Review of Role of Leaders and Managers in American Fast Food Industry; KFC Case Study

Introduction

Kentucky Fried Chicken (KFC) is a restaurant based in America, under the Yum! Brand. It is one of the leading franchise in fast food sector globally. Its headquarters are located in Louisville, Kentucky; Texas, in Dallas, United States. It was founded by Colonel Harland David Sanders, in 1930. It is globally famous for its specialization, that is, fried chicken. In fact, it is the largest in the chain of fried chicken in the world. It also sells kebabs, sandwiches, salads and hamburgers. Various factors like objectives of KFC, customer requirements, target market group, beliefs and value systems of the top management determine the organizational structure of KFC. Well structured organization promotes efficiency in work, smooth functioning of the internal organization and also delegation of authority and responsibility. Operations and management is that sector of the management function which is concerned with scheming and managing the production process of goods or services of an organization. It is associated with controlling several business operations functioning in an organization. The whole production system of an organization, transformation of inputs into rational outputs, is all related with this particular management function. This portion of the management function also decides and plans the product quality, design, production, inventory control and so on.

LO1:

Contingency Theory

The theory depends on the theory of situation which clarifies that to know the best leadership or management ‘situation’ plays the most vital role. It can be said undoubtedly the strategy of management or leadership will vary by industry according to this theory. The behavior, nature or protocol cannot be same for a doctor or a labour (Murphy, and Knemeyer, 2018).

Systems Theory

An organization run by many systems – failure of one system can be threatening to the whole system. The system includes money, material, technology and people – all of these inputs can be the result of perfect output. The system theory is basically a theory where managers get wider perspective to run the organization. The theory helps the manager to get hold on the various part of an organization. Furthermore they can decide by the theory: what is the prime motto to work upon, how to assimilate all the parts of the organization, even they can take care if leaders are doing their job properly (Grant. 2016).

Chaos Theory

Chaos is such a familiar word to everyone. Organizations often face the same under different situations. Complexity of many departments creates this chaos where managers take all the initiatives to overcome.

Basic Management Theory

Basic Management theory describes the basic rules to be followed to control an organization. The rules are the A B C D of a management book, which is often ignored.

Theory of X and Y

According to Gregor ideas of theory ‘x’ and ‘y’ based on research of human behavior.

Theory ‘x’ deals with the negative sides of the human being which includes ‘immaturity, irresponsibility, incapability, unpunctuality, laziness, less interested, inattentive’ etc. Theory ‘y’ is just the opposite where a debate is there on the human nature that it always wants self-fulfillment, self-development and self respect at work

Analysis of the Theories

Above stated all the theories are the staircase to reach at the top for an organization. All the discussed theories have respective importance to run the organization. It depends on the managers and to some extent on the leaders to decide or judge where the theories they should use to achieve success like contingency theory is not a proper tool to get hold over system neither chaos theory can be. Theory of ‘x’ and ‘y’ needs to take in account with special care which can solve many behavioral issues of workers. Workers are the pillar of an organization. Henceforth it is very much important to know all the workers completely for the managers or leaders (Jabbour, Muller-Camen., Redman and Wilkinson.2016).

Comparison of the role of a leader and function of a manager

Comparison Leader Manager
Meaning The person who has the skill of Leadership is known as leader. The practitioner of management’s discipline is known as manager.
Role   Leader influence, encourage and motivate subordinates to do their job Willingly to achieve goal. Manager is a vital link between an organization and its stakeholders such as society, government, shareholders, suppliers, consumers and staffs.
Approach Leader sets direction. Manger makes plan in detail
Subordinate Companion Staffs
Decision Leader facilitate decision Manager make decision
Style Leader’s style is transformational Manager’s style is transactional
Aim Development and growth Accomplishment of required outcomes (Grille, Schulte and Kauffeld, 2015).
Strives For success and productiveness For the efficiency
Focus Individual Procedure and process
Change Leaders encourage change They react to the changes
Conflict As an asset leaders utilizes conflict Managers stay away from conflict
People Aligns individuals Organizes individuals

Analysis of the Role of a Leader

From the above table, it is analyses that a leader encourages his followers to give effort and to achieve goal. Leader has the skill of imagination and creativity and he encourages his team in such a way that it becomes their visualization. Leader assists his team in making plan to achieve target and maintain a good foresight. He motivates his subordinates, create teams, innovate, and develop trust among the shareholders.

Leader motives the team to work together and help them in accomplishing their everyday jobs. Leader utilizes conflict as an advantage. A style utilized by the leader is transformational leadership (Kim and Barak, 2015). They regulate and focus on people to done work on time. His role is positive; he figures out the hidden skills of his followers and gives proper guidance to achieve their target.

Quality of leader

  • Enthusiastic
  • Good skill to communicate
  • Confidence
  • capability to motivate
  • Vision
  • Positive Attitude
  • Open minded

Analysis of the function of a Manager

On the other hand, from the given table it is consider that manager manages the firm and he is also responsible to plan, organized, direct, control and coordinate. They get their work done by the staffs by various ways and have the power to hire the staffs and also to fire them when needed. Different types of managers are there in a firm like general manager, functional managers, project manager and top level managers.

Manager’s role depends on their nature of work such as various activities carry out in industry are managed by general manager. Functional managers are accountable for various areas of their job such as accounting, sales and marketing. Project managers take the duty to complete and achieve certain project (de Lima et al., 2018). The duties of top level managers are to see the perception and aim of an organization. Manager always stay away from conflicts. Style use by manager to lead is transformational. They organize individuals and focuses on the procedure of the work. Sometime manager criticizes his staffs to make them best in their field.

Quality of Manager

  • Etiquette
  • Competence
  • Confidence
  • Discipline
  • Committed towards work
  • Effective in making decision
  • Patience

LO2:

The theories can be clarified if we apply these theories for an organization. KFC is an international brand therefore popularity of it can be assumed without question. KFC does not get such popularity in one day. For this popularity management tried hard following all possible theories.

Contingency Theory in KFC

Situation varies from place to place, regarding society as well. Now situation of a posh area cannot be same of a comparatively lonely area. Therefore management should take care of number and behavior of staffs regarding the situation of the locality. If the crowded area does not have enough space or staffs then it can lose its brand value.

 System Theory in KFC

In KFC many systems are working altogether – like billing, serving, cleaning etc. To run all these systems properly the theory need to follow properly otherwise customer can be impatient.

Chaos Theory IN KFC

Failure of system theory can lead to Chaos Theory. It is very obvious if systems will not work properly then it leads to customer dissatisfaction which ultimately generates chaos.

Now all the three theories are co related with each other where one theory can damage all the work of other theories.

X and Y Theory in KFC

Now for such an international brand it is highly recommended to know the nature of all the staffs. If a staff is having x or qualities then management will decide what to do. On the other hand if it is unknown to the manager or leader then company has to compensate.

Application of the role of a leader and the function of a manager

To make KFC successful, effective leaders are there who has the capability to boost motivation of the staff (Valisowa, 2018).. Managers decide the strategies based upon market review and management theories whereas leaders just apply those strategies practically. Managers also have the responsibility of food quality and quantity along with customer satisfaction whereas leaders only report to the managers. Cause of any mishaps is only manager’s look out – leaders only take the initiatives to control the situation. Managers of KFC are the last person who wants any sort of agitation in the company while leaders take the full advantage of the situation. In KFC leaders and other workers all have friendly bonding belong from the same status. All of them are just like colleagues but managers here do maintain a distance – the relationship is of boss and subordinate (Belongia, 2018). Any plan decided by the manager of KFC is executed by the leaders properly. The role and function of manager and leader are interlinked in KFC – one cannot perform their duty without other (Mangkarto, 2016). Henceforth both the managers and leaders maintain a good bonding in them in KFC.

Strengths and Weaknesses of different situational contexts

Strength Aboriginal recipe: KFC has a secret and authentic recipe made with 11 herbs and spices, from years, which customers love. Global leader: KFC is the market leader in specialization of chicken, as their primary product. Financial Strength: It has a powerful financial performance, under the support of Yum! Which is a lead for the organization. Loyal customer: KFC has the support a strong and honest customer based in many countries.
Weakness Unhealthy: The items which KFC sells are considered harmful for health by the health conscious crowd and so many potential buyers draw back from purchasing its food. Large employee turnover: KFC suffers losses due to increasing employee turnover. Lack of innovation: KFC has not been showing suitable, innovative marketing efforts for increasing its share in the market, by bringing new offers or items for their menu.
Opportunity Expanding market: KFC has an opportunity to expand its market, by exploring new geographies and entering new sectors.It can also start home deliveries. Bringing new items: One of the opportunities for KFC can be to increase items on its menu like dessert and vegetarian items and so on. Attracting health conscious crowd: The new health trend has caused many people draw back from fast and junk type food items. KFC should include healthy items in its menu and allure the health conscious crowd (Richardson and Cassop Thompson, 2019).
Threat Changing trends: Customer tastes and preferences keep on changing. KFC should keep a flexible organization structure to cope with the changes. Competitors: For any organization, competition is a big threat. KFC faces competition mainly from McDonalds (Balas and Thomas, 2015). Cost and price: Increasing operational costs like labour charges, inventory cost keep increasing, which stimulates price increase. This can lead to unaffordable prices and reduced customers.

Critical Analysis of theories and approaches

The overall analysis on the subject area of concern is creating a understandable  in the difference between leaders and managers in the certain situation in this case as we have taken KFC as a point of discussion on the chosen topic the area of the committed sector in this diversifying source of network (Biemann, Kearney, and Marggraf, 2015). The more focus is predominantly done to highlight the fact of leading the team and managing the team. In the process of doing so the ability of the both of them requires management skill hence the skills requires the ideas and the focus to instigate the motivating factor (Hrenyk et al., 2016). The motivating factor plays an important role in leadership. This creates a huge difference of opinion between leaders and managers (Hrenyk et al., 2016). As we are discussing about the organization KFC who has its name and fame worldwide with that respect the leaders and mangers play an important role and always is an important factor of point of consideration (Biemann, Kearney, and Marggraf, 2015).

LO3:

Operations management in KFC

The decisions that coordinate the various stages of operations are called the operational management. The key approaches of operation management in KFC:

  • Customer proximity is one of the aspects that can be consider as a tool of operational management. The most important factor in customer proximity is to maintain the standards between the customers and also available with the customer approaches (Pal, G.K. and Nanda , 2018.).
  • Management of finance is another vital tool for operational management and plays a major part in operational management procedure (Van Dooren,  Bouckaert and Halligan , 2015.). The using of funds and proper utilization of resources both money and human resources are in this area. KFC can work in this sector to improvise the financial stability.
  • Controlling the supply chain management is another important factor in operational management. Supply chain management denotes the effective management, controlling and managing the raw materials to the final product (Fahimnia, Sarkis and Davarzani, 2015.). Another operational management approaches that KFC can implement is to configure a better supply chain management.
  • Strategic implementation is another operational management tool. Strategy refers to the planning tactics and future planning of full utilisation of resources. Another area that KFC can look out for proper and update the strategy implementation to meet the need of customer satisfaction (Yenipinar and Akgün , 2017).

The roles of manager and leaders in KFC

In today’s marketplace the main focus is to deliver the quality product Leaders in KFC plays a greater role to maintain the efficiency and quality of the product (Noe et al .,2017). The leaders of KFC plays major role by motivating the workers to ensure the quality product.In KFC, the operational leaders play a vital role to design the supply chain management model in such a way that can actually minimize the chances of risk(O’Neill,  Sohal, and Teng , 2016). The leaders and managers also work hand in hand to ensure the effective collaboration process with broader customer base. KFC specially use DRP system to outline the order of the supplier, demand planning and inventory management.

The role of managers in operational management

  • Proper lookout on financial factors and budgetary decisions:The managers of KFC evaluate all the previous year financial report and took the budgetary decisions to eliminate the chances of risk in financial decision making (Mohamed, Kerosi, and Tirimba, 2016).
  • Workflow management and staffing:The managers in KFC manage and interpret the workflow analysis and also maintain a proper report on division of work (Kuhlen and Speck, 2015). The managers of KFC differentiate the various work area to maintain the sustainability of the workforce.

Importance of Operational Management

The role of operational management in an organization is very vital. Producing and managing different kinds of products the role of operational management is huge. The type of organization whether it is a profitable organization or non-profit organization does not matter (Buelow,  and Blaine,2015).. The role of operational management is huge in term of creating the products and services that can fulfill the market demands as well as the individuals demand. The importance and value of operational management are:

  • Achieving the organizational goal: The organizational goals refer to the vision and mission system of the organization (Deephouse et al.,2017). In KFC the operational managers helps the employees to achieve the long term goal of the organization. The main long term goal of KFC is to deliver quality food items to the customer that are budget friendly.
  • Managing the quality product: Another importance of operational management is managing the quality product to the customers (Jeihoonian., Zanjani and Gendreau, 2017). The KFC operational managers play a major role to maintain the quality product amongst the customers by continuous improvement of the work process and also conduct a sophisticated program to deliver better services.
  • Proper utilization of resources: The operational managers play a major role in proper utilization of human resources and other resources of the organization like raw material management (Vokorokos, Baláž and Ádám, 2015). In KFC the operational managers and leaders takes a active participation in utilization of resources. KFC adopts drug free production unit to maximize the utilization of resources.
  • Reducing the cost : Production cost and other operational costs  maintaining is another important area of operational management. The cost related to production and other operational cost are regulates by the operational managers (Gopalakrishnan et al.,2015). In KFC the operation managers uses the most suitable strategy to reduce the cost. KFC’s centralized cost cutting strategy is hugely popular and successful tool to reduce the extra cost.
  • Marketing and finance activities: Regulating the marketing and finance activities are two main aspects of operational management. Marketing activity are those activities that are totally based upon customer approach and finance activities are all the financial activities like establishment of new office (Anderson, Chandy and Zia, 2018.). The managers in KFC also regulate the market activities and also took a active participation in finance decision making. The marketing activities especially in China the marketing strategy of KFC is fulfilled and earned more profit. KFC uses push strategy to create awareness and also encouraged the young generation to earn more through their services.
  • Managing the workflow analysis: The workflow analysis is the systematic procedure of work amongst co workers and workers (Geisler et al.,2016). Through proper planning and designing the work flow analysis the operational managers in KFC divides the work area as per business standards. In KFC wide range of veg and non-veg items are produced by different departments.

Importance of leaders and managers in operations management

The activities of managers and leaders in KFC are:

  • Proper planning: Proper planning refers to the tasks or area of activities that are helped to achieve the organizational objectives. In KFC the various planning activities are designed to get the desired outcome (Ferme et al.,2016). Planning activities focuses on organization objectives and the results that increased the organizational efficiency.
  • Organizing the assigned task: In KFC the operational managers assigned the task within the groups and individuals. Operational managers in KFC assigned the jobs or performance area into subgroups, to maintain the workflow and also this factor helps to achieve organizational effectiveness (Johnson and Petri,.2017).
  • Influencing the workforce: Another way to meet the organizational objectives the operational managers in KFC guiding the various activities and also give the workers a right direction to perform better (Van Velzen, Van Gogh and Meijer, 2016). This factor helped the organization to achieve the operational efficiencies.
  • Controlling the workforce management: Controlling the workforce management is another important area that needs to be considered for meeting organizational objectives. In KFC the managers measures the performance area of each worker and also compare the present performance with the past performance and evaluate the result. Based on this evaluation the next step is taken in KFC (Deelman et al.,2015).
  • Managing the work standards: In KFC the operational managers evaluates and measures the individual performance of each workers. They also give a lot of importance in feedback procedure, where they collect the feedback procedures from the loyal customers that helps them to identify the strength and weakness of the organization (Zhang et al.,2016). This identification also helps the organization to deliver standardized product.

LO4:

Relationship between leaders and managers in operations management

The decision-making ability by the leaders and the managers has an overall effect on the company. Because of this factor and several other figurative factors, we should analysis on the fact that both have got the power of implementation the thought process. The power just segregates among those and had a differentiation strategy in judging the certain things in a certain way (Annarelli, and Nonino,  2016). The management plays a vital role in creating an environment and both goes hand in hand with the methodology and the aspect (Dufosse et al., 2017).

The point of discussion over here is totally based on the ideas and development of the certain area of concern for both leaders and a manger. In some scenario we have came across that Manager only act as a leadership in much organization (Wang et al., 2015). As our paper of analysis is based on the fact of realization and based on this prospects the certain kind of assumption and the analogy has been drawn out of it. The operational management sometimes put an effort to create the analysis of building a relationship between the management and the leadership in an environment in the business and based on this a broader range of wide aspect of studies (Buelow,  and Blaine,2015). It has been observed that the areas of concern and the matter of fact that the ideas related to the major area of decision making capacity sometimes engraved the perennial management and the role of handling the team towards more potential and setting the diversified goal in creating the essential needs of managing employees in KFC. The other determining factor and the ability of managing the employee in creating the best out of ordinary from an employee,  as a result of the matter of concern that the true basic ingredients related to the customary guidelines. In addition, this act as an influencing factor of the employee is the major area that needs the leadership role and managerial role at the same time (Wang et al., 2015).

Application of operations management

The operational management sometimes put an effort to create the analysis of building a relationship between the management and the leadership in an environment in the business and based on this a broader range of wide aspect of studies (Buelow,  and Blaine,2015). It has been observed that the areas of concern and the matter of fact that the ideas related to the major area of decision making capacity sometimes engraved the perennial management and the role of handling the team towards more potential and setting the diversified goal in creating the essential needs of managing employees in KFC. The other determining factor and the ability of managing the employee in creating the best out of ordinary from an employee,  as a result of the matter of concern that the true basic ingredients related to the customary guidelines. In addition, this act as an influencing factor of the employee is the major area that needs the leadership role and managerial role at the same time. It has been observed that the areas of concern and the matter of fact that the ideas related to the major area of decision making capacity sometimes engraved the perennial management and the role of handling the team towards more potential and setting the diversified goal in creating the essential needs of managing employees in KFC .The other determining factor and the ability of managing the employee in creating the best out of ordinary from an employee,  as a result of the matter of concern that the true basic ingredients related to the customary guidelines. In addition, this act as an influencing factor of the employee is the major area that needs the leadership role and managerial role at the same time (Wang et al., 2015).

Conclusion and recommendations

The demonstration of the overall understanding of the operation and we will be drawing a critical evaluation of managing of an organization and the process of application and the implications of the business. As in this case the subjective and objective areas of concern are literally have influenced the overall perplexing aspect on the guidelines and the level of  roles the leaders plays in the upcoming benefits of an organization(Twibell et al., 2018). The dignified and moral concept of the scenario holds on the true ability and summarizes the whole idea of creating the leaders in the right frame of mind, which will help KFC to establish the better framework of understanding the capability of the employees so that they can sustain for the longer period. The positive frame of mind is an important criterion that plays a huge role base on the study of a theory that is role of an operational managerial skill and developing the leadership quality to guide the team and ability to manage the operations properly As KFC is leading business giant over worldwide in getting the business management in the applications of the analysis of overall development and that studies highlights about the fact in condemns and the analysis of making the overall development of making the contemporary business environment. The decision-making plays a very vital role for establishing a successful organization. Hence, the leader need to optimistic for taking an effective decision. It is to be added on the fact that the KFC has the strong management system that has created a significant impact in the mind of the consumer. Thus, it has helped to gain the revenue for the company.

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