Introduction of Leadership And Management Role Within An Organization Case Study
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Leadership and management play a vital role in any kind of organization and that what would be discussed in the further part of the report which would be including the assessment of the effectiveness that has come up in the organization for a proper procedure. Within that analysis there will be instances taken from the academic theories such as “transformational and transactional leadership (Bass and Burns).” And will be compared with one another. Other theories in relation to management will be mentioned such as “Fredrick Taylor’s scientific management theory which focuses on control and McGregor’s theories X and Y.” Along with charismatic leadership and that is a leadership theory and Elton Mayo’s behavioural theory which is a management theory. After then the key performance metrics of the organizational sector and the organizational leadership and management performance will be discussed and end with a conclusion.
Leadership and management play a vital role in any kind of organization and what would be discussed in the further part of the report would be the assessment of the effect that has come up in the organization for a proper procedure. Within that analysis, there will be instances taken from the academic theories such as “transformational and transactional leadership (Bass and Burns).” And will be compared with one another. Other theories concerning management will be mentioned such as “Fredrick Taylor’s scientific management theory which focuses on control and McGregor’s theories X and Y.” Along with charismatic leadership and which is a leadership theory and Elton Mayo’s behavioral theory which is a management theory. After then the key performance metrics of the organization sector and the organizational leadership and management performance will be discussed and end with a conclusion.“Unilever plc” is mainly a British multinational consumer good company and is a Public Limited Company. The headquarter of the company is situated in London, the United Kingdom in the year 1929 by the “Lever Brothers and the Dutch margarine” (AGBOWO, 2018). The company has introduced a variety range of products such as “food, condiments, ice cream, wellbeing vitamins, minerals and supplements, tea, coffee, breakfast cereal, cleaning agents, water and air purifiers, pet food, toothpaste, beauty products, and personal care.” The company is known as the largest company in the field of producing a variety of soaps including brands such as “Dove, Lynx/Axe, and it has at least 400 brands situated in diverse regions on the global platform and earning a huge turnover of at least 51 billion Euros (Unilever, 2022).
Analysis and comparison of leadership and management
The company is humongous in nature and size as it is dealing with a variety of department and a number of products which needs proper leadership and management for providing quality services and products at the same time so therefore there are some leadership theories that uplifts the potential of the business on a global platform. Firstly it is important to understand that leadership is the most vital element within an organization which does create influence the human traits and behaviors of every individual for attaining a specified goal decided by an organization. This does include transactional leadership or even well known as “management leadership” the theory refers to the style of leadership where a great emphasis is imposed on the relation that is between a leader and the employees working under them and the style of this theory is known as “Bureaucratic”. Whereas, transformational leadership is such a type of leadership that emerges as a specific cause for generating transformation within the employees working under an organization and is “charismatic” in style. Although, it’s quite tough to understand the difference between these two theories. In transactional leadership, there is a concept that the more importance is given to the relationship between the leader and workers under him/her whereas in the other theory it's usual to say that leader puts more emphasis on the values, ideals, and morals of the workers working under them. The nature of transformational leadership is proactive whereas it is reactive in nature in the case of transactional theory. The number of leaders included in the transformational theory focuses on innovation and the number of leaders included in transactional theory is limited as this focuses on planning and execution of an idea.
There are some management theories that also put an impact on the growth of the organization theories do include- “Fredrick Taylor’s scientific management theory” this theory usually uplifts and supports ideas that are “one right way” which usually assists to boost the sense of responsibility of an individual which enhances the capacity of decision making which ultimately gives a benefit to the organization (Kamal, 2020). It also allows an employee to sort their flexibility to cope with the random changing environment and break their rigidity through the help of teamwork which helps to divide the tasks into chunks to enhance productivity. The theory basically promotes contrary to modern ideals which basically motivates that enhance the level of satisfaction in the workplace. Hence, the theory is widely used in the management of the organization to perform a systematic design of an organization.
Another management theory of McGregor's theories of X and Y as per this theory puts a reflection on the behavior of the employees. In which two sides are represented like the theory X represents the positive part and vice versa. As per the assumption of Theory X, it is noticed that the tendency of eloping from work is seen much more in the average workers and hence due to such a situation it is obvious to receive punishment from seniors which reflects the doctoral power of the superiors within the organization (Madero-Gómez and Rodríguez-Delgado, 2018). The issues like dislike bearing responsibilities emerge with rigidity. Whereas, in the assumption of Theory Y employees can take their jobs and tasks relaxing which would be less impact on their mental as well as the physical health, which does lead to a notion that workers would not feel the threat and can utilize their innovative ideas with sincerity and dedication for the organization (Grigorov, 2020). In case the job is rewarding and brings satisfaction to the employees and it will lead to enhance the loyalty from their end and build productivity. This process leads to encouraging the employees to receive responsibilities. Fully utilizing the skills and capabilities of the employee leading logic which does ensure boosts the creativity in solving the issues that emerged during the implementation of tasks for achieving an objective.
The behavioral theory of “Elton Mayo” also makes a great contribution to enhancing the business as it is also regarded as one of the best management theories. That focuses to build the productivity of an employee under diverse situations (Muldoon, 2020). As per the theorist, it is stated that employees usually get much more motivated by relational factors and social forces which include attention as compared to rewards provided in capital or environmental conditions.
Key performance metrics of organizational sector/market/industry
The overall employee strength of Unilever PLC is very high with 149000 in 2022 as it is a multinational company that seems to operate its business of manufacturing beverages, foods, personal and beauty care goods, and cleaning agents in different nations of all continents (Chiedu, 2017). This proves that they had been able to retain their talented employees in the organization even during this pandemic period. Moreover, the gender balance management of Unilever is 52/48 and 92% of its leaders are local to the market.
The costs of the Unilever PLC had increased into a high proportion due to the pandemic situation as they had to bear additional expenditures due to the different supply chain and process through which they were delivering their food and beverages products from the UK to their branches and subsidiaries in different parts of the world. This is evident from the fact that the yearly operating costs of Unilever had increased by 6.8% from 2020 when their operating expenditure was $48.458billion to $51.751 billion in 2021 (White, 2019). Moreover, this organization increased the costs of its products by 8.3%, however, its sales volumes declined by 1%.
The quality of the products of Unilever is very high as they had been successful in selling good standard beverages, foods; personal and beauty care goods which helped in become multinational and retain its target customers for long tenure (Chiedu, 2017). Moreover, for looking after their product's quality this company to formulates and maintains the Product Safety and Product Quality Code Policy. This policy helps them in making them committed to manufacturing and offering branded goods and offerings which are safe and innovative.
Unilever is a prime participant in several FMCG markets internationally, together with domestic care, material care, and pores and skincare. Moreover, two of Unilever's maximum precious manufacturers, Axe and Dove, are each manufacturer of deodorants and antiperspirants. In 2013, Unilever made up a 36 percent market share of the worldwide antiperspirant marketplace, although this determine has in view that dropped rapidly to approximately 26 percentage as of 2020 (Talib, 2020). Within America, Dove turned into the highest promoting deodorant logo of 2019.
Growth or profit for the chosen organization.
The annual profit of Unilever currently is €52.44 billion and its net income is €6.62 billion. Moreover, their 13 billion brands in Europe saw growth of 6.4%, and its sales in India, China, and the US faced growth of 13.4%, 14.3%, and 3.7% respectively (Tien, 2019).
Organizational leadership and management performance
The management performance of Unilever is done by its managers in a hierarchical way which can be analyzed with the help of Maslow's hierarchy of needs. It is a motivational theory that is used by managers of this company to encourage in improving their performance and defines five sorts of necessities of people that dictate the behavior of an individual.
It seems to be described as the first desire of people and termed as the mental pleasure that absolutely everyone in an enterprise or different region needs which in addition strengthens the encouragement among them to do destiny tasks (Hopper, 2020). Furthermore, the number one human survival desires encompass water and meals, refuge and apparel, big relaxation, reproduction, and fitness. Maslow states that each one of those mental necessities is to be accomplished earlier than people move ahead to some other stage of obtainment.
It is another maximum crucial stage of necessities and it includes emotional stability and balance, safety and protection from robbery and violence, well-being, financial safety, and fitness protection (Poirier and Devraj, 2019). As in line with this stage of want, it has been recognized that in the absence of achieving protection requirements, a worker could no longer be capable of concentrating on their tasks in an enterprise.
Love and belonging needs
It seems to be the most essential third stage of the hierarchy that is linked with human beings' verbal exchange with one another. This need signifies that there needs to be a humble and sturdy fine connection of an individual with their mother and father, buddies, and loved ones that creates deep bonding (Fallatah and Syed, 2018). Similarly, an enterprise needs to additionally create a healthful operating ecosystem so that it could assist personnel to construct friendly relations and emotional connections with their co-employees and executives thereby, growing strength to perform as a group and improve their personal task talents and productivity too.
Esteem desires are termed as the necessities and requirements which might be absolutely pushed with the aid of pride. The fundamental elements of self-esteem are self-recognition and self-respect. Maslow in addition states that esteem may be categorized into classes specifically; self-esteem is primarily dependent on someone's personal self-analysis and respect which is based totally on acknowledgment and admiration (Poirier and Devraj, 2019). This displays that an enterprise needs to offer the same appreciation and esteem to every personnel regardless of their historical past.
It is described as the achievement with the aid of someone of his or her capacity as a person or as a worker if that person is operating in an enterprise. Self-actualization necessity includes improvement of abilities, schooling, and knowledge in new technology, receiving rewards, cooking, and others. As a result, it facilitates a person in achieving completeness in the character of their career. People can also understand or concentrate on this want very particularly (Hopper, 2020). For instance, one person can also have a robust preference to turn out to be a really perfect figure. In every other, the preference can be shown academically, financially, or athletically. For others, it is able to be displayed creatively, in artwork, images, or innovations.
The leadership theory that is being followed by the leaders and managers of Unilever Plc is the situational leadership style. Situational leadership theory is a method of leadership under which the leader seems to be practicing a particular way of leading the team depending on the condition or circumstances (Thompson and Glasø, 2018). Situational leadership theory helps the leaders to be very practical and take necessary decisions on the basis of the condition prevailing. This leadership theory defines the four basic styles of leadership namely, directing, coaching, delegating, and supporting.
The ‘directing’ pattern is beneficial while one is operating with freelancers or contractors for instance. While the job is outsourced; and that leader has a clean concept of the things they want to be carried out, and the type of results that need to be achieved, they could use a 'telling' method. In this situation, their desire to be a clean path (Walls, 2019). The 'directing' method could no longer be beneficial while dealing with an immediate group, as it might restrict boom and protect the improvement of an inspiring group tradition.
The ‘coaching’ method is beneficial while someone, because the chief, is introducing a ‘new’ or delicate, imaginative and prescient. Despite the fact that the vision was no longer shaped by means of the crew individuals; they want their purchase-in to make certain they’re stimulated to carry out and attain the final purpose (Henkel and Bourdeau, 2018). This style is exceptionally utilized whilst the group consists of person participants who are complete-time personnel.
The ‘delegating’ leading method is beneficial whilst the chief absolutely considers the selection-making capabilities of the person or institution. This method is generally utilized by CEOs, who completely consider the skills of their administrators or managers, because of their enjoyment and emotional adulthood (Woods, 2019). The 'delegating' leading method is not often utilized in groups created from junior or mid-stage groups of workers, except the choice is pretty low danger.
The participating method is beneficial whilst an assignment desires to be accomplished however it no longer wants the preliminary involvement of the chief until a choice desire to be made. For an instance, whilst one of the group participants is recruiting a worker, they have got complete manage over the recruitment method however the supervisor because the chief has the very last say, depending on their insight, thoughts, or recommendations (Henkel and Bourdeau, 2018). The participating leadership method is excellently used while maintaining a group of managers or administrators; in any other case a group of person members.
From the above study, the costs of Unilever PLC had increased into a high proportion due to the pandemic situation as they had to bear additional expenditures due to the different supply chain and process through which they were delivering their food and beverages products from the UK to their branches. It has been observed that psychological needs furthermore; the number one human survival desires encompass water and meals, refuge and apparel, big relaxation, reproduction, and fitness. Maslow states that each one of those mental necessities is to be accomplished earlier than people move ahead to some other stage of obtainment. It has been known situational leadership theory is a method of leadership under which the leader seems to be practicing a particular way of leading the team depending on the condition or circumstances.
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