Qualification - Higher National Diploma in Business
Unit Name - Management and Operations
Unit Level - Level 5
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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You are the Human Resource Manager for [an organisation of your choice] and have been asked by the CEO to investigate the impact of leaders and managers on the operations of this ever-growing company.
Scenario: In the current context, the CEO of Toyota Group (Iyer 2019) approached HR manager for the sake of getting report on the impact of the managers and leaders of the organization. The most significant part of the report is the fact, that the organization is ever growing and so the impact of the leaders and the mangers of the organization also will be dynamic. The effectiveness and efficiency of the operations will also change as per the prevailing internal and external conditions. Comprehending all this report makes vital significance for the CEO and so the HR manager has proceeded to provide this report. The following part of the discussion includes all these aspects, Viz., the impact of the manager and the leader on the organization. A detailed overview of the same is presented in the different separate sections in the following discussion of the report.
You will need to produce a report for the senior leadership team that includes the following:
1. An introduction to the organisation and management structure.
1.1 An introduction to the organization and management structure:
Toyota is the automobile giant and its roots are in Japan and now spread to several parts of the world in line with the business expansion needs. Basically the organizational structure of Toyota is made in accordance with the strategic goals of the organization. There is considerable impact of the Japanese traditional organizational structures in Toyota. Since Toyota is more concerned with the global expansion, the organizational structure of Toyota is tuned to reciprocate these factors as well to keep the efficiency in operational execution. Keeping in view of the past experiences, Toyota Reshaped its organizational structure to respond swiftly as well managed its structure to include Global hierarchies and product based structures as well. The firm global hierarchy is headed and located in Japan and all the unit heads of the organization will report to the global heads, but nevertheless the actual decision making power is decentralized in Toyota and most of the vital decisions of the organization will be done in the organization itself at unit manager levels. Toyota has well integrated global hierarchy structure along with the product based divisions. The global hierarchy structure of Toyota is split into about several regional parts and each of them will be connected and directed by the global head quarters located in Japan. Each of these regional centres will be working for improving the products and the services in accordance with the local requirements. The global head quarters of the organization will assimilate the processing in each of these regional centres and will provide instructions to each of these centres for improving the products and the services accordingly. The product based divisions for Toyota, yes there are made in about 4 divisions, each of these divisions are versatile in a particular type of product or the division and will work for enabling the improvement of the same.
• The regional divisions connected with the global head quarters of Toyota,
• North America
• East Asia and Oceania
• Asia and Middle East
• Latin America and Caribbean
Each of these total 8 regional head centres are versatile in taking up the operations of Toyota at regional level and to enable the decision making at these regional levels enabled(Austenfiled Robert B 2006).
• Products based divisions in the organizational structure include the following 4 divisions
• Lexus international
• Toyota No:1 for operations in North America Europe and Japan
• Toyota No:2 for operations in all other regions
• Unit Center responsible for engine, transmission and other related operations
This part of the organization structure is formulated to enable the development of the new products and the brands of the organization (Hasegawa 2018).
Quick response, resilience, continuous growth are the key aspects of the organization that are improved with this type of the organizational structure enabled in Toyota. Inspite of quick response, decentralized decision making, the global hierarchy is still intact and global control is still being monitored from Japan head quarters for aligning with the vision and mission of the organization and protecting the interests of the organization (Butera and Cruz 2017, P.4).
Management structure of the company is shaped in such a way that the TMC (Toyota motor corporation is tightly monitoring the divisional operations of Toyota). There is regionable flexibility now assigned to the regional centres for decision making in terms of the recalls, communication, product design and development as well. However still TMC executes tighter control on the organization on overall direction and vision aspects still from the global head quarters of Japan(Cho 2009).
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1.2 Roles of Leaders and Managers - Differentiation
Both the leader and manager's functions converges in the aspect that they do look after the organizational needs and facilitate the objectives of the functions. Leader and manager do have significant difference in their characteristic functions, for instance a leader believes in collective functioning of the organization and will motivate the entire team of the organization to function along with him and in the direction of the organization. However manager functions in different perspective, he expects employees function in their own roles. He expects subordinates function as subordinates and the managers function as managers. Leader expects the subordinates to function with collective spirit and with the training imposed by the organization. Manager expects his subordinates get training by him or by his facilitators and expects them in accordance with the work structures, divisions and policies of the organization (Arruda, 2016).
There exists drastic difference between the leader and the manager of the organization in terms of their modus operandi, priorities and the styles of functioninnig. Leader works for innovating, while managers just administer the things planned. It is always possible for the manager to control the organizations, whereas leaders will work for inspiring the people to work for their goals. Managers just possess short term goals, whereas leaders will have a much broader and long term vision for the organization. Managers will focus on aspects like how to do, when to do , whereas leaders vision will be different and their concerns are much broader to include what is to be done and why is it to be done? Managers always work for imitate, while leaders will work for actual origination. Managers will work for accepting the status quo of the organizations, whereas leaders will challenge the same for the needs, preferences and objectives of the organization (Torbiorn 1985, P.68).
1.3 Different roles of the leaders and the managers in different organisational situations
Organizational situations demand different type of the actions for the leaders and the managers. Organizational situations will not be same all the time and the dynamic changes in the same will call for dynamic actions from the leaders and the managers. Leaders and managers will remain quick to understand the changing demands of the organizations. Whenever there arises a challenge for the organization, the leader will be quick to acknowledge the same and will take up innovative solutions to address the same. Leaders also will work for the providing strategic vision and direction for the organization which is expected to posses the resilience towards any type of the situations that may arise at any time, further leaders will work for providing strategic directives to enable the organization to stand as per the strategic vision created for. Managers will be more concerned with the implementation of the action plans created as per the changing situations; their more focus will be to realize the expectations by letting things executed(Tutor). Their other concerns will be working out he estimation of the resources, expectations, drafting the execution policies, gaining the focus from the leaders in achieving the same and finally working for realizing the same for the organizational needs. Managers will provide the road map for the organization in accordance with the vision created by the leaders. Dynamic organizational situations will demand for different type of the modifications of the action plans and they will be effectively created and implemented by the managers. Leaders will build relations and will shape the organization as per their vision and needs, and will function as change facilitators, but the managers will just keep the status quo. Leaders are unique, while managers can leverage existing skills and capacities to leverage the changes and outreach the targets set by the leaders(Akhmesshin et al 2018).
2. Definition and roles of both managers and leaders, highlighting the differences between management and leadership.
2.1 Chaos theory and the management by objectives in the context of supporting the growth and sustaining performance
Chaos theory or the management by objective are the theories that are more concerned with the aspects like the organizational growth and the performance sustenance in the organizations. Chaos theory is an interdisciplinary theory that will work for the co-ordination of different streams in the organizations which are more complex and deal with the aspects like interconnectedness, similarity and other similar factors as well. The theory is more concerned with the changing relationships among the different elements of the organization; More particularly they are focussed on aspects like order and the relation of the same with the disorder aspects of the organizations. Chaos theory is applicable even to the organizations that are more uncertain and unpredictable as well. Stock market like systems can be analyzed by Chaos theory(Scott 1975).
2.1 Management by Objectives
Management by objectives is a particular style of operations of the organization; where in the management in association with the employees will set the strategies and objectives for the organization. More importantly it is like working out collective ways and means for achieving the objectives in accordance with the set modus operandi of established procedures in agreement with the management and the employees as well. For instance, Toyota like organizations can work out the MBO strategies to work for the goals of the organization, which will ensure the objectives can be met, will collective efforts of the management and the employees. Typical objectives like the production targets, intended goals and aims of the organization can be met with the MBO style of approach. However in the execution of the same, there is always need to keep room for up-keeping the concerns of quality, efficiency and other aspects that protect the interests of the organization. Since Toyota with its global level of operations continuously faces a range of challenges which are quite dynamic and changes with situations and the quality, always it is necessary for the organization to plan things in accordance with the strategies kept on and based on enforcement of the same(Lee 2017).
3. The different roles of management and leadership in application to different organisational situations, supported by theories and concepts.
Impact of the managers and the leaders on the organization and recommendations for the same
Managers and leaders in the organization; both will have a role to play in the contemporary organizational set-ups. Leaders will work creation of a framework of operations, whereas managers will facilitate the execution of the same. Leaders will be the vision the route planners, while managers will work for achieving the same. In this connection, both the leaders and the managers are essential elements for any organization in general. For the current Company Toyota, the level of Competencies, the strategic growth and the functional expertises are just achieved by collective efforts of both the mangers and the leaders as well. Toyota' current flexible organizational structure and managerial effectiveness with quick response times, and more commitment for the effectiveness and efficiencies of the brands and the products are just achieved by collective efforts of the manager and leaders as well. As of now, there is excellent connectiveness in the Toyota across its different operational centres across the globe(Kunju Mathews 2011) and has very good connectivity with communication with the global head quarters of the organization. The current quality of communication effectiveness, the current state of affairs, collaboration and collective efforts for the brand and the product development can be achieved by more focussed by the efforts of the managers and leaders by leveraging the technology enabled tools and technologies further. For Toyota like Technology Company, it is very much mandatory and significant to incorporate these strategies((Jones, Shrivastava and Selvaraj 2015, P.95)) into the core philosophies of the organization and by doing so it is possible for further improving the overall outcomes from the organization. More significantly managers and the leaders of the organization have a key role in the moving Toyota towards new generation expectations like working out Electric Vehicles with more significant technological advancements like more efficient new generation sustainable vehicles and so forth. The current framework of effective and impactive coordination of the global competencies(TMC) and managerial capacities of Toyota can help it achieve these benefits further.