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"Leadership" and "management" are two of the most used terms in the context of business, yet these are also the most misunderstood ones. Albeit, the implications of these terms often overlap, there are many grounds that differentiate them. This two-part report will present an elaborate discussion concerning these terms and also mention the functional differences between them. The roles played by a leader and a manager in the operations of a given organization, with reference to the provided scenario will also be included within the scope of the forthcoming sections of this report.
When anyone is elevated to a management position, he or she does not immediately become a leader. There are critical differences between management and leadership. The differences between these two terms include the following:
Therefore, it is to be noted that the term “leadership style” refers to a leader's approach to setting course, carrying out strategies, and inspiring people. Numerous scholars have suggested the identification of numerous distinct leadership styles as demonstrated by leaders in politics, industry, and other spheres. On the other hand, “management style” implies the methods used to attain these goals (Hechanova, Caringal-Go and Magsaysay, 2018). It refers to everything they do from their decision-making style to their planning and administering to the use of authority.
A leader is someone who persuades his followers to work for a common purpose. He is a visionary who influences his followers in a way which their vision becomes their vision. He assists them in developing a plan for achieving the objective and possesses other qualities such as empowering subordinates, forming teams, innovating, and building confidence among stakeholders (Yang, 2016).
At every organisational level, a leader is needed who serves as the organization's representative. He motivates the entire team to collaborate and assists them in completing their assigned assignments, acting as a philosopher or mentor.
A manager is someone who is responsible for the organization's management, including planning, organisation, direction, coordination, and control. They are the ones who ensure that their job is completed by workers in a variety of ways and have the right to recruit and fire employees. In an organisation, different categories of managers exist, including top-level executives, functional managers, project managers, and general managers (Hechanova, Caringal-Go and Magsaysay, 2018).
The position of these managers varies according to their line of work; while top-level managers are held accountable for the organization's vision and mission, functional managers are held accountable for specific aspects of their work such as marketing, sales, and accounting (Thorpe, 2016). Project managers are accountable for completing a specific project, and the position of a general manager is expansive, in that he oversees all of the business's activities.
Significant distinctions between a leader and a manager include:
This is best shown by a realistic example: in an organisation, the manager is responsible for performing the five main functions of planning, arranging, guiding, overseeing, and coordinating. Thus, though it is true that a manager is also a leader, not all managers are considered leaders, as only those managers who perform leadership roles such as promoting, motivating, and empowering are considered leaders. Additionally, the leader may be any person who exerts authority over others; the title is not associated with a management role (Willis, Clarke and O'Connor, 2017). A boss, however, may only be someone who holds a management role.
The preceding discussion discussed the distinctions between a manager and a leader, and it is clear that both are important for an organization's success. A successful leader and manager can assist the company in long-term survival and competitiveness. A leader's position is positive, in that he discovers his followers' secret talents and guides them toward the target (Thorpe, 2016). While a manager's position seems to be somewhat negative, he criticises his workers in order to improve their performance in their fields, not to demoralize them.
Autocratic leadership, also known as authoritarian leadership, is a form of leadership in which the boss exercises complete power over workplace decisions. Team members are not asked for input; they are required to follow their leader's decisions and instructions.
As it is apparent from the acts mentioned in the given scenario, Joe Pearson's "military-like" style of leadership can be equated with "autocratic leadership". This style, like every other style of leadership, has a number of advantages and disadvantages. Autocratic leadership has a number of advantages, including saving time on decision-making, ensuring that each member of the team understands exactly what is required of them and how they are to work, and reducing policy execution mistakes due to the reduced number of individuals involved in the process of strategic planning (Dyczkowska and Dyczkowski, 2018). The disadvantages include workers feeling unappreciated on a personal level, decreased team motivation, and a higher likelihood of employee revolt. But such workplaces involve high-stakes settings, such as the military, where human error can result in a safety or security danger. In other contexts, such as education and creative services, an autocratic leader may sabotage their team's progress and eventually jeopardise the organization's success.
In order to detect which theoretical model of leadership would be the most suitable in the case of Soft Company, a few of the most important ones need to be evaluated in terms of their styles and effectiveness.
Situational Leadership Style
Situational leadership is the style wherein leaders use their mode of directing their teams, depending on the work environment or needs of the team. This style is not predicated on having the skills of a leader, it is influenced by them. The leadership style in this book may be known as "Situational Theory" since it was pioneered by Ken Blanchard and Paul Hersey (Meier, 2016).
Blanch and Hersey say that in situations, a leader exhibits leadership characteristic in one of these ways:
Telling: With close monitoring and continuous supervision, this method works well. Leaders can make all the decisions and then disseminate these decisions to the team using a suggestive style. Repeat results and by using a storey telling style are generally required by teams who are at the beginning of their evolution or when producing needs or situations call for a simple result.
Selling: A leader of this kind usually employs this method when people aren't inspired to perform a mission or work.
Participating: The employed behavioural leadership style normally occurs when a team is knowledgeable in specific processes but lacks the motivation or the ability to carry out their goals.
Delegating: A delegating leadership style in which the team members work together, handle their tasks well and need minimal input from management (Thompson and Glasø, 2018).
There is not a single style that can be deemed "the best". Instead, situational leadership is used when it is appropriate for the circumstances.
Systems Leadership Style
Systems leadership is about managing boundaries; it's about crossing organisational, jurisdictional, and sectors one’s own domains. A person's management style should be determined by his ability to influence, rather than to force others to do things.
It refers to the way a person must work when he confronts huge, complex, problematical, and seemingly unsolvable issues; where neither a single person nor a group can locate or marshal a solution; when everyone is worried about resources that are outpacing them; and where furthering participation from several different directions are therefore needed (Chuang, Jackson and Jiang, 2016).
It recognizes that titles and positions don't qualify one to be leaders; rather, leadership is possible only if one comes to an agreement about ambition and approaches the solution in a non-creative manner (Manley and Titchen, 2017). If the system is seen as being subject to confusion and complexity, it is to be expected that individuals would experiment with various approaches to obtain the desired result.
Contingency Leadership Style
According to the contingency style of leadership, a leader's success is dependent on whether their leadership style is appropriate for a given situation. A person may be an excellent leader in one situation and an unsuccessful leader in another, according to this theory. To increase the chances of becoming a good leader, this principle proposes that a person ought to be able to assess each scenario and determine whether or not his leadership style is successful. This usually demands that he remains self-aware, analytical, and adaptable (Körösényi, Illés and Metz, 2016).
There are hundreds of variables that can impair a leader's success in the workplace. This includes the staff size, the project's duration, and the anticipated completion date for an outcome. Multiple leaders, each with their own distinct leadership style, will react differently to these variables. According to contingency theorists, regardless of how good a leader is, there will still be a scenario that tests them (Jansen et al., 2016). As a result, leaders must be able to admit that their success is contingent on their conditions as well as their personal abilities.
It is observable from the provided scenario that the employees of Soft Company find it very challenging to cope up with Joe Pearson’s leadership style, and she herself faces extreme difficulties to discharge her duties effectively with the same, thus affecting the overall productivity of the team. Therefore, it can be suggested that the application of the “Contingency Leadership Style” would be the most suitable one as it focuses on the principle that a leader may be efficient in handling a particular kind(s) of situation, but not all. This is true with the case of Joes Pearson, whose military-style might have been useful in her previous work setting, but is not so in the present context of Soft Company.
The importance of effective leadership and management process has become extensively evident in contemporary commercial settings. It is an integral part of the organization to incorporate a high standard of management and leadership approaches to enhance the organizational quality of performance through increased productivity of its employees(Olsen and Tomlin, 2020). Firms are aware that in this constantly growing competitive environment of the industries, having a strategic management and leadership approach will enhance the opportunity of good performance and increased corporate profile(Heizer, 2016). It is a well-known fact that a good leader and an efficient manager can bring about the required change within a company that leads to increased performance and market adaptability. The fundamental attempt of Soft Company is to establish a proper and systematic approach that will enable the company to reach its desired objective of enhancing efficiency, standardize its quality and reduce the cost range in the production units(Patonetal., 2020). Leaders and managers are the key strengths of the company that will allow It to reach the desired outcome through effective approaches and proper operational decisions making.
Leaders tend to have the influence over other humans and relations through which they impact the entire organizational performance and have an immense power of regulation that motivates and drives the workforce to achieve a collective goal in terms of organizational success(Patonetal., 2020). They lead a significant role within the management who works in the coordination of manager. Contrary to that, managers provide leadership to others and coordinate regular activities through proper monitoring and planning. They supervise the execution of tasks with proper monitoring over human capital and is responsible for the decisions making process. Both the leader and the manager work with the aim to resolve conflicts and promote growth for the organization.
Role of the leaders
Role of the managers
Managers are the individuals in the organization responsible for designing and conducting the management process. Management is complex by default and changes to address demands and limitations in the organization’s internal and external contexts(Olsen and Tomlin, 2020). Agility is essential to the management process in a competitive economy where the rates of transition increase exponentially. This method consists of four main organizational functional areas: strategy, organization, leadership and management.
Planning: planning is the fundamental approach that lays out the specific goals that the organization wants to achieve(Patonetal., 2020). Identification of the goals helps the manager to develop an accurate strategy to accomplish those objectives by aligning the operations with the objectives. He decides the necessary approaches that need to be taken for the accomplishments of the final goals.
Organizing: After the establishment of the strategy the manager requires to arrange the necessary resources and team members to appropriately execute the strategy. Allocating tasks and providing authority are the key elements of this aspect.
Leading: it is also the responsibility of the manager to properly lead, communicate and motivate the employees throughout their tasks.
Controlling: on the controlling phase, the manager is liable to check on the outcomes and improve the results accordingly(Patonetal., 2020). The manager is expected to monitor the results thoroughly.
In order to enhance operational management standards, the Soft Company can use these approaches:
Six Sigma: Six Sigma is a quality control approach that helps companies discover and eliminate flaws in their existing operations, products, or services(Tjahjonoetal., 2010). The aim is to make quality management in production or business processes more efficient so that there is little or no variation.
lean production: Lean manufacturing is a management approach that focuses on reducing waste while maintaining efficiency(Parthiban and Goh,2011). This method can be used in all aspects of an enterprise, from layout to manufacturing and delivery.
queuing theory: In order to maximise the overall customer experience, queueing theory is widely used as an operations management strategy to assess and standardise workforce demands, preparation, and supply(Saffar and Obeidat, 2020). Six Sigma experts also use it to strengthen procedures.
77% of the 1.300 global CEOs claim they concentrate and rely on organisational effectiveness to increase their sales, according to the Global Annual CEO report. If front and backend, from distribution to promotion, workflows are seamless, companies can restrict the time and effort necessary to manage the business efficiently(Reid and Sanders, 2019). This increased productivity increases client loyalty and employee engagement, thus reducing operating problems and additional costs, and fostering advancement in business processes. For the Soft Company also the aim is to reduce the costs and increase efficiency and quality standards(Saffar and Obeidat, 2020). In order to do that the leadership style of the company needs to be executed differently as the enhancement of operational management depends on effective leadership and management. And if these two aspects are not working in an alignment, then there is a chance of disruption in the processes. There are a few measures that can help Soft Company leader and manager to improve efficiency. The Soft Company can incorporate the below-mentioned approaches to strengthen their operational management performance.
Operations management is a mechanism that schedules, manages and monitors performance, manufacturing quality and distribution in particular(Saffar and Obeidat, 2020). Operational management In businesses is essential because it helps to maintain, control and supervise products, resources and personnel efficiently. The objective of the operation management of businesses is to optimise productivity by delivering products and services that meet consumer demands efficiently(van Echtelt,Wynstraand van Weele, 2007). Countless choices are made during the manufacturing of products and services which improves value for consumers and have long and short-term effects on the organization's ability to standardise its quality.
The long-term chances for sustainability are vastly improved by the ability to structure and execute transitioning systems which meet company objectives. Operations are one of the three strategic tasks(Saffar and Obeidat, 2020). It is also an essential part of the company's policy and its long-term sustainability. Marketing and financing are the other two strategically important fields for the company. The bellow mentioned aspects are an integral part of the operation management.
Control and Distribution Systems
It is the method of distributing products from producer to supplier to wholesaler/dealer and ultimately to end-user(van Echtelt,Wynstraand van Weele, 2007). Numerous operations and procedures, such as raw good supplier control, storage, warehouse management, stock, distribution network, distribution or even blockchain, are involved in this process.
Transformation of rawmaterial into finished goods/services
Manufacture is a method of using machines, human workmanship, equipment and chemicals to transform raw materials and components into completed products.
Process design is the act of translating the mission, aims and tools of the company into an understandable medium for the realisation of the vision of the organisation(Lichocik and Sadowski, 2013). The layout of the process focuses on what the company is going to do to reach its economic as well as other objectives.
Capacity management refers to the act of agreeing that a company maximises its possible operations and productionunder all circumstances at all levels(Lichocik and Sadowski, 2013). The capability of a company measures how many a firm can do, manufacture or sell in a certain amount of time.
Logistics and inventory management
Logistics is the detailed planning of a complicated activity involving a large number of individuals, equipment or materials(Heizer, 2016). Management of the inventory takes many complex variables into account, including risk, preparation time, expense, venue, transportation and quality of service.
Scheduling is the mechanism by which labour and work and working loads are organised, controlled and optimised in a manufacturing process(Reid and Sanders, 2019). Scheduling is used to organize infrastructures,planning human capital, planning procedures of manufacturing and buying products.
In recent times, numerous firms have adopted Corporate Social Responsibility (CSR), a policy that includes the production, fair charging with appropriate profitability and paying fair wages for workers, environmental care and social issues, it not only assures a reliable commodity but also takes a part of the corporate activities that intends the betterment of the overall community (Aagaard, 2016). Many companies engage in social efforts and share this knowledge with their clients and their associations. CSR is helpful to companies and customers if it is based on good conscience.This applies in particular to stakeholders that have traditionally had low importance or less representation, such as the local landscape and community residents who live near business sites and services. CSR reflects on the right cause of managers' innovative goods and efforts in its best way (Lloret, 2016). It can be described to respond to the impact that companies face in their attempts to be more competitive and productive with a long record of damaging economies and societies and the environment.
Stakeholder relationships are the process of establishing mutually favourable relationships with organisations and individuals of third parties who have a “shared interest”. These connections create networks that establish reliable and unified perspectives on concerns, products and/or services of importance to the company(Lloret, 2016). A single voice alone will fall flat, from unbelief to a strength. As a consequence, the proper perception or driving action cannot be generated. A properly controlled stakeholder involvement mechanism allows project shareholders to cooperate to improve efficiency and quality of business while reducing harmful environmental consequences and enhancing the project's financial potential. This includes owners, administrators, staff, clients and suppliers. On the other hand, secondary stakeholders include those who have been impacted or who have an indirect effect on an entity(Aagaard, 2016). Companies such as Soft Company needs to address their stakeholders’ interests and increase the relational bond to enhance the engagement with the company and increase operational quality and sustainability in this competitive environment.
The entire project has been developed to address the different roles plays by the leaders and managers in the industrial ground. The report has demonstrated the different approaches that surround the ideas of leadership and management which directly influences business performance. In this report, a range of dimensions has been consolidated to develop a comprehensive understanding regarding the aspects of operational management within the context of business units. The report also illustrates the important functions adapted by leaders and managers to sustain business standards while efficiently considering business ethics and stakeholder relations which establish sustainable business operations.
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