Analysis of Leadership and Operation Management at Ford Motor Company

This report provides a comprehensive analysis of leadership and operation management practices at Ford Motor Company. It begins by comparing the roles of leaders and managers, highlighting their distinct responsibilities and contributions to the organization's success. The report then delves into various management and leadership theories, including scientific management, administration, human relations, behavior, and contingency theories, evaluating their strengths and weaknesses and their application within Ford. Furthermore, the report explores different leadership approaches, such as situational, contingency, and systematic leadership, assessing their impact on operational efficiency and decision-making. The discussion extends to the key approaches of operation management, including the dynamic and six sigma approaches, and the roles of leaders and managers in enhancing operational effectiveness. Finally, the report examines the factors affecting the business environment and concludes with an evaluation of the leadership and management strategies employed by Ford Motor Company, offering insights into how these practices contribute to the company's competitive advantage and overall performance.

MANAGEMENT AND
OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Comparison between role of leaders and mangers................................................................1
M1 Comparison of role of leader and managers by applying theories.......................................2
TASK 2............................................................................................................................................2
P2 Role of leader and function of managers...............................................................................2
P3 Different theories of leadership.............................................................................................3
M2 Strength and weakness of different approaches...................................................................4
D1 Evaluation of different theories.............................................................................................5
TASK 3............................................................................................................................................6
P4 Key approaches of operations management..........................................................................6
P5 Importance of operation management...................................................................................7
M3 Impact of role of leaders and manager in improving efficiencies of operations..................7
D2 Application of operation management..................................................................................8
TASK 4............................................................................................................................................8
P6 Factors affecting business environment.................................................................................8
M4 Analyses of different factors.................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is the essential function of business unit that involves overseeing
of designing, manufacturing of the products and control over the entire process. Management
concentrates on the fact that employees have adequate knowledge about operations so that they
perform well in the organization and contribute in improving efficiency level of the operational
process (Blum, 2015). Current study is based on Ford Motor company, it is the multinational
auto mobile firm that manufacturers' cars, trucks and other auto-mobile products. Current study
will include role of managers and leaders in the organization. It will explain different theories of
leadership and will discuss their importance in the firm. Furthermore, it will explain key
approaches of operation management and importance of operation management will be
explained in the assignment.
TASK 1
P1 Comparison between role of leaders and mangers
Leaders are the person those who lead people in the organization on other hand managers
are responsible to manage people so that employees can perform their duties well. Both these
persons play significant role in the business unit (Bolton and Thompson, 2015).
Leaders of Ford motor company always concentrates on innovation. They find innovative
ways to perform operations so that entity can improve its efficiency level. On other hand
managers play role of goal setter. They follow pre-decided rules and regulations. Leaders of Ford
motor company set long term goal and work to achieve long-term goal of organization whereas
managers plan activities in such manner so that short term goal of entity can be accomplished.
They look at the current situation of entity and accordingly design activities (Goodall and
Pogrebna, 2015). On of the major difference between leader of Ford motor company and
managers of Ford motor company is that leaders of cited firm play role of innovator. They
involve employees and take their suggestions. This help the person in getting innovative ideas to
improve operational efficiency of business. On other hand managers of cited firm handle
administration functioning of the companies. Managers keep record of activity, monitor these
activities. This assists in managing operations well (Griep and et.al, 2016).
Working of both leaders and managers support entity in improving its efficiency and it
supports Ford in providing high quality products to consumers. That is the reason that consumes
of Ford Motor company are satisfied and entity is able to earn profit.
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M1 Comparison of role of leader and managers by applying theories
Management theory
Scientific management theory is the concept that pay attention on smooth flow of work.
In such condition mangers play monitor role, they monitor current practices of business unit and
give instruction to employees (Kalra and Kopargaonkar, 2016). That supports cited firm in
improving its operational efficiency.
Administration theory
It is another management theory that concentrates on developing tall organizational
structure where people follows rule and regulation strictly. Managers have to allot
responsibilities to all employees effectively. This supports in minimizing confusion and
improving level of performance. That can assist managers of Ford motor company in managing
operations of the entity well (McGivern and et.al, 2015).
Human relations theory
It is another management theory that pays attention on relationship between employees
and employers. Management tries to develop healthy relationship with employees so that
managers can retain them in workplace for longer duration. Managers supports in developing
healthy relationship with workers (Newman and et.al, 2014). Ford Motor company understand
needs of workers and fulfil their requirement so that entity can retain skilled labour in workplace
for longer duration.
Leadership theories
Behaviour theory
This leadership theory explains that behaviour of leaders matter a lot. Leaders have to
understand different situations and accordingly they have to behave. This can help the entity in
achieving their goal.
Contingency leadership theory
This theoretical framework concentrates on task and relationship both. This approach
supports business unit in managing things in organization well (Roueche and et.al, 2014).
TASK 2
P2 Role of leader and function of managers
One of the common goal of leaders and manager of Ford Motor company is to enhance
profitability of the business. Ford Motor is performing well in the auto mobile industry. Though
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there are many competitors of the firm that creates difficulty for the entity but leaders’ role and
functions of managers support the cited firm ion gaining competitive advantage. Whenever entity
make changes in its technologies and implement new technologies. Then employees feel
discomfort and demotivated. This changing environment creates difficulty for them to perform
their duties well (Scaria, 2016). In such condition leaders play role of motivator. They make the
employees understand about necessity of these changes and how changes can give benefits to
them. By this way people feel comfortable and they perform well in the organization. In such
condition function of manager of Ford Motor company is to provide reward and recognition on
the bases of performance of individual. This can encourage people and make them feel
comfortable towards the firm.
Conflict situations can get arisen any time. Poor relationship between employees and
employers create difficulty in communication and it develops mistrust. In such condition leaders
of Ford Motor company plays role of coordinator. Leaders of cited firm coordinate with
employees and understand the reason of conflict (Stewart and Shamdasani, 2014). On the bases
of their reason leaders communicate with them and make them understand with the reality so that
conflict can be resolved. Whereas in such type of critical condition managers’ function is to
negotiate with workers. Managers arrange negotiation session for employees, in this session both
employees and employer put their views and reach to the common decision which can be win-
win situation for both. In this manner managers resolve conflict situations from the nation.
P3 Different theories of leadership
There are various theories of leadership. These are explained as below:
Situational leadership approach
Situational leadership approach explains that in the modern competitive era companies
have to face huge difficulty in such condition it is essential for them to be flexible. Leaders of the
company have to pay attention on task and they have to concentrate on developing healthy
relationship with employees (Prajogo and et. al, 2012). Whenever changes take place in the
business unit then situation leadership approach supports leaders and manager of organization in
managing activities and resolving complex situation. For example, if technological changes are
taking place then it may enhance demotivation among employees. In such situation leaders
behave mature and direct employees so that they can perform their duties well. They
communicate with them properly it assists in handling different situations well. Situational
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leadership explains that leaders of the cited firm need to enhance involvement of employees so
that they feel confident and perform their duties well (Qu, Janssen and Shi, 2015).
Contingency leadership approach
It is another type of leadership approach that explains that leaders have to understand
different contingencies. Path goal and situational theories are the main contingency theories. Path
goal theory explains that leaders are responsible to manage workplace environment. They have
to structure the firm and have to develop healthy workplace environment. This can support in
making employees feel comfortable in the Ford Motor firm and they will be able to perform well
in the workplace (Dhoul, T., 2014). This is the way that can assist in effective utilization of
resources.
Systematic leadership approach
It is another type of leadership that explains that systematic approach of working assist
the entity in gaining success. If Ford plans to expand its business or modify its current operation
then implementation of systematic leadership can give positive results to business unit. That will
assist in improving quality and enhancing revenues of the cited firm (six sigma, 2017).
M2 Strength and weakness of different approaches
Autocratic leadership
Strength
 It is time saving approach that helps the management in taking quick decisions in the
organization.
 Autocratic leadership concentrates on discipline thus follow rules and regulations strictly.
Weakness
 Top management take all decision, employees are not being involved in decision making
process.
 This leadership approach do not focus on innovative ideas (Stewart and Shamdasani,
2014).
Beurocratic leadership approach
Strength
 High involvement of employees in decision making process.
 Concentrates more on employee motivation rather than just performing business
functions
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Weakness
 Poor discipline thus, employees can sometime do not perform duties properly.
 Poor controlling over business activities (Roueche and et.al, 2014).
Laissez- faire
Strength
 It gives chance to workers to share their feeling and thoughts.
 It helps the employees in getting flexibility so that their working performance can be
improved.
Weakness
 Inappropriate environment creates conflicts situation in the workplace.
D1 Evaluation of different theories
Situational leadership theory
Strength:
 The main strong point of this approach is that it pays attention on two major things: task
and human behaviour.
 It tries to develop healthy relationship between employees and employers.
Weakness
 It ignores democratic factors and just concentrates on situations.
 Practical implication of this approach is unclear (Blum, 2015).
System leadership
Strength
 It is effective in the situation when modifications are required in organization.
 It improves efficiency level of operations.
Weakness
 This approach is unable to resolve conflict situation in workplace.
 It follows tall organizational structure that some times demotivate people thus, staff
turnover rate gets increased (Bolton and Thompson, 2015).
Contingency theory
Strength
 It is beneficial and give positive results when situations are pre-defined.
Weakness
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 This model does not emphases on flexibility thus, sometimes create difficulty in
workplace (Griep and et.al, 2016).
TASK 3
P4 Key approaches of operations management
Operation management is the process of managing business operations, redesigning and
controlling so that operational efficiency of the firm can be improved. There are various
approaches of operation management (Newman and et.al, 2014). These are as following:
Dynamic approach
It is the approach that concentrates on four parts: knowledge, contingencies, learning and
problem resolution. These aspects support business unit in improving their operational efficiency
and assist the firm in sustaining into the market for longer duration (Qu, Janssen and Shi, 2015).
Sig sigma approach
It is another type of approach of operation management that helps in identifying loop falls
and improving these issues. Ford Motor company adopts sig sigma approach that assists cited
firm in enhancing quality of vehicles and increasing customer satisfaction. The initiative that is
taken by Ford Motor business is Consumer driven six sigma. This has supported business unit in
reducing defect rate and helps in enhancing its number of consumers (six sigma, 2017). The
reason behind adopting this approach is to reduce cost, improve quality, enhance customer
satisfaction and reduce solvent consumption. Implementation of six sigma mechanism in Ford
motor company has given huge success to cited firm, as in year 2001 cited firm has eliminated
more than 2.19 billion wastages in its manufacturing process.
Role of leaders in operation management
 Leaders of Ford motor company plays motivator role. They motivate employees to accept
challenging situations and turn into opportunities. They encourage employees to perform
complicate task so that their personal and professional development can be taken place.
 Leaders of Ford Motor company set vision and implement innovative ideas so that
overall goal of business unit can be accomplished (Stewart and Shamdasani, 2014).
Role of managers in operation management
 Managers of Ford Motor company plays the role of administrator. They manage
operations and keep records of each activity. This helps in identifying issues in practices
so that managers can take action to resolve these problems (Blum, 2015).
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 Managers play role of instructor. They direct people how to do and what to do. They give
training to staff members so that people can enhance their knowledge and can perform
their duties well. This is the way that assist in encouraging people and retaining them in
the organization for longer duration.
 Managers are the negotiator in the cited firm. Whenever conflicts situation arise then
managers negotiate with employees and reach to the final conclusion where both can feel
satisfied (Bolton and Thompson, 2015).
P5 Importance of operation management
Operation management is very important for the success of business unit. It assists in
expanding business across the world and assist in enhancing revenues of entity. Ford Motor firm
has gained huge success by implementing six sigma operational approach. This has helped in
identifying issues in designing and manufacturing process of the firm. By this way cited firm has
become able to improving its errors by taking necessary action. That has supported the firm in
raising satisfaction level of consumers ad enhanced its profit margin as well (Kalra and
Kopargaonkar, 2016).
Operation management supports in raising capabilities of employees by providing them
training and development. This process has improved structuring of the entity and it has become
able to gain competitive advantage in the auto mobile industry. Operation management is
beneficial for Ford Motor company that has improved its production process and has reduced its
costing as well (Griep and et.al, 2016). By this way entity has become able to utilize its resources
well and increasing its profitability as well.
M3 Impact of role of leaders and manager in improving efficiencies of operations
Leaders and managers are the essential stakeholder of the business. Both they play
significant role in improving operational efficiency of Ford Motor company. Leaders lead team
members and make them aware with the ways that can raise their performance level. On other
hand managers motivate people so that they feel happy and perform their duties well. It supports
cited firm in improving efficiency level of operation's and gaining success in the market (Qu,
Janssen and Shi, 2015).
Managers and leaders are responsible to smooth functioning of business unit. Leaders
find innovative ways through which employees can minimize errors and can contribute well in
improving efficiency level of operations. Leaders are these innovative ways with the workers and
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workers implement these strategies in their working practices. That assist in improving overall
quality of products to great extent (McGivern and et.al, 2015). Mangers provide rewards and
recognition. Apart from this manager give them training so that employees can enhance their
skills and capabilities. That assists Ford Motor corporation in improving working performance
and efficiency levels as well. That supported cited firm in gaining success and competitive
advantage in the auto mobile industry.
D2 Application of operation management
Sig sigma is the beneficial application that has given positive results to Ford Motor
business. This has supported in raising quality of products and minimizing operational errors. It
is effective application but some times it creates difficulty for the management because it is very
difficult to understand entire process of sig sigma and manage operations. Changing market
condition create pressure on business suit to make changes frequently. In such condition costing
of the firm get increased (Qu, Janssen and Shi, 2015).
Operation management application impact positive on the business performance of Ford
Motor company. This has helped the firm in satisfying needs of consumers and providing them
satisfactory products and services. This has helped the entity in expanding its business across the
world and enhancing its profitability (Stewart and Shamdasani, 2014). Application of operation
management is beneficial for Ford because by this way entity becomes able to manage its
resources and minimizing wastage as well. This has improved market performance of Ford and
improve its quality of products as well.
TASK 4
P6 Factors affecting business environment
There are so many components that impact on operational performance and business
environment of Ford to great extent. Internal and external factors are explained as below:
Internal factor
 Financial resources: It is considered as one of the major factor that affect business
environment to great extent (Dhoul, T., 2014). Ford Motor company has adequate
financial resources that support the firm in implementing the latest technologies in order
to improve its operational efficiency. This helps in raising performance of Ford to great
extent (Stewart and Shamdasani, 2014).
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 Suppliers: It is another major factor that impact on business environment to great extent.
As Ford is performing well in the market and it has suppliers those which provide them
high quality raw material. That is why entity becomes able to provide satisfactory
products to consumers.
External factors
 Political condition: It is major external element that affect business environment to great
extent. As cited firms has to follow laws and regulation but changes in political condition
impact on its smooth functioning of the firm (Griep and et.al, 2016).
 Competition: It is another major factor that impact on the business environment of Ford
Motor company. Due to high competition cited firm has to modify its strategies so that it
can perform well as compare to its competitions and can sustain in the market for longer
duration.
M4 Analyses of different factors
There are various internal and external elements that impact on the business environment
to great extent. Political condition, regulation and laws affect overall operations of the firm.
Changes in laws and regulation create pressure on the firm to implement these changes in the
workplace and modify the entire operations accordingly. In such condition costing of the
business unit gets increased and it reduced its profitability as well. On other hand high
competition is the major factor that impact on business environment (Blum, 2015). Ford is
performing well in the market but in order to gain competitive advantage and retain the
consumers in the firm for longer duration entity has to make effective strategies and have to
implement innovative ideas so that it can raise quality of products and can satisfy needs of
consumers This impacts positive on the organization. Technological changes and changes in
legal environment impact on entity to great extent.
CONCLUSION
From the above report it can be concluded that operation management is the effective
aspect that supports the firm in minimizing their operational errors and improving quality of
products. By this way entity become able to generate more revenues and enhancing satisfaction
level of customers. Leaders and manager both contribute well in improving business
performance. They motivate people and implement innovative ideas so that employees an
perform well and can contribute in the success of business unit.
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