Qualification - Higher National Diploma in Business
Unit Name - Management and Operations
Unit Number - Unit 4
Assignment Title - Leadership, Management and Operation Concepts
Learning Outcome 1: Differentiate between the role of a leader and the function of a manager.
Learning Outcome 2: Apply the role of a leader and the function of a manager in given contexts.
Learning Outcome 3: Demonstrate an appreciation of the role leaders and managers play in the operations function of an organisation.
Learning Outcome 4: Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment.
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Introduction
The current study aims to explain the management, leadership, and operational concepts of the chosen firm Starbucks. The company is one of the biggest coffee products and beverage selling companies across the globe has more than 349000 employees. The firm has its headquarters in Seattle, Washington. The company has an effective management structure as they follow the matrix structure where the employees of the organization report to more than one manager which reduces the chances of risk within the organization. The matrix structure helps them in effectively controlling and leading a large culturally diverse team globally. The objective of the study is to analyze the management and leadership of the organization by analyzing the role of managers and leaders of the organization. Using different theories, the importance of roles of manager and leader will be explained in different organizational situations.
Outlining the different roles of leaders and managers to explain the difference between leadership and management
The role of managers and leaders in an organization is somewhat similar yet very different from each other considering the organizational context. The role of a manager is authoritarian in directing an employee to work while the role of a leader is to motivate an employee. The leader shows the employees how to complete work while the manager explains what they need to do (De Nobile, 2018). Considering a situation when the company addresses change, the role of the leaders is to create the change while the role of managers of the organization is to react to the change. The leaders create change as they understand how to make the firm effective in their operation, the managers follow the directions of the leader in reacting to change and creating a readiness amongst the employees to change (Sobratee and Bodhanya, 2018). The role of managers is to manage the different organizational activities and operations within the organization, the leaders are the one who approves those activities. Addressing the impact of management and leadership, the leaders have followers as the employees follow their behavior, the managers of the organization have subordinates.
The major difference between leadership and management considering the roles of leader and manager in various situations is that management uses an authoritarian style to control and coordinate the employees while the leadership follows a motivational style. The management gives orders to the employees, the leaders showcase their effective leadership skills by motivating the employees of the firm. Starbucks being a Multinational organization showcases their effective management and leadership practices in their outlets and operations across the globe explains why they are the global leaders. The communication and coordination skills of both managers and leaders of the firm are effective in explaining their goals (Thomas-Francois et al., 2020). The role of the manager can be explained as the director who assigns tasks to the employees on how to complete the work following significant measures. The role of a leader is to guide the managers and employees on what they need to do, the leaders rely on their employees and manager as they give effective ideas and suggestions which are used by the leaders. The role of managers is to be the consultant of leaders as the leaders consider the advice of their managers.
Using theories and concepts to outlines the roles of management and leadership in a different organizational context
As explained above the role of leadership and management is similar yet they follow different methods to conduct their operations. Addressing the human relation theory of management, it explains how the management forms an effective relationship with the employees and makes them complete the work. The motivational theory of leadership outlines how in a similar situation the leader of the organization motivates the employees to get the work completed in time efficiently. The behavioral theory of leadership explains how a leader effectively uses their skills in certain situations and getting the situation under control signifies their ability. The behavioral theory critically explains the importance of leadership in different organizational contexts (Rennison, 2018). The classic theory of management explains how the management of the organization divides the task into different teams or groups of employees according to their skills which makes them more productive. The management using the theory effectively explains the task to the teams to ensure that the efficiency of the firm is increased. While dealing with a crucial situation the management of the firm follows contingency theory which allows the management to make one-spot decisions to take the situation under control. This signifies the role of managers as they have to make quick and effective decisions so that the impact is reduced or eliminated from the organization.
Tractional leadership theory can be used to explain the role of leadership in motivating the employees by rewarding them according to their work. The objective of this leadership style is to motivate and increase the productivity of the employees working in the organization by rewarding them with bonuses and incentives (Seidel et al., 2019).
Theories in organisation structure
The organisational structure can be categorised into three main types that are flat, informal and decentralised. The flat structure is based on the wide span of control that can help in motivation along with that chain of command is much shorter. Decentralised is based on the features like autonomy and imitative at the lower level of the company that helps in developing proper to gain higher position is the future. Lastly informal organisational structure is required to overcome the resistance that can arise due to formal organisational structure. The theories in organisational structure also can be regarded as tall, hierarchical and formal. Tall structure can be compared to hierarchy as they basic features are similar where the position of authority remains in the higher-level management, Informal and formal are mutually dependent as the companies cannot sustain with one particular aspect (Ouadoud et al., 2017).
Analysis of "chaos theory" and "management by objectives" outlining how they support growth and sustainable performance
Chaos theory
The chaos theory emphasizes explaining how an organization should focus more on entrepreneurial creativity and adaptability to effectively cope up with future changes as they are inherently unknowable. The theory developed by Tom Stoppard explains how an organization should be ready for a change to be competitive in the rapidly changing market trends. The chaos theory highlights the unpredictability of the future making it important for an organization to have a backup plan for the chaos which might take place in the future. The theory outlines the importance of leadership, values, communication, and vision in the organization. It also impacts the decision-making of leaders and managers (Purworini et al., 2019). The theory suggests having an effective contingency plan or is adaptive so that any change doesn't affect the organization's activities. These practices lead the company towards growth by ensuring sustainable performance both now and in the future. It makes the people in charge consider the effect of small decisions leading to major outcomes in a project or operation of the firm.
Management by objective theory
The MBO theory focuses on highlighting the projects of management emphasizing the contribution of employees in completing and achieving the goals. The theory focuses more on the outcomes or goals rather than the activities put in achieving the goals. The theory helps the manager in effectively utilizing the available human resources and increasing their productivity to reach the goal in less time. The management following the theory collaborates with the employees and assigns the work and roles according to their expertise to make them productive in achieving the goals. The objective behind using they are to enhance the performance of the company ensuring the effectiveness of producing results (SHONUBI, 2018). The theory divides the process into five different steps in which the manager analyses the organizational objectives and sets effective objectives. After setting the objective monitoring and evaluating the outcome and based on it rewarding the people involved. This is the most sustainable method of growth within the firm.
Recommendation
Based on the above study a few suitable recommendations can be made like managers working in teams and seeking innovative ideas from team members and employees can effectively help the firm in making a significant profit. Recognizing the employee's effort towards the firm and rewarding them can also be a significant improvement as it will motivate the employee to be more productive (Oliveira, 2020). Being an inspirational leader or manager by showing the employees how to get things done ensuring that the leaders are honest and competent, inspires the employees to do so.
Conclusion
The study outlines the importance of a leader and a manager in an organization as it explains their roles in different organizational contexts and situations. The firm Starbucks is selected in the study as they have an effective management structure. Further in the study, the role of leadership and management is compared regarding different situations using relative theories concepts. The role of managers and leaders was effective in taking the firm towards growth and success. The study provides a brief of Chaos theory as well as management by objective theory highlighting how effective these themes are in leading the firm towards growth and sustainable performance.
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The presentation slides
Introduction
Starbucks is a multinational organisation which has different organisational operations making the firm a global leader in coffee products.
Their key operations include planning and implementing their international projects, efficiently designing their products and services.
They also emphasize on performing efficient inventory management for a sustainable supply chain so that their customers get products on time.
The fourth key operation of the company is effectively managing their digital operations from marketing to selling products through their online portal.
Key operations and the role of leaders and managers Planning and implementing international project
Planning and implementing international project
The role manager is impactful in planning and implementing the company's international strategy.
The manager effectively develops an international plan by targeting a market and conducting an analysis.
The manager after developing the plan gets it approved from the leaders of the organisation.
Product designing and services
The R&D department manager is involved in designing the product and the customer service manager addresses the services of the company.
The development manager works on effective products and gets their new product's samples tested by the employees or volunteers (Jang et al., 2017).
The customer service manager has authority in dealing with service issues.
Inventory and supply chain
The inventory manager along with the supply chain executive work in maintaining the supply chain smooth so that the end customers get the product on time.
The inventory manager analyses the market demand and creates an effective inventory.
The supply chain executives ensure the raw materials are effectively provided on time to keep the chain moving.
Digital operations
The information technology manager of the organisation addresses the digital operations of the company from digital marketing to making the products available digitally for the customers.
The manager develops a marketing strategy as he has the authority by using allotted funds making effective advertisements.
The manager also manages the website of the company.
Key operational approaches
The managers of the company follow three major operational approaches to manage their organisational operations.
Lean manufacturing approach helps the management to reduce the waste, as they are a food manufacturing firm it supports their values to reduce waste.
The managers also consider BPR (Business Process Redesign) to reduce their cost and sharpen the management of the company (Kumaresan, 2019).
The firm follows a six-sigma approach as it makes their process and operations effective and decreases the chance of defects in their products.
Comparison between Six Sigma and TQM
Six Sigma
This process can help in making the operations more efficient and effective as it includes customer base satisfaction. Along with that it also sets particular metrics that improves the decisions making in operations.
It can be used in changes as the process helps in removing the areas that can be considered as a no-value work. Therefore, it can be used in focusing more on speed therefore helping in the process of change
TQM
It helps in making the operations more efficient by consistent and constant stated for purpose in order to improve quality. Moreover, also helps in reduction on inspections.
It is helpful in change as it can be used in getting rid of the hierarchy which makes changes possible. Also, by ensuring the that education is on-going process which makes changes possible.
External factors impacting decision making
Starbucks faces significant external factors as they operate globally, like change in customer behaviour, climate change and rising labour costs.
The change in customer behaviour is constant which forces the manager to improve their decisions.
The climate change impacts their product taste and quality which forces the manager to change their decisions.
The rising labour cost also impacts as the firm works with a large employee base impacting their decision making (Moktadir et al., 2020).
Recommendation and conclusion
To overcome the effects of external factors the managers can target specific segments of customers for their product.
To overcome the climate change issue the firm can introduce variety in getting their coffee products from different places.
This will help the firm in leading improvement and dominating the global market.