Leadership and Management: Roles in Operational Management Report

This report delves into the critical roles of leaders and managers within an organization, emphasizing their distinct yet complementary functions in achieving business objectives. It differentiates between leadership and management, highlighting the innovator role of leaders in strategic planning and the execution-focused role of managers. The report examines real-world case studies, such as Ford's turnaround, to illustrate the application of leadership and management principles in crisis situations. It explores various leadership theories, including situational, systems, and contingency leadership, and their impact on operational management. Furthermore, the report outlines key approaches to operations management, emphasizing the significance of total quality management (TQM) and the roles of leaders and managers in ensuring efficient production, distribution, and sales. Overall, the report underscores the importance of effective leadership and management in fostering organizational success and achieving business goals in a complex environment.

Management and Operations
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Table of Contents
LO 1: Differentiating between role of leader and functions of a manager......................................3
P1: Comparing and differentiating between role of leader and function of manager.....................3
LO 2: Applying the role of leader and managerial functions within a given situation...................4
P2: Examining cases where role of leader and function of manager has been applied...................4
P3: Applying theories and models of approach including situational leadership, system
leadership and contingency leadership............................................................................................6
LO 3: Demonstrating value of the role of leaders and managers in operational management of
company...........................................................................................................................................7
P4: Describing key approaches towards operations management and role of leaders and
managers in an organisation............................................................................................................7
P5: Explaining the importance of operations management in achieving business objectives.........8
LO 4: Demonstrating the relationship between leadership and management in a complex
business environment.......................................................................................................................9
P6: Assessing various factors that affect operational management and decision making in an
organisation......................................................................................................................................9
Reference List................................................................................................................................11
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LO 1: Differentiating between role of leader and functions of a manager
P1: Comparing and differentiating between role of leader and function of manager
As per Bass and Avolio (2015), every organisation comprises of an effective leader that requires
capable assistance of dynamic managers who can execute daily operational activities of the
organisation in order to achieve desired objectives. Leadership is a very important responsibility
as it is capable of guiding the business in achieving pre-determined goals. Managers are capable
motivators that acknowledge the needs of the company and capably use the available resources
to achieve company targets. A clear identification of the differences can help in making
distinction among the two.
Leaders Managers
Brocato (2013) opined that leaders are the
innovators who are responsible for devising
new plans and operational strategies that can
make the business successful.
Cacioppe (2015) argued that managers are
solely concerned with the execution of the
operations within the organisation as per the
decided policies and procedures. They are
devoid of any strategy development
operations and must solely focus on
improving the teamwork within the
organisation.
The strategic vision that leaders possess
allows them to make clear distinction between
the types of goals that is best suited for the
business. It is their responsibility to devise
strategies, plans and policies that can suit
either long-term goals or short-term
obligations.
Managers mostly undertake major
administrative operations that govern how the
company is run towards achieving company
objectives set by leaders.
Establishing work policies that take care and
benefit employees makes leaders very
detrimental in the boosting of motivation of
employees.
The responsibility and liability area for
managers is based on short-term objectives as
opposed to long-term objectives focused by
leaders.
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Risk taking is another pivotal difference that
separates leaders from managers. As per
Fulmer and Wagner (2014), vital decision
making and quick reactions from leaders
ensure that no favourable situation is missed
for the benefit of the organisation.
The managers carefully monitor and measure
performance of employees regularly through
performance reviews so that the level of
progress can be easily monitored and the
extent of objective achievement can be
addressed.
Being proactive in nature allows the leaders to
be optimistic and trust their decision making
skills. This allows dynamic decision making
and assessing condition of business.
The decision making power that managers
possess are limited to departmental aspects.
They have authority to motivate, alter and
deduce plans that can make the departments
work efficiently and achieve company goals
faster.
Table 1: Differentiating points between leaders and managers
The fact that leaders are specifically important to a company does not hide the fact that managers
also play a vital role in the overall success of the business. A leader’s strategies and plans are
ineffective if the execution of the plans and policies are not done as per orders. Gregersen et al.
(2014) suggested that even though the operational and functional duties of managers and leaders
may be different, they both need to function simultaneously if a business hopes to succeed in
future. The definition of success is not guaranteed unless the formulation of policies are not done
as per objectives and man management is not done properly by the managerial staff.
LO 2: Applying the role of leader and managerial functions within a given situation
P2: Examining cases where role of leader and function of manager has been applied
According to Harris and Cullen (2014), the reason behind the success of any organisation is the
visionary mind of leaders and dynamism of its managers to chalk out strategies that can help the
business in achieving its goals even during situations of crisis. A vital example of the company
Ford can be used to understand the role of leaders and managers in making the business a
success even during difficult situations. The company stock prices had fallen drastically and the
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company faced a loss of around $12.7 billion. The company was literally filing for bankruptcy,
until the effective leadership of their CEO Alan Mulally turned things around.
The inspiring leadership and decision making attributes of Alan Mulally helped the company in
developing a comprehensive plan of action and transformed the organisational culture to a more
value-based organisation. The incorporation of a best-team approach simplified the leadership
structure in the company and it fostered the employees to work as a single unit. Another decision
making aspect of Mulally regarding the agreement of the company with United Auto Workers
(UAW). This partnership allows shift of responsibility to the UAW as they played a helpful role
in improving the profitability of Ford in return of bringing jobs back to USA. Regaining
credibility of suppliers and investors was the next step as it was necessary to regain trust to
ensure business stability. Considering these actions conducted by the leadership qualities of
Mulally, it can be considered that traits of leaders can make managers capable of handling
critical situations in a more responsible manner. It can be elaborated that the strategic leadership
that was shown by Alan Mulally not only saved the company from bankruptcy, it changed the
fortunes of the company. As per Hernez-Broome and Hughes (2014), the management of a
company relies heavily on the strategic policies and plans of leaders as without effective
guidelines they cannot maintain business operations successfully on their own.
If the leadership trait of motivating employees to work as a unit is evaluated, it can be stated that
such activities boosts employee’s faith towards the company and increases their level of work
capabilities. A cohesive work unit can only work in a better manner and reduce any chances of
conflict. Managers can be dynamic enough to manage staff efficiently and handling of resources
is a possibility as well. According to Hind et al. (2015), business running is a systematic process
which must be managed carefully in order to avoid any type of issues that could hinder progress.
Keeping the case of Ford in mind, it can be estimated how leadership traits of leaders can assist
in the formulation of effective strategies that helped the company from going bankrupt to
achieving profitable business. Leaders are vital to organisations and it is their strategic thinking
that allows them to make business decisions so quickly. Managers in such companies also thrive
due to the fact that they are supplied with capable policies and procedures that can be used to
make rapid operational management decisions.
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P3: Applying theories and models of approach including situational leadership, system
leadership and contingency leadership
As per Hunt et al. (2013), leadership is a vast terminology and it ably constitutes numerous
leadership approaches that can be used by organisations irrespective of their scope, size and
operational activities. Keeping the study in mind, the three type of leadership theories that seem
important in this context include, situational leadership, system leadership and contingency
leadership. Situational leadership allows the leader to mould themselves as per their surrounding
needs so that they can identify the areas that need proper management. The advantage that this
approach brings is that it allows changes in leadership style as per situation needs. The case of
Ford can be attributed to the situational leadership of Alan Mulally. The manner in which he
handled the situation and moulded his style of management to adhere to the benefit of the
company suggests the level of success that companies can enjoy using this method.
Systems leadership theory is a measure of systems thinking that is focused highly on
management links in the organisation based on the business environment it works upon. This
theory clearly states the importance of understanding policies, procedures and the various
operational practices that occur in the organisation. Judge et al. (2013) argued that a failure in the
systematic operations increases the chances of blaming senior executives and the issue of
accountability becomes null. This theory highlights the fact that leadership alone will not be
enough to move the business ahead, proper assistance from managers can make functionality of
operations better. The basic disadvantages that it poses to the organisations is the fact that it can
create confusion and overpowering of leadership powers that can cause the leadership usage to
fail.
Contingency leadership theory is similar to situational leadership barring the addition that it
measures behavioural theory as well. According to Longenecker et al. (2014), the best part of
this theory is the fact that it clearly suggests that there are no specific methods to lead in a
company and the fact that a particular leadership style may work for a situation but may be
ineffective for the other. If the case of Ford is taken, the style of leadership used in that situation
may not be effective when used for a different scenario. The theory clearly focuses on a wider
field that includes traits of leadership in a leader and other factors that can foster or hinder
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decision making among leaders. This intimate approach makes it clear that a particular leader
using leadership styles may be effective in a certain situation but the methods may fall flat in a
different business scenario. The need to change and alter leadership traits is an important factor
that must be learnt.
LO 3: Demonstrating value of the role of leaders and managers in operational management
of company
P4: Describing key approaches towards operations management and role of leaders and
managers in an organisation
According to Nicholson (2014), operations management in an organisation is detrimental
towards the level of success enjoyed by the company. Operations management involves every
process right from manufacturing, production, distribution and sales. This entire phase is covered
during operations and managers are responsible for the control they exercise in making sure that
each process is done to the best of efforts. The role and duties of leaders end after they have
carefully chalked out business policies and procedures and ensured that the company objectives
are decided in advance. The managers are responsible later to ensure that every policy has been
implemented to the best of efforts. This suggests to the importance of having decent policy
making strategies.
Considering the various approaches that are present in operations management, it can be stated
that the most important element is that of ensuring total quality management (TQM). This factor
must be constantly monitored and reviewed by the managers so that the best quality products and
services are available to the consumers. Thompson Heames and Harvey (2016) argued that TQM
is a necessary factor that radically influences the buying preferences of consumers and which can
also boost customer loyalty. The elements that are essential in operations management in the
perspective of managers are organising and controlling of tasks. On the other hand, the
operations management activity that leaders are involved in includes planning procedures.
Managers need to follow specific structures and frameworks so that they can execute business
decisions as per plans. Organising activities must be maintained by departmental managers
efficiently so that achieving goals and objectives of the company can be done easily.
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Organising capability of managers is supported by the level of authority and responsibility that is
provided through devised policies and procedures. Leaders understand the need for managers to
maintain daily operations as it becomes difficult for business dealings if operations are not
managed daily. The long-term objectives of the company is hampered badly. Pedler et al. (2013)
opined that managers indulge in managing short-term obligations of the company so that daily
activities are governed by their intrinsic abilities. Management of behaviour of employees is
essential and managers have the utmost responsibility to channel the positive behaviour into
actions so that management planning can be made effectively and it can help in decision making.
The role of leaders in devising new strategies and planning business models upon which the
business is to function makes their importance significant. The business model that they design
will decide the level of resources and manpower needed for effectively achieving the desired
objectives. Managers can then easily allocate HR implementation so that reasonable allocation of
staff can assist cost cutting and economies in scale.
It can truly be suggested that major functionalities in a business are undertaken carefully by
operations management and each essential approach is carefully governed either by managers or
leaders. It is a combined effort that helps in attaining the desired results from a business entity.
P5: Explaining the importance of operations management in achieving business objectives
According to Pescosolido (2014), the direct link between business objectives and operations
management suggests to the fact that without proper management, the level of success that a
company can enjoy will be cut short. Operations management starting from planning, organising,
manufacturing and sales are facets of business that must be undertaken successfully to achieve
the desired goals of the company. Hind et al. (2015) argued that operations management is the
lifeblood of an organisation as it allows daily activities to be undertaken based on organisational
objectives. Each activity relates directly to the achievement of business goals.
If the example of Apple’s operation management is taken into consideration, it can help in
understanding the reasons behind the level of success that they enjoy in the business
environment. The basic importance that Apple provides in its operations management is focus on
TQM methods. Their zeal to provide top quality products at premium prices is an attempt to
deliver customers total satisfaction from its products and provide the best of quality so that
customers get value for their money. Another reason why Apple has a terrific operations
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management schedule is due to its dynamic supply chain management. Being established
globally gives the company a relative advantage of focusing on improving quality standards of
their products. They have positioned itself so perfectly in the market that their focus is not on
consumer needs but on developing customer interests for their products. They achieve this by
using innovative design and features and use the latest technology to implement the practices.
Managerial efficiency is paramount in handling a business of such reputation and stature.
Another aspect of operational management that Apple so diligently follows is maintaining
Corporate Social responsibility (CSR) in its operational activities. Maintaining a clean CSR
through operations including recycling and controlling greenhouse emissions suggest their
impact on consumers and investors viewpoint. These factors only go to show that the manner in
which operational management is handled at Apple, it only fosters TQM and clean organisational
practices while the focus still remains on business objectives.
The need to create a strategic operations framework states how the business can prosper in a
competitive market environment and still generate the level of profits that can keep business
undertakings possible. Business objectives are decided at the earliest and emphasis must be
critically laid on how the objective should be met. Operational management is the true test for
managers in every organisation to show the level of skills and traits they possess for managing a
business enterprise and achieve its desired goals. Cacioppe (2015) argued that incapability of
managers and poor skills can create a negative impact on the process of operations management.
It will exclusively hinder the process of business goal achievement and could risk losses to the
organisation. Business objectives are designed irrespective of the size and scope of business and
operations management must use every possible resource so that they can achieve the desired
results from their engaging work.
LO 4: Demonstrating the relationship between leadership and management in a complex
business environment
P6: Assessing various factors that affect operational management and decision making in
an organisation
According to Brocato (2013), operational management being a vital aspect of every organisation
is not devoid of hindering factors that can hamper the management and decision making
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capabilities of managers and leaders alike. The key micro and macro factors are responsible for
how they affect the logical decision making process and management of operations. In the
context of Apple, the macro factors such as technology, innovation, consumers and government
regulations have played an important role in affecting business decisions. These macro factors
usually deter application of ideas clearly as the risk of failure always looms.
Considering the technological factors that impact business decision making of Apple, growing
advancements in technology is a worrying factor since more and more companies are engaging
in research and development to create niche and quality products. Apple was considered as an
innovative brand, but the exposure to technology for other companies combined by changing
trends in technological aspects makes it difficult to lock upon a particular business idea and
operations management policies. As per Bass and Avolio (2015), the growing competition in the
business environment effectively hampers the way business decisions are made and quick
changes have to be made in operations strategy. In the case of Apple, innovation also plays a role
in deciding the best course of action. With the increasing capabilities of Samsung in the
technological front, it is becoming difficult for Apple to continuously create innovative products
and this may affect the way business decisions are taken.
A business is formed with the sole purpose of attaining profits and it is the customers that are the
targets who need to be pleased. With the constant changing buying behaviour of consumers and
the availability of substitutes in the business environment, it is difficult to engage in full-fledged
business decision making. Apple needs to be very specific about the consumer needs and to keep
their organisational culture intact so that they do not breach culture of the company. Operations
management should be specifically designed to create value from the product as consumers pay
their hard earned money to purchase goods. The final factor that has tremendous impact on the
operations management includes, the changes in government policies and political turmoil. The
BREXIT issue in UK can be detrimental in making changes in policy making and decision
making as the fallen currency value can create losses for Apple and its operations.
The political and government regulations effectively will need an overhauling of strategies and
that may create losses for the companies in the short run. Adapting to new policies may take time
and operations cannot be conducted smoothly. This can cause business decision making process
to falter and in turn it will harm the business propositions of the company. Since economic
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aspect is also a pivotal factor in operations management, the impact of BREXIT can have a long
lasting impact on business of Apple and other companies as well.
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Reference List
Bass, B.M. and Avolio, B.J., (2015). Developing transformational leadership: 1992 and
beyond. Journal of European industrial training, 14(5), pp.55-62.
Brocato, R., (2013). Coaching for improvement: An essential role for team leaders and
managers. The Journal for Quality and Participation, 26(1), pp.17-22.
Cacioppe, R., (2015). Leadership moment by moment!. Leadership & Organization
Development Journal, 18(7), pp.335-345.
Fulmer, R.M. and Wagner, S., (2014). Leadership: Lessons from the best. Training &
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Gregersen, H.B., Morrison, A.J. and Black, J.S., (2014). Developing leaders for the global
frontier. Sloan management review, 40(1), pp.21-25.
Harris, M. and Cullen, R., (2014). Learner-centered leadership: An agenda for action. Innovative
Higher Education, 33(1), pp.21-28.
Hernez-Broome, G. and Hughes, R.L., (2014). Leadership development: Past, present, and
future. People and Strategy, 27(1), pp.24-30.
Hind, P., Wilson, A. and Lenssen, G., (2015). Developing leaders for sustainable
business. Corporate Governance: The international journal of business in society, 9(1), pp.7-20.
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perspectives on managerial behavior and leadership. Elsevier.
Judge, T.A., Bono, J.E., Ilies, R. and Gerhardt, M.W., (2013). Personality and leadership: a
qualitative and quantitative review. Journal of applied psychology, 87(4), pp.765-780.
Longenecker, C.O., Neubert, M.J. and Fink, L.S., (2014). Causes and consequences of
managerial failure in rapidly changing organizations. Business Horizons, 50(2), pp.145-155.
Nicholson, N., (2014). Personality and entrepreneurial leadership: A study of the heads of the
UK's most successful independent companies. European Management Journal, 16(5), pp.529-
539.
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