Analysis of Leadership and Management Skills: Burberry Report

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This report delves into the critical aspects of leadership and management skills, examining their significance within an organizational context. It begins by defining management and leadership, highlighting their importance for business success and aligning operations with company values. The report then explores various leadership and management theories, including trait, behavioral, contingency, transactional, and transformational theories, alongside scientific, administrative, and bureaucratic management theories. A key focus is on the application of these theories within Burberry, a prominent luxury brand, analyzing its leadership styles and the impact of leadership performance on business outcomes. The report also covers key performance metrics used in the fashion industry and the role of emotional intelligence in leadership, providing a comprehensive analysis of effective leadership and management practices.
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Developing Leadership
and Management Skills
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Table of Contents
Developing Leadership and Management Skills....................................................................................1
INTRODUCTION.................................................................................................................................3
CONCLUSION.....................................................................................................................................8
REFERENCES....................................................................................................................................10
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INTRODUCTION
Leadership and Management skills are essential for every organisation to be
successful in its operations. Management refers to getting things done by the people to fulfil
goals effectively and efficiently. It is required to grow business and develop market for its
product (Armstrong, 2012). Leadership refers to inspiring and guiding people to attain its
vision with great enthusiasm. These skills are required to practice for attaining mission and
vision of a company. Also, for ensuring that business operations are aligned with the
company’s values and quality standards. This helps in achieving and thriving in competitive
environment of an organisation and in making an impact by combating obstacles. The
fundamental skills for a manager include problem solving and fast decision making, strategic
planning, action plans, delegation of work, effective communication and implementing
change etc. These skills act as foundation from which advanced practices are developed in
managing crisis situations and in organising core activities of a company. Thus, it leads to
mastering various skills by managers and leaders of an organisation for achieving desired
results. Burberry is a British luxury brand famous for its clothing products in fashion
industry. It currently deals in fashion accessories, leather products and cosmetics etc.
Company is headquartered in London and operates its business internationally. It has marked
its global presence for delivering luxury products with quality and lasting style for a century.
It has been known for iconic classic clothing and serves fashion conscious customers across
the world. This report is required to cover various theories and models of management and
leadership. It will demonstrate effective leadership skills for influencing people in working
towards attaining overall goal of a business. Also, it analyses the significance and impact of
leadership performance in relation to overall business performance of an organisation.
Analysis and comparison of leadership and management
Management and Leadership roles performed in an organisation can be analysed with
the help of various academic theories and models (Curtis, de Vries and Sheerin, 2011). These
theories help in comparing different roles and responsibilities of a manager and leader. Also,
it helps in understanding appropriate methodology and practice of them for succeeding in
business. Following are the theories of a leader and manager for achieving overall success in
an organisation.
Core theories of a Leader
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1. Trait Theories- It states that for an effective leadership it demonstrate personality with
number of common characteristics or traits. It focuses on analysing various chartacterstics
on the basis of social, psychological and physical factors. This helps in understanding
common traits among leaders. However, combination of these traits does not guarantee
success as a leader. Traits are external behaviours that help in functioning and performing of
responsibilities. These are influenced from internal beliefs and inner processes that guide the
external behaviour. It inbcludes traits like assertiveness, integrity, empathy, self-awarenes
and decisiveness
2. Behavioural Theories- It states that behaviour of a leader influences work culture of an
organisation. In this behaviour is analysed to understand the right practices for managing a
team. It considers environment responses as a major factor in approaching leadership style.
It includes authocratic, participative and delegative leadership style which helps in
identifying behaviour of a leader.
3. Contingency Theory- In this it claims that a leader does not demonstrate specific style
instead it leads as per the situation (Farver, Smalling and Stoller, 2016). In this it states
that best leadership approach is adapting practices based on a situation. A leader may
command, participate, delegate responsibility or coach when it is necessary. They practice
flexibility in approaching a specific style.
4. Transactional Theory- In this leadership is considered as flow of transaction with
followers. It focuses on a system of rewards and penalities in accomplishing a task. They
focus more on providing trainings, instructions for the achievement of goals effectively. In
this leader follows transactional approach for influencing its team members to accomplish
task effectively. The leader follows system and order in its operations.
5. Transformational Theory- It is also called as relationship theory which states effective
leadership includes positive relationship with its team members. It motivates and inspires
people to achieve task by influencing them with their passion and enthusiasm. In this leader
influence and directs its team with a vision and transform work culture for enhancing
productivity.
Management Theories-
1. Scientific theory- In this Taylor uses scientific techniques for improving economic
efficiency of a company which leads to increasing labour productivity (Holmberg,
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Larsson and Bäckström, 2016). It states that labour gets motivated with monetary
incentives for this he introduce various scientific principles to get the work done.
These principles are time and motion study which provides new ways for
acomplishing task. Also, he introduce training and development, harmony and
differentia; pay rate.
2. Administrative theory- Henry fayol states that to manage an organisation certain
principles must be followed for effective management. It introduce 14 principles which
benefits in planning, desicion making, process management, controlling and effective flow of
communication. These administrative principles helps in achieving success in the operation
of its business actyivities.
3. Bureaucratic theory- In this weber states that power induces disciplined behaviour
or obidence. This helps in adherence of rules and regulation with force for increasing
operational efficiency in a company. It focuses on distribution of power and abiding of strict
rules for reducing redundancy and wastages. This leads to speed, strict subordination,
unambiguity, precison and personal costs must be raised upto optimum level.
4. Behavioural theory- Elton mayo introduces Hawthrone effect stating employees
responds positively when they are aware of being observed. This leads to enhancing of
employee productivity. In this theory elton focuses on building relationship and empowering
employees with training and development. It is consists of various psychological styimulus
such as engagement, recognition, job satisfaction and carrer development etc. Thus in this
focus is on people of a company to achieve objectives.
Application and study of such practises in a company will help in attaining objectives
of a company (Karagianni and Jude Montgomery, 2018. Thus, management and leadership
approaches applied in professional practises in different departments helps in better
communication, coordination, and harmony in achieving goals. It also helps in better work
performance and productivity with application of principles and theories of management and
leadership in a company.
Differentiation Management Leadership
It creates plans and
budgets.
It creates vision and
objectives.
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Role approach
It formulates structure
and allocate resources
to people.
It has power to take
major decisions.
It monitors results and
exert control.
It establishes direction
and team spirit.
It makes common
decisions for the team.
It inspires and
influence people with
great enthusiasm.
Perspectives
It focuses on
managing functions
and responsibilities.
It aims to create
stability in its
operations.
It focuses on leading
and guiding people.
It aims to create
positive and healthy
relationship in
workculture.
Styles
Consultative style
Coercive style
Affilitative style
Authoritative style
Authoritarian style
Democratic style
Delegative style
Key performance metrics of organisational industry
Key performance metrics or indicators are used to measure activities resulting in
degree of progress and productivity in an industry (Phillips and Phillips, 2016). In fashion
industry it employs standards for keeping control on quality and enduring style. It employs
performance metrics in different departments such as for marketing department it assess with
gross profit, sales per segment, cost of goods sold and return from promotional activities etc.
For HR department it uses certain metrics such as employee turnover rate, effective
recruitment system, cost in sourcing talented candidates, work environment, and
compensation policies etc. Thus, major performance indicators in finacial department
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involves working capital, profitability over time, income sources,inventory revenue growth
and return on investment etc. Thus, key performance metrics in garment industry can be
assesed with accuracy, speed and efficiency benchgmarks to analyse metrics effectiveness.
Following are the key performance areas to measure in appreal industry-
Inventory Turnover- It is calculated as how many times total inventory of a
company with its number of sales in an accounting period (Zilinskiene, Malinauskiene and
Smith, 2016). Inventory is refers to raw materials and balance turnover rate is desirable for
achieveing idle situation.
Sourcing Time- It refers to average time taken in sourcing raw material for
determining production planning cycle to potential customers.
Labour Productivity- In this it measures the total productivity of labours and helps
in aasesing number of garments produced on a machine. It represents ratio between output
and inputs of units.
Standard allowed minute- In this it measures how long it takes to produce a
garment. It varies with various factors such as fabric types, technology usage and number of
operations etc. These factors affect the planning and capacity of a factory. It helps in
calculating requirement of machineries and costing of a garment.
Thus, all the key performance indicators helps in determining various essential
quantitative data for building strategies and improving deviations in a process to achieve
objectives effectively and efficiently.
Organisational leadership and management performance -
Burberry is a leading brand in fashion industry with wide range of product categories
such as clothing, accessories, cosmetics and perfumes (Zoroja, Bach and Miloloža, 2019).
These categories includes iconic and classical clothing products for serving targeted
population. Company operates its business in different countries and deals with different
cultural based demands. For this organisation employs leadership and management skills for
keeping its performance at peak. It employs various models and theories for carrying its
operations in structured and systemised manner. Leadership and management styles and
approaches has various similarities such as both has power to take decision, have
responsiibility to deliver messages for achieveing task and accountability in case of failure.
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Company practices combination of skills and methodology for better performance and
increaing stability within an organisation. Burberry Group's former CEO “Angela Ahrendhts”
follows coaching and democratic leadership style for inspiring and empowering women in the
company. She motivates her employees to work efficiently in jobs and practice advanced
methods for accomplishing task. Company's top management and seniors work closely and
guides workers to incorporate new advance methods to achieve innovation and creativity.
Thus, company uses participative leadership style to encourage its employees and establish
healthy work culture. This helps company in marking position across the world in apparel
and fashion industry. Due to its effective work culture and following of principles and values
helps in perfoming optimally leading to increased production. Company performs its various
activities successfully because of its top management leadership approaches and management
principles. Organisation performance is refer to the outcome from input processes aligned
with predetermine objectives. It implies optimum utilissation of resources to achieve desired
outcomes in a company.
The impact of leadership performance on Burberry's business performance-
Burberry has been able to grow under the leadership of its former CEO. Leadership
style of its top management has a powerful impact on the overall functioning of various
operations in different countries. It has able to achieve its desired outcomes with good
participation level among its employees and management of company. Due to its this
company has positive work culture and healthy environment leading to productivity and
growth of employees. It has impacted organisation in positive and uplifting manner leading to
sustainable growth. It can be said that company has a positive relation with its leadership
performance. Leaders determine culture, values, change implementation and employee
productivity leading to transformation of company aligned with its vision and mission. They
design companies strategies with thier implementation and optimisation of results. Thus,
Burberry uses coach and participative leadership style for achieving employee satisfaction
with their recognition and involvement in desicion making.
Following are the leadership skills incorporated in Burberry by its leaders or top
management-
Emotional Intelligence- It is one of the powerful trait which helps leaders in
maintaining and delivering rational results with right decision making. Emotional
intelligence refers to understanding and managing emotions in positive manner. It
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helps in empathising with others, relieving stress and communicate effectively
which leads to overcoming obstacles and problems. This is also called as Emotional
Quotient which determines ones ability in managing emotions effectively.
Strategic Acumen- In this leader have ability to formulate strategies with great
tendencies. It refers to the capability of a person in overcoming threats and tapping
oppportunities in an uncertain environment. This help company in dealing with its
competitors and facing challanges imposed by micro environment.
Trustworthiness- This is essential in building and nurturing relationship with its
stakeholders. This trait helps in becoming an effevtive leader which leads to
inspiring people
Delegation of Authority- This is required trait or skill in a leader for managing its
workload by delegating work to competent employees. This help the leader to focus
on more important areas such as building competitive strategies and analysing
markets. Leader has major responsibilities in a company which can be
accomplished with proper delegation.
Time Management- Management of time is important skill for achieving success
in business operations. Leaders holds responsibilities which can be managed with
planning, scheduling and deadlines. Thus, it helps in communicating realistic
timelines in a company to achieve goals effectively.
Communication- Leaders influences and inspires people with the help of
empathetic communication. This helps in encouraging employees to step outside
their comfort zone for improving their overall performance. They should posses
great communication skills for conducting persuasive client meetings, presentation
and communicating clear solutions.
Thus, Burberry's top management and leaders posses skills or traits which help them
in sustainable growth and developing positive workculture. This helps them to make effective
and impactful decisions and inspiring people to accomplish its desired objectives.
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CONCLUSION
From the above report it can be concluded that leadership and management skills in a
company has substantial impact on the organisation overall performance. It is achieved with
application of various theories and models in a company. These help in effective
implementation and in practising of theories in a company. This leads to applying and
practising predetermine skills to be successful in its approaches. Top management and senior
authorities should posses right skills and approaches for accomplishing various task. It can be
analysed that to perform higher responsibilities affects overall functioning of a company.
This is done by following various leadership styles such as authoritarian, democratic and
delegative style, transactional and transformational style etc. Also, various management
principles and theories such as scientific and administrative principles, coercive style,
consultative style, affilitative style and autocratic style. These differnt approaches helps in
better performance as per the situation or nature of its top management and leaders in a
company. Leaders posses various authority and responsibilities for carrying out its roles
effectively and efficiently. This includes power, amount of control and delegation of work in
a company. Burberry is undertaking various effective approaches and skills for
accomplishing its task. It is famous for its iconic classic styled clothing and operates its
business in various countries. Its leadership style has a great impact on the business
performance which results in growth and development of market share. Thus, it is analysed
that leadership and management skills are profound and indespinsible for effective work
culture and maintaining healthy and positive work environment. This helps in managing
organisational behaviour and accomplishing desired objectives in a company.
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REFERENCES
Books and Journals:
Armstrong, M., 2012. Armstrong's handbook of management and leadership: developing
effective people skills for better leadership and management. Kogan Page
Publishers.
Curtis, E.A., de Vries, J. and Sheerin, F.K., 2011. Developing leadership in nursing:
exploring core factors. British Journal of Nursing. 20(5). pp.306-309.
Farver, C.F., Smalling, S. and Stoller, J.K., 2016. Developing leadership competencies
among medical trainees: five-year experience at the Cleveland Clinic with a chief
residents’ training course. Australasian Psychiatry. 24(5). pp.499-505.
Holmberg, R., Larsson, M. and Bäckström, M., 2016. Developing leadership skills and
resilience in turbulent times. Journal of Management Development.
Karagianni, D. and Jude Montgomery, A., 2018. Developing leadership skills among
adolescents and young adults: a review of leadership programmes. International
Journal of Adolescence and Youth. 23(1). pp.86-98.
Phillips, A.S. and Phillips, C.R., 2016. Behavioral styles of path-goal theory: An exercise for
developing leadership skills. Management Teaching Review.1(3). pp.148-154.
Zilinskiene, I., Malinauskiene, E. and Smith, R., 2016, October. Effectiveness and efficiency
of blended learning model for developing leadership skills. In European Conference
on e-Learning (p. 718). Academic Conferences International Limited.
Zoroja, J., Bach, M.P. and Miloloža, I., 2019, May. Developing Leadership in a Simulation-
Games Environment. In 2019 42nd International Convention on Information and
Communication Technology, Electronics and Microelectronics (MIPRO) (pp. 806-
811). IEEE.
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