Unit 04

Leadership and Management

Table of Contents

Introduction................................................................................................................................1

LO1 Examine leadership and management theories and principles and their impact on the
effectiveness of an organization....................................................................................................2

P1 Discuss different leadership theories in relation to the management activities in different

organizations................................................................................................................................3

Transformational leadership theory..........................................................................................3

Transactional leadership...........................................................................................................3

P2 Explore Different Theories of Management in Relation to The Management and Leadership

Activities in Different Organizations...........................................................................................4

Bureaucratic management theory.............................................................................................4

Administrative Theory..............................................................................................................4

Scientific Management Theory................................................................................................4

M1 Analyze the impact of the application of leadership and management theories on the
effectiveness of a large organization................................................................................................6

LO2 Review the influence of different leadership and management styles on the culture of
organizations..................................................................................................................................7

Authoritative management style...............................................................................................7

Benevolent authoritative management style.............................................................................7

Consultative management style................................................................................................7

Participative management style................................................................................................8

P3 Assess different Leadership and management styles and their application in a range of
business situations in different organizations...............................................................................9

Charismatic Leader...................................................................................................................9

Emotional leaders.....................................................................................................................9
 P4 Examine the factors that influence the development of the culture in organizations...........10

Power Culture.........................................................................................................................10

Role culture............................................................................................................................10

Task culture............................................................................................................................10

People culture.........................................................................................................................11

M2 Compare the impact of leadership and management styles on decision-making in different

organizations..............................................................................................................................12

M3 Evaluate the importance of organizational culture on the performance of different

organizations..............................................................................................................................13

D1 Critically evaluate the impact of different approaches to leadership and Management......14

LO3 Develop a motivational strategy to optimize organizational performance....................15

P5 Produce a motivational strategy for an organization that supports the optimal achievement
of organizational objectives.......................................................................................................16

Praise and recognition............................................................................................................16

Bonuses..................................................................................................................................16

Vacations................................................................................................................................16

M4 Produce a Detailed Motivational Strategy for an Organization That Addresses Intrinsic and
Extrinsic Motivation..................................................................................................................17

D2 Produce a Comprehensive Motivational Strategy That Effectively Addresses All Variables

of Motivation to Enhance Organizational Performance.............................................................18

LO4 Apply leadership and Management approaches to managing performance to ensure

continuous improvement.............................................................................................................19

P6 Apply to A Range of Business Situations, Appropriate Leadership and Management

Approaches for Managing Performance and Continuous Improvement...................................20

Classical approach..................................................................................................................20

Scientific Management...........................................................................................................20

Bureaucracy management......................................................................................................20
 Effectiveness management approach.....................................................................................21

M5 Assess How Leadership and Management Approaches for Managing Performance Support
Continuous Improvement...........................................................................................................22

D3 Make Recommendations to Improve Performance Management That Will Ensure

Continuous Improvement...........................................................................................................23

Employee Training.................................................................................................................23

Setting clear goals..................................................................................................................23

Two-way feedback..................................................................................................................23

Conclusion....................................................................................................................................24

References.....................................................................................................................................25
Introduction

To have authority over a group of people complete a task is called Management. What it implies
to be a leader is having the ability to influence people so that they will contribute towards the
success of a company. Motivation is the key difference between leaders and managers. For this
report, Unilever is taken into consideration. The company follows a corporate management
structure Unilever is the world's largest company of FMCG goods. Unilever operates in more
than 190 countries globally.

This report mainly covers different aspects of leadership and Management. Different
management theories and principles and their effects on the organization are discussed. How
different leadership management styles influence the organization's culture is also discussed.
This report addresses the development of motivational strategies to improve the organization's
performance. Lastly, how leadership approaches can be applied for continuous improvement in
an organization is also addressed in this report.

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LO1 Examine leadership and management theories and
principles and their impact on the effectiveness of an
organization

Any organization's fundamental points of view come from the leaders and directors. The goal of
an organization may be accomplished with the help of a capable leadership team and the
company's directors. It is generally agreed that leadership is the most crucial factor for
executives to consider and that when this factor is developed well, it will lead to a unified goal
for an organization. The term "administration" may refer to several things, including the most
prevalent means of coordinating personnel or the process involved in affecting the organization.
Additionally, the committee may be connected to improving an organization's processes
(Halldorsson, 2019). The managers operate independently from the leaders. If the management
structure the frail, the organization is doomed to fail.

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P1 Discuss different leadership theories in relation to the
management activities in different organizations.

Transformational leadership theory

Transformational leaders motivate everyone. Transformational leaders make constructive

changes in their behavior and participate in every work progress to make it successful.
Transformational leaders make constructive changes in their behavior and participate in every
work progress to make it successful. Transformational leadership is widespread, as seen in
boardrooms, educational institutions, and even the media sector. It can motivate the employees of
Unilever to work harder for the company's success (Ugochukwu, 2021).

Transactional leadership

Transactional leadership depends on incentives and punishment to get optimal work from the
organization's employees. Incentives or bonuses are given if the employees work well in the
organization. At the same time, punishment, salary reduction, or even demotion is given if the
employees do not work correctly in the organization. People are not self-disciplined, so they need
monitoring to do their tasks (İşcan, et al., 2014). Unilever can use this leadership style to
improve the work done by their employees.

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P2 Explore Different Theories of Management in Relation to
The Management and Leadership Activities in Different
Organizations.

Bureaucratic management theory

According to bureaucratic management theory, a company needs to have a proper hierarchical

structure and a set of rules and regulations so that the company's operations can be managed
smoothly. This theory was presented as an alternative to the democratic management theory. The
term "bureaucracy" describes a situation in which one individual or organization has knowledge,
authority, or control over another set of individuals or operations. Bureaucratic management
theory was on building a hierarchical framework inside the company and establishing transparent
processes, techniques, laws, and standards to execute business activities and transactions.

Administrative Theory

The Administrative Theory is predicated on functional departments, which indicates the various
tasks that must be carried out to achieve the company's common goal. These gals should be
recognized and then divided into different groups or divisions to ensure that the process can be
carried out efficiently. This is done to ensure that the task can be completed. Also, emphasis
should be given to the framework of the managerial structure for optimum worker efficiency
(Gordon, 2022). When the employees of Unilever are well coordinated, it will increase the
probability of errors not occurring.

Scientific Management Theory

The use of engineering science on the production line or at the operational levels is one of the
most well-known aspects of the Scientific Management Theory. The objective of the scientific
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management theory was to maximize productivity at every level of the business, beginning with
the individual worker. If employees are given better and more modern technology to work with,
their output will automatically increase (Derksen, 2014). Moreover, there is a strong emphasis
placed on growing productivity. Therefore, by utilizing advanced technology, Unilever can
improve its productivity.

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M1 Analyze the impact of the application of leadership and
management theories on the effectiveness of a large
organization.

Incentives for improving performance provide the justification which is necessary for growth. At
Unilever, the term "conditional initiative" means the method through which businesses and
employees trade incentives with one another to achieve more favorable results. Transactional
leadership is maintained permanently once the employees are happy with the incentives and have
expressed satisfaction with the business strategy. Many employees think that their pay for their
job is low. But the leaders and managers must make the employees feel they are getting enough
compensation for their job.

Management has a unique role in a company since they are responsible for developing and
directing the relationships between employees and Management. This is done to elevate the
influence of Management and administration within Unilever, supporting the employees so that
they give their best efforts in their job.

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LO2 Review the influence of different leadership and
management styles on the culture of organizations

Authoritative management style

Authoritative management style, everything goes under the order of the Management. The
employees need to obey every order of the managers. There is strict control in the authoritative
style of Management. Using this kind of Management, it has been found that complex issues
may be dealt with successfully (KNIGHTS, 2022). There is increasing competition in the FMCG
sector. Unilever can implement this style to have more sales and profit.

Benevolent authoritative management style

Higher-level Management has both the authority and the ability to make decisions. Incentives are
used to motivate employees to perform to their potential. Communication occurs in both ways,
although it is often crafted to meet the requirements of the leaders involved. By using this
leadership style, Unilever can have faithful employees. For the success of any company, having
faithful employees is imperative (Gordon, 2022).

Consultative management style

Before making a choice, the Leader considers their employees' opinions and suggestions. This
exemplifies a higher degree of trust and confidence in the employee. This also makes the
employee feel important to the company. There is a healthy flow of information in both ways. If
this management style is implemented, the employees will be motivated to work better since they
will feel they are essential to the company (Gordon, 2022).

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Participative management style

This management strategy aims to foster a spirit of teamwork and cooperation among employees
working in an office environment. In this case, all the employees and their managers work
together on a project. This creates a good relationship between the employees and the managers.
All the employees and the managers are open with each other. As a result, it increases sales and
profit (Rolková & Farkašová, 2015).

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P3 Assess different Leadership and management styles and
their application in a range of business situations in different
organizations.

Charismatic Leader

Leadership which is characterized by charisma, is defined as charismatic leadership. This type

of professional assistance is built on strong interpersonal skills, persuasiveness, and charm to
support employees to get the most work from them. Charismatic leaders often exhibit a high
level of charisma, firm beliefs, and a profound commitment to their job. Because charismatic
leaders are so devoted to their profession, those who follow them and work on their
organizations are often moved to powerful feelings due to their leadership. Charismatic Leaders
motivate steadfastness, action, and the creation of powerful problem-solving abilities. If
businesses have charismatic leaders, they can motivate employees to give their maximum effort.
The key to charismatic leadership is motivation (Waters, 2021).

Emotional leaders

A crucial aspect of leading people is the emotional intelligence to comprehend and control one's
feelings and to identify and affect. It can make the difference between just accomplishing a goal
and captivating the hearts and minds of employees to discover creative solutions that go above
and beyond what is expected. They have an emotional bond with the employees. It indicates
leaders are in a position to concentrate on developing connections with the members of their
organizations to facilitate creative endeavors, involvement, and interaction. Leaders must work
through not just the strategic issues but also the personal feelings that employees have about the
obstacles that come along the way. There are leaders in organizations that don't exhibit solid
dynamic leadership. These are the employers no one wishes to work for, give presentations to, or
have any other kind of interaction with (Archangel, 2017).

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P4 Examine the factors that influence the development of the
culture in organizations

Power Culture

A small number of influential people exert control. Most choices are made by what is referred to
as "the powerful few." There are not many regulations, and the amount of bureaucracy is low.
Because so few individuals are in positions of actual power and responsibility, decision-making
processes are often quite brisk. Whenever someone works in an organization like this, the
completion of duties may be done quickly, but the atmosphere can be somewhat authoritarian.
When there isn't a good ethical compass at one of these organizations' forefront, the culture may
deteriorate into something harmful (YAPP, 2020).

Role culture

Hierarchy is maintained in role culture. They are often huge organizations, such as Unilever or
the central retail banks in the United Kingdom, to provide just two examples. The administrative
authority of a person, their responsibilities, and the people who answer to them are their power
sources. They are often organizations that avoid taking. (YAPP, 2020).

Task culture

Employees are put together to work on a particular task. Experience is the source of power for an
individual so long as the larger society recognizes and respects it. The work at hand and the
successful completion are of the utmost importance. The balance of power in a group
dynamically fluctuates based on factors such as the challenge's nature or the progress made
toward completing the job. It can be very effective, provided the necessary people, Management,
and leadership mechanisms are in place (YAPP, 2020).

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People culture

There are some companies where the workers have the impression that they are more significant
than the company in which they are employed. People tend to care more about themselves than
they do about the company they work for when the culture is person-centered. Within such a
culture, the company takes a back seat, inevitably leading to its downfall. The only motivation
for workers to come to work is financial reward; they have no emotional investment in their jobs.
They show very little loyalty to the Management and rarely make decisions that benefit the
company. One should always give more priority to the organization.

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M2 Compare the impact of leadership and management
styles on decision-making in different organizations

Leadership has a significant influence on a business's success. It is not just the management level
of an organization that may have leaders; leadership can exist at any level. However, this is a
trait that all successful leaders share. They influence others in their immediate environment to get
the possible value from the organization's assets.

In today's world, leadership theories are based on Karisma, power, and their ability to motivate
employees to accomplish organizational goals. Different types of leadership styles are utilized in
different organizations, such as; charismatic, authoritarian, democratic, or bureaucratic.
Transformational leaders use motivation to accomplish organizational goals, whereas
transactional use incentives to accomplish organizational goals. If managers and leaders are
aware of all these types of leadership styles, then they can make good decisions for their
organization. Suitable leadership styles will bring high sales and net profit to the organization. At
the same time, there will be employee satisfaction with good leadership. (Khajeh, 2018).

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M3 Evaluate the importance of organizational culture on the
performance of different organizations.

Organizational culture plays a huge role when making any significant decision. In addition to
this, it assists in the elimination of obstacles for the employees. Employees of Unilever who have
a working grasp of the processes that are currently in place have a greater chance of completing
the tasks. The most successful workplace places are those with open and honest cultures, which
bring their staff members together and ensure that things operate smoothly. Having well-defined
goals and standards for employees to strive toward is one of the hallmarks of a firm with a robust
culture. This motivates and inspires employees to participate more enthusiastically in their
professional responsibilities and to have a greater interest in the activities. Employee
participation also helps the organization become more productive (Week, 2019). Organizational
culture may significantly impact the external environment of Unilever, which may increase or
decrease sales.

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D1 Critically evaluate the impact of different approaches to
leadership and Management.

There a plenty of leadership theories and psychological frameworks to select from; some are
more well-recognized than others. There is a critical need for familiarity with and understanding
these more mainstream leadership ideas. The type of Leader you want to be may be determined
partly by your familiarity with effective leadership's social and psychological outcomes.

Among the many benefits of behavioral theory is that it provides a framework for leaders to
reflect on their development and make conscious decisions about the steps they need to take to
achieve their goals as a group or individually. It allows leaders to be versatile and responsive to
different circumstances. Furthermore, this kind of leadership has the additional benefit of
encouraging employees to consider themselves potential leaders. There are limitations to the
behavioral theory, like the idea that, while it allows for variety, it does not offer clear guidance
on how to behave in each given circumstance (Aibieyi, 2014).

As name suggests, contingency leadership theory analyzes the environmental factors that
influence a leader's actions. These concepts investigate how a leader's performance affects the
external environment. Situational factors significantly affect a leader's ability to make an impact.
While a leader's character certainly matters, what matters is the specific situation that the Leader
finds. This theory considers many leadership perspectives and suggests that influential leaders
can switch between models. It also suggests that the best course of action may consist of
identifying the best sort of Leader for a specific circumstance.

One of the numerous advantages of the contingency theory is that it allows leaders to succeed in
any circumstance. Nonetheless, this theory has been challenged because there isn't enough data
to draw any firm conclusions about the world outside of the data we already have. While
contingency theory emphasizes the importance of a given scenario, it may fail to consider the
mentality of the company's workers or its overall culture. On the other hand, it may not pay

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enough attention to the fact that leaders' styles change over time. Internal and external factors
affect a leader's health (Aibieyi, 2014).

LO3 Develop a motivational strategy to optimize

organizational performance

One of the most critical factors in an organization's growth is its employees' motivation.
Ensuring that employees are continually happy, pleased, and motivated may lead to increased
productivity, superior output, and employee retention, saving money by lowering the turnover
rate. A motivated and productive workforce also produces a more efficient and lucrative
company (indeed, 2022). The following parts will asses how to develop a motivational strategy
for Unilever to improve their performance.

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P5 Produce a motivational strategy for an organization that
supports the optimal achievement of organizational
objectives.

Praise and recognition

Recognizing and rewarding workers for their efforts and offering constructive criticism is a
simple but powerful strategy to boost morale and productivity. If the contributions made by the
employees are recognized, it shows that the company has respect for its employees. Leaders that
often interact with their employees may easily find opportunities to highlight the efforts of their
workers (Dellarocco, 2020).

Bonuses

Bonuses and profit sharing for exceptional workers are great ways to keep them engaged and
productive. Incentives for exceptional performance convey to workers that their efforts are
appreciated and motivate them to keep pushing themselves to their limits. In a profit-sharing
arrangement, workers are given a monetary bonus according to the company's financial success.

Vacations

Employees are allowed to relax when brief breaks are provided at various points during the shift.
The feeling of being refreshed may significantly lower the risk of fatigue, which can contribute
to improved levels of employee satisfaction (indeed, 2022).

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M4 Produce a Detailed Motivational Strategy for an
Organization That Addresses Intrinsic and Extrinsic
Motivation

What drives workers to perform in a certain way or adopt specific procedures to meet
organizational needs is "motivation." Integration of many ideas into the workforce has the
potential to boost morale and productivity. Unilever's process and contents theories might be
used to raise production quality for the benefit of employees, while content theories could be
utilized to strengthen the company's existing organizational structures. Therefore, Unilever has to
create an inspiring strategy for its workforce if it wants to meet high-performance standards and
foster consistent growth (Sara Eisenberg, 2021).

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D2 Produce a Comprehensive Motivational Strategy That
Effectively Addresses All Variables of Motivation to Enhance
Organizational Performance

The behavioral repercussions of employees' projected absence of motivation and dissatisfaction

with their work are something that organizations must be able to control. Demotivation in a
business may have various adverse effects, including high levels of expensive employee
turnover, absenteeism, bad labor relations, and decreased production levels. Managers must be
aware of encouraging workers while ensuring they remain pleased and dedicated to the business
for the company to succeed. The motivation of workers might be boosted by a wide variety of
motivating stimuli to inspire the desire to improve performance. The variables that drive
motivation may be internal or extrinsic, or it can be a combination of the two (Sefako, 2014).

Workplace environments, training, employee participation, acknowledgment, attainable goals,

yearly bonuses, transportation services, and feedback are some factors affecting employee
motivation. Also, other factors like job rotation are essential to keep employees motivated since
they might get bored and lose motivation by doing the same task for years. All the variables will
motivate the employees and enhance the organization's performance.

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LO4 Apply leadership and Management approaches to
managing performance to ensure continuous improvement

The exemplary leadership and management approaches are propelling the organization forward
despite substantial pressure from both external and internal factors. Management may use
situational techniques to improve workers' conduct on the job in various business contexts. If
Unilever can get its employees more invested in its work using the suitable models, the
company's profit will grow, and the business will be more solid.

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P6 Apply to A Range of Business Situations, Appropriate
Leadership and Management Approaches for Managing
Performance and Continuous Improvement

Classical approach

The Classical approach focuses mainly on the employees and organizations managed by a
particular set of procedures, all of which were derived from the results of diligent monitoring.
The classical method focuses on achieving maximum profitability by adhering to universal
operating rules. In the context of Management, a classical strategy attempts to design and
implement general rules that can be applied to any situation. In its most basic form, this strategy
involves searching for the optimal path, which its proponents think may be uncovered via logical
methods (ilearnlot, 2022).

Scientific Management

The scientific approach was a management philosophy that analyzed the purpose of increasing
the work an employee produced in a given amount of time. The administration of a
company needs to be conducted in such a way that it increases productivity. In addition, this
method maintained that the mode of transition in leadership might be established via scientific
research.

Bureaucracy management

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The bureaucracy's management style, founded on reason and authority, makes it more flexible in
the face of novel circumstances. In addition, SOPs and documented regulations are mandated to
ensure consistency and make cooperation easier. The manager-employee dynamic is kept on an
informal level. In addition, only technically qualified and competent individuals are hired for
open positions.

Effectiveness management approach

To be effective, one must focus on getting the desired results, which means paying attention to
one's outputs and the milestones that must be reached. An effective management technique will
result in a healthy organizational structure and interaction among its members due to their
conditions or conditions. This is because the contingency method does not have a single
organizational design superior to the others. Instead, it is a kind of organization in which the
structure, Management, and effectiveness are reliant upon various situational circumstances.

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M5 Assess How Leadership and Management Approaches
for Managing Performance Support Continuous
Improvement

Employees at Unilever need to be pushed to improve the quality of their tasks so that the
business can win over more clients and make more money. Anyone working with the company
has the right to voice their preferences. This clarifies how transparent communication regarding
roles and duties helps eliminate confusion and uncertainty via successful interaction.
Organizational performance might be boosted by collaboration and competitive strategy,
allowing timely feedback and decision-making. Employees may be able to do more as a team if
they pool their knowledge of specific tasks to reduce the number of mistakes made. Employees
are always motivated by incentives and bonuses for which they will work hard. Gaining an
advantage in the market and increasing profits will likely need increasing the proportion of
profitable work done (Goldberg, 2014).

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D3 Make Recommendations to Improve Performance
Management That Will Ensure Continuous Improvement

Finding holes in the current performance management process is the first step toward developing
a system tailored to the organization's needs. This implies giving oneself time after laying the
framework and putting in place the fundamentals to identify and address any problems.
Following are some of the recommendations for continuous improvement.

Employee Training

Training and opportunity to gain new abilities are essential for employees. Suppose a business
already has an effective procedure for reviewing, meeting and receiving feedback, but growth is
still at a standstill. In that case, the problem can be with the prospects for employee improvement
( Lattice Team, 2018).

Setting clear goals

A high-level goal is crucial to a business's success and directly influences the workforce's
performance. When a worker's to-do list is designed to get them solely to a quarterly
performance objective, the person may feel as if the job they do is meaningless. Suppose the
organization has lower-level performance objectives and a system for monitoring them.
However, Management still discovers that the workers are not interested and are not on schedule
to accomplish their goals. In that case, this may be because there are no corporate goals.

Two-way feedback

Employees should not have the impression that they are simply being instructed on what to do;
instead, they should be free to provide their input and collaborate with the managers. Workers
and managers collaborate and interact with one another; managers are not simply there to act as
mouthpieces for workers. The managers of a company need to be aware of how their workers are
feeling, how they prefer to be recognized, and what the Management can do to encourage their
workers better.

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Conclusion

In conclusion, it is feasible to claim that an organization's managerial and leadership style may
influence the organization's decision-making process and other areas. The idea that differentiates
leaders from managers in motivation. If Unilever wants to make better decisions for the company
and make more profit, it should follow the leadership and management styles stated above in the
report. In addition, with other competitors, Unilever should evaluate its performance yearly to
change its leadership and management styles to make even more profit.

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