Leaders and managers at Dietary food Ltd can improve operational management activities by using key approaches such as Six Sigma, Total Quality Management, Just in Time Inventory, and Continuous Improvement Programs. These strategies support the execution of business functions in an effective manner.
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TABLE OF CONTENTS INTRODUCTION......................................................................................................................3 TASK 1.........................................................................................................................................3 (a)Role and characteristics of leaders and managers..............................................................3 (b)Role of leaders and managers in different situation in organization..................................4 (c)Theories and model of leadership.......................................................................................5 (d)Role of a leader and function of manager...........................................................................6 (e)Strength and weaknesses of different approaches...............................................................6 (f)Theories and approaches of leadership................................................................................7 TASK 2.........................................................................................................................................8 (a)Key approaches of operations management.......................................................................8 (b)Importance and value of operations management..............................................................9 (c)Factors that affects the operational management process.................................................10 (d)improving efficiencies of operational management.........................................................10 (e)Impact of different factors on business environment........................................................11 (f)Applications of operations management...........................................................................12 Conclusion.................................................................................................................................12 REFERENCES.........................................................................................................................13
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INTRODUCTION Leadership is explained as an action performed to guide group of people towards accomplishment of the desired goals. It is critical that operational activities of the entity should be performed by carrying out the strategic planning. It will support in achieving required goals and targets of the entity in successful manner (Karlsson, 2016). Present report is based on food industry and Dietary food Ltd has been selected for completing the project. This report describes about different types of leadership styles and management theories that are used in organization for executing business functions in effective way. In addition to that, different approaches of operations management which can be used in the entity for attaining the required manufacturing functions have been mentioned in the report.Along with this this report describes about key approaches of operations management and importance and value of operations management is also mentioned.Moreover, role of leader and functions of the manager also have been described as well as strengths and approaches of leadership are discussed. TASK 1 (a) Role and characteristics of leaders and managers Manager: A management is procedure of treating or controlling things or group of people. Leadership:- Leadership is an action of leading group of people or a company, or have ability to do this. Dietary food Ltd is a leading food manufacturing company of UK which makes healthy food products for the consumers. Low calorie sweetener products are manufactured by the company.Customised formulations and pack options are offered to buyers to suit their needs (Dietary foods limited. 2017). This organization is working in the food industry from the last four decades and sweeteners are being manufactured and packed by the organization. Managers and leaders play a critical function in executing business operations and all the required activities are performed by them for adopting suitable and effective planning process (Galliers and Leander, 2014). Leaders and managers complete different types of functions and positive 2
efforts are given by them which help them in meeting targets and goals that have been formed in the enterprise. Different functions that are being played by leaders and managers are as described: - Managers of Dietary Food Ltd:- All the critical functions including planning, organizing, coordinating, controlling and monitoring are performed by the managers. Strategies and action plans are formed on the basis of mission and the vision formed by the enterprise. Company focuses on maintaining high standards in their manufacturing activities and this is the only reason that high quality products are being made by the enterprise (Holsapple, 2013). All the staff members are allocated specific task and works. Guidance are given to them for performing their work on due time. Managers also do monitoring of work performed by them. In addition to that, all the business activities are performed by managers by scheduling the activities according to the priority (Monczka, Handfield and Patterson, 2015). Managers are responsible for communicating all required information, facts, details and knowledge which are needed for executing the functions. Managers exercise power on people and helps in giving responsibility to the subordinates. Leaders of Dietary food Ltd:- All the strategies and planning done by the managers are executed by leaders. They work for giving guidance and instructions to the followers. Leaders implement all strategies and action plans formulated in the enterprise. They persuade the followers towards accomplishing a specific goal and they also take responsibility for achieving the desired targets and set goals. (b) Role of leaders and managers in different situation in organization Dietary food Ltd is a leading sweetener manufacturing company of UK which offers healthyfoodoptionstoitsbusinessconsumers.Technical,financialandlegislative developments are implemented in the entity for completing all required business functions. Sweeteners are manufactured and packed by adopting a suitable and strategic approach and it helps in making superior quality food products (Stadtler, 2015). Sometimes, critical and complex business situations are faced by leaders and managers that are working in the 3
enterprise. They take strategic approach for resolving all problems which are being faced in the enterprise. For example, organization was facing issues due to lack of time management skills in the employees. All the required functional activities are getting delayed and due to those problems was being faced by management. Productivity and efficiency was getting hampered and profitability as well as financial revenues of the company also got influenced due to it. For solving these problems, leaders adopted autocratic leadership style and strict guidelines and instructions were given to the staff members for properly following the time schedule (Expósito, Gomez- Exposito,and Canizares, 2016). Under this leadership style, strict commands and orders are given to the subordinates and they are expected to follow all instructions and commands given by the superiors. This method supported in resolving the issues which were being faced in the enterprise. In another situation, participative leadership style was used for taking suggestions and recommendations from the subordinates (Turner, 2016). Under this style, employees are encouraged for giving their valuable recommendations which helped in identifying innovative ideas and concepts that can be used for making positive improvements in the existing performance of staff members. Similarly, it is vital that specific task and duties should also be assigned to employees who are working in a team.System leadership style is also used by the leaders in which duties and task are allocated to staff members.In this leadership approach behaviour and action of leaders is given more importance and followers follow the action as that is completed by the leader. Personal qualities posses by leader play a significant role in enhancing the morale and motivational level of followers. In this technique leaders evaluate information by collecting data and information and it helps for making effective strategies for Dietry food limited. Leader play significant role within an organization it make quick decision critical situation. On the other hand manager of cited organization role is to plan, control , direct etc. for Example, At the organization if manager make new strategy for increasing the sale, then leader role is to implement those strategy in systematic manner within a firm. It need to encourage employee so that they work according to strategy. In addition to this if manager of cited organization make some limit and give authority to leader for making decision. In such situation democratic leader 4
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not make any decision without discussing its group members.While, in this situation autocratic leader make own decision without discussing with its team member. This show that in various situation different type of leader play various role. Where are the functions of managers and examples: you need to look into some of the functions of managers and give examples to it. Leaders in the Dietary food Ltd takes positive efforts for implementing the strategies that are formed by managers. They provide directions and instructions to the subordinates. Leaders motivates subordinates for accomplishing desired goals. Small term targets are set by leaders and they build morale of followers for achieving the required target. For example if managers set target for enhancing sales of the entity that leaders will motivate followers to give innovative ideas and concepts through which sales can be increased. (c) Theories and model of leadership Dietary food Ltd is a leading food and sweetener manufacturing company and management of the organization uses various leadership and management approaches for running business activities in effective way (Martínez-Jurado and Moyano-Fuentes, 2014). Different theories and leadership approaches that are used in the enterprise are as follows: - Situational leadership:It is a leadership approach in which decisions are taken for handling and managing a specific situation. Leaders under this approach tries for developing skills and capabilities of the subordinates. Development of individual is accelerated by leaders and they drive behaviour change and business results by communicating required information and facts to the subordinates. This leadership approach is used in Dietary Food Ltd by leaders and managers for giving guidance and instructions to the followers in different situations. Many critical and complex situations are being faced in the enterprise and it is required that better decisions should be taken for handling, managing and solving business problems in effective way (Fernie and Sparks, 2014). Contingency leadership: - This is an effective leadership approach that is being used in the enterprise for taking effective decisions for the business. According to this theory, decisions 5
taken by the management of an organization depends on external and internal situations which are faced in the company. Managers and leaders of company considers organization as an open systemunderwhichthedecisionsneedstobetakenbyconsideringallenvironment circumstances that are being faced in the entity (Johnson, 2014). The best method under this leadership style is to make understanding of situation and decisions are to be taken on the basis of that. Different situations at Dietary food Ltd requires different approaches that are needed for executing business functions and managing as well as solving issues which are witnessed in the enterprise. System leadership: -Under this leadership approach major focus is given on accomplishing specific task and works. In addition to that managers and leaders takes initiatives for rendering accountability and power to the subordinates and it supports in taking proper work from the employees (Mangan, Lalwani and Lalwani, 2016). Not enough you need to explain more with detail (d) Role of a leader and function of manager Managers and leaders play different kinds of roles and wide functions are performed by them. All the necessary functions and business activities at Dietary food Ltd are performed by joint efforts given by leaders and managers and it is as described:- Managers:- Theories of management :- According to Scientific management theory given by Taylor managers are accountable for carrying out scientific selection of workers (Medlik, 2016). Managers also need to do development of workers through proper training. Division of work also is done by managers and wages and compensation policies are made for executing business functions. Scientific management theory provide wide scope for specialization and accurate planning and cordial relations between management and workers are developed by makinguseofthisapproach.Managersdevelopwagesandcompensationpolicyand appropriate salary and incentives are given to staff members so that they can fulfil their basic needs (Kacmar, Andrews, Harris and Tepper, 2013).Major functions that are performed by managers include planning, organizing, staffing, coordinating and controlling. Action plans for 6
achieving objectives and goals of the company are prepared by managers. All the tasks and activities that are needed to be performed are also completed by managers. Monitoring of the performance of the employees is done and measures are taken for making improvements in performance of the organization. Leaders :-Leaders works for implementing the strategies and action plans that are formed by topmanagementanditsupportsinaccomplishingoverallgoalsoftheorganization. Transformational leadership approach is used by them for making positive improvements in skills and capabilities of followers and this leadership style also helps in enhancing morale and motivational level of employees. Rational approach is being used by leaders for developing competence and capabilities of employees.According to situational leadership theories leaders are responsible to take decisions as per the demand of situation. Individuals that provide leadership to staff members in Dietry food company are responsible for providing better directions to the subordinates. Leaders take decisions for completing the assigned work and job responsibilities and they help subordinates in achieving their goals in effective manner. (e) Strength and weaknesses of different approaches Different approaches are used by leaders and managers for carrying out business functions at Dietary food Ltd and it helps in accomplishing the desired targets and objectives of the entity in effective way. Situational leadership approach supports in resolving issues that are faced in a specific situation (Abo and Cho, 2015). Better coordination and control of a particular situation is maintained and better decisions are taken for handling a specific business situation that is being faced in the enterprise. In addition to that system leadership approach supports managers and leaders of Dietary food Ltd for allocating task and work to employees and it also helps in organizing all the work activities among staff members. Transformational leadership approach helps in making positive improvements in skills and capabilities of employees and competence of staff members for performing their jobs can be enhanced and it also helps in developing potential and capabilities of employees (Stadtler, 2015). Contingency leadership approach also describes about effective decisions that can be 7
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taken for handling and resolving a problem that are faced in the entity. Autocratic leadership style supports in giving proper commands and directions to the subordinates. In addition to that participative leadership style supports for taking positive and valuable recommendations from the employees. (f) Theories and approaches of leadership Different theories of leadership theories and approaches are used in Dietary food Ltd for managing the work force and it supports in controlling all the functional activities of entity in effective way. Some theories and concepts of leadership are as mentioned:- Contingency theory:-According to this theory behaviour and decisions taken by leaders depends upon a situation. Different situations require different approaches and it is vital that leadersandmanagersshouldadoptthebestoneforhandling,solving,managingand controlling a specific situation that is being faced in the entity (Avolio and Yammarino, 2013). Behavioural theory :- According to this leadership theory major focus is given on behaviour of a leader. For example some situations at Dietary food Ltd requires leaders and managers to take autocratic approach and give commands and orders to the subordinates. In this method vary less involvement of workers is taken in the decision making process. Under democratic leadership style involvement of staff members is taken in the decision making process. This leadership style is adopted when there is need for collecting innovative ideas and concepts for making improvement in the performance of the organization (Klarsfeld and Tatli, 2014). With this Laissez-Faire leadership approach is also used by leaders when there is need for giving power and commands to the subordinates. When staff members are highly capable for performing a task and there is less need for making supervision on staff members. However, sometimes it becomes difficult to adopt a particular approach and leaders face difficulty in using a specific approach for resolving a specific issue that is based in the enterprise. TASK 2 (a) Key approaches of operations management 8
Operations management is a prominent approach that is used in Dietary food Ltd for administering business practices that are being carried out in the enterprise. Major procedures of the entity that are planning, organizing and supervising are performed in the enterprise by making use of key approaches of operations management (Kacmar, Andrews and Tepper, 2013). Manufacturing, packing and supply chain activities are performed in effective way and it also supports in making positive improvements in business activities that are performed in the enterprise. Some prominent approaches of operations management are as described :- Total quality management:-Under this method major focus is given for making positive improvements in overall activities that are being performed.Employee participation in decision making process is required and it supports in identifying new ideas and concepts for making positive improvements in existing practices and procedures that are being run in the entity. Total quality management approach focuses on maintaining existing quality standards and developing a culture of improvement in the organization. Just in time manufacturing concepts are used and material and other required products that are needed for manufacturing sweetener products. Under this approach material and inventory that is needed for purchasing food products is purchased on the same time as per the requirement. It helps in saving storage cost (Monczka, Handfield and Patterson, 2015). Six sigma:- It is effective method that supports in reducing defects from the operational activitiesthatareperformedintheentity(Stadtler,2015).Thistechniqueisusedin manufacturing and service industry and adopting this method supports in reducing defects from the operational activities. Waste also reduces and time and cost require for performing business functions also reduces by making use of this approach. Overall investment cost for making sweeteners and packing and dispatching them gets reduced and it supports in enhancing profitability and financial revenues of the enterprise (Expósito, Gomez-Exposito and Canizares, 2016). However, there are some weaknesses of this method and it includes high training cost for making employees capable for adopting six sigma practices in manufacturing activities. In addition to that difficulties are faced by staff members in implementing techniques and approaches of six sigma in the entity.Dietary food Ltd makes use of this approach so that existing practices and procedures can be improved and defects from the operational activities 9
can also be reduced. Total time that is required for performing business functions is reduced and investment cost is also decresed which helps for making enhancement in profitability of buisness. Lean manufacturing: - This approach supports in eliminating waste from the operational activities that are performed in the enterprise and it also helps in saving time and cost for carrying out business function in effective way. Wastages are reduced from the operational processes and overall customer value is enhanced through it.For exampleDietary food Ltd deals in making food products and while manufacturing activities large amount of food gets wasted. This problem can be resolved by making use of lean manufacturing system. (b) Importance and value of operations management Key approaches of operational management that are used in Dietary food Ltd supports in carrying out desired functions of entity in effective and successful manner. Management of human resource, financial resources, information and other supply chain and logistics activities are performed in effective way. Six sigma, Lean manufacturing, Total quality management, just in time manufacturing and continuous improvement are some key approaches that are being used in operations management for carrying out business functions in effective way (Mangan, Lalwani and Lalwani,2016.). Purchasing functions are performed in effective way and capacity management activities are also executed by making use of key approaches that are being used in the entity. Long term and short term targets of the entity are accomplished in effective way and growth and success of the business is ensured through this. Planning functionsarealsoexecutedandallthekeyactivitiesincludingcreating,developing, manufacturing and distributing are performed in a systematic and organized way by making use of these approaches. Forecasting functions also becomes easier and possible outcomes from a specific functions are analysed and on the basis of that decisions are taken in the entity (Slack, 2015). All the strategic objectives and action plans are implemented in efficacious way and it supports in ensuring long term growth and success of the business. In addition to that capacity 10
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management functions are also performed in effective way. Key functions of organization including management of human resource, purchasing, logistics, procurement, transportation and inventory functions are performed in potent manner. Coordination of key operation functions including marketing, finance, accounting, information system and purchasing are performedeffectivelyandsweetenermanufacturingfunctionsareperformedeffectively (Karlsson, 2016). However, it is required that all the stakeholders should work together for implementing all the key approaches that are being used in operation management. It becomes possible for reducing defects and unnecessary processes from the manufacturing functions and smooth functioning of the entity is ensured. Wastages are reduced and overall investment cost for running the business activities are reduced through this. Potential of human resource can be maximized and inventory management becomes effective by making use of operational management approaches. Process management :- In this business processes are planned and monitored by leaders and managers and effective measures are taken for rectifying weak performing areas. Scheduling of required activities is done and all the manufacturing process are organized in synchronised manner. Scheduling :- It is a process in which important practices that are required to be carried out first are determined and it helps in executing all the required functions in systematic manner. Capacity management :- It is a process which is used in the organization to manage functions related to information technology. Under this practice all IT resources are right sized so that existing and future requirement of resources can be met effectively. However, there are some issues that are faced while implementing the operations management practices. It is critical that managers should take significant steps for making improvements in the practices and procedures that are followed. Lack of communication channel is one most significant issue that has been faced. Managers can make use of digital technology for resolving this issue in effective manner. Along with this lack of support of staff members also creates issues and this problem can be resolved by organizing an open discussion session in the organization. 11
(c) Factors that affects the operational management process Diverse range of factors that are available in the business environment gives impact on the activities that are performed in the business. Decision making process of the enterprise also gets hampered and influenced due to the impact given by these factors. Competition in market and strategies used by rival firms for carrying out business activities also gives impact on the business functioning and overall performance of the enterprise gets influenced due to it (Fernie, and Sparks, 2014). Norms and policies formulated by state also affects the operational management activities that are performed in the entity and long term impact on them is observed. Technological changes that are happening in outside business environment also makes it essential for adopting new machineries and equipment’s for running activities and ensuring growth and success of the business. Environmental impacts such as changes in weather and climate conditions also affects the functions of the enterprise and due to that growth and successofthecompanygetsinfluenced.MajorworkatDietaryfoodLtdincludes manufacturing and packing of sweeteners and all the required works are performed in an organized manner (Stadtler, 2015). In addition to that availability of labour in market and requirement of individuals are also key element that impacts the business activities that are performed in the enterprise. Moreover, changes and modifications in needs and preference of buyers and cultural and social trends that are running in the enterprise are also necessary. It becomes assertive for leaders and managers to consider impact of all these factors for making strategies and action plans for the enterprise. It aids in making effective action plans and strategies for carrying out business activities in effective way. CSR :- It is defined as Corporate social responsibility initiatives taken by an organization for making and bringing positive changes in lives of community people. Dietary food Ltd organizes various CSR activities for providing helping hand to people who are in need. Sustainability :- It is an innovative approach which is gaining attention. All the manufacturing and supply chain activities of the enterprise are performed in environment friendly manner so that no damage to environment should be done. 12
Business Ethics :- Some specific ethical codes and practices have been followed in the entity so that all the functional activities can be performed in effective manner. At Dietary food Ltd it has been made mandatory to not use any kind of verbal abusing language with staff members that are performing their job in the entity. Stakeholdersanalysis:-stakeholderanalysissupportsforidentifyingaboutdifferent individuals and groups that can affect the functioning and decision making procedure of the organization. (d) improving efficiencies of operational management Business objectives and long term and short term goals of Dietary food Ltd can be achieved by adopting a strategic approach. Leaders and managers can play important role in significant role in successfully meeting the business objectives. All the key approaches of operationalmanagementincludingSix-sigma,TotalqualitymanagementandLean manufacturing are some key approaches that can be used in the company for running business activities in effective manner (Abo and Cho, 2015). Leaders can take significant initiatives for motivating followers to complete their work in effective way and it will help for making positive improvements in existing performance of the employees. Managers can take steps for doing fair and effective division of work and it will help in allocating task and responsibilities to workers (Galliers and Leidner, 2014). Wages and compensation policy is also formed by managers so that basic needs of buyers can be fulfilled. In addition to that key approaches of operation management including six-sigma, total quality management, just in time inventory and lean manufacturing can be implemented effectively by making use of this approach. Leaders and managers can take positive steps for enhancing efficiency of operational management process that are carried out in the entity. Wide variety of factors gives impact in the operational activities that are performed in the Dietary Food Ltd. Rules, regulations, norms and policies that are formulated by government 13
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are mandatory to follow for all organizations that are working in the entity. In addition to that technicalchangesthatarehappeninginexternalbusinessenvironmentalsoaffectsthe functioning of business. With objective to gain competitive advantage it becomes vital to implement new changes that are happening in the food industry (Turner, 2016). It requires investment from the side of management to implement proposed changes and due to that overall profitability of the enterprise gets hampered. Some part of profit earned by company is invested in Corporate social responsibility (CSR) activities that are performed in the business. It supports in making positive changes in lives of local community people and needy people are provided support through it. Dietary food Ltd works in food industry and healthy sweetener products are manufactured by the enterprise. Products of company supports in providing healthy lifestyle to buyers and options for leaving healthy life are given to buyers. Dietary food Ltd gets affected due to diverse business factors and operational activities of the business are also performed effectively by making use of these elements. All the key approaches of operation management supports for making positive improvements in the overall performance of the enterprise and due to that profitability of business enhanced. Financial revenues also improves and all the manufacturing activities are carried out in effective way by making use of this approach (Expósito, Gomez-Exposito and Canizares, 2016). Operational managementapproacheshavesupportedforreducingtheunnecessarypracticesand procedures . Smooth functioning of the entity has been ensured and key process of the organization are performed in efficacious way by making use of these approaches. Other than this local community people are also getting benefited due to the healthy food options that are provided by Dietary food Ltd. In addition to that CSR activities of the enterprise also supports formakingpositiveimprovementsinlivesoflocalcommunitypeopleandpositive improvements have been observed in their lives. CONCLUSION Aforementioned report concludes that leaders and managers of the enterprise can take significant steps for making improvements in performance of the organization. Managers plan, 14
organize, schedule, control and perform business functions. Leaders works for implementing strategies and action plans that are formulated by managers. Positive support is shown by leaders for guiding follower and instructing them to complete their work on due time. Operational management activities that are performed in the enterprise can be improved by making use of some key approaches and it includes six sigma, Total quality management, Just in time inventory and continuous improvement programs. Operation management approaches support for carrying out desired business functions in effective way. Leaders and managers of Dietary food Ltd can take positive steps for executing business functions in effective way. 15
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