Rolls-Royce: Analyzing Leadership and Management Concepts in Unit 4

This report examines the leadership and management concepts within Rolls-Royce, focusing on key operations in Europe, Asia, and North America, including the production of military and commercial aerospace engines, marine services, power generation systems, and Rolls-Royce Motor Cars. It identifies key organizational functions such as finance, strategy, operations, and product design, detailing the roles and responsibilities of managers within each function. The report also explores external business environment factors affecting managerial decisions, such as organizational environment, resources, culture, and employee roles. Furthermore, it discusses ways to improve operational efficiency through transformational, servant, and situational leadership approaches. The report concludes with recommendations for Rolls-Royce to enhance its management and leadership strategies, focusing on product design, strategy, and fostering innovation, highlighting the importance of effective leadership in managing organizational functions and overcoming external challenges. The document is contributed by a student and available on Desklib, a platform providing study tools and resources for students.

Leadership and
Management Concepts

KEY OPERATIONS OF THE COMPANY
Rolls-Royce upholds its prime operations in Europe, Asia,
North America, and emerging in Middle East as well (Roll-
Royce, 2019a).
Key operations of the company are:
• Production of military and commercial aerospace
engines
• Marine services
• Production and supply of power generation systems
• Rolls-Royce Motor Cars

KEY FUNCTIONS OF THE
ORGANIZATION
Key
Functions
Finance
Strategy Operation
s
Product
Design
Source: (Drucker, 2012)

FINANCE
Finance management is an art to manage the
organization’s money effectively to accomplish the
goalmouths (Hersey & Blanchard, 2007).
• Financial planning
• Investment plan
• Money Raising
Roles & responsibilities of Finance managers:

STRATEGY
Tactics that would aid in optimizing the resources &
developing competitive advantage.
Roles & Responsibilities of
managers include:
• Supply Chain
Configuration
• Sales and marketing
• Oversee human
resources
• Capacity to hold money
Source: (Kumar, 2015)

OPERATION
This part of the organization is concerned with
directing, organizing, planning and overseeing
overall organizational activity( Hansen, 2016).
Roles & responsibilities of manager include:
• Assisting HR manager
• Certifying legal and regulatory documents
• Identifying opportunities
• Oversee policy and planning
• Maintain communication
• Forecasting

PRODUCT DESIGN
This fragment ensures that the product design is
competent enough to cater the market needs.
• Evaluating the design
feasibility
• Management and co-
ordination for development
• Developing design creation
strategies
• Evaluation of designs and its
impact
• Managing timelines (Ali,
2012).
Roles & Responsibilities of Design Manager:

EXTERNAL BUSINESS ENVIRONMENT
FACTORS EFFECTING THE DECISIONS OF
MANAGERS AND LEADERS
Factors that happen outside but affecting the business functions
are known as external influences or factors. These factors would
primarily affect the prime business functions and its objectives
(Zogjani & Raçi, 2015).

Cont…
The external factors would primarily effect the
following three sections of the organization,
causing issues for management and leadership.
• Organizational Environment
• Resources
• Culture &
• Roles of the employees (Mio, et. al., 2015).

WAYS TO IMPROVE OPERATIONAL
EFFICIENCY TO MEET BUSINESS
OBJECTIVES
• Transformational Leadership
• Servant Leadership
• Situational Leadership

Cont…
Through these leadership and management approaches
Rolls-Royce could competently meet the business
objectives( Osborne, 2019).
Management Approaches
Classical
approach
Behavioural
approach
Quantitative
approach

RECOMMENDATIONS
• Rolls-Royce should ensure that best management
and leadership strategies are being used to meet the
organizational objectives.
• The company should focus more on Product Design
& Strategy.
• The company should focus on a leadership strategy
for new ideas and innovations.

CONCLUSION
• Rolls-Royce needs to focus on improving its
management and leadership style in most of the
business areas.
• The company needs to revise their management
strategy to overcome the present challenges.
• Management and leadership approaches could aid
the company to manage the influences caused by
external factors.
• Effective leadership and management style parts an
imperative role to manage the organizational
functions.

REFERENCES
• Ali, A. (2012) Leadership and its influence in organizations–A review
of intellections. International Journal of Learning and Development.
2(6), pp.73-85.
• Drucker, P. (2012). Management. London: Routledge.
• Dugan, J.P. and Komives, S.R. (2011) Leadership theories. The
handbook for student leadership development, pp.35-57.
• Hersey, P., Blanchard, K.H. and Johnson, D.E., 2007. Management
of organizational behavior (Vol. 9). Upper Saddle River, NJ: Prentice
hall.
• Kumar, P. (2015) An analytical study on mintzberg’s framework:
Managerial roles. International Journal of Research in Management
and Business Studies. 2(3), pp.1-19.
• Mio, C., Venturelli, A. and Leopizzi, R. (2015) Management by
objectives and corporate social responsibility disclosure: First
results from Italy. Accounting, Auditing & Accountability Journal.
28(3), pp.325-364.

• Osborne, T. (2019) Rolls-Royce Resolving Trent 1000 Issues
[Online]. Available from:
https://www.mro-network.com/manufacturing-distribution/rolls-roy
ce-resolving-trent-1000-issues
[Accessed 24 March 2019]
• Rolls-Royce (2019a) Our History [Online]. Available from:
https://www.rolls-royce.com/about/our-history.aspx [Accessed 22
March 2019]
• Rosenberg Hansen, J. and Ferlie, E. (2016) Applying strategic
management theories in public sector organizations: Developing
a Typology. Public Management Review. 18(1), pp.1-19.
• Zogjani, J. and Raçi, S. (2015) The Role of Leadership in
Achieving Sustainable Organizational Change and the Main
Approaches of Leadership during Organizational
Change. Academic Journal of Interdisciplinary Studies. 4(3),
p.65.