Leadership and Management Report: Airdri Ltd Business Analysis

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This report provides a comprehensive analysis of leadership and management principles within the context of Airdri Ltd., a small to medium enterprise. It begins by differentiating between the roles of leaders and managers, highlighting their distinct focuses, decision-making processes, communication styles, and approaches to honesty and leadership. The report then examines how leaders and managers navigate different business situations, such as technological changes and employee turnover, applying situational leadership and contingency leadership styles. It also explores various leadership theories, including situational leadership, and their practical application. Furthermore, the report delves into key approaches to operations management, emphasizing its importance in achieving organizational goals and identifying factors that influence operational decisions. The report concludes with recommendations aimed at improving Airdri Ltd.'s performance, based on the analysis of internal and external factors affecting the company.
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MANAGEMENT AND
OPERATIONS
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Comparison Between role of leader and function of manager.............................................3
P2. Role and function of leader and manager in different business situation.............................6
P3. Explain different type of Leadership Theory........................................................................7
P4. Key approaches of Operation management and the role of leader and manager in it..........8
P5. Importance of Operation management in achieving the organisational Goal.....................10
P6. Factors that have impact on operation management and impact on decision making of
leaders and mangers..................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Operations Management is concerned with redesigning activities carried out in
operational process to achieve greater efficiency beginning from the procurement of raw
materials to the delivery of the end product to final customers. Leaders and Managers of any
company are key strategists or planners of the company deciding its course of action using
different tactics and strategies. Airdri Ltd. Company is a Small Medium Enterprise based in
Oxfordshire, United Kingdom. It was founded in 1974 by Peter Phillips and Peter Allen who
were both engineers. It manufactures Hand Driers and its products are known for their reliability
and long life. This report highlights difference between the role and characteristics of leaders and
mangers in an organisational context. It also details various theories and approaches that can be
used in an organisation to improve the operation management. Further, this report also discusses
the key or major aspects of operations management. It also details the significance of the
operation management in efficient goal achievement. Lastly, this report also highlights impact of
external as well as internal factors on an organisation's activities and recommendation have been
made which can improve its performance.
MAIN BODY
P1. Comparison Between role of leader and function of manager
Leaders: A leader is the one in the charge, the person who convinces other people to follow. A
great leader inspires confidence in other people and moves them to action. Leaders use
approaches like motivation and leadership style to influence team members to work towards
attainment of goals and objectives (Stoops, Marcelino and Mees, 2018). Different roles and
characteristics of leaders includes delegating responsibility, focus, involves in decision making
and many more.
Manager: Manager is a person who is in charge of managing all the function of
organisation. They used to control the department of company and also guide employee of
organisation.
Basis LEADERS MANAGERS
Focus Leaders at Airdri always Focus
on looking at the strength of
Manager at Airdri Focus on
system, structure, budgeting,
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the people and help them in
improving proficiency level of
employee by different tool for
example they motivate them
beyond their capabilities. They
used to innovate new
techniques and put focus long
term problems of employee by
providing them the path
through which they can go and
achieve goal.
organizing, staffing, problem
solving and controlling
(Shamir, Arthur and House,
2018). They used to manage
all the activity of the business
by supervising operation of
the business and also by
giving best feedback which
can help organisation and
employee to increase their
efficiency level.
Role In Decision Making Leaders are who makes the
decision in context of the
business. This needs to be
consistent and transparent.
Team needs to follow all the
decision which has been taken
by leader. It helps organization
in enhancing relationship
between them. It also helps
firm in growing. (Smith and
Wong, 2016).
Manager is the one who has
power to make day to day
decision in Airdri as they are
the one who manages all the
function of business.
Manager also helps Senior
authority in taking the
decision in organisation as
manager represent
subordinate interest in front of
the senior authority at the
time of discussion about
point on which decision is to
be taken and sometimes
senior authority also gives
independent authority to make
a decision in long run as
well.
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Communication They always believe in
bringing a good
communication among team
member as they are one who is
responsible for working of
their team and they try to bring
good communication in
between them so that there is
clarity of thoughts in team
which always increase the
efficiency of team.
Communication must be
effective between team
members.
Manager at Airdri works as a
mediator between senior
authority and subordinate as
the suggestion of employee is
transferred to senior authority
by the manager and all the
decision which is taken by
senior authority are also pass
on by manager only to
subordinate.
Honesty Leaders at Airdri brings the
sense of honesty in the team
which helps leader to bring a
good trust factor among the
employee. Leaders at
organization must be honest
and transparent. They need to
hide anything from their team
members. This helps them in
retaining workers and creates
belongingness.(Miner, 2015).
Manager at Airdri is always
honest to their work as
manager always try to tell the
truth in organisation which
helps to avoid the conflict in
organisation which also
creates a good relationship of
manager with employee.
Leadership Leaders at Airdri leads team
by using different leadership
style which helps leader in
influencing the work of
employee to achieve the
Managers at Airdri manages
the various department and
also guides leader and
supervisor of department to
complete their work on time
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organisational goal of
organisation. Leaders must be
effective and efficient in
leading.
with proper planning,
organising, coordinating and
controlling (Rahim, 2017).
P2. Role and function of leader and manager in different business situation.
There are many situations which are faced by the Manufacturing firm in their day to day
activity. The main two authority who are responsible to face these situations are Leader and
manager, they perform their roles and responsibility to defend the challenges which are faced
(Priest and Gass, 2017).
Scenario 1:
Change in technology: It is the situation which occurs in the manufacturing company very
frequently and it requires coping up with technology which is efficient and help the company in
getting competitive advantage. But with change in technology, sometime employee at Airdri
become uncertain as they require coping up with the changes, but resistance of employee is big
factor which is faced by Airdri when implementing change in organisation.
Role of Leader: At time of technological change, leaders are the one who understand
and adapt the technology change as they are one who ultimately guides work of employee in the
organisation. Leaders also uses different motivation tool to motivate the employee in the Airdri
to adapt changes as at time of technology change, employee's confidence level is always
affected in negative way and leader tries to explain them the benefit of implementing new
technology and way employee can effectively adapt changes. Leaders also tries to explain the
way through which employee can increase quality of performance through new technology. As
situational leadership explains that leaders should take decision according to situation
prevailing in organisation. Leaders at Airdri try to create a good and comfortable working
environment for people in organisation as technology change always laid to the chance of
employee leaving job as every employee is not able to understand the technology change but
good working environment keep motivating them and support them in coping up (Day, Gu and
Sammons, 2016). Leader can implement new software for effective working. They can also
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provide training sessions to employees, so that they can easily handle change in technology.
Training can assist firm in retaining employees
Function of Manager: Manager is the one who manages activity of the organisation and
in this situation, also manager tries to manage changes by understanding changes and issue
which is faced by employee in adapting changes and after that manager at Airdri conducts
meeting in which all the subordinate is invited and also provides training function. After a
manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting,
training, and developing employees
Scenario 2:
Employee Turnaround rate: This situation generally occurs in organisation when the
employees are not happy with their job and leaves job due to non satisfaction or due to any
conflict in the organisation. Contingency leadership style explains that leader and manager
needs to understand working condition or environment and try to use their decision in such a
manner that they can be able to influence employee's behaviour in organisation in positive
manner (Northouse, 2018).
Role of Leader: Leaders are the one who plays a crucial role in reducing turnaround rate
as in firm like Airdri. employee plays a very important role as they are one who is involved in
manufacturing process. leaders are one who guides them to achieve goal and so leader are so
close to them leader always assess conflict or issue in them and try to resolve it by creating
clarity of mind and creating a good working environment. Leaders are also people who are
engaged in performing function of controlling and organizing. In this they place right person at
right job. It helps them in reducing turnover of employees.
Function of Manager: Manager always tries to improve working environment of the
Airdri as it is manager's responsibility to give a good working environment to employee.
Manager at Airdri also looks at performance of employee and gives them best feedback which
can help them to increase their efficiency. As negative and positive both Feedback help
employee in increasing their efficiency. Managers can also make use of contingent leadership.
P3. Explain different type of Leadership Theory.
Situational Leadership: As the name suggest, this leadership style is all depend upon
the current situation of the business. Leaders used to take decision after assessing the current
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scenario of the business as there is no such type of leadership style which is universally correct
in all situation of business. As already mention that there are many situations through which
company require going, so it helps the leader to influence the work according to the prevailing
situation (Lu and Gursoy, 2016). Situational theories of leadership work on the assumption that
the most effective style of leadership changes from situation to situation. To be most effective
and successful, a leader must be able to adapt his style and approach to diverse circumstances.
This is Leadership style in which leader used to take all decision in earn and with the help of
different tools' leader tries to influence work of employee in organisation. This is tbest
leadership style for leader who is looking to see current position of employee and task which is
done by employee. This is leadership style which ask leader to take part in day to day function
of the business and helps employee but decision require in organisation is taken by leader only
there is no involvement of employee in decision making of team. This is the leadership style in
which Leader used to supervise the work and helps employee to overcome difficulties, Leaders
also provides the feedback to employee by supervising there work, it helps leader to increase
performance of employee as feedback negative or positive both helps employee to evaluate their
work (D’Innocenzo, Mathieu and Kukenberger, 2016).
System Leadership: This is the Leadership style which looks at building a working
environment in which all level of employee can work together with the common motive of
achieving the organisational goal. Generally in this type of leadership style leaders love to be in a
back screen as compare to the other style which focus on leading from the front. Systems
Leadership enables the leaders in an organisation to create the conditions where people at all
levels can work productively to their potential.
Contingency Leadership: This is theory which explains that there is no leadership style
which can be applied universally for all the situation of the business. It is the leadership style
which help the business in defending different problem with different solution. A contingency
theory is an organizational theory that claims that there is no best way to organize a corporation,
to lead a company, or to make decisions. Instead, the optimal course of action is contingent
(dependent) upon the internal and external situation
Path Goal Theory: Leaders used to set path and guidelines for the employee to go on
and achieve the goal. Generally leader uses different types of skills and tools to guide the
performance of the employee toward the path of the goal achievement. Tools which are generally
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used by the leader are motivation tool and reward and appraisal tool (Bedi, Alpaslan and Green,
2016).
Directive Leadership: Leader used to provide a clear idea to the employee about the
work is to be done by every individual to achieve organisational goal in this leadership style all
the employee are clear about what to do, how to do and till when to do achieve the goal.
Supportive Leadership: In this leadership style leader used to look at the needs and
requirement of employee and always take step to full fill it. Supportive leadership is a leadership
style where a manager does not simply delegate tasks and receive results but instead supports an
employee until they perform functions.
P4. Key approaches of Operation management and the role of leader and manager in it
Operation management is the process that helps in managing business operations and converting
input in desired output (Stoops, Marcelino and Mees, 2018). There are various approaches that
are used by business in operation management process. These are explained as below:
Total quality management -
Total quality management is process of quality improvement in business operations.
TQM approach ensures that quality of products remain good, it improves supply chain system so
that company can get quality raw material. This helps in utilising quality material for
manufacturing high quality products. Total quality management is process of reducing errors in
manufacturing and improving supply chain. This can improve quality of organization's product
and goods. Airdri can get benefit by using this approach as it will help in improving quality and
minimising cost of operations. Leaders are responsible for directing people so that they utilise
their skilled properly. Furthermore, managers ensure that supply chain become smooth so that
resources can be utilised in significant manner.
Just in time -
Just in time is process of increasing efficiency of operation and reducing production
delay. In organization, just in time process is main factor that aids in improving production
capabilities according to customer demand. Just in time make system of manufacturing more
flexible. It's balancing flow of manufacturing and output schedule. Just in time process helps
Airdri in maximum production within minimum time and lowest cost (Shamir, Arthur and
House, 2018). Leaders find innovative ideas so that production can be done with quality and
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production time can be minimised. Managers play role of monitor; they monitor the production
process so that entire product can satisfy needs of buyers.
Lean manufacturing or waste reduction -
Lean manufacturing is process of reducing waste in manufacturing. This gives benefit to
business in minimising operational cost and raising efficiency of operations. (Smith and Wong,
2016). This method is generally used by Airdri company to effective utilisation of resources and
minimising the wastage during production stage. Firm recycle its waste materials so that it can be
reused, this thing helps in minimising production cost and supports the organisation in raising its
production capabilities. Leaders and managers play significant role in waste reduction as leaders
ensure that people follow instruction of higher authorities and perform accordingly. Furthermore,
managers monitor the progress and implement new technologies so that recycling can be done
properly and wastage can be eliminated.
Capacity management -
Capacity management is defined as an effective utilisation of manufacturing resources. It
is process of planning and controlling resources. In organization, capacity management
monitoring and analyse operation resources for future production. Capacity management also
show company's capacity of input and output. The Airdri company working with IT technology
and its ensured that it uses resources well to meet with internal and external customer
expectations.
P5. Importance of Operation management in achieving the organisational Goal
Operation management is very crucial element for the operation of the business as
operation management helps the business to solve the problem which has been faced by the
business in their day to day activities of the business. Operation management helps the Airdri as
well as Airdri is small scaled organisation and has to faced difficulties in running business
activity. Operation management of Airdri is as follows:
Resource Utilisation: Airdri always try to reduce the cost of the organisation product by
utilising their product for the best use. It helps firm in making efficient use of resources. As the
manufacturing firm the organisation requires lots of resources to make their product so the
organisation uses the best resources available to them and also try to reduce the wastage of the
resources in the manufacturing process which helps the business in reducing the operation cost of
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the business and which eventually result in increase in the profit of the company (Priest and Gass,
2017).
Increase in Revenue: Airdri uses different operation management approaches to
improve the performance of business and also increases revenue of business. Generally Airdri
uses the common operation management approaches such as Total quality management, Just in
time and capacity management, which helps Airdri to manage wastage, resource and activity of
business which helps business in improving the Revenue for business.
Waste Management: As Airdri is the manufacturing firm and every manufacturing need
to look at their waste of the resources as these is big factor in increasing their operation cost of
the business. Airdri also uses six sigma lean manufacturing approach to decrease and to manage
the wastage of the firm which has helped the business in securing their resources for the long run
of the business and which eventually increase the Productivity. Generally Airbride uses the
Value Stream Mapping, that helps in managing waste. (Day, Gu and Sammons, 2016).
Customer Satisfaction level: Airdri always believe in satisfying the customer of the
business as customer are the one in end purchasers of the product. Airdri invest a very good
amount on the research and development process to known need and trend in market and then
tries to develop product according to that so that the company is able to satisfy the need of the
company through their product and on other hand Leader and manager always motivate the
employee to use different approaches to increase sell of business by satisfying customer.
Value of the Operation Management
Operation management is one of the most important activity of the current business
condition as it help in improving control and distribution system of the organisation as well. As
told earlier, by using OM, company is able to analyse the effectiveness of the business and its
resources and also helps in managing the waste for business, It also helps in choosing the right
distribution system which helps in increasing Operational effeciency of the Airdri (Lu and Gursoy,
2016).
Operation Management is the best practice which assist in improving the transformation
of manufacturing raw material and resources by this way Airdri will able to produce the product
as per the consumer requirement so that they can satisfy the customer. Airdri can also contribute
to the environment by making proper use of the Operation management approaches as operation
management approaches also help the business in recycling their material.
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P6. Factors that have impact on operation management and impact on decision making of leaders
and mangers
Political- Various rules and regulations affect the decision of leaders and managers of
organization. Like for example if tax rate increases it will lower down the profitability aspects of
the firm. It can also increase their operational costs.
Operation Management is affected by various external as well as internal factors which
affect the organisation as well. It also impacts the decision making in an organisation and
therefore these factors need to be identified timely and their impact needs to be evaluated
beforehand so that appropriate strategies can be formulated which will help in taking appropriate
decisions. The various factors affecting the Airdri Ltd. are ethics, values, cultures, Corporate
Social Responsibility, business environment, sustainability etc. which have been explained
below:-
Culture :- Culture basically signifies the ideologies, customs, practices and beliefs that the
people belonging to a particular place have. In organisational context, culture means practices
and methods adopted in a particular company. Airdri Ltd. Company being best producer of hair
driers in world have a great working culture (D’Innocenzo, Mathieu and Kukenberger, 2016). The
leaders at Airdri Ltd. Company ensure that employees feel a sense of belongingness to
organization and respect each other aiming to co exist with each other and managers task their
employees according to key expertise that they posses. Therefore, It is evident that Airdri is
known because of their culture.
Corporate Social Responsibility :- Any organisation or company is set up in social setting and
derives resources from them. Thus, every company should try to repay a part of it back to the
society in form of social activities which benefit local communities. CSR activity at Airdri Ltd.
Company is focused toward growth of local individuals and for this they are ready to incur costs
and expenditures on their behalf. Leaders at Airdri aim to motivate the employees thus
encouraging them to encouraging them to participate in different various activities and managers
try to maintain the quality control thus reducing the harm and increasing employees' vitality at
the workplace of Airdri Company.
Values :- Values can be termed as the display of present status of an organisation and its
employees and how this value can be enhanced to increase productivity and profitability of any
organisation. At Airdri Ltd. , their practices have led to increase in value and this has assisted
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