Operations management is a process to create finest level of efficiency in an organisation. It is a system of converting labours and materials into services and goods. Main activities which are majorly performed by this function in a management includes planning, organising and directing(Benjaafar and Daskin, 2013). It helps in reduction of wastage costs and helps in timely completion of products and services. ,In this report, chosen company is Starbucks, it is an America based coffee house chain which has its headquarters in Seattle, Washington established in 1971. It applies coffee and farmer equity programme in supply chain management. Main products supplied by Starbucks are coffee and its different variants like espresso, latte, and cappuccino. In this project report, various roles and function of leaders and mangers are discussed. Different operational management approaches are also covered in this project. Relationship between leadership and management in business environment are also mentioned along with here factors within business environment mainly impact upon operations management. Decision making by leaders and managers is also included in this report.
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P1 Define and compare the different roles and characteristics of a leader and a manager
Operational management refers to achieve high level of profits by converting raw material into goods and services(Childe, 2011). It helps an organisation in improving its productivity by utilising its resources effectively and efficiently.
A leader has a art to motivate its team members to achieve specific goals and objectives. In this context, it is the duty of Starbucks leaders to guide, supervise its team members which will helps them in achieving their pre established goals and objectives.
A manager is a person who is accountable for increasing overall growth of an organisation by undertaking business activities. In this context, it is the duty of Starbucks manager to solve all customer related queries which helps an organisation in achieving customer satisfaction.
It is found in both formal and informal organisational structure.
It is found only in formal organisational structure.
Its major function is to motivate its influencers in achieving their specific goals and objectives(Drake and Spinler, 2013). A leader performs only directing function of management.
Its major function is to manage all business activities which are essential for developing organisations growth. A manager performs planning, organising, directing, controlling functions of management.
A leader is essential in an organisation to build positive relation among employees working with in an organisation.
An organisations overall growth is depends upon manager so it is very much essential to a concern.
A leader in an organisation is honest, creative and have decision making capabilities.
A manager in an organisation have positive attitude, empathy towards all business activities.
It has a limited scope because a leader is working under a manager
It has a wider scope as compared to leader because a manager is accountable for various business activities
A leader in an organisation takes risks. They try new thing to helps their sub-ordinates in achieving their goals and objectives.
A manager on the other hand control and measure the risks. They generally avoid or controls problems arises while managing business activities
Leaders builds relationship as its their duty to motivate their influencers toward achieving their goals which leads in spending more time with their peoples.
A manager builds system as they focus on outcomes arises from business activities. They works with individual and their goals and objectives.
It is the important management function which is future oriented and determines an organisations direction(Griffin 2013). This function of management will helps Starbucks in developing a portfolio about organisation future activities which leads them in gaining competitive advantage and increasing its productivity.
It is an function in which it is essential for an organisation to determine various activities that should be done in order to achieve organisational goals and objectives(Ham, Hitomi and Yoshida, 2012). In this function, Starbucks has to collect required resources like raw material, labour and finance which helps them in increasing their productivity in a business environment.
It is the function of management which involves, recruiting, developing, training and evaluating employees. In this context, it is essential for Starbucks to motivate its employees which will helps them in maintaining its workforce efficiently.
In this function involves supervising, guiding employees of an organisation in order to motivate them to achieve their goals and objectives. In this context, it will helps Starbucks in making their workforce productive in a dynamic business environment.
In this function involves activities that should be undertaken to make sure that business activities are going as per the pre arranged plans(Hoi and Zhang, 2013). In this context, it will helps Starbucks in measuring and comparing performance of its employees according to the set standards.
Transformational and transactional leadership
Transformation leadership is a leadership in which a leader creates a positive change among its employees with a motive to transform its influencers into leaders. In this context, it will helps Starbucks in increasing performance of their employees.
Transactional leadership refers to a leadership in which a leader set clear goals and objective for its employees and also use rewards or punishment in order to make workforce effective. In this context, it will helps employees of Starbucks in achieving job satisfaction.
Action centred leadership
In this leadership approach, it is essential for Starbucks to manager three elements .i.e. accomplish the task, builds the team and empower individuals in order to achieve specific goals and objectives.
Hard management and soft leadership skills
Hard management skill is used in finance and accounting and is a quantifiable skill which can be measured. On the other hand, soft leadership skills are personal and interpersonal skills(Karnani, 2011).
P2 Role of a leader and function of a manager in different situational context
A leader is a person who is responsible to guide, motivate and supervise its influencers to achieve their specific goals and objectives. On the other hand a manager is responsible to manage all business activities to improve overall growth of an organisation. In this context, it is necessary for Starbucks leaders and managers to implement their leadership and managerial style in different situations which are:
Task structure includes detailed description of the task and it should be clear to the person who has to perform the given task. In this situation, the role of Starbucks leader is to provide basic information about the task and also to appoint right person for a job which will helps its team members in achieving their goals and objectives. On the other hand, the role of a Starbucks manager is to manage its staff members activities and overall business activities to generate productivity in an organisation.
It is necessary for both leaders and managers to build healthy and positive relation with their employees(Parisio and Glielmo, 2013). In this context, the role of Starbucks leaders is to support and motivate their employees towards their specific objectives. On the other hand, it is important for managers of Starbucks to develop an effective working structure and also reward and punish its sub-ordinates in accordance with the outcomes arises from assigned task. So the overall productivity of an organisation is depends upon its leadership and managerial style.
It is essential for employees of an organisation to change according to the business environment. In this context, the role of Starbucks leaders has to guide its team members to adopt new changes which will helps them in enhancing their skill and knowledge. On the other hand, it is the role of Starbucks managers to make its employees familiar by organising various training sessions in regard with new changes, which will helps its employees in adopting these changes in their work environment.
As per the above report, success of an organisation is hugely depends upon its managers and leaders. In context to Starbucks, it is their duty to perform and implement their roles effectively in order to maximise profits of an organisation. There are different roles and responsibilities of a manager and a leader but they works together to achieve a common goal(Pedrycz, and Chen 2015). In this context, it will helps the chosen organisation Starbucks to be competitive in a dynamic business environment and also increases its overall performance and productivity.
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P3 Different theories of leadership
Leadership refers to a process to support, motivate and guide its team members in order to achieve their specific goals and objectives. In this context, the chosen organisation Starbucks is using various leadership theories in order increase overall productivity of an organisation. Types of leadership theories are:
(a) Situational leadership model
Situational leadership model stats that a leader can adopt different styles in according to the situations. It helps a leader in identifying needs of the particular situation and also in adopting an appropriate leadership style(Renz, 2016). In this context, it will helps Starbucks in improving skills and knowledge of their employees which leads in achieving their goals and objectives. According to this theory there are three leadership styles .i.e. authoritarian, democratic and laissez faire. In authoritarian leadership style, leaders sets goals and objectives for their sub-ordinates and direct and control all business activities by their own without involving their sub-ordinates. In democratic leadership style, staff members also plays an important role in a decision making process. It is also know an participative leadership or shared leadership. In laissez fair leadership, leaders don't take part and allow team members in a decision making process. It is also known as delegative leadership. This leadership model emphasis on reaching a conclusion, so it will helps the chosen organisation Starbucks in improving employee's turnover which leads in increasing its overall performance in a business environment.
(b) System leadership
In system leadership theory an organisation creates different types of situation in which employees at all levels can take part according to their potential. This theory also provides tools to leaders in order to create healthy working environment in an organisation. In this context, it will helps the chosen organisation, Starbucks in analysing their employees behaviour which leads in improving productivity of their employees in a competitive business environment. It will also helps employees of Starbucks in realising organisation purpose clearly which makes its employees efficient and effective. The main emphasis of this theory is make leaders to perform across their boundaries(Starr, and Van Wassenhove, 2014). It helps employees of an organisation in overcoming to difficult situation arises in a business environment.
(c) Contingency Leadership
This leadership theory stats that an organisations success depends upon its internal and external factors. It also stats that style of leadership changes in accordance with the business environment which is dynamic. It will helps an organisation in facing future challenges which leads in enhancing performance of its workforce. It will also helps managers and leaders of an organisation in creating a good relation with their subordinates(Steinberg, 2011). The chosen organisation Starbucks can follow this theory as it helps them in their overall growth by making their employees efficient and effective. Through this theory, Starbucks can balance their needs and behaviours according to the business environment. In some situations, this theory is not suitable for Starbucks because it is time consuming as they have to identify needs and manage behaviour of their employees according to the needs. In this approach, power lies on the hand of managers and leaders, so they can punish or reward their employees in according to the task assigned.
As per the above mentioned report, it has been analysed that situational leadership theory is more productive for Starbucks as it help the organisation to change according to different situations, which will make an organisation dynamic and also helps in gaining competitive advantage in business environment. It will also makes workforce of Starbucks efficient as it enhances skills and knowledge of its employees, which leads in improving productivity of an organisation for a longer run in a competitive market.
P4 Key approaches to operations management and role of leaders and managers.
Operations management is a vital part of working process of any organisation. It is majorly concerned with basic functions of management such as planning, organising and also supervision in terms of production, manufacturing and provision of services. Operations management is a delivery based system that ensures in time delivery of products and services to its client(Stoppato, 2012). It lays its focus on efficiently managing processes as well as services.
Starbucks is an America based coffee house chain which has its headquarters in Seattle, Washington. It applies coffee and farmer equity programme in supply chain management.
Various key approaches used by Starbucks for efficient management of operational activities are as follows:
Total quality management: It is an ongoing and continuous process which helps in examining and reducing errors in manufacturing,streamlining supply chain management etc. It also aims at improving quality of customer's experience by timely manufacturing and delivery of goods and services to its clients. By this approach, managers ensure that employees receive timely and quick training about new methods and new technology being used at Starbucks so that they make no mistakes while delivering goods and services to clients. Main focus of TQM is to improve quality of an organisation's outputs which is inclusive of goods and services.
Just in time management: It is a type of a management technique or strategy that helps Starbucks to align or assign raw materials orders from its suppliers directly with production schedules. This inventory strategy is used by companies to increase efficiency level of employees and decrease waste generation by getting goods only when they are required and not keeping them in warehouses or storehouses(Wang, and Cullinane, 2015). It hence lowers cost of inventory management and so risk is also lowered. In this type of approach, it is very essential that producers are active enough so they are able to forecast future requirements in an accurate way. Just in time model has certain advantages like, manufacturers can easily move from one product to another as production time remains short so managers have enough time to focus on other products. This technique reduces costs by minimizing warehouse requirements.
Six sigma: Six sigma is a management approach to achieve operational efficiency at Starbucks as it is a collective set of statistical tools and techniques. Its main aim is to focus on eliminating and reducing defects in production process and helps to reduce variability in different processes. It is a continuous and ongoing process which involves three basic principles namely measurement, improvement and validation. It is a disciplined, statistical based, data driven and ongoing methodology which helps to remove defects. In many organisations, six sigma is expected to be a measure which helps in achieving perfection(Wang, and Cullinane, 2015). Fundamental objective of this process is implementation of a measurement based and numerical data based strategy whose focus is to improve quality of various processes and also reduction in variations. Six sigma process is further divided into 2 sub categories DMAIC and DMADV. DMAIC process stands for define, measure, analyse, improve and control whereas DMADV process stands for define, measure, analyse, design and verify. Six sigma has some advantages which include
- Reduction in process cycle time.
- Reducing amount of scrap generation.
- Increasing customers' satisfaction level and loyalty.
- Reduction in factory defects
- Reducing or eliminating cost of rework and extra expenses.
Lean production:It is an approach of management that focusses on eliminating or reducing waste while ensuring quality in production process. This approach in Starbucks helps to eliminate activities which add no value to production process like holding extra stock, repairing or changing faulty product etc. It helps in reducing defects in a product and ensuring customer satisfaction.
Queuing theory: This theory is studied in every business concern including Starbucks for finding out congestion and delays in waiting line during production process. This theory explains every component of waiting in line like arrival process, service process, number of servers etc. Queuing theory in Starbucks is used to determine different staffing needs, scheduling and inventory and also helps to improve overall customer satisfaction.
Continuous improvement: This technique is also known as Kaizen technique. It is method used by Starbucks for identifying opportunities that can help in streamlining ore controlling work and also reducing waste. It can be both a formal as well as an informal process with no set guidelines.
Roles performed by leaders and managers of Starbucks are as follows:
Role of a leader:
Inspire trust- A leader should be able to develop trust in his followers about achieving goals and objectives. He should be competent and have a strong character.
Create vision: A leader should be able to provide a clear and strong vision to his followers about how to achieve future goals and objectives thereby resulting in growth.
Execute strategy: A leader should be strong and capable enough of achieving good results consistently and also motivate others to do same as well.
Plan: The most basic function of a manager is to plan all activities and processes efficiently and equally assign all activities and tasks to all functional areas.
Organise and implement: Organising production of all work processes, workforce, training and other resources so that they can function in a timely manner is a job to be performed by managers.
These are some of functions and roles of managers and leaders which are performed same almost in all organisations.
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P5 Explain the importance and value of operations management in achieving business objectives.
Operations management is a vital part of working process of any organisation. It is majorly concerned with basic functions of management such as planning, organising and also supervision in terms of production, manufacturing and provision of services. Operations management is a delivery based system that ensures in time delivery of products and services to its client. It lays its focus on efficiently managing processes as well as services. Operations management is very important in every field. Importance and value of operations management in Starbucks coffee house is explained below as:
Similar management: Operations management is a process which involves all processes of management. Hence, it involves using same management practice for all industries and businesses whether whatever may be their area and nature of operations(Sterman, 2015). Main elements of operations management includes functions like planning, organising, managing, controlling, directing and motivating. These elements come together and help managers to function with improved amount of efficiency in its working and production. It is an obligation for all organisations to manage day to day activities with utmost efficiency due to which Starbucks will further be able to make efficient use of all its resources like labour, raw materials, monetary funds etc.
Improving productivity: Productivity is defined as a ratio of input divided by output. Operations management plays a very crucial role in improving the overall productivity of all functions in an organisation. It acts as a whole and soul caretaker and evaluator of all activities whether they they may be related to any department. It helps in providing a measure of efficiency of managers as well as employees working under them. It is responsible for overall growth and development of entire human resource feature in Starbucks. It also aims at analysing and evaluating their performance. It mainly focusses on using available resources in best possible manner by which end goals are achieved at a rapid rate thereby resulting in overall growth and development.
Optimum utilisation of resources: Optimum utilisation of resources is a term given to efficient and careful use and utilisation of each and every resource that is available with any particular business concern at a given point of time. It further helps in generating enormous amount of profits to any and every company. Operations management plays a very crucial role in every organisation as it is responsible for handling all basic key issues like design of a product, operations, and maintenance of an organised system which is used for production and distribution of goods and services.
Management of various activities: It is a very important function responsible for efficient functioning of an organisation especially the ones which deal in manufacturing of products and services. Operations management is responsible for management of various activities that occur in any business concern at a given period of time and contribute in manufacturing products as per requirements and demands of a customer(Ozguven, and Ozbay, 2015). Operations management is a process that plays a very crucial and important role in controlling entire operations of an organisation and if products are manufactured as per requirements of customer then they get sold very easily. Due to this feature, operations management is often referred to as heart or lifeblood of an organisation.
These are some important values and importance of operations management and its working in Starbucks coffee house.
Control and distribution system: Operations manager of Starbucks aims at efficiently and effectively manage all processes to produce and distribute products as well as services. Major activities covered under this system include product creation, development, production and distribution. Main focus of managers is to improve efficiency and effectiveness of various processes.
Process design: Process design is used in Starbucks for determining workflow, equipment needs and implementation requirements of any given process. This process mostly uses numerous tools and techniques like flowcharting, process simulation software and various scale models. It should be capable enough to deliver customer value with constant involvement of management at various stages.
P6 Factors within business environment that impact upon operational management and decision making by leaders and managers.
Operations management is a vital part of working process of any organisation. It is majorly concerned with basic functions of management. Operations management is a delivery based system that ensures in time delivery of products and services to its client(Zinder, and Aharonovich, 2013). It lays its focus on efficiently managing processes as well as services. Different macro environmental factors that affect business and its operations consists of larger societal forces that affect all factors and functions of a business concern and its micro environmental factors. Relationship of leaders and managers in CSR activities of Starbucks is explained further:
Corporate governance: It is concerned with ensuring that all activities, policies and procedures adopted by Starbucks are ethically sound and do not cause any harm or damage to people, society and also does not break any laws.
Ethical conduct: Ethical conduct means to have a fair and true view towards every activity. Managers of Starbucks are bound to take care of environment while conducting their business activities. For example, pollution reducing practices should be undertaken by Starbucks for production. Environment friendly activities should be taken up by company on a timely basis like organising plantation drives, marathons for social cause, blood donation camps etc.
Both leaders and managers play a very important role as managers are responsible for forming policies whereas leaders are people who convince people to follow these policies by setting example in front of them.
Different macro environmental factors are explained as under:
Economic environment: Economic environment is sum total of all economic factors which have bearing responsibility on functionability of a business unit. It includes economic conditions and various economic policies that make up economic environment of any business. Factors included in economic environment are growth rate, inflation, restrictive trade practices etc which lay a considerable amount of impact on working of a business concern. Economic factors include growth strategy, economic system,economic planning, etc.
Social factors: Social factors refers to factors that include society as a whole in them. Social environment is made up of attitudes, desires, expectations, degree of intelligence and education, beliefs,and customs of people in a given group or a society(Zhang, and Chen, 2014). Social desires, expectations and pressures give rise to laws which in turn influence business and its performance as a whole. Social factors involve society as a whole and its preferences and priorities like buying and consumption pattern, beliefs of people regarding their purchasing power, educational background etc. Social factors include
- Attitude of people to work
- Attitude to wealth
- Desires and expectations of people
- Family and customs
Political environment: Political environment is another very essential constituent of business environment. This factor of macro environment is capable enough to almost bring down working of any business enterprise at ground level. A political environment of a country is the main deciding factor regarding all business activities of a business concern. It promotes, fosters, encourages, shelters, directs and also controls all business activities of a business concern. A political system that has a stable nature ensures personal security to citizens. It is very essential to maintain a balance in political environment to maintain stability in trade and operations. Political factors perform various functions such as:
- Policy making
- Budget approval
- Executive controlling
- Acting as a mirror of public opinion
Technological factors: Technology is very important for growth and development of any business concern. Technological advancements help to increase production as well as productivity by use of new and innovative technology(White, 2016). It helps in increasing wages of employees and reduce production costs by which employees get highly motivated. Latest technologies help in improving marketability of a product and also makes it more consumer friendly. So to improve performance and productivity, it is very important for any business to keep pace with changing technologies and helps to survive them in long run as well.
These are basic macro environmental factors which affect functioning of operations management and decision making of leaders at Starbucks.
As per above mentioned project, it has been concluded that operations management plays a very essential role in each and every management organisation to perform effectively and efficiently. It is a function which involves planning, organising and directing of different functions of management. According to this report, there are various roles and responsibilities that are performed by managers and leaders to accomplish organisational benefits. Leaders and managers can use different types of theories to perform their work in best possible manner. As per this report, it have been analysed that just in time theory is best for the management function of Starbucks. Also, there are some business factors which affect decision making have to be taken care by management. Leaders and managers can implement soft skill to bring out best from their employees. They can also use different types of approaches like total quality management approach, just- in- time approach to make their management function more effectively and help in overall growth and development.
Books and Journals
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