Unit 4 Management and Operations BTEC Level 4 HND in Business


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Management is a very important part of any business. It is almost impossible for any company to survive without effective management in the market. There are various kinds of management style that a manager or a leader can follow in order to manage or lead a firm. A company consist of different operations and processes, and proper management of those is the key for success of any firm. A manager has to make sure that business operations as well as processes are proper and it is helping in generating high profits and productivity for the firm. Toyota is the biggest automobile manufacturer of the world and is recognised all over the world because of its products and service delivery (Schniederjans, Cao and Triche, 2013). The company is having expertise in some of the areas of efficient management like Lean management, manufacturing etc. The company is also having some efficient operations around the world which allows it to lead the automobile industry. Toyota is a brand around the world and the most selling car of the company is Toyota corolla, it is estimated that around 5 million inits are sold by Toyota in a particular year.

Task 1

P1) The different roles and characteristics of a leader and a manager.

It is quite obvious that a business can not run by itself, it should have some efficient people who run it. These efficient people shall be on the post in an organisation that they will be able to contribute in the growth as well as success of the organisation like, manager, leader etc.Manages the leaders place at different role in the organisation based on their capabilities as well and abilities that they possess. As said by Peter Ducker that leadership is doing right things and Management is doing things right basically a leader has to do right things and has to take decisions which will be beneficial for the firm going forward and the role of manager is to make sure that the decisions that are taken by the Later are perfectly implemented within the organisation and make sure that implementation take place within the time that has been allotted for the task (Bartlett and Beamish, 2018).

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Toyota is a multinational company and is having a diverse operations around the world it is growing day by day and therefore it is essential that business operations of the company are managed alert and led by capable individuals it is therefore quite essential to hire people who would have this capability is the role of manager and a leader is quite different and are described as follows:

Role of Manager:

Risk controller: There are some issues in an organisation which are uncertain in nature and may arise at any time and therefore it is the responsibility of manager to make sure that these issues are managed effectively and efficiently so that it will not harm organisation and its resources adversely. Toyota continuously way back up plans so that if such issue arises then company can handle them in an effective manner the Company spend a lot of money on research and Double up meant to stay one step ahead of its competitors.

Goals oriented: Toyota company make sure that the managers that are being hired in the company do Have capabilities to manage certain complex issues within the firm which will help company to grow as well as prosper in the future. The main role of the manager is to set goals for the company and make sure that those goals are achieved in an efficient manner (Hillier, 2012). The manager should make sure that every department of the company is working towards achievement of the goal that are being said by him.

Direct: This can be considered as one of the most important function of a manager, he is responsible for directing people as to what are their jobs and how they should accomplish them in an affective manner. If a manager will not be able to direct people, then there will be certain complications which will not good for company and it stakeholders.

Role of Leader

Representative of company: A leader can be considered as the representative of the company towards the third party and outsiders. He is the one who handle most of the external events of the company like seminars discussion conferences etc. it is thus quite important that the leader of company do have a vision and goals, managers of the company should implement those goals and objectives of the leader in an effective as well as efficient manner.

Decision Making: The leader is responsible for taking important decisions for the company so that it can grow and prosper going forward. He is also responsible to form teams within the company and those teams should be led by later which will make sure that effective outcomes are derived from those teams. He is also responsible for making sure that the decisions that are being taken are implemented (Feng and, 2014).

Motivation: The leader has to continuously motivate his team so that they can enhance the productivity of the company and at the same time contributes in their personal and professional career goals, if the individuals who are working within the company are not motivated to work for the company then certainly it will have a negative impact on the performance of the firm. It is this quite crucial that leader shall have a proper framework to motivate its individual and employees.

Leader and manager Comparison




Decision making

He is responsible for all the decisions that are taken at the workplace.

He only facilitates the manager in some of the decisions.


 They are responsible for managing the firm.

 They have to take necessary decisions for the firm and show direction for future growth.

They are more focused to words short-term goals and objectives.

They are responsible for framing long-term goal and tactics of the company.


They have control over some of the operations of the company.

They have control over the whole company and maybe in some cases, the ultimate owner of the company.

 P2 The role of a leader and the function of a manger apply in different situational context.

Leaders and managers have different role in the organisation. Leader plays the role of leading leading the company in affective manner. On the other hand, manager is responsible for making the decisions are reality. But, it is a sensual that both the individuals should work in tandem with chief organisational growth and success. Toyota is a huge company and its having manufactured facilities all over the world. The company is growing at a steady pace only because of the officiant managers that are there in the company as well as effective decision-making of its leaders (Hajmohammad and, 2013). The manager directs its implies and subordinates to achieve certain goals within the timeframe allotted. Both managers and leaders have to work collectively to make sure that organisation walks on the growth and success bath for this they will put all their skills and talent along with necessary hard work.Some rolls of a leader and a manager in Toyota is described as follows:

Decision making process: It can be considered as one of the most important part of business. Under this, The manager will be taking short-term decisions for the purpose of achievement of daily goals and targets. On the other hand, leader will be responsible for taking long-term decisions that will have a lasting impact on organisation and its operation. Leaders usually does not take part in date today decision making of the company, however if there are certain situation which needs guidance of leaders and the owners of company then it becomes responsibility of the leader to lead firm in those situations and take them back on the path of growth and  success. In Toyota the decisions are taken by the manager and leader collectively and make sure that the best possible outcome is achieved through those decisions (Rosemann and vom Brocke, 2015). It is also necessary that the decision making process Within Toyota is not cumbersome and it is easy enough to make an impact on the organisation.

  • Authority Delegation: The managers under Toyota believe in participative management therefore, delegates there authority to subordinates and act as a facilitator so that necessary guidance can be given to them for the purpose of taking decisions and performing tasks in an effective manner. Under Toyota, the company make sure that there is no power centre within an organisation and decisions are taken collectively so that the best possible outcome can be achieved in an effective manner. For this purpose the top management of the company continuously assess the various power centres and authorities.
  • Employee Engagements: Both managers and leaders under Toyota believes believes in making sure that there is proper coordination as well less corporation among employees and they are completely engaged with most of the business activities of the company. It is their responsibility to make sure that there is proper employee engagement within organisation

Training and development: it is one of the most important aspect of managerial and leadership decision-making. Under this, it is the responsibility of managers and leaders both their employees as well as individuals among the company are properly trained and are developing by the time. If the skills of employs will be nourished through proper training and development then this will contribute to enhance the productivity as well as profitability of the company (Hitt, Xu and Carnes, 2016). Training is also given to employees within company for managing customers and dealing with them in an appropriate manner. The skills and talent of employs will help company to gain higher productivity as well as growth.

P3 Different theories and models of approach related to leadership in Toyota

Most of the companies on a global level, or applying various models and theories within the working for the purpose of achieving excellence in their operations. Toyota also makes sure that various approaches which are essential for applied in an affective manner within the company with the help of proper leadership and managerial decision-making. Higher authorities within the organisation assigning duties and responsibilities to leaders so that task can be completed within the time frame that is allotted. Some of the theories which can be adopted by the management of the company are as follows:

Situational Theory:

It can be considered as the most effective leadership style. It consist of various leadership styles Which are being applied in different situations. This theory states that everything that happens in the workplace is based on the situation and therefore most of the decisions are taken on the basis of the situation that occurs. It can be considered as one of the most important and effective theory which can be used by the management of Toyota for the purpose of growth and development of the company (Lanzarone, Matta and Sahin, 2012). It is necessary to provide effort to innovate and to make an introduction of employs with the working environment. The leaders shall be able to move from one area to another in a manner so that eye can be kept on organisational performance as well as the necessary outcome derived by employs the organisation, under this theory, the leaders are also responsible for resolving certain issues which might impact the overall performance of the company.

System leadership theory:

This theory can be considered as the problem-solving theory of organisation. It considers certain issues which arises in an organisation on a daily basis.It is the major responsibility of the leaders of organisation to make sure that issues are resolved in an affective manner and does not hamper the growth and productivity of organisation.It is also known as radical approach because it helps organisation in development as well as growth. this theory helps organisation introducing complexity and enhancing overall performance so that higher profits as well as productivity can be achieved. In this, the manager has to follow certain principles in order to control some internal as well as external factors which prevails within and outside the organisation.

Trait leadership theory:

Basically this theory explains that a leader is born to be a leader and it is the trait which is in the personality of a person and it cannot be made with effort or anything else it is something which is achieved by birth. Therefore this theory completely relies on the leader and says that effective judgements are taken by the leader in various situations and individuals within organisations should follow him with at most discipline. According to this theory, litre is are born leader and though he can be a manager but the manager cannot be a leader because of the fact that there should be some characteristics that only a leader can possess and not a manager.

Classical management theory:

This theory talks about finding the best solution for the purpose of Management the operations of the business. This is a scientific theory and it says that certain issues needs to be resolved in the traditional manner and should not be manipulated. This theory is used mostly within the organisations which are running from a lot of time and has gained success by using this kind of theory (Crevier, Cordeau and Savard, G., 2012). it is essential from the point of view of Management that the theory is rightly implemented so that the best possible result and outcome can be obtained.

Contingency Leadership theory:

It is the behavioural concept that touches within an organisation and it relies upon thoughts views and opinions of all the people working within the company. The ultimate aim of the story is to make sure that in certain contingencies, proper leadership from right kind of leader to lead the organisation and take the company forward is there, contingencies could be anything with regards to external internal factors (Pudar. and, 2014).

Task 2

P4 The key approaches to operations management and the role that leaders and managers play

Operation management can be referred to as the administration of various functional activities which are been organised by the company. Management is most efficient in nature which makes the whole organisation work in an appropriate manner.  is famous for its efficiency services that are delivered to its customers as well as buyers (Hristov And, 2013). In Toyota the leaders as well as managers play a different role and are equally important for the growth as well as development of the organisation. Some of these roles described as follows:

  • Planning: It can be regarded as the most fundamental process which is performed by manager at the workplace it is essential that right kind of planning is done before implementing any decision or launching any new business. Before setting up any new business, a perfect planning shall be there which would help company as well as the business to actively move forward with the help of right kind of plan becomes easier for a manager implement where is the decisions in an affective as well as efficient manner.

Managing: just planning is not enough it is necessary that right kind of managing skills are possessed by a manager so that teams as well as individuals can be managed effectively in the best possible outcome can be achieved through proper management of both (Benzarti, Sahin and Dallery., 2013). Managing is an art it requires a lot of effort as well as skills and abilities. They provide guidance to employs for the purpose of completion of their work and Tasks, in the most effective way. It is also the role of manager for the whole business is managed effectively Toyota have various managers around the world in their responsibilities are also quite big, as they have to manage various customers, buyers and at the same time report to management regarding the performance of business, so all the stops requires patience and management skills which can only be possessed by a manager (Singhal and Singhal, 2012).

  • Total quality management: it is one of the major elements of our firm. In today's modern Era and generation, people are more interested in the quality of goods and services provided rather than the prices that are being set by the company. Toyota believes in providing goods and services which are high in quality and are way better than its competitors.Therefore the company believes in total quality management of its good as well services. It becomes the ultimate responsibility of managers and leaders to make sure that the level of quality of of various goods and services provided by the company is not mediocre and are competitive.

Just in time: it is the method used by the managers for the purpose of efficiently managing the inventory level of the company. Under this, the order is for raw materials are placed just before its consumption. By doing this, the company will be able to save the cost of the stages and ultimately will contribute to higher profits. Toyota uses this method to purchase goods from its suppliers just before they are being purchased by the buyer within the stores of the company (Gao and You, 2015). This ensures that there is no wastage of good and they are being sold as and when they come in the store.      

  • Lean Management: it can be regarded as one of the technical approach to function a company or a business, basically it supports the continuous development concept. It helps in evolving the present services, goods , product as well as processes that would be needed to make an increment with the time. Toyota uses this Process for effectively managing its business operations.
  • Six Sigma: It is the strategy to reduce the faults in the manufacturing or delivery of various goods and services. The ultimate aim of this strategy is to make sure that while performing business activities there is no on minimal error. It is a very crucial strategy which enables an organisation to remove the defects within a product, process or a service, it is a proper statistical and data driven approach for managing the business, firstly introduced by Motorola in its operations, this strategy was then used by General Electric within its production facilities in an effective manner. Six sigma can be regarded as the goal that a firm would want to achieve being the defects per milllion. If company will be able to reach even 3,4, or 5 sigma the company's cost will reduce considerably and customer Satisfaction will increase in an effective manner.

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A leader is an individual who leads a person, a team or the whole organisation, with an ultimate aim to attain the overall aims as well as objectives of the firm. A leader leads a team in the most difficult situations and handles them with all perfection to achieve success. A leader makes a viable Plan to achieve the necessary targets and to make his business or organisation a success over its competitors. For this purpose a leader has to follow a specific Planing Process,

which is being laid down as follows:

  • Clarity of the Plan? Its Understandability? Competitors Strength?
  • Does the plan Matches with respective values as well as purposes of the organisation?
  • Does the plan deal effectively with both threats and opportunities, those identified by top management for the organization and by the unit?
  • Does it identify the items of importance to our work unit?
  • To what extent does it contain specific, measurable goals and objectives?
  • Is the Plan is framed for the purpose of action or not?
  • Is there is a Plan B, in case of a serious internal or external event?
  • Does the plan include a way of obtaining feedback on its success?
  • Is the plan flexible in case it needs to be changed?

P5 Significance and value of operations management

It is quite obvious that the significance of operation management is quite huge within the field of business. The operations of the business is not managed properly, it is unlikely that the venture will turn out to be profitable as well less productive for its stakeholders Toyota believes in managing in its operations and effective manner through talented leaders as well as managers (Littlefield and, 2016). There will be a proper operation management within an organisation then it will have various benefits for the company. Some of the benefits of effective operational management are described as follows:

Minimisation on wastage

Toyota is the well-known brand In retail sector it is having operations around the world. Therefore, it becomes very crucial that these operations of the company are managed efficiently. If these are being managed efficiently, then wastage that occurs will get reduced quite an extent and hence will contribute to higher profitability. Through active operation management the various resources of the organisation can be managed efficiently. It also helps in cutting down the cost of providing services or manufacturing goods.   

Consumer satisfaction

With efficient operations management the company is able to service its customer if actively this results in their satisfaction which is very necessary for any company to grow and prosper going forward. If the company can achieve consumer satisfaction this would mean that the consumer will be loyal for the company, and this would be a great advantage in a competitive Era (Kern, Moser, Hartmann. and Moder, 2012). Toyota make sure that necessary needs as well as demands of its customers and consumers the mat so that they will be able to gain their satisfaction and loyalty, which will help company to grow.

Profit maximisation

The operations of business are managed efficiently it would result in reduction of cost as well as reduction in unnecessary expenses and wastage this would result in various benefits to the company the primary one of them will be higher profitability. Hence it is quite clear that good operation management would result in higher profitability for Toyota in the future.

Goodwill Increase

A good operation management will also ensure that the good will of the company will increase going forward. This is because consumers will be able to served in an effective manner and this will create a positive image of the company in their mind and hence an increased goodwill (McArthur, 2015).

P6 Factors with in businesses that affects operational management

The business and choices making procedure of Toyota is affected by two kinds of situations which is required for association to examine for dealing with their exercises and after effects of connected procedures.

Internal Factors

These elements are frequently arranged within association, for example, Toyota and influences the basic leadership procedure of organization and in addition its activities. These comprise of:


Purchaser of Toyota assumes vital part in the accomplishments and achievement of the organization. Fulfilled purchaser of Toyota has took organization so far toward the achievement and interesting acknowledgment of association. The venture have its clients universally which are generally are exclusive class of individuals


Specialist execute as quality of association. Imaginative, separated and potential worker is key of accomplishment of Toyota organization for which association perform different exercises, for example, preparing and advancement, annuity and remuneration which helps in expanding their execution and holding them with the brand.


Providers are the suppliers of crude material and real individuals who can either build the cost of generation or abatement it. Supervisor and pioneers of Toyota ought to keep up the association with their providers for the less expensive crude assets. Their duty is to give great quality standard of crude material at least cost (Ashutosh,, and, 2016).

External Factors

Legal Factors

These are various rules as well as regulations that prevail in the country in which it operates. The rules may be in favour of Toyota or against it based on the country in which it is operating. These are formed by political parties of the country based on what is suitable for the society and has to be abided by the company at any cost.

Political factor

The operations of Toyota are affected by the political policies that are prevailing in the country and hence it is quite essential that managers within the company incorporate political factors as well for the purpose of managing the operations and framing strategies.

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Technological Factors

It is the most important factor within Toyota that affects its business as well as operations. The kind of technology that a company chooses for the purpose of manufacturing of its automobiles will have a direct impact on overall sales and profitability and market position. Thus it is quite essential that right kind of technology is followed by the company for the purpose of its projects (Davidson, and, 2013).              


Does from the above discussion it can be said that management of the operations of the business is a very crucial part of the organisation. It is essential that this operations are being managed with all seriousness by the managers and the leaders of the enterprise. If the operations are not being managed properly and are continuously taken for granted by the managers then the profitability and productivity the company can see a decline and thus it will affect all the stakeholders of an enterprise. It is of Paramount importance that capable individuals are hired as managers as well as leaders will take the company forward and bring the best out of the teams as well as all separate individuals that works within the company.


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  • Feng, M., and, 2014. Does ineffective internal control over financial reporting affect a firm's operations? Evidence from firms' inventory management. The Accounting Review. 90(2). pp.529-557.
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