Management and operation are the two key element of strength in an organization. Management refers to the process of dealing with or controlling people or thing. On the other hand Operation Department deals with designing and controlling the production process and redesigning business processes in the manufacturing of goods and services (Alderton and Saieva, 2013). Both departments are interlinked with each other. Operation management is chiefly concerned with converting labour and material into goods and services as resourcefully as possible to maximize overall organizational profit. However this cannot be possible without effective contribution of employee. Therefore, operation and management are highly essential for every business enterprise in order to achieve its long and short term goal in a cost-effective and timely manner.
The chosen firm for this report is Waitrose which is a leading British supermarket chain headquartered in Bracknell, England. The main purpose of this report is to investigate the impact of managers and leaders on the operation of selected business concern. Further it also discuss key approaches to operation management and its importance and impact of business environment factors upon operation management and decision-making.
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P1 Define and compare different roles and characteristics of a leader and a manager
Leader: A leader is the one who inspire their followers towards the achievement of a business goal. They play an important role in motivating the workers through their communication and leadership skills and inherent in them the vision of the company. They make personnel to walk in particular manner so as attain the objectives. The main aim of leader is to inspire and influence employees in respect to their performance which as a result maximizes their overall productivity and efficiency in the organization.
Roles and Characteristics of leaders:
Representatives of the organization: A leader is said to be the representative of the company. The main role of leader is to communicate the rationale of the firm to outside public.
Honesty: Another characteristic of successful leader that lend itself to credibility is their honesty. Those who are honest especially towards their concern, will address obstacles no matter what situation rather than trying to get avoided (Borhan, and et. Al, 2012). Honesty also allows feel better growth and assessment. Also it delivers good image of leader among their followers.
Manager: A manager is a person who manage and design the work of an organization in an effective manner. They are mainly responsible for administering are controlling an organization or group of staff. For the successful attainment of business objective, the task of manager is to establish and develop relevant strategies and policies and to plan the working of staff with the intention that they perform their respective task in accordance to the pre-determined objective (Dursun and Kilic, 2012). Managers are normally distributed on the basis different organizational department. For example: Sales department has sales manager, operation department has operational manager. Further, they're also concerned with performance appraisal of employees and the usually execute this task through implementing the performance appraisal process at regular intervals of time.
Roles and Characteristics of a Good Manager:
Hire great people: The role of manager starts with searching and hiring most talented employee for the company. Sometimes overly depend upon HR instead of taking directly part in selection process.
Setting overall direction: Manager is responsible for setting the short and long term direction of the team or enterprise. This include mission, goals, objectives and vision.
A positive attitude: If a manager exudes a positive attitude and remain passionate towards their work will help them in keeping their morale high. Motivated manager can further inspire other employees effectively.
Management Function: There are four basic function that manager needs to perform in order to make up the management process in an effective manner.
- Planning: It deals with deciding where to business and framing necessary steps to get there. The main role manager is to be aware and forecast challenges related to business and formulate effective strategies related to that. With planning, manager can allocate resources in an optimum manner and eliminate waste as well.
- Organizing: It refers to the process in which managers do the efforts in converting pre-determined plans into reality (Haimes, 2015). Managers organize physical, human and financial resources by bringing them together in order to achieve organisational objective and goals in an effective manner.
- Leading: It deals with motivating employees so that they can work incredibly hard towards accomplishing pre-determined goals and targets. It also include supervision of employees and their work.
- Controlling: This function of management encompasses evaluating achievement against established goals and objectives (Haux and et. al., 2013). It also enable manager to determine various sources of deviation from successful goals attainment and to provide a corrective course of action.
Leadership Roles: A successful leader plays different roles in an organisation. Some of their common roles are discussed below:
- Shaper: In this, leaders challenge their team members or followers to improve. Shaper is the one who look into all possibilities and select the best possibility that makes their team members more productive and efficient.
- Implementer: Implementer leaders are the one who gets the things done. Their main role is convert team's ideas and concept into reality and plans. These are the people on which leaders can count on to get the job done in an effective and efficient manner.
- Complete-Finisher: These are the one who personally check the entire project thoroughly. They must ensure that no error or deviation found in work. In addition to that they are very concerned towards the deadline.
- Co-ordinator: Here the role of leader is to provide guidance and direction to followers so that they have a clarity regarding their specific job task and roles.
- Team Worker: The role of leader is to ensure that all teams members must work together in team so that chances of attaining business goals increases tremendously. Also they ensure that equal and fair opportunities must be given to each team members that help in their both personal and professional career.
- Resource Investigator: Here Leaders play the role of innovative i.e. they explore all possible option and then select the best one. Along with this, they inspire other workers as well (Hefetz and Warner, 2011).
- Plant: Leaders are often introvert. They prefer to work apart from the team and its members. This is mainly because they think that their ideas are novel and can be impractical at various times.
- Monitor Evaluator: Leaders play the role of critical thinkers. They critically evaluate all possibilities and then select the one that is feasible. They carefully measure the pros and cons of all the options (Hunt and Wilson, 2011).
- Specialist: Leaders have specialized knowledge that assist them in accomplishing concerned work in an effective manner.
Difference between manager and leader
P2 Role of leader and Function of manager in different situational context
There are various situation exist in the workplace in which both leaders and managers equally contributes and tries to accomplish business goals and objectives collectively. Following are some of the situations where both leader and managers equally contributes:
Required at all level: Leadership is a function which is crucial at all management level. In the top level, it is essential for getting corporation in formulation of policies and plans. In middle and lower level at Waitrose, leaders are responsible for interpretation and execution of programs and plans framed by the top management.
Effective decision making: Managers and leaders have the talent to make decisions in companies favour. They both use their skills and knowledge for formulating favourable decisions deals with future uncertainty in an effective manner (Kadirvel and et. al., 2012)
Conflict resolution: There are certain situation when conflict arises between employer and employee. The main responsibility of both leaders and manager is to avoid conflict situation as it directly affect working condition. For example: If any conflict found between workers, leaders of Waitrose listen both parties first and then take decision. Leaders are required to deal with employee issues fairly.
Motivation: In order to carry out work in an effective manner it is important for a company’s manager to keep motivating their employees on frequent basis. Leaders can motivate them by providing guidance or assistance (Kua and Wong, 2012). On the other hand, managers can motivate employees by providing them various benefits the basis of their work performance.
P3 Theories and models of approach
1. Situational Leadership Theory: The theory was introduced by Ken Blanchard and Paul Hersey in the late 1970s. This theory states that in the modern era, a good leader cannot just rely on one management style to fit all situation. He must adjust his style according to the development level of his followers. With situational leader, it is the role of a leader to change or alter his style not the followers to adjust according to particular leader's style. Under this leadership, the style may change on frequent basis in order to fulfil the needs of other organization based on the situation. Harsey and Blanchard categories leadership style 4 behaviour types which are discussed below:
- Directing: In directing, the role of leader is to make decision on the behalf of whole organization and they inform others regarding their decision. It is generally distinguish by one way communication in which leader is supposed to define roles and responsibilities of individual or group members and provide information regarding what, how, why where when to do the task. For example: Waitrose leaders closely supervise their followers and continuously guiding them for performing better.
- Coaching: Under this, leaders take active participation in managing day to day activities of the company. The decision power ultimately remains with the leader only. However they request employee to give their input but final decision remains in the hand of a leader. With this style of leadership, workers are still supervised in coaching manner instead of a management manner. This style works best for the employees who are still learning and inexperienced. For example: Waitrose leaders personally provide guidance to new employees which help them in developing their skills and reasoning.
- Supporting: under this leaders passes more responsibility to the followers. They try to maintain healthy relationship with employees by involving them in decision making process which makes them feel valued and important (Marchington and et. al., 2016). Leaders also motivates them and provides feedback regarding the completion of task. For example: Leaders of Waitrose encourage their team member to create their own goals but also works with them to do this effectively.
- Delegating: Under this, leaders are now less involved with employees. Employees are solely responsible for selecting the task and the direction they wish to choose in order to carry out task in an effective manner (Nakayama and Bucks, 2012). Although leaders still provide guidance to followers but their contribution towards accomplishment of task reduces. Less supervision requires at this situational leadership style.
2. System leadership Theory: According to this theory, leaders are responsible to control the working of personnel and communicate company's situation to employees make them to work as per the needs of the business. For example: Waitrose wishes to make changes in their operation department. They are required implement those strategies that effectively linked with organizational need. Waitrose needs to implement Total Quality Management in their business operation and let the workers of this particular department to enhance the activities related with maintaining high quality of product. Under this leadership approach, leaders concentrates on giving feedback to employers on the basis of their performance. This further help them in improving their overall productivity and efficiency.
3. Contingency theory: This theory focuses on changing the strategies according to the change in the given situations. Leaders play key role which they influence the followers to bring change in the company so as to meet the challenges prevailing in the market. This theory claims that there is no particular or best way to corporation, to make decisions or to lead a company. A contingent leader is the one effectively apply their own leadership to the right situation at the right time.
P4 Key approaches to operation management and role of leader and manager in it
Operation management involve certain roles and responsibilities. One of those responsibility is to ensure that business operate in an efficient manner both in terms of optimal utilization of resources and meeting customer requirement effectively (Werner and et. al., 2013). The concept of operational management revolve around five key approaches which are discussed below:
Total Quality Management: It is a management approach that defines company can gain long term success through customer satisfaction. All members of the company equally participate in improving products, services, processes and the culture in which they work. Under this approach, organization runs with an aim to deliver high quality product and services to target consumer. Waitrose gained popularity for delivering best quality of food all across the country (Pinkerton, 2011) . They has built their reputation on the basis of freshness and quality of their food.
Lean manufacturing: This concept deals with waste minimization without sacrificing productivity. It taken into consideration the waste generated from overburden or uneven workloads and then tries to reduce them order to increase product value and decrease costs. Basically, lean manufacturing deals with adding value by removing everything else.
Six Sigma: It refers to a set of tools for process improvement. This method seeks to enhance the quality of the output of a process by determining and eliminating the cause of defect and decreasing variability in business processes and production. Each Six Sigma project executed within a company follows a specific series of steps and also has defined value targets such as reduces process cycle time, increase customer satisfaction and maximize profits and revenues. With the application of this technique Waitrose can easily eliminate their wastage additional cost related with service tool.
Just in Time approach: It is an inventory strategy under which companies tries to increase their efficiency and reduce waste by receiving goods only when needed. As Waitrose is very particular about serving high quality product to its customer so they can effectively make use of this approach so as to have systematic control over their inventory. The company gained popularity by serving fresh food items to buyers. If they purchase products in bulk quantity and store them in in their warehouses, the quality of the product gets faded. Therefore the company needs to apply this technique so as to have great control over their stock level.
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P5 Significance and value of operation management in achieving business objective
Operation management: It is mainly concerned with planning, organizing and controlling in the context of manufacturing, production or the provision of services. It is that area of management that is mainly related with controlling and designing the process of production and redesigning business operation in the manufacturing of product or services (Introduction to Operations Management, 2017). It ensures that business operations must be efficient in terms of utilizing resources when needed and must be effective in terms of satisfying customer requirement. By using this concept, Waitrose easily attain its long and short term objectives in a structured and thorough manner. Following are the importance and value of operation management:
- Profit Maximization: Waitrose is a leading British supermarket chain that runs with an objective to yield high profitability ratio and turnover. The role of Waitrose leader is to generate higher sales lead and attract millions customer by providing them best quality product and services who in return contributes immensely towards company's profit. Waitrose is committed to bring the best quality of food (White, 2016). Their prices sets at premium level. The company has built its own goodwill and reputation in terms of selling high quality and fresh product to its customers.
- Enhancing quality standards: Quality of any product can be improved if a company laid more stress on reducing their additional wastage and cost. In the modern era, needs and wants of customer are changing frequently. Therefore every organization is required to properly evaluate likes and dislikes of target audience before actually producing product or services. Approaches such as lean production assist in eliminating unnecessary waste so that company can effectively maintain their quality standard.
- Improving goodwill: Image of the company can only be improved if they are able to fulfill customer desire and want in an effective and efficient manner. This can only be possible by serving quality products to potential buyers that creates values for them. Waitrose gained popularity for offering fresh and quality product to its customer.
- Customer satisfaction: The main role of every business organization is to satisfy their customers. However, this can only be possible by providing them with such products that creates values for them. Waitrose determines the needs of their target audience and offer them goods and services accordingly. They also provide different facilities to their customer which ultimately maximize their satisfaction level (Witt and Brooke, 2013).
P6 Impact of business environment factors upon operational management and decision-making
There are two factors that exist in market one is internal and the other is external that highly impact decision making process and operation management of the company. There are further some points which are included in both external and factor of environment which are discussed below:
Internal factors: Such factors mainly found within the organization that have a direct impact on company’s performance and efficiency. It mainly includes:
- Competitors: It is related with external factor that adversely affect companies performance and profitability ratio. There are large number of enterprise that exist in the market who are doing similar business (Wright and Frank, 2014). In fact some of the companies give high competitive edge over international boundaries. For example: Waitrose is facing strong competition from Tesco and Sainsbury that effects its overall performance.
- Customers: Customers are known as the king of market. The primary responsibility of every organization is to fulfil buyer’s requirement in an effective manner. They are directly linked with growth and development. Waitrose is a leading British supermarket Store that offers quality product and services to its target audience that creates values for them. By satisfying diverse needs and requirement of consumer, referred firm can easily attain its both long and short term objective. It directly impact profitability ratio of the company.
- Suppliers: They also play key role in organizational growth and success. The main responsibility of supplier is to produce business product and services in an effective manner. Company’s tries to maintain long lasting relationship with its suppliers as it directly impact their decision making process and operational management department. Waitrose purchase product in bulk quantities from suppliers. For this they need to pay them good amount of money that satisfy suppliers requirement. If supplier is satisfied with companies deal then only they will forward their product to them.
- Employees: They are known as the internal part of the organization that has a direct impact on company’s performance and profitability. It became chiefly important for a company to satisfy employees need as well. Providing them monetary or non-monetary benefits on the basis of their performance level, motivates retain them with the company for longer period. Waitrose involve employee in decision making process their that makes them feel important.
External factors: Such types of factors are available outside the business entity that also impact decision making of the company. It includes:
- Political: This factor define the extent to which government rules and regulation can affect company’s performance and growth. The role of manager and leader is to formulate effective strategies considering all rules and regulation defined by government (Wilson, 2015).
- Economic: Search factors deals with economic condition of the country. For example: Inflation, interest rate and unemployment. During inflation, prices of all commodities gets high which makes customer to shift to other local brand that satisfy their need at relatively low cost. Economic situation of the country directly proportional to the product's demand and supply.
- Social: Such factors affect business performance and productivity in a direct manner. Waitrose provide different services that assist in accomplishing long term objectives and goal effectively. Such factors also influence the decision making process of the company regarding executing new policy or strategy (Kua and Wong, 2015)
- Technology: With advanced and innovative technology it become easier for firms to identify customer needs and requirement that keeps on changing rapidly. Moreover it become much easier for them to have adequate control on inventory level.
According to the above mentioned report it can be concluded that, both operation and management plays key role towards organizational success and growth. Leaders and managers tries to accomplish business objective in their own way and also guides their followers towards specific task. Various approaches of operational management such as total quality management, just in time, lean production etc. assist the firm in eliminating waste and providing standard quality product and services to customers that fulfils their needs effectively. Importance of operation management has also been discussed in the above report. Lastly the influence of both micro and macro factors have taken into account so as to determine its impact on operation management.
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