Q1 Five similarities between leadership and management
The terms leadership and management are viewed by many people in different light. But there are many other individuals who see them as one and use the terms interchangeably. On one hand leadership can be defined as ability, method or a set of activities that lead a group of people towards the set goals or the final results. Management on the other hand is the coordination of different activities and business processes to ensure the organization’s vision and mission are achieved. While there are certain differences between leadership and management, there are some similarities also.
- Management and leadership are concepts which entail working with people and undertaking projects that surround people.
- Both management and leadership are responsible for building the foundations of the organizations and constructing with their thoughts and ideas the functional structure within the company.
- They are both influential in their own rights as they heavily influence work structure and environment.
- To both managers and leaders goal achievement is foremost.
- In terms of resource allocation, both are responsible to allocate resources in a manner that they can be used effectively and efficiently.
Q2 does a healthy firm have to worry about effective management
Effective management is not a choice one takes, but rather it should become a way of life in all types of organizations. Even if the company is in good shape it has to be practiced upon at a regular scale. Effective management is one which is successful is achieving both short and long term goals of an organization. Organization could be profitable or unprofitable but all organizations are formed with a certain pre-defined goal and management of the company is handed over the responsibility to achieve that goal. For both successful as well struggling organizations, effective management is not variable but a stable option that has to be retained throughout. The key attributes of effective management are:
Innovation – Only those organizations will be able to retain their healthy structure that is keen on innovation.
Management quality – The presence of well-qualified, proficient and top-notch leaders will go a long way in ensuring management quality. If not, even healthy organizations can flounder.
Looking at long term investment value – No organization should even sacrifice their long term goals in order to achieve its short term goals.
Quality of products or services – Consumers might buy your products in volumes only because they may be cheap, but somewhere down the line the factor of quality is going to seep in and companies have to
Q3 the comparison of differences between actual and planned results
The comparison between actual and planned results is known as variance and it appears on periodic budget reports. Every company’s success can be partly credited to healthy record up keeping practices and crystal clear control protocols in order to conduct the business efficiently. Internal control is key and to ensure that internal control is smooth, a budget report is extremely essential. A budget report helps the management to compare the projections with the current state of the organization and record the deviation for further corrections. A periodic budget enumerates the major differences between what the planned results were and whether the company has exceeded or has fallen below its expectations.
Q4 how are the four areas of operations control interrelated?
Every business is broken down into several manageable parts so that multiple business functions can be conducted in a seamless manner. Operation management also is one of the most important aspects of management. It is that business function that is responsible for managing the process of creation goods and services. It involves planning, organizing, coordinating and controlling the resources that are needed to produce a company’s goods and services. It surely is a strategic management function that includes management of equipment, technology and people to achieve the targeted production of goods and services. Regardless of the size of the company or type, the role of operation management cannot be questioned. There are many areas of operations management, but the four major areas of operations include inventory management, purchase management operations, Scheduling management and finally quality control. These four main areas of operations control have an unstinted focus towards customer service and customer delight.
Scheduling management – talks about when and where the necessary operations have to be conducted to ensure that the manufacturing process is performed as per the schedule without any delay to suffice the growing demands of the consumer.
Purchasing management – Before scheduling takes place, the organizations has to procure raw materials so that the desired set of goods can be produced. It is a critical operation as poorly planned purchase management operations will lead to loopholes in supply.
Inventory management – This is nothing but a planned approach to decide what to order, when and how much to order and stock ensuring that the production scale doesn’t suffer.
Quality control – It is a system in OM that is necessitated in to maintain a certain quality level acceptable and desirable by the consumers as a whole.
Q5 how do databases generate sales and profits
Many companies these days are investing heavily in databases. These databases do not generate revenue by themselves but rather have to be employed in different activities like profitability analysis, marketing strategies, customer segmentation. Investing databases in such activities goes a long way in building trust, loyalty and retention which further converts into increased sales. Databases are effective because:
- It collects relevant current and historic data about the customers
- It ensures an accurate system of understanding and determining the profitability of each customer on a regular basis with the use of everyday inputs so recorded.
- Implement those tactics which will help modify customer behavior to increase sales, lower the costs and heighten the profits.
Hence the first step is to gather relevant data about the current prospects of customers and making it available to relevant functionalities. This data has to be collected into relevant action with strategies befitting the quality of data so fetched. These strategies will also include tactics like allocation and reallocation of resources, customer specific pricing, frequent buyer programs, performance measurement and much more. The last step is integrating this database at the customer level to record revenues based on the data, observations and strategies.
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