Importance of Operations Management in Business: Doc

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Comparison between different role of a leader and function of a manager......................1
TASK 2............................................................................................................................................5
P2 Role of a leader and functions of manager apply in different organisational context......5
P3 Different leadership theories and models of approach......................................................5
TASK 3............................................................................................................................................9
P4 Key approaches to operations management and roles of leaders and managers...............9
P5 Importance and value of operations management in achieving business objectives......10
TASK 4..........................................................................................................................................11
P6 Factors within business environment that impact upon operational management and
decision-making by managers and leaders...........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management and Operation is concerned with transformation of raw materials into
finished goods and services with a clear objective of maximising the profitability of an
organisation. It is responsible to design or re-design the products according to the demands and
requirements of customers so as to increase their satisfaction level and achieve huge revenue.
Therefore, operation management play an important role in the growth and development of an
organisation. The present assignment report is based on Rowlinson Knitwear which is engaged in
manufacturing and selling school and corporate wear garments to the people of United Kingdom.
The project briefly discusses the roles and characteristics of leaders and managers along with
their differentiation in roles performed towards an organisation. In addition with this, it also
includes the role and functions of managers and leaders in different situational contexts with the
adoption of suitable management and leadership theories. The project also describes the impact
of business environmental factors on management and decision-making by leaders and
managers.
TASK 1
P1 Comparison between different role of a leader and function of a manager
Overview of company:
Rowlinson Knitwear is UK-based organisation which came into existence in the year
1935 with the purpose of providing quality garments to the independent retailers of school and
corporate wear. Daniel Chan and Donald Moors are the directors of company which regulates all
business functions with their formulated plans and policies. The company has attained 53
employees among which 53% are men and 49% are women. The net turnover of company is
approx. 12,147,616 pound which is huge in figures due to operating in UK only Following are
the management structure of Rowlinson Knitwear:
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.
Leader: An individuals can be called as a leader if he can get work done from others in
more effective and efficient way through motivating and guiding them using different leadership
styles. They play a valuable role in developing the overall performance of employees which
increases their loyalty and work commitment with company for longer period of time. In the
context of Rowlinson Knitwear, the leader of company always support its employees who are
specialist in designing clothing garments through enhancing their skills by providing training and
learning programs at workplace (Ageron, Gunasekaran and Spalanzani, 2012).
Manager: An individual or employee can be a manager of company if having lots of
work experience and knowledge as the position of manager is held responsible to direct an
organisation towards its pre-determined goals and objectives. Manager is the one who consider
performance level of each employee and accordingly allot them suitable roles and
responsibilities with a hope of getting maximum positive result in near future. In the context of
Rowlinson Knitwear, the manager direct employees to work in right direction through framing
plans and policies.
Roles of a leader:
Representative of an organisation: A leader is also called as representative of an
organisation as they are responsible to attend business meetings seminars, conferences, general
meeting etc. It facilitate them in acquiring knowledge about company's objectives along with
their policies to achieve which help them in further communicating to their employees so as to
get work done from them in desired way (Barnard, 2017).
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Execute strategy: The leaders is also called as follower of policies and strategies framed
by the management for the betterment of an organisation. They are liable to execute strategies
through developing new tactics in order to carry out business operations in a systematic manner.
For example, strategies framed by management of Rowlinson Knitwear to increase existing
customer base which is executed by the leader through making their employees more capable to
influence the buying behaviour of customers using social media platform by providing training
programs to them at workplace.
Characteristics of a leader:
Communication: The leaders have better communication skills which directs them to
interact with their employees regarding their issues and problems facing by them at workplace. It
help them in creating a better relations with their employees which makes positive impact on the
working environment of company. Rowlinson Knitwear is producing well-designed clothing
garments which requires employees to develop new and innovative ideas to implement in
production process. It can be possible through communicating with them by leader in better way
(Barratt, Choi and Li, 2011).
Creativity: The leader always put their maximum efforts in bring out creative way to
execute business activities in desired way. For example, using social media platform to influence
buying behaviour of customers towards company's products which directly makes positive
impact on the sales figure of company. Therefore, leaders play an important role in achievement
of organisational goals and objectives (Burke, 2013).
In this regard, it is important for a leader of Rowlinson Knitwear to adopt path
transformational and transactional leadership with an objective of taking support from employees
in achievement of desired goals and objectives.
Role of a manager
Entrepreneur: Manager is called as an entrepreneur of company due to having skills and
capabilities to run their business on their own by framing an effective decisions and suitable
plans. Due to this, they are accountable towards its stakeholders regarding company's failure or
success. Rowlinson Knitwear is UK-based organisation which is currently capturing huge market
share of UK even engaging in providing limited products. It can be possible due to having
capabilities in manager.
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Informational roles: Manager is also performing informational roles through which they
can facilitate its employees to work better by informing them about the allotted task so that
maximum support can be gained towards achievement of organisational goals and objectives.
They are also liable to maintain loyalty of existing experienced employees through providing
them promotion, rewards etc. after analysing their performance level (Galindo and Batta,2013).
Characteristics of a manager:
Knowledge: Manager performs several roles such as planning, organising, coordinating,
controlling etc. in order to bring company ahead than their rivals. For this, Manager should have
an appropriate knowledge about the policies and legislations implemented by the government in
which their company operates. It assist them in achieving huge sustainability of its existing
employees as well as an organisation.
Experience: An employee can achieve managerial position in company through their
experiences and past performances. Thus, manager have sufficient amount of experiences in
work which makes them more capable to make an effective decisions and suitable plans for the
betterment of an organisation.
In this context, it is important for managers of Rowlinson Knitwear to adopt path goal
theory so as to drive their business entity to achieve growth and success in competitive market.
This theory assist managers to establish better relations with their employees.
Different between a manager and a leader
Basis Management Leadership
Meaning It is an art of managing and
organising the business
activities in desired way.
It is a skill which facilitate an
individual to get work done
from others in more effective
and efficient way.
Emphasis It mainly emphasising on
managing and coordinating
activities which further help
Rowlinson Knitwear in
achieving its desired
objectives.
It mainly emphasis on
inspiring others which further
help in creating better
relationship with employees.
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Power Manager of Rowlinson
Knitwear regulates the
business functions on their
own.
It get influenced by the
policies and plans framed by
the management of Rowlinson
Knitwear
Strategy It makes strategy to achieve
huge sustainability of
Rowlinson Knitwear.
It makes strategy to motivate
employees to perform with full
dedication and enthusiasm.
TASK 2
P2 Role of a leader and functions of manager apply in different organisational context
Managers and leaders both are responsible to support Rowlinson Knitwear in
achievement of its desired goals and objectives. Due to this, they both are accountable to deal
with different situations in organisational context which are further defined as under:
Working on a new project: Here Rowlinson Knitwear is deciding to work on new project
which requires skilled and knowledgeable employees to execute activities in desired way. In this
situation, manager is responsible to conduct recruitment programs specifying the full job
description and personal specification. On the other other hand, leaders are also play an
important role through providing training programs to the existing employees so as to enhance
their skills and capabilities.
Implementation of plans and policies: An organisation can achieve its desired goals and
objectives within pre-determined time period when they have skilled and experienced managers
who are more capable to formulate an effective plans and policies. It directs the employees to
perform its roles and responsibilities according to the guidance given by managers by their
framed policies and plans. Alongside, leaders also provide maximum support to the employees in
completion of its allotted task through enhancing their skills and capabilities by providing
training and development programs at workplace. Adoption of various leadership styles such as
Democratic, laissez-faire etc. encourages employees to develop new and innovative ideas to
execute allotted activities in profitable manner.
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P3 Different leadership theories and models of approach
Contingency theory: According to this theory the effectiveness of a leader is depends on
their own leadership style which is implemented by them fits with the situations arises. In this
theory, the leadership style is either task oriented or people oriented. Task-oriented is related to
attain goals of a company where as people oriented related to building interpersonal relationship.
The leaders and managers are effective in using this theory as they have experience and skills for
determining the type of situation and providing solution for resolving the problem. Business
environment is contingent in nature due to having lots of complexities such as political
fluctuations, economic stability etc. which requires proper actions and strategies to be taken.
Under this theory, the leadership style is either task oriented or people oriented. Task oriented is
related with achievement of organisational goals and objectives whereas people oriented is
related with establishing better relationship with people. The managers and leaders of Rowlinson
Knitwear should adopt such theory due to having their experience and knowledge for analysing
the situations and accordingly bring out optimum solutions deal with contingent situations in
more effective and efficient manner,
Strengths and weakness of these 3 theories
Contingency theory of leadership:
 Strengths: This theory links the leaders to the situations arises. It doesn't need a effective
leader in every situation. This the theory directs the leaders and managers to achieve
desired goals of an organisation through creating better relations with their staff which in
results increasing sustainability in competitive market.
 Weaknesses: The weakness of this theory is that it does not explain the reason for why
some people are effective leaders in only some situations. Another weakness is the LPC
scale.
Scientific Management Theory Of Management:
The theory was propounded by Fredrick Winslow Taylor in the early 20th Century. It was
propounded by Taylor, that's why it is often called as “Taylorism”. He is also called as the Father
of Scientific Management. The theory is a classical approach that emphasizes on the scientific
study of the work methods in order to increase their work efficiency. The approach is adopted by
the Rowlinson Company which helped in increasing the work efficiency of their workers. The
company understood the importance of scientific management which helped not only in
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increasing the workers efficiency but also the level of productivity increased. They made the
necessary changes according to the theory and put then into the working of the company such as
training to the workers, motivating them to work more by means of increase in the wages and by
adopting the differential wage system by which the workers got self-motivated (Chen and et. al.,
2010). With the help of this theory, the company was able to meet both the organisational
objectives and also secured the interests of the employees. The following are the main
advantages of Scientific Management Theory. These are:
1. Feeling of Self-Motivation: Applying this theory, there is no need to motivate the
employees. The employees got self-motivated because the company is paying more to
those whose finishes the task given before the time. So the feeling of self-motivation
comes into the employees when these type of working condition are provided to the
employees.
2. Increase in the Productivity: As there is no need to motivate the employees, they are
doing everything at their own. This has risen the level of productivity as the employees
will work using their potential ability also (Goldhaber, 2013).
3. Proper Working Tools: One reason why employees do not want work was the inefficient
tool for performing the task. The employees were not equipped with proper equipments
which were required to perform the task. The company has also eliminated this reason.
By adopting this strategy Rowlinson will be able to make their employees to work using
their full abilities.
4. Cooperation: The most required characteristic for the success of a company. Rowlinson
should teach the importance of cooperation to their employees. This will help in
converting the individual interests into the organisational interests. And all the workers
will work as a team will help in solving each other's problems and the achieving the
organisational goals.
The following are the Disadvantages of the theory:1. Ignorance of Social and Ego Needs: The theory only relates the employees with the
physical and economical needs. But the link between two is not sufficient in order to
motivate the employees. It ignores the value of Social and Ego needs of the employees
which also play a key role in motivating the employees and making them to work.
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2. Reduction in Work Force: The theory was also lacking in increasing the work force in
the company as scientific methods reduces the work force in a company (Haifeng, 2011).
Elton Mayo’s Hawthorne Effect:
The theory was propounded by Professor George Elton Mayo. The experiments related to
the research stared in 1924. In this theory, Elton Mayo focuses on the psychological conditions
than focusing on physical conditions. By creating a positive effect on the mindset of the workers,
the productivity can be increased. Professor made some changes in the working conditions of the
employees such as the change in the working hours, interval time, lighting, humidity,
temperature and then saw the changes occurred in the working of the employees. Unexpectedly
the morale of the employees increased, and resulted in increase in the productivity of the
company (Jacobs, Chase and Lummus, 2011). Rowlinson should also apply this technique which
will help it in improving the level of productivity. The following are the advantages of the
theory:
1. Less Supervision: When the employees are self-motivated, the need to supervise them is
less. And the top- level management can find other opportunities for the company which
are profitable both to the company and its employees instead of keeping an eye on their
working.
2. Better Relation Between Management and Worker: This theory also helps in enhancing
the relationship between the management and the workers. Rowlinson can make benefit
from this theory which not only help in improving the relation but also will reduce the
labour turnover. And the employees will not want to leave the company when their
personal interests are also taken into consideration by the company (Lehmann and
Joseph, 2015).
3. Greater Communication: Involving of more make the employees to feel that they are also
countable in the company. Their importance is also felt in the company that creates a
desire to do work with full responsibility. It will help Rowlinson in making their
employees loyal to the company.
4. Gives more Freedom at Workplace: By adopting this technique, the company can make
its employees to feel free about the work. They can take their own decisions regarding the
task they are provided with. The work will be accomplished with more innovative ideas if
a freedom is given to the employees. By this, the employees will not restrict to tell and
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implement the ideas that are coming to their mind (Luo, Meier and Oberholzer-Gee,
2012).
The following are the Disadvantages of the theory:
1. More Work Pressure: The theory suffers from the disadvantage of stress and pressure on
the employees. As the whole burden of the work is on the employees, they will feel
pressure on them. It may also cause mistakes that will happen due to the work pressure
and the stress on the employees. They will not be able to do the work with their full
ability. In order to neglect this limitation, Rowlinson has to continuously look upon the
workload of the employees and also there must be someone to support and guide the
employees in performing the task (Liang, Guo and Fung, 2015).
2. Less Control Over the Workers: Another disadvantage of the theory is that when more
freedom is provided to the employees, than the company will have lesser control over its
employees. The employees will start to leisure in the working hours. Also there is a
possibility of delay in performing the task. So in order to avoid this limitation, Rowlinson
must give that much freedom to the employees which do not affect their working in a
wrong way.
TASK 3
P4 Key approaches to operations management and roles of leaders and managers
Both managers and leaders play an important role in assisting an organisation to achieve
growth and success in competitive market. To perform their roles and responsibilities in desired
manner, leaders and managers need to consider various key approaches to operation management
in order to implement them within an organisation in order to bring maximum profitable result.
Such key approaches to operation management are given as under:
Total quality management: It is considered as an effective approach which directs the
management to focus on improving quality of products and services offered by Rowlinson
Knitwear. The main reason behind adoption of such approach is to maximise the satisfaction
level of existing customers and retain their loyalty with company for longer duration. For
example, using quality fabrics in production process of clothing garments. On the other hand,
leaders also focuses on enhancing quality in work of its employees through providing training
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programs at workplace. For example, improving their technical skills to use online platform to
attract huge customer base (Pan, WANG and SHI, 2011).
Just in time: This approach facilitates an organisation to meet customer's needs and
requirements on time so as to achieve their trust and loyalty towards them for longer period of
time. For this, managers of Rowlinson Knitwear should analyse inventory situation of company
and on the basis of which, make decisions whether to order inventory from suppliers or can wait
for the right time. It reduces storage cost of company which makes positive impact on their
profitability. Here, leaders also act as a motivator towards its employees to utilise resources in an
optimum manner so that the chances of having wastage will be minimum (Karnani, 2011).
Lean production: It is useful to adopt by an organisation such as Rowlinson Knitwear
which are engaged in manufacturing sector as it help them in reducing expenses and wastage of
resources used in manufacturing process. This will enable company to offer quality products at
an affordable prices. For this, managers should provide advanced technologies which can be
effectively used in production process and incur less wastage. On the other hand, leaders should
increase the knowledge of their employees to work on such advanced technologies in order to get
expected result in future (Singh, Chauhan and Anwar, 2012).
Six sigma: It is another effective approach which includes statistical tools and techniques
used to eliminate defects and minimise process variability. Rowlinson Knitwear supplies
clothing garments to different locations of UK which may increases the chances of defects in the
process of transit. For this, the managers should provide better transportation facilities to their
targeted customers. On the other hand, leaders should manage human resources in dealing with
the customers in more effective and efficient way.
P5 Importance and value of operations management in achieving business objectives
Operations management is very essential for continuous improvement in performance of
the organisation in terms of capacity and results. It is concerned with different procedures which
are used for implementing the necessary strategies for improving the performance of
organisation. The operations management is mainly focused on developing the design of
products for making improvements in them (Karnani, 2011).
Evaluations of business activities: It is necessary for reducing the inefficiencies in
operations such as deficiency of raw material, excess inventories etc. For this, operation
management help in evaluating each and every task allotted to its staff so that if any deviation
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are found then it can be removed at right point of time. This will encourages staff members to
continue to execute their allotted work without facing any disturbances.
Cost minimisation: Operation management is helpful in reducing the costs incurred in
execution of desired activities and these saved cost must be utilised and assigned properly in near
future business activities. Rowlinson Knitwear needs to be careful when introducing a new
product or services as it can lead to extra occurred cost which can affect the company in
achieving their goals and objectives.
Enhance performance: Operation management is helpful for motivating the employees
and also to enhance their morale. Through this the employees of Rowlinson knitwear can achieve
their target efficiently as the motivated employees will enhance the productivity and performance
of the organisation in an effective manner (Five Functions of Management, 2018).
Time management: It is also benefit of operation management as this is helpful in
managing the time properly. With proper management of time, the efficiency and productivity of
the employees and company can be enhanced. Time management is helpful for the Rowlinson
Knitwear for providing their products to consumers in the predetermined time with the utilisation
of resources in an effective manner.
TASK 4
P6 Factors within business environment that impact upon operational management and decision-
making by managers and leaders
Business environment consists of internal as well as external factors which can make
huge impact on the existence of an organisation either in negative or positive way. Internal
factors includes organisational culture, structure, employees morale etc. whereas external factors
includes political and economical fluctuations, technological advancement, legal factors etc. It
largely influences the decisions made by the managers and leaders which are briefly discussed as
under:
Internal factors:
Organisational culture: It is an internal factor that directly affect the decision-making by
managers and leaders. The managers and leaders are responsible to establish positive culture at
workplace which gives equal treatment to all employees without any discrimination of their job
position, religion, gender etc. This will provide an opportunity to take participate in decision-
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making process and provide their valuable suggestions in order to increase the effectiveness of
the managerial decision. But if the manager and leader failed to create better organisational
culture then it will badly impact on the effectiveness of their decision.
Employees support: Employees are considered as real asset of company whose actions
and performance level decides whether the decision taken by the managers and leaders can bring
expected outcome in near future as well. Sometimes, employees feel demotivated due to getting
low pay scale as compared to their efforts or due to having insufficient skills which limits their
support towards growth and success of an organisation. This can be maximised by the managers
and leaders through increasing their pay scale and providing training programs at workplace
(Karnani, 2011).
External factors:
Customers demand: Customers are the lifeline of an organisation whose needs and
requirements can changes their sales figure and revenue. Rowlinson Knitwear is manufacturing
clothing segments due to which it is essential for managers to understand market needs and
requirements so as to maintain their stability in market. For this, managers should conduct
market research through using secondary sources so that the company can able to meet
customers' requirements on time. Leaders also perform its role as a motivator who are
responsible to bring motivation among employees to influence buying behaviour of targeted
people through enhancing their technical skills and knowledge (Groves and et. al., 2011).
Competitors: This is another factor which forces an organisation to make competitive
changes in their existing policies and plans as to sustain their market position. In clothing
market, there are lots of rivals in UK market such as Marks and Spencer, River Island etc. which
gives tough competition to Rowlinson Knitwear. To compete with them, managers should play
an important role by modifying their existing policies and plans after analysing market situations
and competitors strategies. Leaders also required to motivate its employees to bring new and
innovative ideas so that it can be considered under decision-making process which increases the
possibilities of taking an effective decisions for the betterment of an organisation.
CONCLUSION
It has been concluded from the above project report that managers and leaders both play
an important role in achieving growth and success of an organisation. Managers supports
Rowlinson Knitwear to achieve competitive advantage by framing plans and policies after
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analysing market situations whereas leaders act as a motivator who brings confidence and
motivation among the workforce through providing training and learning programs at workplace.
It requires managers to perform several managerial functions described by Henry Fayol as well
as key approaches to operation management in order to enhance the performance level of an
organisation. It also further required leader to adopt classical and behavioural theories in order to
increase overall performance level of employees.
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Online
Five Functions of Management. 2018. [Online]. Available through:
<https://expertprogrammanagement.com/2017/11/five-functions-of-management/>.
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