Leadership and Management Report: ALDI Case Study and Analysis

This report provides a comprehensive analysis of leadership and management principles within the context of a business, specifically using ALDI as a case study. It begins by differentiating between the roles and characteristics of leaders and managers, highlighting their responsibilities in guiding an organization towards its goals. The report then examines how these roles apply in various situational contexts, such as new product launches and the introduction of innovative technologies. Furthermore, it explores different leadership theories and approaches, including situational, contingency, and systems leadership, and how these are applied in practice. The report also elaborates on key operation management approaches like total quality management, six sigma, and just-in-time. It then emphasizes the importance of operation management in achieving business objectives and the impact of the business environment on operational strategies. The report concludes with a summary of the key findings and implications for effective management and leadership within ALDI and similar organizations.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Define and compare the different roles and characteristics of a leader and a manager.........1
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.......................................................................................................3
P3 Apply different theories and approaches of leadership..........................................................4
P4 Elaborate the key approaches of operation management.......................................................6
P5 Importance of operation management in achieving business objectives...............................7
P6 Impact of business environment on operational management...............................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management and operation plays a very important role in an organisation to facilitate the
smooth conduct of a business(Bai, Fügener, Schoenfelder, and Brunner, 2018). The project is
based upon ALDI which is a renowned brand in UK that provide wide range of groceries and
home appliances. The aim of firm is to provide excellent goods and services to meet the needs of
customers. The firm has expanded its operation in different parts of the country as it has open
10,000 stores worldwide. This report includes the comparison of role of leader and manger. The
manager perform various functions such as planning, organising, directing and monitoring the
performance of employees to facilitate coordination in an enterprise. The role of leader and
function of a manger behave differently according to a situation. The report cover key aspects of
operation approaches such as total quality management, six sigma, just in time and so on to
improve the quality of products and to reduce the defects. The report comprises of importance of
operation management that adds value to the customer. This also includes internal and external
factors that have direct impact on operation management.
P1 Define and compare the different roles and characteristics of a leader and a manager
Leadership is the process in an organisation which initiates people working in an
organisation towards the achievement of goals and objectives(Damnjanovic, and Røed, 2016). A
leader refers to a person who sets a vision for the company, motivates and guides employees
through the work process and builds their morale.
Role of a leader-
 To provide leadership at all levels- Leadership is required at all levels of management
in an organisation. At the top-level it is required for formulation of policies and at the
middle and lower level it is needed for their implementation. Leader in ALDI has a
responsibility to implement decisions which have been taken by higher-level
management.
 Representative of organisation- A leader represents the organisation and therefore acts
as a link between the enterprise and general public. The leader of ALDI represents it at
various levels and thus has a task of communicating the rationale of company to the
people of society.
1

 Integration of goals- A leader must make sure that the personal goals and objectives of
employees are integrated with organisational ones. In the context of ALDI, it is important
that the leader ensures that its workers are working with a common purpose in mind.
Characteristics of a leader-
 Ability to delegate- The leader acts as as superior to many subordinates in the
organisation. Therefore, leader has authority to delegate tasks to workers according to
their capability. In ALDI, leader uses delegation to give different type of works to
employees and sets a parameter for their performance.
 Communication- A leader acts a link between higher-level and lower-level of
management. If the workers are having issues and grievances then they can communicate
the same to leader. The leaders of ALDI have to use the skill of communication
effectively so that there is no miscommunication between top-level management and
employees.
 Ability to inspire- Inspiration is essential for subordinates so that they can perform the
tasks allotted to them effectively and efficiently. Thus, a leader needs to inspire the
workers to achieve objectives. In the context of ALDI, it is necessary that its leaders can
inspire employees so that they have a strong desire to achieve long-term targets of
company.
Contingency theory of leadership- This theory states that effective leadership comprises
traits, behaviour and situation(Gibson, and Parkman, 2018). The leader's decisions can vary on
the basis of prevailing situation in the organisation. In a big company like ALDI, there are
dynamic situations which require quick action and thus its leaders need to act according to the
situation to take a right decision for benefit of firm.
A manager is a person who has the charge of exercising managerial functions, overall
management of operations in an organisation. It is the duty of manager to ensure that the
functioning of firm is conducted smoothly.
Role of a manager-
 Monitor role- A manager has to perform the role of monitoring subordinates so as to
ensure that they are working efficiently. The manager of ALDI has to make sure that the
employees are working to achieve the organisational objectives. For this, monitoring is
essential.
2

 Disseminate role- Manager has the access to information from various outside sources
which the subordinates cannot access. The information thus collected needs to be
provided to employees so that they can make use of it. In ALDI, managers have to obtain
different facts which can be essential for workers in execution of their tasks.
 Resource allocator role- A manager has the responsibility to ensure equitable
distribution of resources to subordinates. In the context of ALDI, managers need to
allocate the required resources to workers so that tasks can be completed in time.
Characteristics of a manager-
 Experience- Experience is must for a manager to take important decisions in an
organisation. In ALDI, managers have the required experience to take decisions for the
benefit of company.
 Knowledge- A manager must have knowledge of any particular field or department.
The managers of ALDI are highly knowledgeable in their respective fields which helps
them in guiding workers to achieve tasks.
 Confidence- To be an effective manager, confidence is required to take bold decisions.
In the context of ALDI, it is important that managers have the required confidence to
introduce any change in the organisation.
Henri Fayol's administrative theory of management contains fourteen different principles which
can be applied by an organisation like ALDI to maintain administration of its operations.
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational contexts.
Different situations in an organisation-
New product launch- Launching a new product is a major event for any company. There
are multiple factors to look for while launching a new product such as its evaluation, market
research, competition level, target market. Also, marketing strategy needs to be made for its
promotion and after that it can be launched. Vision is an important role a leader can play in new
product launch of the company. If ALDI has to launch a new product in market its leaders need
to create a vision around which it would be developed. This is essential because it will enable it
to face the prevailing level of competition in order to get sustainable success in the long-run.
3

Additionally, it is needed for creativity and innovation to understand what the consumers
actually desire and want from a particular product.
The managers of ALDI have to adopt a planning approach to plan the design, features
and other aspects of a product that is to be launched in market. For this, it is essential that the
demands of a consumer are given supreme priority so that product can be made accordingly.
Right approach of managers is needed to ensure that proper plans are made well in advance so
that even if changes are to be made they can be made easily.
Innovative technology- Sometimes, introduction of new technology is required in order
to bring efficiency and productivity in production. It is a challenging process and has to be
implemented step by step so that it does not causes any discomfort to workers in an organisation.
Change agent is a role that leader needs to play in such a situation. In the context of ALDI, it is
important that its leaders perform this role with perfection. It is necessary because in a dynamic
business environment it is important that new technology must be brought forward so that costs
can be reduced to survive in increasing competition.
The managers of ALDI need to perform the function of Directing as it involves giving
specific instructions and directions to subordinates. Using a framework, presenting change to
multiple teams, providing support, preparing for resistance are steps which have to taken for
introduction of new technology. It is required to ease into using it. Efficiency and effectiveness
of workers may be affected therefore they must be given clear directions about the usage so that
the work is not affected.
Conflicts need to be avoided between workers because they can hurt productivity. The
employees need to be told clearly that the introducing new technology is essential to reduce costs
and remain competitive in a dynamic market to be successful in the long-run. Also, its use can
produce innovative goods which enhances the creativity of the organisation. Managers need to
ensure that proper training is provided to subordinates teaching them the use of new technology
so that they don't face any problem while using it. If right steps are taken for implementation
then the company can only gain from its introduction.
P3 Apply different theories and approaches of leadership
Leadership is very necessary in an organisation that provide guidance to the subordinates
for the achievement of goals effectively and efficiently(Guha, and Kumar, 2018). Leader has the
4

ability to influence others by providing effective training in order to increase the knowledge base
and skills of an employee. The manager of ALDI apply different theories of leadership such as
situational, contingency and system to determine the systematically working in an organisation
and complete the target in a limited time. The same are presented as follows:
Situational leadership: It is a approach of leadership in which leader behaves differently
according to a situation(Ivanov, Tsipoulanidis, and Schönberger, 2017). Each leader has
different style, skills and attributes that is different from one another. The manager of ALDI
assign the work among the subordinates according to their specialised skills to improve the
productivity and efficiency of an organisation.
Advantages: One of the advantage is that the leader provides a clear vision so that
strategies are achieved in a appropriate time. This style of leadership is commonly used that
provide comfortable working environment towards the workers. Thus, it cater positive outcome
and ensure success in the workplace.
Disadvantage: One of the drawback is that situational leadership focuses on immediate
action rather than long term objectives. It is not effective in the situation when leader is assigning
an inappropriate role among the subordinates.
Contingency leadership: It is a theory of leadership that which states that the
effectiveness of leadership is matching a leader's style according to a situation(Lee, and Tang,
2018). There are various factors such as working environment, company culture which has a
direct impact on success in the process of leadership. This ensure proper working in the
organisation and help in achieving the task in a proper time. The manager of ALDI has applied
this approach of leadership to determine the coordination and monitoring of activities in a
workplace.
Advantage: One of the benefit of contingency style of leadership is that it help in
designing the organisation structure that provide a proper hierarchy in the working environment.
The manager of ALDI used this approach in a dynamic environment as it help them to change
the policy accordingly.
Disadvantage: the disadvantage of contingency approach is that it has a complex
approach which become difficult for the manager to handle practicle issues.
System leadership: This approach is characterised by set of skills that an organisation
use to provide support in the working system(Lockwood, and Euler, 2016). It enable the
5

situation when the leader act in such a way that every one working in an organisation work
beyond their potential to increase the productivity and profitability of an enterprise. This help
them to complete the task before the deadline of the project.
Advantages: Today in a changing era, it is necessary for the manager of ALDI to adapt
transformation in the organisation so that an effective decision could be taken by considering the
both micro and macro environment.
Disadvantages: The system leadership approach is not practical that create delay in
decision making which have a direct impact on overall performance of organisation.
P4 Elaborate the key approaches of operation management
Operation management play a key role in administering the business activities to
determine the productivity of a business. In other words, it is the process of converting raw
materials into finished products to facilitate the smooth running of operations(Machado and et.
al., 2017). ALDI is renowned supermarket in UK that focuses on quality specifications to gain
customer satisfaction. Leader and manager play different role in an organisation. The manager
assign the task among subordinates whereas the leader lead the whole group to achieve the
common task. The various approaches of operation management with reference to ALDI are
presented as follows:
Total Quality Management (TQM): It is a management approach which ensure
continuous improvement in products to gain customer satisfaction(Murray, and et. al., 2016).
The goal of firm is to reduce the defects from the merchandise to bring quality specifications.
This helps to boost the sale and increase the profitability of an organisation. Also, it help in fast
decision making and gain large access of customers. The manager of ALDI use this approach in
its business with the motive of providing excellent quality offerings in order to satisfy the needs
of customers. The role of leader is to provide guidance which improve the motivation of
employees.
Six Sigma: Six sigma is a quality management technique that focuses on minimizing the
defects of products(Mustak and et. al., 2016). This strategy helps to improve the quality of
output that gain customer satisfaction. Quality is crucial to every organisation in order to gain
competitive advantage in different parts of the country. The manager of ALDI perform various
functions such as planning, organising and coordinating and monitoring the activities of an
6

organisation to ensure success and smooth conduct of a business. The role of leader in a
respective firm is to facilitate better communication so as to avoid misunderstanding and
confusion among the subordinates.
Just in Time: It is a technique that reduce the time taken within the manufacturing
system to improve the efficiency of business operation(Piran, and et. al., 2016). The manager of
ALDI follow this approach to maintain adequate level of inventory with a aim to reduce the
waste. The production cycle is short which help in running fast operation of a business. This help
to take fast and efficient decision and provide goods according to the demand of customers. The
leader play a very important role in this enterprise to gain large access of consumers as it assign
the work appropriately.
Lean manufacturing: It is a technique that minimize the waste to facilitate free flow of
activities in an organisation(Prahlad and Pawar, CommVault Systems Inc, 2016). In other words,
it is an integrated approach that adds value to the customer by providing good quality products
and services. This help the firm to save money and time as it reduces the variability and defects
so as to improve the efficiency and operation of a business. The manager of ALDI bring
coordination and cooperation to ensure smooth conduct of activities in an organisation. The
leader of ALDI facilitate specialisation in the organisation in order to avoid duplication of
activities.
P5 Importance of operation management in achieving business objectives
Operation management play a crucial role in an organisation for running the smooth
operation of business and meeting customer expectations(Qi, and Shen, 2019). The manager
deliver goods at right time in right place to ensure prosperity and success in an organisation
across the globe to fulfil market demand. In other words, operation management is related to day
to day activities of a firm and facilitate control overall operation of a firm in order to handle
various issues that determine the level of competition and profitability of a business. It is the core
of any organisation as the CEO of company control various operations such as finance,
marketing and so on and also to maximize the wealth of shareholders. With reference to ALDI,
the importance of operation management is presented as follows:
Ensure Quality specification: One of the key benefit of operation management is
quality management that focuses on good quality products or services to gain large access to
7

customer across the globe. The manager of ALDI focuses on two aspects that is durability and
reliability in order to satisfy the demands of customers.
Optimum utilisation of resources: The goal of an organisation is to minimizes the
waste in order to improve the productivity and efficiency of an organisation. The manager of
ALDI prepare an appropriate strategy to ensure smooth functioning in the organisation. By
proper communication strategy, the manager assigns work among the employees so that they can
complete the task in a proper time.
Waste Reduction: the operation management assure the quality management by
reducing the defects in order to manage inventory cost. This not only saves money but also time
to improve the overall production of an organisation. The manager of ALDI maintain enough
level of inventory to eliminate waste by using Just in Time strategy.
Customer Satisfaction: Customer satisfaction play a key role in increase the sale of a
products in a business. ALDI provide excellent quality of goods and services so that customer
are satisfied and facilitate repeat purchasing. This boost the sale and profits of a business that
increases the goodwill of a business.
Increases Revenue: With increase in product quality and customer satisfaction, it leads
to increase in revenue of a firm thus, accelerates the efficiency of a business. This provide future
growth opportunities to a business that increase the expansion and diversification of a firm. Also,
the firm gain reputation and positive relation across the globe.
P6 Impact of business environment on operational management
The business environment in which company carry out its operation is regarded as
dynamic(Slack, 2018). The manager assign the task among the subordinates to achieve the goals
effectively and efficiently to facilitate coordination and cooperation that ensure success in an
organisation. The manager of company scrutinize the activities and monitor the performance of
employees to bring effectiveness in an organisation. There are various internal and external
factors that provide a framework of decision making in macro environment.
Internal factors: The organisation determine the strength and weaknesses to ascertain the
level of competition and profitability that have a favourable impact on a business. The internal
factors are presented as follows:
8

Stakeholders: Stakeholders are those individuals or groups that ensure success in an
organisation. ALDI is one of the leading grocery stores that promotes quality and value among
the customers. Internal stakeholders are very important to perceive the success of a project by
preparing an appropriate business strategy to achieve the objectives of an enterprise.
Corporate Social Responsibility: It is a business model that help the company to fulfil
social responsibility. It is the great way to raise the moral of employees in the workplace that
help in gaining reputation of a business. ALDI provide new and innovative products to meet the
needs of customers and also to gain sustainable competitive advantage within the market. The
aim of concerned firm is to build customer loyalty and high level of integrity and also to provide
better environment.
External factors: There are various external factors that affect the business directly or
indirectly that have a direct impact on a success of business such as political, legal, economic
and social. The manager of ALDI has applied these factors that are described as follows:
Political: These includes various aspects such as corruption, foreign trade, labour laws
and political stability and many more. Political system is the major strength of UK. A high level
of taxation increases the cost of operations of a company thereby, reduces the profit margin of a
company.
Economic: This encompasses various elements such as economic growth, exchange
rates, interest rates, inflation rates and so on. ALDI purchase raw materials in bulk from
suppliers that reduces the overall cost of production. This lead to increase in sale and profit of a
company. Thus, it promotes economic growth and improves the productivity of a company.
Social: This elements includes age, population growth rate, cultural barriers, lifestyle and
many more. The respective firm provide unique and innovative products and services to satisfy
the needs of a customers. Also, it ensure quality specifications to build customer loyalty and also
to minimise waste .
Technological: UK is one of the technologically advanced country in the world that
provide excellent infrastructure facilities. ALDI implement innovative technology to create a
large network across the world and to generate large number of customers. Also, it help to handle
inventory management to facilitate smooth operation of a business.
9

CONCLUSION
On the basis of above discussion, it can be inferred that the manager assigns work among
the subordinates to achieve the goals efficiently while the leader has followers who have
common vision of long term sustainability. An effective leader provides direction of action and
has ability to influence the behaviour of others by completing the task in a limited time. Leader
and manager play different role in an organisation. It has been analysed through examples the
role of leader and function of manager in an organisation such as introduction of new product
and innovative technology. The various theories of leadership such as system, contingency and
situational leadership has been studied. There are approaches of operational management such as
total quality management, six sigma and lean manufacturing that has been observed. Also, the
various factors such as political, economic, social and so on has been studied that has impact on
decision making in operation management.
10