The report is made on leadership and management in the organization. Leader and manager are frequently used interchangeably, however, they are not synonymous. Managers are primarily concerned with managerial duties such as planning, organizing, and coordinating resources in order to handle tasks and achieve outcomes. A leader will inspire, motivate, and influence his team members (Hsieh, and Liou, 2018). It will lead to the attainment of individual goals while also working towards the bigger goals of the company. A manager achieves the organization's missions and goals through supervising, directing, planning, and maintaining cooperation among personnel. Organizational leaders often facilitate decisions, whereas managers originate decisions.
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The primary distinction between leaders and managers is that leaders describe the corporate culture and effort integrity, whilst managers largely apply the surviving culture while also maintaining their position. Both leaders and managers have distinct responsibilities in an organization and are critical to the successful operation of a firm.
The first section of the report addresses several management or leadership theories and concepts, as well as their implications for organizational activity. The research also discusses how different management and leadership styles impact company culture. The research examines the soft and hard talents of leaders and managers using examples from several leadership theories and their influence on corporate decision-making (Pape, 2020). The research also compares several firms based on their leadership and management actions. Finally, the research emphasizes the significance of successful culture, as well as the responsibilities of leaders and managers within the corporate culture. The firm Coco Cola is used as a case company in this study which require highly experienced quality leaders.
Figure1: coca cola logo
Theories of leadership and management
Different theories of leadership in relation to the management activities in different organizations
The managerial strategy used by leaders to inspire, motivate, and guide subordinates are referred to as their leadership style. Following are explanations of the major three kinds of leadership styles:
Democratic Leadership: In this style of leadership, leaders make decisions while taking recommendations from followers into account. In order to make use of the abilities and capabilities of employees in completing tasks, this leadership style entails delegating authority to others (Kivipõld, 2015). In this approach, the final decision is made by management after taking into account everyone's input. Because it gives team members a voice, this is one of the best leadership philosophies. A manager makes decisions using a democratic leadership style while consulting the team. This leadership style encourages team members to participate in making innovative decisions. However, creating harmony among team members can take time and drive up the cost of executive choices.
Autocratic Leadership: Autocratic leadership is opposed to self-governing management. In this technique, the leader makes choices in favour of the whole group with no input or recommendations from the team members. Only the leader has decision-making duty and ability. Team members must agree with the leader's choice. The autocratic leadership style is an ancient leadership manner that can demotivate employees since many choices are not in the best happiness of the employees, resulting in worker turnover (Thomas, 2015). Autocratic leadership, on the other hand, can be an effective technique when the leader is just an expert and understands every facet of the choice. This technique can be beneficial when team affiliates lack expertise and the executive does not necessitate group involvement.
Laissez-faire Leadership: This is a passive leadership style in which the manager provides group members with the knowledge, tools, as well as other resources they need to complete tasks. This leadership style is too known as the practical learning approach or the 'leave them be' style. In this technique, the manager takes a step back and allows group members to operate freely, allowing them to plan, categorize, deal with difficulties, make choices, and accomplish the assigned assignments (Ashikali and Groeneveld, 2015). The laissez-faire leadership style empowers self-motivated, creative, and competent team members. Employees can be motivated and more productive when they have more flexibility and independence. The Coca-Cola Company employs a variety of leadership styles within the company. Coca-Cola adopted autocratic leadership mostly on the production line because there is a requirement for control and particular processes that are followed by the personnel. Coca-Cola Company's north London organisational division has a laissez-faire leadership style. Because their workers are fulfilling their Key Company Indicators, the branch's managers and supervisors adopt a calm attitude to coordinate their business.
Theories of management in relation to the management and leadership activities in different organizations
Leadership and management each have their own set of theories and philosophies. Management theories are a collection of ideas that assert basic recommendations for dealing with a business or an organization (Ospina, 2017). If a corporation implements sequential management ideas, it will gain from increased productivity, objectivity, teamwork, and easier decision-making for leadership. There are seven categories of organizational leadership and management ideas and philosophies.
Scientific management theory: Frederick Taylor developed the scientific management theory. A motivational approach is a tactic used to encourage employees to engage in goal-related behavior. Human action is so complicated that why a manager must often push their people to give their all in order to achieve corporate goals (Bakari et.al. 2017). The good incentive also entails restructuring occupations to meet the requirements and desires of individuals. This method is intended to encourage employees inside the culture of the case firm Coca-Cola.
Administrative management theory: Henri Fayol presented administrative management theory as a fundamental of administration. The theory investigates five fundamental functions: coordination, control, forecasting, command, and planning. Henry Fayol set ideas outlining how managers should unite and collaborate with their teams. Initiative, ownership, scalar network, recompense of staff, unity of course, work ethic, division of work, power and accountability, unit of command, individual subordination of interests to wide-ranging interests, centralization of power, order, consistency of tenancy, and spirit de corps are among the principles contained in Henry Fayol's theory.
Bureaucratic management: The bureaucratic management philosophy, which Max Weber founded, emphasizes setting up organizations in a structure such that there are perfect models of authority (Amanchukwu et.al. 2015). A defined division of labor, a hierarchy of command, strict and uniform rules and regulations, keeping rules and guidelines for employee recruitment and progression, and separating individual and managerial assets of an organization are some of the features this theory covers.
Human relation theory: Elton Mayo created the human connection theory, which focuses on enhancing the organization's interaction with its people assets. Elton Mayo proposed that an organization's efficiency may be increased by enhancing human interactions. In this philosophy of management, Elton Mayo provides a standard in the firm's working environment, such as break periods, lighting, airflow, and word length. according to the findings of the trial, When employees feel valued, their performance improves.
Systems leadership theory: According to this, companies are comparable to the human body, which is made up of numerous workings that must all work together harmoniously for the larger system to purpose as efficiently as possible (Ejimabo, 2015). As per this idea, a variety of factors, including synergy, relationships, and dependency amongst the organization's subsystems, affect an organization's ability to expand and achieve success. This theory says work teams, sections, and lines of business are also essential elements of an organization. Employees are also a major component of an organization. In order to develop the best leadership strategy, a company's management must evaluate patterns and behaviors in the internal environment. Programmes where workers must cooperate to accomplish the company's common objectives must also be included by the executives.
Contingency leadership theory: The contingency hypothesis, which was created by Fred Fiedler, asserts that there is no one optimum leadership style and that a single style cannot be effective in all businesses. Fiedler suggested that the organization's internal and external environments should influence the leadership strategy (Hyväri, 2016). According to this view, a leader shouldn't be inflexible in their choice and adaptation of various management tactics.
Theory X and Y: American social psychologist Douglas McGregor is the creator of this idea. The X theory (the authoritarian style of management) and the Y theory are two hypotheses offered by Douglas that are based on two different management styles (the participative management style). When people are self-driven, accountable, and dedicated to their jobs, Theory Y is applied. When workers lack enthusiasm for their jobs, Theory X is applied, and the management makes all significant choices in order to fulfill the organization's objectives.
The above leadership and management ideas have an effect on an organization's operations both positively and negatively. These ideas all employed various management techniques that altered corporate behavior and culture (Tidd and Bessant, 2020). Every business was considered by Taylor's theory, which also changed the supervisors' and human resources professionals' and personal dynamics. The beginning of the human relations theory, which assisted in encouraging improvements in organizational behavior, subsequently opposed this conventional organization style.
McGregor's Theory X & Theory Y has yet another significant influence on organizational activity. These two theories couldn't be further apart. Strict guidelines for carrying out organizational tasks will come from implementing Theory X in the organization. Application of Theory Y, on the other offer, fosters a culture where workers perform in a way that demonstrates their dedication to carrying out organizational tasks.
Different leadership and management styles
As with the idea of leadership and managerial activities in an organization discussed above, the Company should monitor the management activities of its rivals to achieve a competitive edge. Red Bull and Coca-Cola Businesses are contrasted to analyze the leadership and management practices of another firm. The Austrian company Red Bull was founded in 1987. The business sells its goods in over 145 different nations worldwide. Currently, the business has franchises all around the world, and each one has a marketing staff and CEO. Red Bull was able to define the energy drink market with a distinctive brand that integrated its merchandise into popular teams and culture.
The Mateschitz manager is in charge of marketing initiatives, and she mostly concentrates on aggressive marketing via viral marketing, promotional activities, and sports sponsorship. The divisional and functional organizational structures the corporation has to enable it to be more adaptable and flexible in planning for various economic situations again for leadership and management techniques (Rahim, 2017). The annual budget must be separately managed by each franchise to guarantee that it is put to the best possible use in running the business. The management of an HR team is seen as being extremely strong at the corporate level. In order to make the newly hired workers professional in their job and efficiently accomplish the company's goal, they are dispatched to regional headquarters for training and development activities.
While Coca-Cola, a manufacturer of soft drinks with its headquarters in the United States, was established in 1886. Currently, the corporation sells its goods in more than 200 regions and nations. The business favors democratic and laissez-faire leadership approaches when it comes to managing several franchises throughout the world (Gehani, 2016). To manage its human resources efficiently, the Coca-Cola Company organized its personnel based on shared talents, abilities, and job duties. Only the senior management has the authority to develop the company's planning and strategy, whether it be for the short term or the long term. The business keeps tabs on all of its operations through routine assessments of seller and leadership effectiveness. The company's sales division engages in target-based activities to market its goods internationally.
It may be deduced from a comparison of the administrative actions of Coca-Cola as well as Red Bull firms that both entities produce energy and soft beverages. But each engages in distinct planning, organizing, leading, managing, and marketing operations. Each franchise CEO at Red Bull is free to create and implement their planning and execution techniques. However, only the senior management at the headquarters create the short- and long-term plans and strategies for Coca-Cola (Appie et.al. 2020). Red Bull has an aggressive marketing approach by persistently focusing on athletes throughout the globe. While Coca-Cola targets individuals of all ages, particularly young people worldwide, using a marketing mix approach.
Both businesses employed various organizational structures and styles of leadership. Red Bull chose a divisional, functional organizational structure that mostly represents an authoritarian leadership style with little regard for a democratic approach (Casaqui and Riegel, 2016). Coca-Cola, on the other hand, adopted both democratic as well as laissez-faire leadership philosophies. Therefore, it can be said that both businesses are operating well in the market using various leadership and management strategies to outperform their rivals.
The factors that influence the development of the culture in organizations
The collective of expectations, beliefs, and practices that direct and notify the actions of all workers in the organization is referred to as organizational culture. A culture is made up of leadership styles, a communications chain, information distributed internally, and corporate festivities (Sarooghi et.al. 2015). A healthy organizational culture has favorable characteristics that contribute to increased performance efficiency, whereas a functional organizational culture has defects that can hinder even the wealthiest businesses.
Organizational culture and leadership are the ideals that characterize an organization and how its management executes those principles. It specifies the behaviors and activities that an organization expects from its workers in order to foster a positive atmosphere conducive to business growth. Organizational culture aids in clearly establishing and conveying the firm's vision and mission so that all employees are aware of the goals to be achieved. Leaders teach workers how to embrace principles that contribute to organizational culture. Leaders are also responsible for relating, educating, and evaluating the culture that the business wishes to foster. Ethical leadership contributes to the development of a trusting culture based on integrity, truth, and justice.
Organizational culture and leadership for effective performance include:
Values: Organizational culture identifies the shared ideals inside the company. The expression of desired employee actions that are consistent with the company's fundamental values might be inspired by leaders (Elsbach and Stigliani, 2018). When executives educate staff members about the steps that need to be performed to uphold company values, an effective culture is created. A manager's job is to translate the company's goal into tangible outcomes.
Job Satisfaction: Meeting the demands of employees in relation to their jobs is referred to as job satisfaction. While a number of factors affect work happiness, company culture and leadership style are the most crucial. A culture of inspiration and motivation is fostered through ethical leadership, which boosts employee work satisfaction.
Recognition: The role of the leader is to recognize and reward effort and good conduct as part of an effective organization's cultural values. When managers reward their staff for good behavior, it inspires them and boosts their self-confidence. An appreciation-based culture is promoted through leadership. Additionally, effective leaders urge their team members to acknowledge one another for positive accomplishments.
Seven guiding values make up Coca-culture: Cola's leadership, zeal, cooperation, honesty, diversity, excellence, and public accountability. Coca-Cola offers a diverse workplace culture that includes initiatives to attract, hold onto, and develop a range of people. Coca-Cola has won several accolades for having strong corporate culture, including the Forbes 2022 America's Best Employer for Diversity Award and the 2022 Bloomberg Gender-Equality Index.
Conclusion
The aforementioned research leads to the conclusion that an organization's performance is greatly influenced by its leadership and management practices. Values, acceptance, culture, and motivation of employees are all determined by the leadership. Institutional plans, including their success in implementation, are shaped by leadership as well. This study demonstrates how various leadership philosophies may be used to develop distinctive corporate cultures. Where employees need to be direct and are less skilled, autocratic leadership might be applied. When employees don't require supervision since they are specialists in their area of work, the laissez-faire approach is best. Because two businesses might share the same physical resources but not identical human resources, this paper highlights the significance of management and leadership in achieving organizational growth. A comprehension of leadership and management actions at the Coca-Cola Organization is also included in the study. The Coca-Cola Group's success is largely due to its utilization of many leadership philosophies in various areas.
Reference
Amanchukwu, R.N., Stanley, G.J. and Ololube, N.P., 2015. A review of leadership theories, principles and styles and their relevance to educational management. Management, 5(1), pp.6-14.
Appie, L., Ndletyana, D. and Wilson-Prangley, A., 2020. Empowering the next generation of leaders: Maserame Mouyeme’s journey at Coca-Cola. Emerald Emerging Markets Case Studies, 10(2), pp.1-24.
Ashikali, T. and Groeneveld, S., 2015. Diversity management in public organizations and its effect on employees’ affective commitment: The role of transformational leadership and the inclusiveness of the organizational culture. Review of Public Personnel Administration, 35(2), pp.146-168.
Bakari, H., Hunjra, A.I. and Niazi, G.S.K., 2017. How does authentic leadership influence planned organizational change? The role of employees’ perceptions: Integration of theory of planned behavior and Lewin's three step model. Journal of Change Management, 17(2), pp.155-187.
Casaqui, V. and Riegel, V., 2016. Management of happiness, production of affects and the spirit of capitalism: international narratives of transformation from Coca-Cola brand. The Journal of International Communication, 22(2), pp.293-314.
Ejimabo, N.O., 2015. The influence of decision making in organizational leadership and management activities. Journal of Entrepreneurship & Organization Management, 4(2), pp.2222-2839.
Elsbach, K.D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), pp.2274-2306.
Gehani, R.R., 2016. Corporate brand value shifting from identity to innovation capability: from Coca-Cola to Apple. Journal of technology management & innovation, 11(3), pp.11-20.
Hsieh, J.Y. and Liou, K.T., 2018. Collaborative leadership and organizational performance: Assessing the structural relation in a public service agency. Review of Public Personnel Administration, 38(1), pp.83-109.
Hyväri, I., 2016. Roles of top management and organizational project management in the effective company strategy implementation. Procedia-Social and behavioral sciences, 226, pp.108-115.
Kivipõld, K., 2015. Organizational leadership capability–a mechanism of knowledge coordination for inducing innovative behaviour: a case study in Estonian service industries. Baltic Journal of Management.
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Ospina, S.M., 2017. Collective leadership and context in public administration: Bridging public leadership research and leadership studies. Public Administration Review, 77(2), pp.275-287.
Pape, M., 2020. Gender segregation and trajectories of organizational change: The underrepresentation of women in sports leadership. Gender & Society, 34(1), pp.81-105.
Rahim, M.A., 2017. Managing conflict in organizations. Routledge.
Sarooghi, H., Libaers, D. and Burkemper, A., 2015. Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of business venturing, 30(5), pp.714-731.
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Tidd, J. and Bessant, J.R., 2020. Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
Part 2: Motivational Strategies
Overview
The study of what motivates a worker to choose a certain course of action in order to accomplish a goal is known as motivation theory. There are various applications for motivational theories, including comprehending the economics and sociology of performance (Lamb, 2017).
Management may learn what drives workers to perform harder or care more about the company by researching motivational ideas. Managers in an organization apply these theories to raise the company's earnings, employee happiness, and staff retention rates.
In order to improve employee performance and aid the firm in achieving its objectives, managers apply motivation theories. By suggesting motivation theories, management comprises providing incentives and rewards as well as attending to employee requirements in order to achieve a goal of performance enhancement.
Note- This section of the presentation develops a motivational strategy that emphasizes organizational productivity by using both inner and extrinsic motivation.
Motivation theories
Incentive theory: According to the incentive theory, rewards and incentives combined with workplace recognition can encourage employees (Barrick al. 2015). The inducement might take the form of a bonus, promotion, accolade, chance, the boost in pay, or paid vacation. The reward can be used to manage employees' performance inside the company.
McClelland's need theory: this theory of motivation identifies three distinct requirements that encourage employees to work harder. The three demands identified by this concept are the need for power, achievement, and affiliation. Managers may identify workers' versatility in the workplace by being aware of these demands. In order to determine which award will be most effective for each employee, managers must evaluate these needs.
Competence theory: According to this idea, employees typically wish to participate in certain activities to demonstrate their knowledge, skills, and intellect. According to this belief, employees might be inspired by showcasing their intelligence in front of their peers.
Expectancy theory: According to this idea, workers may engage in specific activities if they think doing so would produce the desired outcomes. If management wishes to increase staff productivity and efficiency, they can implement the expectation motivation hypothesis.
Maslow's idea of the hierarchy of needs: According to this motivation theory, human requirements may be categorized into five categories. These requirements include the need for self-actualization, esteem, safety, and physiological demands (Osabiya, 2015). Basic requirements for a person's life, such as food, water, shelter, and clothing, are recognized as physiological desires. After a person's physiological weight are met, their desire for security become their need for a feeling of job stability. Humans are social creatures that seek out social interactions, thus the next requirement of employees is acceptability in the workplace and a feeling of belonging.
Note- A distinct company uses one of five incentive theories. When executing duties, employees' confidence may rise if they feel competent. Employers' performance may be managed and enhanced by managers utilizing the Competence Theory by assigning them to particular duties. According to the incentive motivation theory, rewarding employees might enhance their performance.
Performance improvement approaches
The creation of revenues by the major method of an organization's business is referred to as financial performance, which is a performance management strategy. The organization's financial statements, cash flow statements, and trial balance can be used to determine financial performance (Jalagat, 2016). To boost their financial performance, managers concentrate on profitability, volatility, and solvency.
Market performance describes how well a company does in the market with its goods. The market performance demonstrates the effects of several policies, including the relationship between the selling price and costs, the efficiency of manufacturing, product liberalism, and output volume, among others.
Managers work to get better Shareholder value is the number of earnings that are distributed to an organization's investors. It demonstrates a company's capacity to continue generating income over time. One of the most important measures of organizational performance is the growth of shareholder value.
Note: This is a powerful incentive program designed for businesses like Coca-Cola to inspire workers to work successfully and efficiently. Employees' best efforts will lead to the accomplishment of organizational goals and the expansion of the company. Organizational performance often refers to a company's ability to achieve the best outcomes. The three core focuses of organizational performance—financial performance, stock performance, and shareholder presentation—are the most important areas for improving managerial performance.
Example of Organization’s performance approaches used by management
Employees’ performance enhancement: Greater staff productivity is another strategy to increase an organization's overall performance.
Company process development: Managers might concentrate on increasing the effectiveness and efficiency of business processes to boost organizational performance. By redistributing resources throughout the processes, business processes may be restructured to increase corporate performance. Managers work to enhance certain business processes so they can contribute more to the organization's overall performance (Cook and Artino Jr, 2016).
Managers should prioritize inspiring their staff to improve worker productivity. Organizations can offer both monetary and non-monetary incentives to boost staff productivity.
Financial incentives such as revenue sharing, incentives, deferred compensation, stocks, commissions, pay incentives, additional allowances, and salary increases are all possibilities that a business has.
Non-cash prizes given to employees by managers are known as non-monetary incentives. Flexible work schedules, educational and training opportunities, a positive workplace culture, and sponsored vacations are all examples of non-monetary incentives.
Digital Transformation and adoption: Managers may do this to enhance the performance of their organizations. Organizations must embrace the digital revolution if they don't want to lag behind their rivals (Kothe al. 2019). By being more inventive, customer-focused, and agile, firms may become more effective via the adoption of digital transformation. The methods that digital transformation might improve organizational performance are as follows.
Automation is a crucial component of the digital revolution since it may increase productivity and decrease human error.
Adding new methods and tools can improve the efficacy and efficiency of company operations both internally and externally.
Managers may utilize digital technology to implement new working methods including remote employment and online collaborations.
Data-driven technology offers several benefits for several tasks carried out within the firm.
Note- Only through changing organizational culture and activities is it possible to improve organizational performance. There are several ways to increase a company's performance; some instance includes continuous improvement, personnel performance enhancement, and acquisition and transformation of digitalization.
Management approaches and its role in performance improvement
Systems Approach to Management: This management strategy views an association as a classification. A structure of approach to management is a grouping of connected and interdependent components. An organization is a structure made up of various departments, each of which is self-contained (Shafiei and Maleksaeidi, 2020). With this strategy, management coordinates all organizational departments in order to improve the company as a whole. The performance of employees is another important factor in the systemic management approach.
Communication center approach: This management strategy places more emphasis on the efficient exchange of information throughout the company. It involves receiving, processing, and dispersing information across the company. Strong connections between managers and workers are developed as a result of communicating effectively among employees at work. It promotes a pleasant workplace culture and raises employee motivation and productivity.
Administrative Approach to Management: In this strategy, a manager makes advantage of an alternative management duty to enhance organizational performance. Planning, organizing, staffing, persuading, inspiring, leading, directing, and regulating are some of these duties. In this method, the manager serves as both a resource allocator and a disruption handler to boost employee productivity. Managers address all employee complaints about the workplace and work environment in their capacity as disturbance handlers. A resource allocator manager allocates resources among multiple divisions and all of the company's personnel.
Note: These management strategies aid in raising both employee and organizational performance. The organization will have clarity regarding what to do, how to do it, and when it should be done if managers follow this strategy. Managers work to bring together various parties and connect personal objectives with company objectives. Managers also make an effort to inspire workers by strengthening the relationship between each department.
Developing a motivational strategy
Giving employees authority and autonomy to complete tasks: This motivating method gives Coca-Cola employees autonomy and authority to complete tasks. Employees will feel a feeling of belonging if their managers demonstrate trust and encouragement. Corporate intrapreneurship is a component of this motivating strategy, which entails giving workers the freedom to pursue new ideas and the resources to do so.
A strong incentives program: Managers utilize prizes as part of their motivational approach to emphasize employee actions that they wish to see reflected in the culture of the company. A reward is a favorable value—financial or otherwise—given to employees for performing effectively.
Flexibility: Due to family and other obligations, employees cherish their time. Because many people may not be able to work traditional set hours, this technique offers flexible working hours to the staff so they may meet their demands (Kanfer et.al. 2017). This plan calls for work sharing and telecommuting in some organizational departments.
Note: Employees have the option of working from home during some of their working hours' thanks to telecommuting. When two employees split a full-time job, each works a half-day. This is referred to as job sharing.
Conclusion and Recommendations
The three methods mentioned above are all highly helpful for productivity and ongoing improvement.
Organizational and personnel performance are significant determinants of a company's success.
The communication strategy aids in creating a culture of communication inside the organization.
It also creates a good work atmosphere, which will help to increase productivity and performance. It helps to raise employee morale and engagement.
By enhancing internal cooperation, the system method and administration approach also aid in ongoing development.
Note: All of the methods mentioned will aid in developing a supportive workplace culture that encourages collaboration and teamwork. It improves the efficacy and efficiency of employees' work performance.
References
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