UNIT NO: 04

LEADERSHIP AND
MANAGEMENT
PART- 1

BY: JANANISHRI A.U

Unit No : 04
Unit Name: Leadership and Management

CONTENTS:

INTRODUCTION TO THE ORGANISATION……………………………………03

INTRODUCTION TO LEADERSHIP AND LEADERSHIP THEORIE………..04

INTRODUCTION TO MANAGEMENT AND MANAGEMENT

THEORIES………………………………………………………………………….08

DIFFERENT LEADERSHIP STYLES AND THEORIES USED IN THE

DIFFERENT ORGANISATION……………………………………………………14

DIFFERENT TYPE OF MANAGEMENT THEORIES USED IN

DIFFERENT ORGANISATION……………………………………………………17

IMPORTANCE OF CULTURE IN AN ORGANISATION……………………….20

CULTURE IN ORGANISATION AND FACTORS INFLUENCING

IN ITS DEVELOPMENT…………………………………………………………..21

CULTURE IN DIFFERENT ORGANISATION……………………………….....23

LEADERSHIP AND MANAGEMENT THEORIES IMPACT

ON LARGE ORGANISATION ……………………………………………………27

ASSESSING DIFFERENT STYLE OF LEADERSHIP AND

MANAGEMENT IN DIFFERENT ORGANISATION …………………………..30

IMPACT OF LEADERSHIP AND MANAGEMENT IN DECISION

MAKING…………………………………………………………………………….34

CRITICAL EVALUATING HOW LEADERSHIP AND

MANAGEMENT STYLE IMPACTS THE ORGANISATION …………………..37

CONCLUSION ……………………………………………………………………..39

REFERENCE ………………………………………………………………………40

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

INTRODUCTION TO THE ORGANISATION:

Leadership and management is important in an organization as this helps in

achieving the goal of the organization by motivating and inspiring the
employees to work towards the organization’s goal. Each organization follows
different leadership styles which will suit their organisation and will implement
them through their leader . the management will also change as per the
leadership style.

The culture also plays an important role in the organization’s successes. The
policies of the organisations are based on the culture of the organization.

The leadership style, the management style and the culture of 3 organizations
will be compared below.

The organisations are:

● Apple
● McDonalds
● Netflix

Apple is taken as the main company and will be compared with McDonalds
and Netflix.

APPLE LOGO MCDONALDS LOGO NETFLIX LOGO

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

INTRODUCTION TO LEADERSHIP AND LEADERSHIP

THEORIES:

FIG 3 LEADER IMAGE

LEADER:

A person who has a vision on how things can be improved or knows how to
achieve the vision and will command and lead the group towards the vision. A
leader is someone who motivates and inspires their team and makes sure
their team has the tools and resources in the process of achieving their vision.
They are incharge of the people who are following and they have to take
responsibility for the success and the failures.

LEADERSHIP:

It can be defined as a position or a power held by a person or a group of

people to lead a group of people or an organisation towards a goal or vision.
Leadership is an action of a person or a group of people who can positively
influence a group or an organisation in accomplishing their goal or vision. It is
an action of setting goals, achieving them, solving problems if any and leading
their team smoothly towards their goal.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

HARD & SOFT SKILLS OF A LEADER:

For a person to lead an organisation properly they need a few sets of skills for
them to succeed in achieving their Goals.

Not anyone can become a leader, a leader is an important person who will be
motivating, influencing and leading the organisation towards success, so they
need to have a set of skills which will help them in achieving the goals of the
organisation.

There are 2 types of skills, HARD SKILL & SOFT SKILLS. Hard skills are
mostly job related and soft skills are personal qualities that have an impact on
how you work.

HARD SKILLS:

● Technological skills - how to use the current technology.

● Team leadership skills - team leading skills where they can take
decisions and be incharge of failure and success.
● Decision making skills - when in emergency situations they need to act
fast and make a decision.
● Persuasion skills - the ability to get people work just because they want
to work is an example of persuasion.
● Project managing skills - managing any kind of project even if it's large
or small.
● Analytical skills - practical thinking where they can calculate the
outcome of something.
● Presentation skills - presenting thoughts into words or writing them into
words or presenting them in a good manner.

SOFT SKILLS:

● Motivation - motivating others to do something.

● Communication skills - speaking skills how well they communicate with
others
● Problem solving ability - coming forward when there is a conflict
between the employees or team and solving them.
● Time management - managing time when to finish a project or anything.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

● Patience - as a leader there will be different types of employees who will

be working for them so getting work done from all of them is where you
need the patience.
● Influencing skills - encouraging or motivating people to take risks or to
do something new.

LEADERSHIP THEORY:

Leadership theory describes how and why a person became a leader. It

shows the characteristics and behaviours an individual can adopt to enhance
their leadership ability.

Each company follows a different leadership theory as per their needs and
depending on their culture. Leadership theory is used to identify the best
leadership type depending on the culture and situation in the organisations.

The types of theories followed by the organisation are:

FIG4 LEADERSHIP THEORY

1. GREAT MAN THEORY:

Great man theory says that leaders are born, not made. The
characteristics are inherent and they can not be learned. They have
natural skills to influence other members of the organisation.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

2. TRAIT THEORY:
This theory of leadership says that a leader has some personality traits
which makes them a good leader. But not anyone with this trait can
become the best leader but with good emotional intelligence they can
become a good leader.

3. BEHAVIORAL THEORY:
A person who adopts a specific set of behaviours because of their
environment makes them a good leader. Using this theory people can
learn how to become a good leader.

4. CONTINGENCY THEORY:
According to this theory there is no right way to run an organisation.
Here it says a leader can be effective in one situation and not in
another. This is about how much a leader is self aware that some
situations might challenge them.

5. CHARISMATIC LEADERSHIP THEORY:

Charismatic leadership theory defines a leader who uses his
communication skills and persuasiveness and charm to influence
others.

6. TRANSACTIONAL THEORY:
Here the leader prefers order and structure over constant innovations
and they keep an eye on their staff and reward them if they reach their
milestone and penalise them is they don't do their job.

7. TRANSFORMATIONAL THEORY:
Here in this theory the leader has a good relationship with his workers
and motivates them to work towards the goals and bring passion for
their work. They motivate their workers to innovate new stuff.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

INTRODUCTION TO MANAGEMENT AND MANAGEMENT

THEORIES:

FIG 1 LEADER IMAGE

MANAGER:
Manager is a person who manages and controls the people in his team or part
of the organisation in achieving the goal of the organisation. Manager is
responsible for the process of getting activities done by the people in the
organisation (“1.3 Who Are Managers? – Principles of Management”)

5 KEY RESPONSIBILITIES OF A MANAGER :

PLAN - Sets and objectives and chartdown the ways to achieve the
objectives.

ORGANIZE - Get the right people and enough resources for the process of
achieving the goal.

LEAD - Motivate and encourage the staff and guide them.

CONTROL - Monitor, follow up and evaluate the strategies and make changes
if needed.

COMMUNICATE - Communicating with the staff and disclosing the

information.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

THERE ARE DIFFERENT TYPES OF MANAGEMENT

APPROACHES :

● CLASSIC
● BEHAVIOURAL
● MORDEN

CLASSIC APPROACH :
This was introduced during the industrial revolutions. This style follows
hierarchies. It was also kind of autocratic and was a wage incentive system
where they prioritise the employees physical needs over emotional
satisfactions. This wasn’t as successful as other management approaches but
this approach is successful in some business units.

BEHAVIOURAL APPROACH :
This came after the classic approach as the classic one failed. This approach
focuses on the individuals in the organisation, To find out why they do what
they do. This is divided into 2 branches, Human Relations Approach and
Behavioral Science Approach.
The limitation of this approach is that human behaviour is complex and is hard
to satisfy them and it changes as time goes. So it's hard to keep analysing
them and working with them.

MODERN APPROACH :
This approach believes that employees do not work only for money but they
have numerous reasons to work which includes happiness, desired lifestyle
and recognition etc. so the managers understand the employees behaviours
and needs and implement strategies to meet those needs and support their
skills and development over time.

These are the approaches used by the organisation over the period of them
and it has evolved over the years.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

MANAGEMENT THEORIES:

There are different types of management theories which can be used in an

organisation for its success. These theories help in increasing the
effectiveness of the team or organisation.

7 major theories of management are:

● Scientific management of theory
● Administrative management theory ( henri fayol )
● Bureaucratic management theory
● Human relation theory
● System management theory
● Theory of X & Y theory
● Contingency management theory

These are the theories which are used by all the organisations and one of the
theories will be explained below.

HENRI FAYOL 14 PRINCIPLES OF MANAGEMENT:

HENRI FAYOL 14 PRINCIPLES IMAGE

The company is responsible for motivating the employees to work and make
them feel needed and develop a mutual understanding between the
organisation and the employees. There are 14 principles of management
which can be used by the managers to organize and delegate the work within
the organization and this will work in all levels of the organization.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

1. DIVISION OF WORK:
Henri believes that segregation of the work in the workforce among the
workers will enhance the product and will improve the efficiency,
accuracy and speed of the workers.

2. AUTHORITY AND RESPONSIBILITY:

This principle states that a manager should have both authority and
responsibility so that he can carry out his work effectively and when
there is authority there responsibility will be there so this makes the
managers work effectively and efficiently.

3. DISCIPLINE:
Discipline is an important factor in an organization for it to run smoothly
and effectively. The managers need to create a culture where there is
mutual respect between the workers and managers. The rules should
be made like it can not be bendable or slacking should not be allowed
inside the organization.

4. UNITY OF COMMAND:
Here the employee should work under only one manager and it should
be clearly said who he is to report to if a worker, if an employee works
for more than one then authority, discipline and stability are threatened.

5. UNITY OF DIRECTION:
Whoever engages in the same activity should have a unified goal. This
means all the people working in the company should have one goal and
motive which will make them work easier and achieve the set of goals.

6. COLLECTIVE INTEREST OVER INDIVIDUAL INTEREST:

This says that the company should work unitedly towards the interest of
a company and the company's interest should be taken seriously over
the individual's interest. If not the organization will collapse

7. REMUNERATION:
This says that the employees should be paid well, if the employees are
not satisfied with the organization this will demotivate them and will
reduce their potential in their work. Remuneration can be monetary or
non- monetary.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

8. CENTRALIZATION:
In any company there should be a balance between centralisation and
decentralisation. Bc if it's totally decentralised then there will be no
superior authority to control the organization and if it is fully centralised
then there won't be any authority to the bottom workers but they have
responsibility.

9. SCALAR CHAIN:
This says that the hierarchy steps should be clearly highlighted so that
the bottom workers know their immediate senior also they should be
able to contact any, if needed.

10. ORDER:
A company should maintain a well-defined work order to have a
favourable work culture. The positive atmosphere in the workplace will
boost more positive productivity.

11. EQUITY:
All employees should be treated equally and respectfully. Its the
responsibility of a manager that no employees face discrimination.

12. STABILITY:
When an employee feels secured he delivers his best in his job. It's the
duty of the management to offer job security to their employees.

13. INITIATIVE:
The employees should be encouraged to take initiative in an
organisation. It will increase their interest and make them feel worth.

14. ESPRIT DE CORPS:

This means TEAM SPIRIT. It is the manager's responsibility to strive to
create unity, morale, and co-operation among employees. Happy and
motivated employees are more likely to be productive and efficient.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

SCIENTIFIC MANAGEMENT THEORY:

The scientific management theory focuses on the individual performance and

effectiveness of employees in the organization. Frederick Winslow Taylor
created the principle of scientific management and his advice was to apply
them to the practice of management. He said that the best way to increase
labour productivity was to optimise the manner in which the work was done.
Taylor's methods for improving worker productivity can still be seen today at
companies.

4 principles of scientific management theory:

1. Select methods based on science not rule of thumb
2. Assign workers jobs based on their aptitudes
3. Monitor worker performance
4. Properly divide the workload between managers and workers
By following this the management can get the workers to perform to their
fullest potential.

THEORY OF X AND Y:

Theory of X and Y says that “X” is a negative way of management and “Y” is
a positive way.

Theory X says that the employees should be in the control of the manager
where the manager will be saying what the employees should do, so it does
not encourage innovation.

Theory Y says that the manager should create and encourage a work
environment which provides opportunities to employees to take risks and
innovate new things.

Theory X is an autocratic style while Theory Y is democratic style, this can

motivate or demotivate the employees but in the end the organisation would
have achieved its objectives.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

DIFFERENT LEADERSHIP STYLES AND THEORIES

USED IN DIFFERENT ORGANISATION:

About APPLE and their leadership style:

APPLE OFFLINE STORES

Apple Inc. is an American based corporation that designs and manufactures

consumer electronics products. The company was established in April 1976
by Steve Jobs, Steve Wokniak and Ronaldo Watne to sell Apple I personal
computer kits. Apple's current CEO is TIM COOK and the leadership style
used by him is Democratic leadership.

The founder of Apple, Steve Jobs was the CEO of Apple till 1985 and then
resigned and founded his own company. In 1997 Jobs came back and guided
Apple for more than a decade and resigned in 2011. Then TIM COOK became
the CEO and has been guiding the corporation since then.

The former CEO of Apple Steve Jobs was an “autocratic leader” the
company was operated by him in an autocratic manner where he had all the
power and he kept similar minded people to manage the company and heis
creative awareness, his “meticulous eyes for details” was clearly an driving
force in apple's success.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

Once Tim Cook took over there was a drastic change in the organisation as
the ‘autocratic leadership style’ was changed to “democratic leadership
style”. Tim Cook was praised by the employees for being an inspirational
leader and helping his subordinates to become a better human being.

Cook granted greater autonomy to the new product development team,

decreasing the direct participation of the CEO in the new product development
process. “Quiet leadership”. Tim Cook has been praised for being a quiet
but still an effective leader so he has been awarded with the nickname “Quite
leader”.

In the company one the company shifted from autocratic to democratic

leadership and this purely depends on the leader. If the leader wants to
delegate power then he can follow the democratic style of leadership but if he
wants to keep the power to himself then he can follow the autocratic
leadership style. If a leader believes he doesn't need any power and trusts
that the workers will do their job effectively then the organisation can follow
laissez faire leadership style.

The two other companies chosen have a different type of leadership

style than Apple. These companies are from different industries and
have different culture, management style and leadership styles.

McDonalds and Netflix are one of the well known organisations in the world,
headquartered in the United States, Have an established marketing in the
public and are the leading company in their respective fields.

MCDONALDS STORE NETFLIX OFFICE

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

ABOUT MCDONALDS:

McDonalds is an american multinational fast food corporation and real estate

company, it was founded in the United States in 1940 and is world’s second
largest private employer with 1.7 million employees. The company follows
AUTOCRATIC LEADERSHIP STYLE to operate its organization and lead its
staff. Even though the company is successful the employees are not happy
and are not included in the decision making process and mcdonalds has been
criticised for its treatments of employees.
McDonalds could adopt another style of leadership but fears that there will be
severe backlash from the team who may seek more independence. All the
team leaders of all McDonalds are trained to voice the opinions of their senior
management. The employees have to follow the order and don't have to be
creative. The disadvantage is that people may not feel like they are valued in
the organisation and this may lead to high employee turnover but it is easy to
find an employee replacement. This may not be successful in all the
organisations and all the industries. As this is a food chain industry this kind of
leadership works but this won't work in an industry where creativity is
important.

As the food industry is huge and risky the management can't take a risk by
letting the lower workers into decision making and stuff. The leaders are the
main ones who make decisions and this is for the organisation's good even
then the workers don't feel like they are needed and there won't be any
emotional relationship built between the employees and employers.

ABOUT NETFLIX:

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It is an

American subscription streaming service and production company. It offers
one of the best films and series to its subscribers, Netflix has more than 222
million subscribers all over the world. The current CEO of Netflix Reed
Hastings is known to be an one of the best leaders and he is also known for
being an leader who uses laissez faire style of leadership to achieve the
organisational goals.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

Reed Hastings believes that the creative comes with freedom, he wants his
workers to be creative so he needs to let them be how they want so that they
can be as productive as they can be and he also says that “Freedom comes
with Responsibility”.

They hire the best out of the best and they are encouraged to be independent
and decision making by employees. They are taking a risk with people by
letting them free but they made sure that the workers are responsible enough
to do it without someone behind their back.

The CEO has an “NO RULE RULES” book which was written with his
experience of being an CEO i netflix and also includes the culture of netflix.

He also clearly stated that this kind of leadership style won’t be successful in
all kinds of organisations and they are always experimenting with their staff
and organisation.

This explains how there are different types of leaders and leadership styles
around the world and how every single organisation is different from each
other and how one type of leadership works in one organisation but does not
work in another organisation. With the example of these 3 organisations we
can see that there are different types of leadership styles and management
styles and all of these are connected with their culture.

DIFFERENT TYPE OF MANAGEMENT THEORIES USED

IN DIFFERENT ORGANISATIONS:

Each organisation uses different types of management theories as these

leaders choose which one can be used and which one will be the best for the
success of the organisation and the management theory is chosen as per their
own culture.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

MANAGEMENT THEORIES USED BY APPLE:

Apple uses different kinds of theory to motivate and lead their employees
towards the goal of the organisation.

SCIENTIFIC MANAGEMENT THEORY:

Scientific management theory is a method of improving efficiency in the

workforce. As its name implies, this management theory uses scientific
methods to assess work processes.
The principle based on this theory are:
● Choose method based on science
● Assign workers tasks based on their skillset
● Monitor your worker’s performance
● Divide workload appropriately between workers and manager.

The organisation uses this theory as the company is about innovation and the
leader motivates them with the help of the scientific management theory.

EXPECTANCY THEORY:

The company uses this theory to motivate their employees to achieve the
goals which are measurable, attainable and specific. Employees attempt to
increase their performance level to the valued reward. Apple makes sure to
provide each of their employees with beneficial welfare. This automatically
improves their performance level even though the rewards are not as
employees desired.

GOAL SETTING THEORY:

They highly focus to motivate their employees to accomplish challenging task

goals. This goal setting theory helps the company with setting an objective
and it always helps with the clarification of performance expectation. This
helps with motivating the performance and self satisfaction of the employees
within the Apple Inc.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

CONTINGENCY THEORY:

Form of structure, management and success of the organization depends

upon a range of situational factors.

The model suggests that in an unstructured and creative task, such as the
ones Apple was performing, the best fit leader is one that is task-oriented
leader. A leader that will push for perfection in the completion of the task.

These are the management theories used by the organisation to motivate their
employees towards the organisation’s goal.

MANAGEMENT THEORIES USED BY MCDONALDS AND

NETFLIX:

McDonalds:

McDonalds uses scientific management theory where they follow Frederick W.

Taylor scientific theory of management. The theory says that one best way of
doing tasks is scientifically hiring, training and developing each employee,
implementing a work-for-reward type of stuff where the workers improve their
performance and get the incentive reward.

They applied a system where they reward the employee who meets his
objective goal, the organization uses competitive wage and promotion
programs where hard work is recognized and rewarded. There are simple
rewards like “Job well done” to “Employee of the month” . The company uses
this management theory to accomplish its organisational goals.

Netflix:
Netflix follows the management theory of “No Rules Rules” management
where the employees are left free but the organisation believes that the
freedom comes with responsibility and they believe that the more the
employees have freedom the more creative they will be as Netflix is a
company where they need new innovations to sustain in the industries.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The organisation made sure the company doesn't have any other policies and
the employees are given a high salary then in the market and they have
freedom to create and innovate. The company made sure they employ the
best people in the field as they have a very “generous severance package”.

The company uses this management style and theory to make their
employees achieve the organization’s goal.

These are different types of theory the three organisations use to

achieve its goal. And it differs to each organisation and the management
theories are chosen as per the leadership style and culture of the
organisation.

IMPORTANCE OF CULTURE IN AN ORGANISATION:

Culture is a belief that a group or a team follows and this happens in

organisations too. Every single organisation has its own culture is known as
organisational culture, it is a collection of values, expectations, and practices
that guides and informs the action of all team members. Culture has a positive
or a negative impact on an organisation. The leader is the main person who
creates a culture in the organisation. Culture includes dress code, the way
they talk, their value systems and future expectations.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

Impact of culture in an organisation:

➢ Culture promotes positive competition within the organisation

➢ Culture brings the people together
➢ Helps in creating an brand image
➢ Culture decides the way the employees behave and speak
➢ Culture decides the organisational value system, goals and
attitude.

Culture helps in building an organisation and to be unique from others and the
organisation brand image is built around its culture. Different organisations
have different cultures, values and beliefs.

CULTURE IN ORGANISATION AND FACTORS

INFLUENCING IN IT’S DEVELOPMENT:

ORGANISATIONAL CULTURE IMAGE

The culture in the organisation represents its public image and reputation.
Organisations culture refers to the company’s mission, objectives,
expectations and values that guide its employees. Business with a culture
tends to be more successful as the people inside the organisation have the
same values, beliefs and working towards the same goal. Having an strong
culture motivates the employees to do their best in work

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

There are lots of advantages and disadvantages of having an culture, they

are:

ADVANTAGES:
● Having an well defined goals
● Reflects the organization's value
● Enhances the company brand

DISADVANTAGE:
● Hiring the right person
● Poor communication
● Increases employee turnover rate

Therefore implementing a culture in an organisation is very important as

it may raise the organisation or bring down as a whole. There are factors
which might affect the culture and have to be considered in an
organisation.

● NATURE OF THE BUSINESS:

The type of the industry, market, and the purpose of the organisation
should be taken into consideration.

● LEADERSHIP:
The role of a leader is important in terms of maintaining and promoting
an organisation culture. When a leader imposes a policy then the whole
organisation has to follow so the leader should accept the culture of the
organisation and have a similar belief system.

● RECRUITMENT AND SELECTION:

Recruiting and selecting the right type of employees is very important as
the person should have a similar mindset and belief as the employee
has a large effect on the organisation.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

● RESOURCES AND TECHNOLOGY:

When the culture says it's digital then the resource and the training
should be given to the employees so that they can work with the digital
technology.

● COMPANY VALUES & POLICIES:

The employees develop the values in their organisation policies,
procedures and work environment. This helps in promoting organisation
culture.

Therefore these are the factors which should be considered while trying to
develop the culture in the organisation.

CULTURE IN DIFFERENT ORGANISATION:

APPLE:

ORGANISATIONAL CULTURE IMAGE

Apple has an organisational culture for creative innovation. As the

company has to maintain a high level of innovation that has a lot to do
with a person's creativity, they have a culture where they encourage their
workers to be creative and competitive as they need to be leading in the
market.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The following are the main characteristics of Apple’s corporate culture:

1. Top-notch excellence
2. Creativity
3. Innovation
4. Secrecy
5. Moderate combativeness

Combination of all these cultures helps the organization to be the top in the
market. Creativity and innovation is the main key and top-notch excellence all
together makes the company successful in its field. All of these have been the
core values and have evolved over time and the employees are satisfied with
this type of culture and this helps them to do their job better.

MCDONALD’S:

MCDONALDS ORG CULTURE IMAGE

McDonald’s culture emphasizes human resource development and efficiency.

As it is a fast food restaurant, McD uses its organizational culture to attract its
customers and qualified employees. Their culture focuses on learning and
development of employees skills.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The characteristics of mcdonalds culture:

1. People-centricity
2. Individual learning
3. Organizational learning
4. Diversity and inclusion

Mcdonalds is a customer service organization so it makes sure their

employees have the skills and knowledge. The organization uses their culture
to improve their quality service through people centricity, individual learning,
and organisational learning.

NETFLIX:

Netflix culture puts a heavy emphasis on high performance, as well as

freedom. As they are in the entertainment industries, the employees need to
get as creative as they can. They follow freedom and responsibility as their
main culture, here the employees have the freedom to get as creative as they
can but they have to take responsibility for their actions and decisions.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

Their main traits that they follow in their their culture are:

1. Independent decision making (Autonomy)

2. Open, broad, and deliberate information sharing (communication)
3. Extraordinary candidness (Attitude)
4. Focus on high effectiveness (Productivity and Effectiveness)
5. Rule avoidance (Rules and Organizational Rigidity)

When the employees are encouraged to make their own decisions they will be
taking risks and they deliver innovative ideas that contribute to the online
companies competitive advantage.This makes Netflix’s human resource
flexible and responsive to challenges in the industries.

Therefore these are the importance of having culture in an organization

and this helps to have a better insight on how the organisation uses
these cultures and how different it is from other organisations.

LEADERSHIP & MANAGEMENT THEORIES IMPACT ON

LARGE ORGANIZATION:

TEAM WORK IMAGE

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The management theories and leadership theory helps the organisation in

simplifying the process, when the organisation follows a certain management
system and leadership style it will be easier for the organization to perform.

There are different types of leadership theories and management theories

used by different organisations depending on their product or service, their
organisations culture and industries they are in.

The leader is the one who chooses which theory to follow and what kind of
leadership they will be using to lead the organisation.

The leadership and management impact are large in an

organisation.

They increase effectiveness and efficiency, They simplify the process of

decision making and Improves the performance of organisations as it will be
clearly specified what is expected from them.

BASIS LEADERSHIP MANAGEMENT

STYLE THEORY

APPLE Democratic Style Scientific Management

Theory

MCDONALD’S Autocratic Style Scientific Management

Theory

NETFLIX Laissez faire Style No Rules Rules

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

IMPACTS:

● APPLE:

As Apple has an democratic style of leadership and it has been said

that Apple follows an functional structure where the company has been
organised around the function expertise and the products will be worked
around these expertise. The employees ideas will be taken into
consideration and were supported and encouraged to think innovatively.

Apple follows the scientific management theory and many more to

manage the organisation and the principle of the theory and will
encourage the employees work to their full potential and reward will also
be given. The organisation follows this management theory and Goal
setting theory where the employees will be clearly told what the
expectations of the organisation will be expected to accomplish this
goal.
Apple uses democratic style which is actually good for me as this
involves the employees in decision making and this will motivate the
employees. The organisation should encourage employees to take risks
as they were in an autocratic leadership before so it will be hard for
them to take any risk, so if the organisation motivates and encourages
them then they can achieve the organisation goals easier and faster.

● MCDONALD’S:

They use autocratic leadership style in their organisation. McDonlad’s

doesn't include their employees in decision making. But this kind of
leadership style is helping the organisation in achieving its goals, it
offers a clear chain of command and keeps the individuals, groups or
teams from missing important deadlines. As the organisation uses there
will be less chances of things failing in the organisation as it is under the
supervision of the higher officials.

The organisation uses scientific management theory too. They use

rewards to encourage their employees. And there is a fear also as this
is an autocratic leadership style the employees can be replaced easily.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The theory says to hire people and train them and develop their skills to
do that particular job.

As the organisation is using autocratic leadership the employees will be

discouraged as their voice is not heard in the organisation, the company
should move to a different style of leadership and try to include the
employees in the decision makings which will have a positive impact in
organisation as more opinions will lead to better decision making.

● NETFLIX:

They follow a laissez faire style of leadership and they let their
employees take most of the decisions and trust and believe in their
employees. The CEO of Netflix has said that freedom comes with
responsibility and he believes that when his employees are left free they
will have more creativity and they will innovate new stuff. As Netflix is an
innovative company and believes in their employees creativity they
follow this leadership style which has taken them to success.

They follow “no rules rule” where the employees are left free and they
don't have timing that they have to follow and they can go against their
senior authorities if they feel like they have to.this makes the employees
feel empowered and as they are a part of organisation. The Hr strategy
is to build the vision and then hire employees who are suitable for the
job. This makes the organisation work the way it works.

As the organisation uses Laissez faire the organisation might have to

rely on its employees and this many end up becoming an burden to the
employees and no all people can work on their own so this might be
hard for few employees, the organisation needs to find the right person
for the job and who fits this kind of culture and leadership style which
might takes a long time to find.

These are the impact of the usage of leadership style and

management theories in an organisation how it helps them grow
and satisfying the customers.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

ASSESSING DIFFERENT STYLE OF LEADERSHIP AND

MANAGEMENT IN DIFFERENT ORGANISATION:

As we have seen above the different types of leadership and management

theories and how it impacts the organisation and which organisation
implements what theory in their organisation in order to succeed in their
respective industries.

Assessing the theories in the organisation is very important as this will show if
the particular theory works for them or not and help them analyse its
performance and see the progress of the new things implemented in the
organisation.

Analysing the styles in the organisation will be very useful for the organisation
to assess themselves in terms of their growth and development and can
improve in the areas where they are lacking as each style has its own
advantage and disadvantage.

The leadership style and management theory used in the organisation:

● APPLE - DEMOCRATIC STYLE & SCIENTIFIC MANAGEMENT

THEORY
● MCDONALD’S - AUTOCRATIC STYLE & SCIENTIFIC MANAGEMENT
THEORY
● NETFLIX - LAISSEZ FAIRE STYLE & NO RULES RULES THEORY

LEADERSHIP STYLE IMAGE

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

ADVANTAGE & DISADVANTAGES OF THE

LEADERSHIP STYLES AND MANAGEMENT THEORIES :

DEMOCRATIC STYLE LEADERSHIP (APPLE):

ADVANTAGE:

● Connects and motivates their employees

● More scope of creativity
● Increases overall productivity of the organisation

DISADVANTAGE:

● Poor ideas or decisions can leads to destruction of the company

● Every options does not get valued
● Time consuming

SCIENTIFIC MANAGEMENT THEORY (APPLE & MCDONALD’S):

ADVANTAGE:

● Ability to control
● Efficiency increased
● Reduction of production time

DISADVANTAGE:

● Misuse or exploitation of labour

● Overly bureaucratic
● Demotivating approach

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

HOW IT SUITES APPLE:

As the organisation moved from autocratic to democratic style of leadership,

the employees liked to be involved in decision making and felt like they were
an part of the organisation, so this motivated them to work and the CEO was
encouraging the employees to take risk and be innovative and this lead the
employees to create not stuffs and the scientific management theory also
helped as they had an idea who what they were doing and they had the
expertise who could help them and were leading the employees when they felt
confused or lost. This type of leadership and management style helped the
organisation in achieving its goal.

AUTOCRATIC STYLE (MCDONALD’S):

ADVANTAGE:
● Faster decision making
● Boost productivity
● Effective in handling of crisis

DISADVANTAGE:
● Creates an lack of trust
● Lacks creativity
● Creates dependency on the skills of the leader

HOW IT SUITES MCDONALD’S:

The organisation uses an autocratic style to manage its employees and as it is

a fast food restaurant chain business the company can't take everyone’s
opinion on its business, so the organisation does not let its employees get
involved in decision making. This might have a negative impact on staff's
motivation and performance but the organisation uses scientific management
theory to motivate and manage its employees through different reward
systems and they hire people, train them and develop their skills. Using this
leadership style and management theory has helped the organisation in
achieving its goal.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

LAISSEZ-FAIRE STYLE (NETFLIX):

ADVANTAGE:
● Freedom leads to creativity
● Personal growth and Motivation
● Learning and development

DISADVANTAGE:
● Confusion
● Isolation
● Cheating and dishonesty

NO RULES RULES THEORY (NETFLIX):

ADVANTAGE:
● Freedom leads to creativity
● Responsibility
● Increases efficiency and effectiveness

DISADVANTAGE:
● Freedom can be abused
● Too much pressure
● Conflict might happen within the organization

HOW IT SUITS NETFLIX:

As Netflix uses Laissez faire they have to hire employees who are mature
enough to do their job without someone behind their back and the
organisation believes that freedom comes with responsibility so when they are
given freedom to take decisions they have to be responsible for their actions.
The organisation follows no rules rules where there is no rule they have to
follow no deadlines or pressure and they believe that the more we let them
free they will get more creative and it will be useful to the organisation. They
use laissez faire and no rules rule to manage their business and it has given
good results and achieved their organisational goals.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

IMPACT OF LEADERSHIP AND MANAGEMENT IN

DECISION MAKING:

LEADERSHIP AND MANAGEMENT

We have see in the above that leadership and management is important in

an organisation and how it helps with operating the business successfully,
finding an appropriate leader and management style is important as the leader
and the manager in an organisation only when there is an proper leader with
an proper leadership style and how successful it is applied in the organisation
makes an huge difference as the style of management and leadership can
bring the organisation down or raise it high. As the leadership and
management style is important but the leader and a manager have an huge
impact in an organisation like:

Role of Leader and Manager:

● Leader inspires but manager controles
● Leader creates a path, manager follow them
● Leader develops , manager manages stuffs
● Leaders creates vision, manager creates goals

If both the manager and leader gets the work done efficiently and effectively it
will help the organisation grow. The more they influence and encourage their
employees the more successful the organisation gets.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

IMPACT ON APPLE:

As we have discussed before, Apple follows democratic leadership style. The

company involves employees in the decision making, so this helps them in
having different kinds of opinions and views and this will help them in making
a better decision. The organisation follows different kinds of management
theory where they follow goal setting theory, expectancy theory, contingency
theory and mainly scientific management theory. The organisation made sure
that the employees know what they are expecting from them and what they
have to do. There were rewards for people who performed well. These things
encouraged the employees to work harder, the hard skills were used by their
leaders and the managers to get the work done in the organisation.

These leadership theories and management theories were used and had a
positive impact in the organisation, The leader made sure the employees were
happy and satisfied while making sure the organisation goals were achieved.

RECOMMENDATIONS:

When the organisation was following autocratic leadership it had lots of new
innovations compared to now and the risk taking has been reduced within the
organisation. Apple can try to motivate employees to take risks and create
new innovations. They can let the employees get into the innovations, not only
the expertise but also people under them can take part in the innovation
process so it will be more effective.

IMPACT ON MCDONALDS’:

Mcdonalds have autocratic leadership so the employees have no say in the

decisions and are kept to just do what the higher ups say them to do, this may
reduce the employees productivity but the organisation makes sure the
employees are satisfied but in the decision making the higher ups are the only
one who can take decisions the will lead to no creativity and limited view on
things so it is advised to include the employees in the decision making but
autocratic is the best when there is an emergency so the leaders can take the
decision which waiting for anyone’s opinions. This kind of leadership has
taken the organisation this high so they don't have to think about changing the
type of leadership style used in the organisation.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

The Management style also helps the organisation in achieving its goal by
encouraging the employees with the rewards like employees of the month and
performance based reward and recognition. They also follow pay depending
on the performance of the employees system where the employee gets paid
more if they had high performance.

IMPACT ON NETFLIX:

Netflix has an laissez faire approach where they let employees take decisions
and let them do their job the way they want and the decisions are also made
by the employees so the higher ups has no say on the decisions made by the
individuals but at the same time if something goes wrong the employee has to
take responsibility for his action and will be praised if thing go good and will be
penalised if things go wrong. Netflix has been using this kind of leadership and
this has helped the organization achieve its goals and this helps the
employees to be more creative and expressive of their opinions. The
employees can go against the decision of the leaders and say their opinions.
This increases the employees engagement and satisfaction of working in the
organization.

OVERALL COMPARISON:

As these companies are from different industries and use different styles of
leadership and management theories, the impact on the organization's
success is also different.

Apple uses democratic style of leadership and had an huge impact on its
success, while McDonald’s uses autocratic style and it also had an huge
impact on its success and then Nteflix uses laissez faire leadership style and
this is also a success in its industries. All these 3 organisations are well known
in their industries and leading once and each of them have different style of
leadership and management theory but still each of them have succeeded in
their own way. So one Type of leadership wont work in everysing organisation,
each of them should follow the one which suits them and their culture.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

CRITICALLY EVALUATING HOW LEADERSHIP AND

MANAGEMENT STYLE IMPACTS THE ORGANISATION:

LEADERSHIP AND MANAGEMENT

After seeing the above topics we can say that for an organisation to achieve
its goals, vision and mission and met their aims and objectives they need to
have a good leader who will follow the best leadership style and management
theory which suites the organisation, even when the organisation uses
different style of leadership they all achieve their ultimate goal which is to be
the leading one in the industries.

The leadership style would be the first basic decision taken in an organisation
as this decides the kind of culture which has to be followed, the management
theory should also be chosen which one fits the organisation the best. These
things will decide how the employees will be working and how satisfied and
motivated they will be to work in the organisation.

As we have already mentioned above the advantages and disadvantages of

the Leadership styles and management theories used in Apple, McDonald’s
and Netflix and the culture they follow will also be discussed in the above and
I would like to add some recommendations to it on how they can improve
more than they already are.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

RECOMMENDATIONS:

● First thing to be considered is the communication between the

organisation and employees. The communication should be both the
ways in the autocratic it flows from top to bottom but in laissez faire it
flows from bottom to top. In democratic it flows both ways which is
better than one way communication. This increases the efficiency of
employees without stressing them out with lots of responsibility or no
authority.

● Today's trends in transactional leadership and it is advised to switch to

that where if the employees perform well they are rewarded or
penalised depending on their performance.

● Management system varies from industry to industry so making sure the

one chosen is good for the organization is important. Now flat
management is preferred more than the tall one as it has easier
communication between the employees and the management.

In an organisation like Apple where they moved from autocratic to democratic

it will take time for the employees to take risk and be innovative as they are
used to just following the orders etc so motivation and encouragement is
needed from the higher management so that the employees will be taking risk.
And the competitiveness should be reduced and management should make
their employees realise that it's teamwork and not competition.

In McDonalds they follow autocratic leadership so it is recommended to

change their leadership style as there is no significant relationship between
employee and the management. The employees won't be motivated to do
their fullest if they are not involved in the decision making process of the
organisation.

In Netflix the laissez faire is used and it is advised to make sure people
misuse or exploit the freedom which is given to them, which might happen if
the organisation does not have any close eyes on their employees.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

CONCLUSION :

From the above report we can see that every single organisation needs its
own culture, leadership style, management theories to shape them and lead
them into success and it doesn't have to be the same, each organisation will
have different kind of culture and leadership style and their way of managing
will be different from each other. And one style will work for one organisation
while it won't work for another organisation as the industries and business can
be different so the type style used in the organisation should also vary. The
main objective of the organisation is to achieve its goal and these leadership
styles and theories help them by simplifying the process.

In the above report we have discussed how the organisation archives its
goals with the help of a culture. The culture helps the organisation to let the
employees know what kind of behaviour is expected in the organisation and
what kind of beliefs are followed. This helps the organisation to run smoothly
without any major conflict.

The leadership style also helps the organisation as well. The style used is
different and that also depends on the leader, he will be the one who will be
choosing which kind of leadership he will be using. The decision and the rules
are all based on this.

The management style helps the organization in motivating and controlling the
employees. There are different types of management style and the
organisation should work with the one which suits them the most. The
management style used by the organisation has a huge impact on the
employees in terms of productivity.

Overall these management and leadership styles are very important in an

organisation for them to achieve its mission and goals.

Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management

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Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management
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Pearson BTEC Level 4 HND in Business
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Unit No : 04
Unit Name: Leadership and Management
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Unit No : 04
Unit Name: Leadership and Management
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Janani shri AU
Pearson BTEC Level 4 HND in Business
Regd No: R684041
Unit No : 04
Unit Name: Leadership and Management
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