Unit 4 Report: Management, Leadership, and Operational Administration

This report provides a comprehensive comparison between managers and leaders, examining their distinct roles, functions, and responsibilities within an organization. Focusing on Rolls-Royce Motor Cars Limited as a case study, the report differentiates between managers, who direct and control operations, and leaders, who inspire and motivate. It analyzes the functions of directors, including planning, organizing, staffing, directing, reporting, budgeting, and controlling, and explores the significance of operational management. The report also delves into various leadership styles, such as situational, system, and contingency approaches, and assesses how business environment factors impact decision-making in operational management. The analysis highlights the importance of leadership and management in achieving business objectives and adapting to competitive market conditions. This report offers valuable insights into effective management and leadership practices.

Unit – 4
Management
And
Operations

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Differentiate between managers and leaders with their responsibility and description................3
M1. Demonstrate the comparison between managers and leaders.....................................................4
TASK 2.................................................................................................................................................5
P2. Analyse the functions of directors which are useful at different circumstances of business........5
P3. Provide appropriate theories and models of leadership styles......................................................7
M2. Describe the benefits and limitations to appraise different approaches of situations..................8
TASK 3.................................................................................................................................................8
P4. Explain the main approaches of business administration that managers and leaders perform in
business.............................................................................................................................................8
P5. Examine significance and value of operation management in accomplishing business objectives
.........................................................................................................................................................10
M3. Describe how managers and leaders develop effectiveness of operational administration to
achieve victory.................................................................................................................................11
TASK 4...............................................................................................................................................11
P6. Assess various factors of business environment that impact decision-making procedure for
operational management..................................................................................................................11
M4. Evaluate how these factors affect the business and wider community......................................12
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................14

INTRODUCTION
Management is the set of activity for an organisation in developing capabilities of workers to
perform their actions with co-ordination by employee relations. Operation is the work of managing
the inner performance of business in order to run it efficiently for achieving success. Operation
management mainly concerns with the purpose for designing and controlling procedure of production
from converting raw material to finished goods. In this project, Rolls-Royce Motor Cars Limited has
been selected for this project as being the British extravagance automobile company that was
launched in 1998 and is completely own by German group BMW. This project compares between
managers and leaders with their meaning, roles, tasks and description (Çelik, 2016). It provides
appropriate theory and model of approach for leadership styles implemented by leaders to improve
effectiveness of workers. The importance and values of operation management increase competitive
strategies for remaining stable in perfect competition market. Additionally, it assess various factors of
business environment that impact decision-making procedure of operation management for managers
and leaders to achieve success.
TASK 1
P1. Differentiate between managers and leaders with their responsibility and description
Managers:- The manager is an individual who manage the actions of workers as being the in-
charge by controlling various departments of companies. It further guides employees to carry out their
activities in particular systematic manner. Managers of Rolls-Royce have the ability to direct and
control the performance of business to accomplish its goals and objectives effectively with the motive
to sustain in global market.
Roles:-
 Measure progress:- It is most important for managers to examine the difference between
balance sheet from previous to current year to measure the progress of company. Managers of
Rolls-Royce focus on this as to analyse the business is able to achieve success or not.
 Execute task:- This is the capability of managers to execute their idea after planning its
strategy to remain stable at international marketplace. The managers of Rolls-Royce attempts
to decentralise the performance to variety of divisions in accordance with work (Colapinto,
Jayaraman and Marsiglio, 2017).
Characteristics:-

 Time management skills:- The main purpose of managers is to manage their work at
particular duration to improve its efficiency for achieving success. The managers of Rolls-
Royce are highly specialised as they provide tuition and expansion to workforce for
improving their efficiency.
 Interpersonal skills:- This skills refers as to understand, listen and communicate among
workers by building employee relations. Managers of Rolls-Royce emphasize their workers to
engage and involve among each other in order to complete their task with specialisation.
Leaders:- A good leader have a target which leads to achieve vision and knows how to turn
idea into real-world success stories. Leaders of Rolls-Royce focus on conveying vision to organisation
with its wide-ranging stakeholders (Ellram and Cooper, 2014).
Roles:-
 Build morale:- This is the ability of leaders to increase confidence and self-esteem among
workers to achieve their target effectively by creating opportunity to meet the requirements of
customers. Leaders of Rolls-Royce focus on building morale as the self-assurance of
workforce may lead them to perform their task eagerly and excitedly.
 Improve motivation:-Motivation is described as to increase the capability of workers by
cheering them to achieve personal and organisational objectives through gratuity, inducement,
performance evaluation, etc. The leaders of Rolls-Royce are advantageous for accomplishing
their specific target within particular duration.
Characteristics:-
 Charismatic:- It is ability of an individual to appear as confident in communication for
planning its ideas to achieve target. The leaders of Rolls-Royce are charismatic as they follow
the instructions of managers and execute their strategy to make the work done from workers
to achieve target.
 Effective communicator:- The most important task of a leader is to communicate with its
workers effectively through verbal and non-verbal skills. Leaders of Rolls-Royce are
beneficial as they guide workforce about their task with its importance to be done in
specialised manner (Helber, 2014).
M1. Demonstrate the comparison between managers and leaders
The comparison between managers and leaders is described with reference to Rolls-Royce is
as follows:-
Features Managers Leaders
Definition The manager is an individual who A good leader has a target which

manage the actions of workers as
being the in-charge by controlling
various departments of
companies. It further guides
workforce to perform their actions
in particular systematic manner.
leads to achieve vision and knows
how to turn idea into real-world
success stories.
Function The functions of managers are
forecasting, organising, recruiting,
directing, co-ordinating,
reporting, estimating, monitoring
and domineering.
The functions of leaders are to build
morale, improve motivation of
employers and represent as
charismatic with effective
communicator.
Roles There are various roles of
managers within an organisation.
Some of them are discussed as
measuring progress; execute task,
etc., that result in achieving target
with efficacy (Levasseur and
Akçelik, 2014).
The roles of leaders aim to build team
morale and improve motivation level
of workforce through allowing them
to ascertain individual ambition.
Characteristics Its characteristics are time
management and developing good
interpersonal skills which leads to
understand the emotions and
various circumstances of workers.
The characteristics of leader are
charismatic and effective
communicator that is capable in
delegating roles and responsibilities to
its workers as per their specialisation.
TASK 2
P2. Analyse the functions of directors which are useful at different circumstances of business
The functions of managers:- The various functions of managers which create prospect for
enlargement and steadiness of business to sustain in competitive marketplace. Managers of Rolls-
Royce focus on their functions by accounting all the happenings in firm and answers to management.
The seven functions of managers are mentioned as under:-
 Planning:- It is the process through which managers plans to develop strategic decision to
organise business plan with deciding its vision, mission and objective. Managers of Rolls-
Royce schedule and analyse their business goals and objectives in order to stay steady in
universal market.

 Organising:- The managers further execute their plan to leaders of various department for
directing and guiding workforce to complete task with building employee relations. Managers
of Rolls-Royce focus on synchronising and making sure that everything is done in accord
with preparation to realize its specific target.
 Staffing:- This refers as grouping large number of people into various segments under their
departments with their specialisation. It further creates job opportunity by recruiting and
appointing new individuals within business to improve efficiency. Managers of Rolls-Royce
disputes workforce into effective team by developing a team leader which has the authority
and responsibility of whole group (Maylor and Turner, 2017).
 Directing:- The most important function of managers is to direct and guide their leaders and
workers to perform task with the ability to achieve desired goals and objectives. Managers of
Rolls-Royce focus on assigning the task to their leaders that provides a clear idea of how the
work has to be managed and performed by workers to accomplish target.
 Reporting:- It is the responsibility of managers to keep up-dated information as what is being
done in the whole organisation premises. Managers of Rolls-Royce take information of
current scenario from their leaders of various departments.
 Budgeting:- The ability of completing the given task within particular duration by improving
efficiency which creates possibility of reducing cost in productivity. Managers of Rolls-
Royce ensure that the amount invested in project does not exceed in accordance with
expected budget while tallying with actual budget.
 Controlling:- This is the ability of being overprotective to monitor the activities of workforce
by restricting fault through remedial method for ascertaining the organisational goals.
Managers of Rolls-Royce control the activities of workforce in order to meet their estimated
budget, full utilise scarce resources and the ability to achieve goal.
The various situations which come across business that are mainly to be solved by managers
and leaders to carry on enterprise in global marketplace are as follows:-
 Increase productivity:- This is very essential for an organisation to manage its productivity
effectively by producing qualitative finished goods which are capable to meet the
requirements of potential customers. It further focus on increasing high level of satisfaction
for their target market at which they are ready to pay high price of product (Mu, 2017).
Managers of Rolls-Royce mainly attempts to increase brand awareness by promoting and
positioning goods and services to their target market.
 Least-cost effective:- It is the most important aspect for an organisation to manage and
control the expense on product by manufacturing it with least cost and facilitating with good
quality. Managers of Rolls-Royce aim to keep least-cost effective price of motor cars which
encourage people from middle to high class in purchasing their cars for luxurious lifestyle.

P3. Provide appropriate theories and models of leadership styles
Leadership Style:- This is defined as the method of providing track, executing plans and
appealing people to perform task. Managers of Rolls-Royce implement different leadership styles for
creating opportunity to increase their competitive strategies. It further focuses on increasing intrinsic
potential power for minimising faults and extrinsic prospects to defeat coercion. The various theories
and models of leadership styles applied in an organisation are described below as:-
 Situational approach:- This approach is also known as Blanchard and Hershey model which
includes Low and high competence as well as lower and higher commitment. It describes that
there various situations in a business which emphasize managers and leaders to change their
leadership style for accomplishing success (Raghothama, Hanchi and Meijer, 2017). The role
of leaders in Rolls-Royce analyse the performance of their workers with specialization within
particular time period. It is essential for company to analyse the ability of effectiveness in
order to achieve their goals and objectives. The role of managers in Rolls-Royce is to evaluate
the business activities of workforce for monitoring and identifying errors that requires strict
actions to minimise.
 System Approach:- It is the approach which observe the entities and their environment
which are interpreted through systematic procedure. This mainly emphasizes managers,
leaders and workers to perform their task within particular system by building relation among
one another. Managers of Rolls-Royce direct and guides leaders to motivate workers for
completing their task within proper duration as expected. It is mainly significant for industry
to realize victory through managing vision, assignment and intention. The role of directors in
Rolls-Royce is to develop management and leadership style for building team morale by
increasing will of workforce to complete their task at certain date. This majorly aims to
maintain discipline nature in business environment for minimising faults that enhance
entrepreneurs to attain success efficiently.
 Contingency Approach:- This approach was proposed by an Austrian psychologist Fred
Edward Fiedler in 1964. It is the combination of both situational and systematic leadership
style. This is a management theory that suggests most appropriate styles of leaders which are
implied at various situation of organisation in order to accomplish ambition and intention of
business. Managers of Rolls-Royce provide wide range of ways to react with problems
through their significant decision-making procedure (Riley and et.al., 2017). This theory plays
very vital role for an organisation to in analysing the best candidate who is capable for a given
set of job requirements by improving its effectiveness. The role of supervisors in Rolls-Royce
is to analyse the performance of workers that can meet the goals of business, it further takes
harsh actions towards being inefficient. The role of leaders in Rolls-Royce focus on this

leadership style as to change their strategy in accordance with performance of workers
towards goal accomplishment.
M2. Describe the benefits and limitations to appraise different approaches of situations
The power and weak spot for diverse approaches of leadership styles are mentioned with
reference to leaders of Rolls-Royce are as under:-
Leadership Styles Strength (S) Weakness (W)
Situational approach It is a realistic approach that is
simple to recognize and relate
across a variety of settings. This
leadership styles is perspective
and describes how leaders
should act in various situations
to achieve effectiveness.
It focuses more on instant wants
rather than lasting needs and
cause hindrance in completion
of organisational ambition and
intention.
System approach It provides an efficient plan of
action which leads to develop
co-ordination for specialised
activities (Sanders and Hunter,
2017).
The weakness of system
approach is to suggest all
variables must have some
equality and manage industry
surroundings.
Contingency approach It is active in characteristic
which changes its actions in
accordance with its various
situations and remains
systematic in continuous
procedure.
It undergo from insufficiency of
literature by not fully explaining
the reason of change in
leadership style to their
workers.
TASK 3
P4. Explain the main approaches of business administration that managers and leaders perform in
business
Operation Management is described as the business function which is responsible for
managing the process in creation of goods and services. It involves planning, organising, staffing
directing and controlling all the resources needed to produce company’s qualitative products.
Managers of Rolls-Royce implement this to improve their productivity by analysing ratio of input into
volume of output. The key approaches of operation management that managers and leaders play in
business are as follows:-

 Six Sigma:- This approach mainly focus on reducing the errors or defects caused in
production activity which creates delay in accomplishment of success. Managers of Rolls-
Royce can use this approach as to examine the deficiency by increasing errors that are to be
restricted through corrective measures. It creates opportunity for business to stay steady in
global marketplace by increasing its competitive strategies (Scriba, Jette and PTOE, 2017).
The role of leaders in Rolls-Royce attempts to manufacture their superior products by
directing and controlling workers to develop specialised goods and services with reducing
defects. The role of managers in Rolls-Royce
 Lean Production:- It is the process which emphasize managers and leaders to restrict
possibility of unnecessary waste as it increase the cost of production. Managers of Rolls-
Royce aim to cut or minimise their activities by effectively utilising their scarce resource in
order to restrict wastage of materials. The role of leaders in Rolls-Royce creates possibility to
utilise their products in minimising their wastage of production for sustaining in perfect
competition market.
 Queuing Theory:- This premise refers as the arithmetical revision of configuration, purpose
and jamming of waiting position or queues. It is concerned with situations where queues
delay in accomplishment of success for an organisation. Managers of Rolls-Royce can use
this approach for more obvious external process like customers queuing in supermarket to
purchase the product and internal procedure as production line or product testing. The role of
leaders in Rolls-Royce analyse the solution for trade-off between the costs of reducing
queuing time.
 Total Quality Management:- It is the procedure through which an organisation develops
product with proper quality management as to meet the requirements of customers. It
develops opportunity for attracting large number of customers through their qualitative
finished goods and services by encouraging them to purchase more of their goods. The role of
managers in Rolls-Royce focuses on customer-oriented process by developing their products
in accordance with demand of target market. The role of leaders in Rolls-Royce emphasizes
workers to establish their products by describing them importance of maintaining the proper
quality in production. It further develops support and loyalty of customers to sustain in global
market.
 Kaizen Approach:- This theory describes as the process of constantly introducing small and
incremental sales through changing the quality and efficiency in production. It is most
important for company as to keep on altering the production that also develops interest of
customers for purchasing product (Silvestre and Gimenes, 2017). The role of managers in
Rolls-Royce is to improve or design their structure of cars in distinctive manner by modifying
it with new techniques and features through their creative thinking skills. The role of leaders

in Rolls-Royce is to attain the target by encouraging workers to complete their task in
accordance with guidance of directors.
P5. Examine significance and value of operation management in accomplishing business objectives
Operation Management is mainly essential for an administration as to develop their
aggressive schemes through increasing intrinsic power for controlling weak spot and extrinsic
prospect to control threats. Managers of Rolls-Royce are beneficial as they are capable to reduce their
waste disposal which creates opportunity to compete with rivalries such as Bentley Motors, Mercedes
and Aston Martin. Some of its importance is explained below as:-
 Customer satisfaction:- The customers are key elements of an organisation as they are
considered as king, which emphasize business to develop strategic plan for producing new
product with innovative idea (Ülkü, Bell and Wilson, 2015). Managers of Rolls-Royce focus
on their total quality management as to increase the satisfaction level of their customer by
providing them qualitative products. It is beneficial for company as to enlarge buyer which
are ready to pay high prices for their satisfaction level that result in achieving high revenue
and profits.
 Waste reduction:- It is the process through which every organisation focus on reducing their
waste to sustain in global market by effectively utilising their scrap material into finished
goods and services. Managers of Rolls-Royce implement the Six Sigmas approach as to
restrict the possibility of defect material in improving productivity which cause high cost. It is
advantageous for company to minimise the cost that result in high profit-margin with enhance
of market share.
Operation management is very essential for business to achieve its goals and objectives by
supplying their finished goods and services with direct and indirect channel of distribution. Managers
of Rolls-Royce are able to build customer relationship management by analysing their gestures and
emotions while purchasing the products. Some of these values of operation management are described
as under:-
 Customer support and loyalty:- This is the procedure of an organisation to effectively
utilise its scarce resources in order to maximise aggressive plan that leads to challenge with
rivalries. Managers of Rolls-Royce implement lean production as their main purpose is to
restrict the possibility of unnecessary waste in production. It is essential for company to
minimise their cost and develop qualitative products which increase customer support and
loyalty (Zangiacomi and et.al., 2017).
 Able to utilise scarce resources:- It is the most important task for an organisation to utilise
its scarce resources effectively that develops the possibility of achieving success in future.
This further increase intrinsic strength for controlling weakness and extrinsic opportunities to

control threats. Managers of Rolls-Royce focus on the capability to complete their task
efficiently which leads to accomplish its vision, mission, goals and objectives.
M3. Describe how managers and leaders develop effectiveness of operational administration to
achieve victory
The managers and leaders improve effectiveness of operational management to achieve
victory that leads to battle with its rivalries through developing their aggressive strategy. It further
creates opportunity for enlargement and steadiness of business to sustain in perfect competition
market. Managers of Rolls-Royce are useful with the significance and value of operational
management which are customer satisfaction, waste reduction, support and loyalty of buyers and the
ability to fully utilise scarce resources (Zeidan and Shapir, 2017).
TASK 4
P6. Assess various factors of business environment that impact decision-making procedure for
operational management
Business Environment:- This refers as the internal and external surroundings of business
which creates strength, weakness, opportunities and threats for an organisation while competing with
rivalries. Managers of Rolls-Royce analyse the business environment which affects the operation
management either favourably or unfavourably that might cause delay in accomplishment of success.
The various factors of business environment that impact decision-making procedure for
operational management are as follows:-
 Corporate social responsibility (CSR):- It is described as the procedure through which
business takes account of social, economic and environmental impact of their activities to
sustain in global market. Managers of Rolls-Royce ensure that raw materials are ethically
sourced which leads to develop qualitative finished goods and services to fulfil the
requirement of their potential customers. The company is favourably affected as it mainly
aims to build customer relations with their potential target market to analyse their demand.
 Employee efficiency:- This is the duty and responsibility of managers to improve employee
efficiency by providing them training and development programmes which increase their
skills and leads in specialisation to restrict errors. Managers of Rolls-Royce emphasize on
leaders to guide their workforce for improving efficiency as to accomplish within particular
duration.
 Culture:- It is the procedure where employees perform their task by building relation among
one another through engagement, involvement and co-ordination. Managers of Rolls-Royce

focus on this as it develops the ability of workers to share their views and information by
working together.
 Value and ethics:- This is the ability of managers, leaders and employees to perform their
task with good relations of values by following ethics, norms, code of conduct, policies and
procedure. Managers of Rolls-Royce mainly respect its employees and understand their
emotions and problems during various circumstances.
 Sustainability:- It refers as the capability of an organisation to achieve its goals and
objectives within particular duration that creates opportunity for business to compete with its
rivalries. Managers of Rolls-Royce are able to utilise scarce resources effectively which
develops possibility to sustain in perfect competition market (Zepeda, Nyaga and Young,
2016). The company is unfavourably affected by this factor as it is difficult to continuously
achieve success in order to compete with rivalries.
 Stakeholders:- This is a stakeholder mapping matrix for an organisation which determine
those shareholders who require high attention and is essential to be informed about the
various rules of stock market. The Rolls-Royce business empowers the interest of different
stakeholders that might impact in decision-making procedure for managers and leaders.
M4. Evaluate how these factors affect the business and wider community
The various factors of business environment which affect the stability of an enterprise to
remain stable in global market. These elements are further described as corporate social responsibility,
employee efficiency, culture, value and ethics, sustainability and shareholders. Managers of Rolls
Royce are favourably and unfavourably affected by these factors as it might delay in accomplishment
of success.
CONCLUSION
From the above discussion it have been concluded that operation management is very
essential for an organisation functions in managing the procedure for creation of goods and
services. The three levels of operation management includes strategic, tactical and operations
that create opportunity for business to achieve goals and objectives by developing strategic
decision-making process in planning. This project compares between managers and leaders with
their definition, roles, functions and characteristics that are improving morale, motivation,
charismatic, effective communicator, etc. It provides appropriate theories and models of approach for
leadership styles such as situational, system and contingency which is implemented by leaders to
improve effectiveness of workers. The key approaches which are six sigmas, lean production, total
quality management with importance and values of operation management increase competitive
strategies for remaining stable in perfect competition market. Additionally, it assesses various factors