace
There are several theories and models of motivation which can be used to improve the
performance and efficiency of employees at work. Some of them are described below:
1. Maslow’s Need Hierarchy Theory: This is the most well-known theory which is based on the
human’s requirements. There are 5 need levels which hare self-actualization, esteem needs,
social needs, safety needs, and physiological needs. In essence, if the need for one level is
satisfied then it will not be helpful to motivate the man. Then the next step is to activate the
level.
2. Herzberg’s Motivation Hygiene Theory: Herzberg labeled the job satisfiers as motivators
and dissatisfies as hygiene. According to Herzberg, removing of dissatisfying factors is not
required to make the jobs satisfactory and today is hygiene is tomorrow’s motivators.
3. Vroom’s expectancy theory: This theory describes that the employee will be motivated if
they get the value of effort, achieved performance and rewards and outcomes. Valence,
expectancy, and instrumentality are the key constructs of this motivation theory. This can be
applied to improve the performance of the employees.

AC3.3 Explain how a manager’s role contributes to the achievement of an organization's vision,
mission, and objectives
The manger is more than making decisions. There are the following ways in which a manager
contributes to the organization.
 Developing the corporate culture: Managers create a working environment so that,
employees can work there with full efficiency.
 Training: Training managers train the employees to work with new technologies and new
working environment and improve the performance which is helpful to achieve the goal.
 Evaluation: To motivate the employee and encourage the work, managers do an evaluation of
employee performance and data.
 Administration: Managers are responsible to complete the administrative work and cooperate
with the operations of other departments (HEATHFIELD, 2018).
AC3.4 Analyse theories and models of management
There are various management theories to perform managerial activities. Some of them are
described below:
1. Contingency theory: This theory focuses that the managerial decisions are depended on the
present circumstances instead of following the ways one size fits all. According to the
present situation, appropriate action is made by the manager.
2. Systems theory: This theory helps to identify the effect of an employee on the system and
effect of the system on the employee.
3. Chaos theory: This theory describes that some situations of the organization can be
controlled and some cannot. This shows that change is an unavoidable situation and is hardly
ever controlled.
AC3.5 Explain how the application of management theories guide a manager’s actions
These theories help the manager to analyze the patterns and events in the organization. This
helps the manager to combine the programs to achieve a defined goal. These theories help the
manager to understand the situation and take decisions accordingly.
AC3.6 Explain the operational constraints imposed by budgets
Operational constraints that are imposed by budgets are:

 Increment or decrement of the staffing levels
 Allows the organization for expansion or stage growth
 Inability to have loans from investors or banks
 Procurement and allocation of materials and resources (Chang, 2016)
 Ability to forward the plan, workwise or growth-wise
AC4.1 Explain the relationship between business objectives and performance measures
The objectives of the business entail statements of particular outcomes that are required to be
achieved. Hence, to achieve such outcomes, activities need to be carried out within the
organization. For the assurance of the correct activities, performance measures are used. There
are qualitative and quantitative ways for performance measuring. The performance measure
entails the set of measures that are used for the quantification of actions effectively. The
objectives are set in which the key criteria are also set (Graham and Kaye, 2015). These set
criteria are sent for the performance measuring across the personnel level and are linked to the
role of specific jobs. The outcomes from this are in turn feed into the objective of the
organization against the indicator of each aspect of performance.
AC4.2 Explain the features of a performance measurement system
The key feature of the PMS (performance measuring system) is that it should be good and
reliable. It is used by the organizations effectively to achieve the goals and objectives of a
business. They are designed in such a way that they are capable of identifying, improve, and
eliminate the problems of the performance. The company will be befitted by the increased
profits, improved management, and motivated workforce (Harbour, 2017). The system of the
performance measurement includes quantitative and measurable information, the information
should be understood easily and should measure the inputs and outputs. The metrics for
performance provides a framework that can measure the progress of the performance and goals.
AC4.3 Explain how to set key performance indicators (KPIs)
The key performance indicator (KPI) is a value that measures the effectiveness of the
organization in achieving the target and objectives of the business. These KPI's are used at
multiple levels by the organization for the successful evaluation. The process of setting KPI is as
follows:

 Review the objectives of the business
 Analyze the performance
 Set long and short term KPI targets
 Review the targets with the team
 Review the progress and readjust it accordingly (Parmenter, 2015)
AC4.4 Explain the tools, processes, and timetable for monitoring and reporting on business
performance
Monitoring is based on the formed plan and is chart driven. For the management of projects, KPI
is set for the plan so that the proper monitoring can be done. The tools and processes that are
used for reporting and monitoring the performance of the business are budget planning, balanced
scorecard, KPIs, performance dashboard, benchmarking, timetable, performance appraisal, and
CRM (customer relationship management).
AC4.5 Explain the use of management accounts and management information systems in
performance management
Management accounts
Management account is a set of accounting data that includes cash flow, balance sheet, and
income statement. This is prepared and presented for the management of a firm. The preparation
and presentation are done usually every month, week, or fortnight. This is helpful in providing
the manager with statistical and financial information so that the manager can take short-term or
day-to-day decisions. It is used for many beneficial reasons (Gunasekaran, et. al., 2015). These
reasons are stated below:
 Obtaining finance
 Financial information is up to date
 Growing business
 Detection of fraud
 Reduced the accounting costs and year-end audit
 Management of cash flow
Management information system