CMI L5 Unit 501 - Principles of Management and Leadership in an Organisational Context Assignment Answers

CMI Level 5 Award in Management and Leadership Assignment Examples, Answers 

The CMI Level 5 Award in Management and Leadership provides the prospective and existing manager with the necessary skills in developing their team, operational planning, project management, change management, financial control, quality improvement and project human resources.

Aims of the unit 501

Equipping oneself with knowledge, skills and behaviours to manage and lead in numerous organisational environments is imperative in the event that an individual and the organisation at large are going to succeed. The unit is created to suit the learners who desire to gain or polish their professional competence and improve personal efficacy. Students will assess how an organisations structure and governance affects the management and leadership. They will investigate theoretical framework, management and leadership models and styles that aim at fostering a culture of mutual trust, respect and support. 

Special Note: Do not make the mistake of copying the exact information shared in this sample into your assignments. This will count as plagiarism, and in the UK, plagiarism is a big acadmic integrity, which can cause you to fail in your qualification. 

Learning outcome 1: Understand factors which impact an organisation’s internal environment

AC 1.1 Examine the impact of legal status on the governance of an organisation

Answer:

Legal status of an organisation can be said to be the structure that the organisation has as it is legally recognised, e.g. Sole trader, partnership, private limited company or a public limited company. The Companies House states that legal status will regulate the way an organisation is established, governed, owned and controlled. This legal system has a direct impact on the arrangements of governance, accountability, decision-making processes and regulatory compliance.

Governance is the mechanism of controlling and guiding organisations. According to the Financial report council, corporate governance is the arrangement of rules, relationships, systems, and processes under which power is exercised and controlled in corporations.
 
1. Sole Trader and Governance 

A sole trader is owned and controlled by a single person. No legal difference is made between the owner and the business.
Impact on Governance

• Complete control and decision making: The owner makes all decisions that are strategic and operational. 
• Weak formality: There is an absence of the board of directors and formal accountability.
• Unlimited liability: The owner is personally liable.

Due to informal governance structures, the level of accountability is only restricted to the tax authorities, like HM Revenue and Customs. The regulatory oversight is low as opposed to incorporated organisations. This legal position creates easier governance, additional personal financial risk and decreases transparency.
 
2.  Partnership and Governance

A partnership is a business that is shared by two or more people. The partnership agreement and the laws, such as the Partnership Act 1890, normally govern it.

Impact on Governance

• Shared decision-making: The authority is shared between the partners.
• Joint liability: There is unlimited liability of partners in general partnerships.
• Internal governance agreements: Formal agreements elucidate functions, profit sharing and dispute resolution.

The governance is more organised, yet less controlled, than that of a limited company than that of a sole trader. The process of decision-making can be retarded because partners would have to agree.
 
3. Governance of a Private Limited Company (Ltd).

A company that is a limited liability entity is distinct from its owners. It is governed by the Companies Act 2006.
Impact on Governance

• Separation of ownership/ control: The company is owned by the shareholders, with directors running the company.
• Limited liability: The financial risk of the shareholders is restricted to their investment.
• Formal governance structure: The statutory responsibilities of directors (e.g. duty to promote the success of the company).
• Compliance with regulations: Organisations should file yearly accounts and a certificate of confirmation to Companies House.

This legal status makes it more transparent, accountable and formalised than partnerships and sole traders. Internal controls and reporting mechanisms, as well as the board of directors, are usually part of the governance structure.
 
4. Governance and Public Limited Company (PLC).

A public limited company is capable of selling its shares to the public and is very strict in its governance requirements. In the UK, the listed companies are supposed to adhere to the UK Corporate Governance Code published by the Financial Reporting Council.

Impact on Governance

• Board structure requirements: Non-executive directors to provide independent oversight.
• Greater openness: Financial reporting standards and disclosure.
• Greater responsibility: The shareholders have the right to vote and can affect the appointment of the board.
• Regulatory oversight: Public companies are subject to the rules and financial regulations of the stock exchange.

The system of governance is quite formal, and there are distinct lines between the executive and the non-executive functions. The legal status creates many more compliance obligations, but it makes the stakeholders have confidence.

AC 1.2 Analyse the purpose of an organisation’s mission and vision statements

Answer:

Strategic management is based on mission and vision statements. They establish the rationale of the existence of an organisation as well as the goals that the organisation expects to accomplish in the future. Peter Drucker has defined and explained mission as the purpose and the major goals of an organisation, and vision as the future place of the organisation where the organisation wishes to be.

The literature of strategic management, among which is the work of Johnson, Scholes and Whittington in Exploring Strategy, emphasises that the statement of mission and vision offers direction, coherence, as well as a rationale for making decisions. They are more than mere statements of intent and form organisational identity, culture and long-term strategy.
 
1. Chiefly, the purpose of a Mission Statement.

A mission statement describes the essence of the organisation, its main operations and its audiences. It provides the answer to a question: Why are we here?

• Strategic Direction: A well-defined mission assists managers to coordinate operational activities with strategic objectives. Peter Drucker believes that mission definition is the beginning of good management, as it provides limits of planning and resource distribution. As an example, the Tesla, Inc. mission is to make the world go green in a fast manner. This gives insight into its strategic focus on innovation and sustainability.
  
  
• Decision-Making Framework: Mission statements serve as a guiding tool to the managers in their strategic and ethical decision-making. When an intended action is not in line with the mission, it can be reconsidered.
  
  
• Employee Engagement: According to research by John Kotter, shared purpose enhances performance and commitment. The mission should be a powerful one that can inspire the employees: they can gain an understanding of how their work is contributing to the larger organisational objectives.

2. The Vision Statement Purpose.
A vision statement explains the future desire of the organisation. It provides an answer to the question: “Where do we desire to be in future

• Long-Term Strategic Focus: The vision gives an overview of where the organisation is headed in future. James C. Collins and Jerry I. Porras, in Built to Last, suggest that visionary companies describe a powerful future that drives innovation and development. As an example, the vision of Microsoft in the past used to be a computer on every desk and in every home, which informed its initial expansion plan.
  
  
• Inspiration and Motivation: A vision statement is idealistic. It promotes working towards a common future by the employees and stakeholders. The research on leadership highlights that persuasive visions are vital in transformational leadership.
  
  
• Competitive Positioning: The vision statements also assist in positioning the organisation in the market. They give a long-term hope to investors, partners and customers.

AC 1.3 Examine the impact of organisational structures on management roles

Answer:

Organisational structure describes a formal system of tasks and reporting relationships through which the organisational goals are achieved by employees cooperating with each other through control, coordination and motivation. Richard L. Daft says that structure determines how tasks are apportioned, resources are allocated, and the coordination of departments.
 
Organisational structure has a great influence on the management positions, power, communication and decision making. In this section, the authors discuss the effects of various organisational structures on the managerial roles and performance.
 
1.  Functional Structure

One of the structures is a functional structure where employees are classified based on specialised functions like marketing, finance, operations and human resources.
 
Impact on Management Roles

Explicit power and experience: Managers have been assigned the responsibility of handling particular functional areas, which enhances expertise and efficiency in terms of technicality.

• Small span of control: managers are department-oriented, resulting in high specialisation.
• Low cross-functional coordination: Henry Mintzberg suggests that functional structures also have a low level of cross-functional coordination because managers tend to focus on departmental rather than organisational objectives, thus forming silos.

The managers in this structure are functional experts and performance controllers in the department instead of strategic integrators.
 
2.  Divisional Structure

Adivisional structure divides the departments into products, markets or geographical areas.

Impact on Management Roles

• Increased autonomy: Division managers are in charge of the profitability and performance of their division.
• Expanded managerial role: Managers are in charge of various functions (e.g. marketing, finance, operations) at the division.
• Better accountability: there can be measurement of performance at the divisional level.

Alfred Chandler argues that the emergence of divisional structures was due to growth in the organisation, in that the top leaders could deal with strategic direction and operational control was left to the divisional manager.
This hierarchy makes managers more responsible and decision-making more concentrated, yet there is the risk of resource duplication across the divisions.
 
3.  Matrix Structure

A matrix structure is a combination of functional structure and divisional structure. Employees are reporting to a functional manager as well as a project manager or product manager.

Impact on Management Roles

• Dual authority: Managers will have to share power and collaborate.
• Greater communication requires: Co-ordination is necessary.
• Conflict management: The managers need to negotiate priorities and solve role ambiguity.

Henry Mintzberg emphasises that the matrix structures are more complex and demand great interpersonal and leadership abilities. The managers under this arrangement have to walk a fine line between conflicting requirements and teamwork.
 
4.  Flat and Hierarchical Structures.

• Hierarchical Structure

Under the conventional hierarchical professional setup, the flow of authority is top to bottom and has various levels of management.
Impact on Managers:

• Clear chain of command
• Clear reporting relationships.
• Slower decision-making
• Close monitoring and regulation.

Managers are more of supervisors, controllers, and they are interested in compliance and performance monitoring.

• Flat Structure
  A flat structure entails a reduction in the management layers and expansion of control.
  Impact on Managers:
• Greater accountability per manager.
• Greater delegation
• Faster decision-making
• Great leadership focus as opposed to supervision.
  According to a study conducted by Gareth Jones, the flatter structures make the managers encourage employees to collaborate and to empower employees instead of using authority.

5. Decentralised vs Centralised Structures.

• Centralised
  o    The power of making decisions is centralised at the high levels.
  o    The lower-level managers are less autonomous.
  o    Top managers have more responsibility in terms of strategy.
  o    Firm control but decreased flexibility.
• Decentralised
  o    Decision-making is dispersed in the organisation.
  o    Operational decisions are made by managers of different levels.
  o    Promotes responsiveness and innovativeness.
  o    Needs trust and accountability systems.

Peter Drucker works out that decentralisation is helpful in increasing responsiveness; however, well-developed communication and performance measurement systems are necessary.

AC 1.4  Discuss the impact of organisational values and ethics on management decision-making.

Answer:

Organisational values refer to guiding principles and beliefs of an organisation that dictate behaviour. Ethics is a concept that describes what is right and wrong, which determines actions and decisions. Edgar Schein argues that values constitute an important component of organisational culture, and they are what determine how members of the organisation perceive situations and treat challenges.
 
The subject of ethical decision-making has received a lot of investigation in management theory. R. In a move supported by the theory of stakeholder, Edward Freeman cites that organisations have to take into consideration the interests of all the stakeholders and not just the shareholders. This is a view that has a direct influence on the process of managerial decision-making.
 
The organisational values and ethics thus contribute a lot to the determination of the way in which managers balance the profitability, social responsibility and the long-term sustainability.
 
1. Power on Strategic Decision-Making.

Values influence long-term strategic direction. When ethical values are instilled within organisational culture, the managers have better chances of focusing on sustainability and social responsibility in addition to financial performance.

As an example, Patagonia, Inc. publicly proclaims to be environmentally responsible. Its values shape such choices as the transparency of the supply chain and sustainable sourcing.

Equally, Unilever has incorporated the idea of sustainability into its corporate strategy, which depicts a values-driven approach toward meeting long-term planning.

In such situations, organisational values will help managers to think about the environmental and social effects instead of thinking about the short-term gain.
 
2.  Implication on Risk Management and Ethical Judgement.

Ethics models will determine the reaction of managers to dilemmas. Lawrence Kohlberg concluded that moral thinking is a progressive process which influences the justification of decisions by people. Shared ethical codes are used in organisations to guide them beyond judgment.
Transparency, integrity and accountability are facilitated by codes of conduct and governance frameworks, including the UK Corporate Governance Code published by the Financial Reporting Council.

Managers working in organisations with high ethical strengths have higher chances of:

• Avoid conflicts of interest
• Treat employees fairly.
• Present proper financial reporting.
• This minimises the legal risks and safeguards the organisational reputation

3. Impact on Organisational Culture and Workforce Behaviour.

Values also affect the day-to-day managerial decisions, such as in recruitment, performance management and reward systems.

As Edgar Schein opines, leaders reinforce organisational culture by the rewards they give, or the punishment they withdraw. Managers will have more chances of making responsible decisions when ethical conduct is recognised, and the unethical conduct is challenged.

However, on the other hand, when the organisational culture is dominated by aggressive goals and not attained with ethical controls, then the managers are under pressure to put a foot in the door. Weak ethical cultures have proved to bring about poor governance and reputational losses, as evidenced by the corporate scandals.
 
4. Corporate Reputation and Stakeholder Relationships.

According to R. Edward Freeman, the stakeholder theory proposes that managers have to consider the expectations of the employees, customers, suppliers and communities. These relationships are managed by ethical values.

As an example, Starbucks encourages ethical sourcing and fair trade, which affects the decision on procurement and suppliers. These values enhance brand loyalty and customer loyalty.

Ethical decision-making, thus, improves:

• Stakeholder confidence
•  Corporate reputation
•  Long-term sustainability
  Nonetheless, the balancing of the stakeholders can lead to complexity, particularly in instances where the balance between financial and ethical issues arises.
  
  
• Critical Evaluation
  
  Although organisational values and ethics have a positive impact on the decision-making process, they are effective only when the established values and the behaviour are consistent.
   
  Trust may go down as managers may openly espouse ethical values and fail to practice the same. Ethical training and governance structures are hence required to instil values into real-life decision-making.
  
  Also, international organisations can encounter cultural distinctions in moral requirements, and managers have to find a balance between universal and domestic requirements.

LO2 Understand the application of management and leadership theories

AC 2.1 Evaluate the relationship between management and leadership

Answer: 
Management and leadership are related activities, but they are different functions of organisations. John Kotter identified two categories of coping with complexity management, i.e. planning, organising and controlling, and leadership, i.e. setting direction and motivating people. This difference emphasises the fact that the two are required to be effective in organisations.

• Key Differences
  
  Henri Fayol discovered management functions that include planning, organising and controlling to make sure that it is efficient and stable. Managers are depending on official controls and systems as a way of getting results.
  On the contrary, leadership is about the act of influencing and inspiring others to share a vision. Peter Drucker postulated that management is doing things well, and leadership is doing things well. This demonstrates that leadership is more about direction and purpose as opposed to procedures.
  
  
• Inhibition of the Relationship.
  
  Management and leadership go hand in hand and do not work against each other. Management is needed to ensure structure and accountability in organisations, although the organisations also need leadership to promote innovation and adaptability. The lack of management ability in a leader can result in inspiring people, and the lack of leadership in a manager can only result in getting compliance, but not commitment.
  
  Hence, the key to successful organisational performance lies in the management and leadership being combined to provide a balanced control and vision of long-term success.

AC 2.2 Analyse the impact of management and leadership styles on individuals and teams

Answer:

• Autocratic Style
  Kurt Lewin claims that an autocratic style concentrates decision-making with a leader. This could make clarity of direction and quick reaction, which could lead to efficiency in stressful situations. Nonetheless, low participation of employees may minimise motivation, creativity and job satisfaction. In the case of teams, this can either lead to conformity but reduced morale in the long-run.
  
  
• Democratic Style
  A democratic style would promote participation and decision-making. Rensis Likert discovered that participative leadership enhances communication and cohesion. People will feel appreciated and encouraged, and will work more and cooperate. But the process of decision-making can be lengthy, especially when a fast response is needed.
  
  
• Transformational and transactional Styles.
  Transformational leadership was the term that James MacGregor Burns used to describe leadership that is inspirational and vision-based, resulting in greater commitment and long-term performance. Transactional leadership emphasises rewards and performance observation and results in short-term productivity, but can occasionally inhibit in-depth involvement.

The influence of the style of leadership differs according to situations. Successful managers change the approach based on their demand to balance performance, motivation and team effectiveness.

AC 2.3 Discuss the influence of culture and values on management and leadership styles.

Answer:

The culture and values of an organisation are key in influencing the way managers make decisions and lead organisations. Culture is the common assumptions, beliefs and behaviours in an organisation. Culture dictates the manner in which people regard problems, relate with other people and react to change, according to Edgar Schein. This has a direct influence on management and leadership styles.

• Impact on Leadership Behaviour.
  
  Leaders behave based on cultural expectations of exercising authority. Managers in organisations where hierarchy and control are the primary are more likely to be autocratic or directive. On the other hand, participative or democratic leadership styles are encouraged in cultures that encourage collaboration and empowerment.
  
  Geert Hofstede came up with dimensions, including power distance, which explain the nature of authority in various cultures. In high power-distance cultures, leaders can be required to make their decisions on their own. With low power-distance culture, leaders are supposed to consult and engage employees.
  
  
• Impact on the Decision-Making.
  
  Values shape the priorities of the managers. To illustrate the point further, organisations that insist on innovation can promote transformational leadership, whereas those oriented on stability can support structured and transactional leadership.
  
  R. Edward Freeman suggests using stakeholder theory that values play the role of determining whether leaders take into account wider stakeholder interests in decision-making. More inclusive leadership styles are thus encouraged in ethical and socially responsible cultures.
  
  
• Influence on Employee Relationships.
  Patterns of communication, motivation strategies and performance management are influenced by culture. In organisations where openness and trust are their pillars, leaders tend to delegate authority and empower teams. On the other hand, monitoring and control systems may be more prominent in the risk-averse cultures.

Management and leadership styles are greatly influenced by culture and values because they determine authority, communication and decision-making. The example of Edgar Schein and Geert Hofstede shows that the behaviour of a leader is heavily dependent on a cultural context. Good managers are thus required to ensure that their leadership style fits in with the organisational values whilst being flexible to the expectations of the culture.

AC 2.4 Examine how management and leadership styles can be adapted in different situations

Answer:

Crisis and Change

A more autocratic style can be adopted in situations of high pressure or crisis so that the company can have rapid decision-making. Nonetheless, transformational leadership, as outlined by James MacGregor Burns, can be used to create commitment and lessen opposition during times of organisational change.

Team Maturity and Culture

A highly experienced team can respond more to a participative or delegative style, whereas less experienced teams may need more management. Leadership flexibility is a guarantee that performance, motivation and alignment in organisational goals will take place under various contexts.

LO3 Understand the knowledge, skills and behaviours to be effective in a management and leadership role

AC 3.1 Assess the knowledge and skills required for a management and leadership role.

Answer:

Successful managers and leaders must have a balance of technical knowledge, people skills and strategic knowledge. Peter Drucker differentiates between management and leadership, with the former focusing on planning, organising, and controlling resources and the latter focusing on motivating and influencing people towards collective objectives.

Knowledge Requirements
Managers should be informed about the work of the organisation, finance, human resources, and industry rules to make the right decisions. Development of organisational culture, governance and ethical structure is critical to leading teams and ensuring adherence. The strategic awareness enables the leaders to connect the team goals to the long-term goals.

Skills Requirements
These are communication skills, problem-solving skills, decision-making skills, delegation skills, and conflict resolution skills. Building trust and motivating employees requires emotional intelligence. The adaptability is what allows leaders to react efficiently to the changing conditions, whereas analytical skills help to make evidence-based decisions.

Effective management and leadership are based on the combination of knowledge and practical skills. A balanced leader will be one who is able to integrate both technical skills and interpersonal ability and strategic acumen to push team performance and attain organisational goals and objectives.

AC 3.2 Evaluate the factors that impact the selection of communication techniques required to be effective in a management and leadership role.

Answer:

Management and leadership cannot be done without effective communication. The nature of the communication technique used influences message interpretation, reception and action. John Kotter emphasises that effective communication helps to make decisions, motivate and align an organisation.

Influencing Factors of Communication.

• Audience: Managers should take the knowledge and experience of individuals or teams into consideration. Technical reports are appropriate to experts; verbal briefings or visual presentations can be more appropriate to the general audience.
  
  
• Purpose of Communication: The technique depends on the purpose for which the message is to be given, that is, to inform, persuade, motivate or instruct. Documenting urgent instructions might demand the use of face-to-face or instant messaging services, but one can use formal reports to convey strategic updates.
  
  
• Medium and Context: Method choice depends on organisational culture, location of the team and presence of available technology. The global teams can use video conferencing, and the local teams can use meetings.
  
  
• Difficulty of Information: Complicated or sensitive data can be documented in writing to be clear and easy to keep records.

Successful managers use communication methods depending on the audience, purpose, context and complexity of information so that the audience is understood, interested and informed to make a decision.

AC 3.3 Analyse the behaviours required to be effective in a management and leadership role.

Answer:

A good manager and a good leader must possess certain behaviours that determine the performance of the team, organisational culture and the overall success of the organisation. John Kotter highlights that there are some differences between leadership behaviours and management behaviours; however, both are necessary in order to accomplish the organisational goals.

Key Behaviours for Managers

• Planning and Organising: The managers will have to establish goals, resources and track will be allocated and progress monitored to ensure efficiency in operations.
• Decision-Making: The managers must be able to analyse information and make timely, evidence-based decisions.
• Control and Accountability: Upholding standards of performance and responding to deviations are very important behaviours of operational effectiveness.
• Problem-Solving: Detection of problems, assessment of options and execution of measures will keep the processes flowing.

Key Behaviours for Leaders

• Motivating and inspiring: Leaders promote action and participation through the distribution of vision and values.
• Communication: The communication should be frequent, open and transparent, which creates trust and alignment.
• Adaptability Leaders are responsive to change, uncertainty and unexpected difficult situations.
• Empathy and Emotional Intelligence: The empathy of team members leads to a good relationship and teamwork.

Analytical Evaluation
Good leaders and managers are both a source of operation and influence. Peter Drucker observes that strategic foresight combined with control and motivation can help leaders to attain immediate performance and long-term organisational objectives.

AC 3.4 Develop an approach for building a culture of mutual trust, respect and support with teams and individuals.

Answer:

Development of good team culture increases engagement, performance and collaboration. Edgar Schein opines that organisational culture is determined by values, behaviours and leadership practices.

Approach

• Clarity of Communication: Be open with your expectations, goals and feedback to achieve clarity and minimise misunderstandings.
• Lead by example: Managers must be able to demonstrate trust, respect and ethical behaviour and thus, reinforce the desired culture.
• Empowerment and Inclusion: Engage team members in decision making, give ideas and acknowledge contributions to create a sense of ownership and respect.
• Consistency and Fairness: Enforce policies and rules consistently to achieve credibility and fairness.
• Support and Development: Show support by giving training, coaching and mentoring as well as guidance through difficulties.
• Feedback and Recognition: Recognise performance and improvement and deal with problems constructively, encouraging mutual respect and ongoing improvement.

Through transparency, ethical leadership, empowerment and support, the managers can create an environment in which trust, respect and collaboration thrive, making the team more cohesive and more of a team.