Leadership and Management Functions: A Comparative Analysis in Toyota

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Running head: Leadership
leadership
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Contents
LO1 Analyse and differentiate between the role of a leader and function of a manager by
effective applying a range of theories and concepts .......................................................................3
LO3 critically evaluates application of operations management and factors that impact on the
wider business environment ...........................................................................................................3
Introduction:....................................................................................................................................3
Leadership:...................................................................................................................................3
Role of Management:...................................................................................................................3
Difference between Leadership and management Function :..........................................................4
Management by Objectives:............................................................................................................5
Management Roles:.........................................................................................................................8
Leadership Traits Theory.................................................................................................................9
Leadership Style:...........................................................................................................................10
Autocratic Leadership Style:......................................................................................................10
Democratic Leadership Style :...................................................................................................11
Transformation process in operation management:.......................................................................11
Quality:..........................................................................................................................................12
External Failure Cost:................................................................................................................12
Inspection Cost:..........................................................................................................................12
Prevention Cost:.............................................................................................................................13
Just in time and Waste reduction approach:..................................................................................13
Capacity Management:..................................................................................................................14
Business capacity management :................................................................................................14
Service Capacity management :.................................................................................................14
Conclusion:....................................................................................................................................14
LO2 Apply the role of a leader and the function of a manager in given contexts.........................15
Lo4 Demonstrate an understanding of the relationship between leadership and management in a
contemporary business environment.............................................................................................15
Introduction....................................................................................................................................15
Background Of the Team:.............................................................................................................15

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Strength and weakness of manager:..............................................................................................15
Leadership..................................................................................................................................15
Decision Making........................................................................................................................16
Unwilling to change:..................................................................................................................16
Lack of self confidence :............................................................................................................16
Lack of Industry Insight.............................................................................................................16
Roles and duties of manager:.........................................................................................................16
Capacity Management:..................................................................................................................17
Managing Demand and Supply :...................................................................................................17
Transformation process :...............................................................................................................18
Capacity management:...................................................................................................................18
Recommendation to management for future improvement:..........................................................19

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LO1 Analyse and differentiate between the role of a leader and function of a manager by
effective applying a range of theories and concepts.
LO3 critically evaluates the application of operations management and factors that impact
on the wider business environment.
Introduction:
Leadership is a process of influencing or motivating a team within a business organization
towards achieving desired goals and vision of the organization. Directing employees and
colleagues with proper planning and strategy to meets the company's goals and needs.
Leaders play a crucial role in the growth of the organization they are the people who get
the desired output from the employee for achieving the desired goals of the organization.
Leadership has been considered as the practical skill which is an ability to convert the
mission and vision into the reality. Leadership is a skill or motivational process that
enables the manager to get their team to do willingly what must be done. Leadership
cannot be defined as a position or a person; it is a relationship between the employees in
the organization based on commitment, obligation, trust towards work and a shared vision
of the things (Emsley, 2015).
Role of Management:
Management can be defined as the art of getting work and achieving desired goals through
workforce within an organization. It is a process of planning, organizing and controlling
things for accomplishing predetermined objectives and goals of the organization. Today,
effective management is very crucial to attain good results in long term along with this also
helps in smooth workflow efficiently.
Role of management is very essential and important for any organization for effectively
design and management of work within the organization in the direction of the
predetermined goals and objective of the business. Managerial roles involve a particular
type of behavior, conduct, and actions that a manager must have to be successful. A
manager can develop and establish strategies and planning in such a way that each and
every employee performs particular tasks assign to them towards achieving desired
objectives.

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The role of management is to plan strategies and planning and implementing them in an
organization with an aim that every employee can perform their specific tasks according to
the objectives.
Difference between Leadership and Management Function:
Leadership and management function are two different things, leadership is a skill of
motivating and influencing group of people towards achieving goals of the organization
and person who possess this ability are leaders while management is a discipline, behavior,
and action with planning and strategy for accomplishing different objectives of the
organization and practitioner of this discipline can be defined as manager.
The management function is a set of predefined process that runs a system of people and
technology in the organization. Management function involves planning, budgeting,
organizing, staffing, controlling and problem-solving through their strategies for objectives
of the particular department or organization. Leadership can be defined as a set of
processes that in turns form an organization as per changing situations. Moreover, it can
be said that leadership is more future-oriented and define what the future situation will be,
how to make people prepare and predesigned for that and also to inspire them. There is a
framework presented by John Kotter to understand the main difference behavior between
leadership and management function. Management is for developing and maintain a
system and order process while leadership is more about caring out changes in the
organization and promoting them within the organization
Management and leadership behavior according to John Kotter
Manager Leader
Wants system and regularity Wants changes and development
In process of planning and budgeting – they
forms agendas, allocate resources and set
targets.
They establish directions and create visions
and strategies according to situation to
accomplish those targets.
Staffing- They develop structure of
organization, define rules and regulation,
provide human resources.
Staffing – They communicate goals , build and
motivate team for achieving goals and looks
for commitment
They control the structure of the organization
and focused on solving issues by taking
They focus on influencing and inspiring people
for solving problems through empowerment.

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necessary actions and defining incentives to
reward good work by people.

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By reviewing this table based on a framework we can analyze that Kotter places
importance on controlling for managers but not for leaders. According to this model,
leaders are focused on providing motivation and generate energy and enthusiasm while
managers are focused on running an organization in an efficient manner with continually
improving efficiency through rules and regulations (Howland, 2016). By this framework we
can analyze that inspiration, motivation, and enthusiasm is very important for employees
to perform their jobs goals but organization also need to have structure, discipline, rules
and regulation to achieves the vision and goals of the organization, thus the two functions
of leadership and management functions are essential and required for the success of an
organization (Torpman, 2004).
Management by Objectives:
It can be define as a management approach that balance between the objectives of the
organization and the objectives of employees.
Management by objective is process of define objective and vision of the business within
the organization so that both employee and management area aware about objectives and
agreed to them and understand what they want to do to achieves that objectives.
Management set challenges and targets which are achievable which motivate the employee
and their empowerment. To achieve desired objectives and future growth managers gives
the opportunity to the employee to focus on ideas and innovation that helps in the
development of the organization (Emsley, 2015).
A management objective is a business approach in which employee is aware of the vision
and mission of the organization, strategies of the organization and day to day activities. In
this approach objectives are not directly imposed to subordinates or employee, they are
decided collectively by management and employees. A manager should participate in a
strategic planning process and implement that strategies and plans in the organization with
allocated resources.
Five step management by the objective process by P Ducker

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Source: (Bing.com, 2019)
In MBO process managers of every level of the organization should participate in the strategic
planning of the goals and process so that they can effectively implement this strategy in business.
They are expected to apply a range of performance system that will help in the smooth
functioning of the organization. In MBO system manager at every level identify their goals for
areas they are responsible for and share that business goal with their units and motivate and
guide employees in fulfilling their role. Moreover, after implementing this technique the role of
management is to monitor and evaluate performance based on objectives shared to different
units. Manager evaluates the situation or performance to understand which extent the goals have
been met (Howland, 2016).

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The main principle of this MBO approach is that employee who is involved in the goal
setting and development are responsible for fulfilling their desired task and roles on given
time with allocated resources. The goals in this approach are predefined, specific,
measurable, achievable, realistic and time-bound . There is a strong link between the
performance targets of the employees and organizational goals effectively.
Drucker used SMART to express MBO objectives i.e.
 S stands for Specific – Organization must have specific goal so that each employees
must know their roles and responsivities and how they have to work according to
the specific mission.
 M stands for Measurable – Organization must set the goal which is measurable in
terms so that manager may direct the employees according to the terms which can
also help in measure the employees performance.
 A Stands for Achievable – Goals must not be imaginary, it must be achievable.
 R stands for Realistic – Goals must be real and clear to the employees to achieve
success.
 T stands for Time Bound – there must be stipulated time to achieve the goal so that
each employee may complete it within the prescribed deadline.
MBO in practice
Putting Management by Objectives into Practice

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There are various outlines provided by MBO to use this technique into practice. Initially,
organization objectives for the entire organization are developed with the vision and
mission of the organization then these organizational objectives which are determined by
the managers of the organization are translated to the employee of the organization so that
they can understand the strategies of the organization. Moreover, after setting up
organizational objectives, employees decide their own objectives to achieves this
organizational this gives them motivation and dedication to achieve their own targets. The
manager monitors the progress and performance of the employees towards decided goals
as they are measurable for employee and manager to identify how well they are met. After
completion of these entire steps manager evaluate the progress of the employee and give
feedback about their performance, rewards the progress of employee.
Management Roles:
There are different roles of management in the different situation for developing and
running a successful organization. Role of management involves different behavior and
action based on the situations that are essential for a business organization.
Mintzberg gives ten essential management roles which are divided into three categories this
are as:
Information Processing
 Monitor
 Spokesman
 Disseminator
Interpersonal Communication
 Figure Head