Management and Operation of H&M
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This assignment analyzes the management and operation of H&M, a leading fast-fashion retailer. It explores the role of leaders and managers within the organization, including their responsibilities and characteristics. The document also examines external factors that impact decision-making, such as business ethics, corporate social responsibility, sustainability, and company culture. A conclusion is drawn from the analysis, highlighting the importance of effective management and operation for H&M's success and sustainability.
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INTRODUCTION
Operation management refers to is defined as an administration process of a business
organization which practice to create high level of efficiency that is achievable within an
organisation. It is a process of converting raw material and labour into final output in order to
maximise profit of an organisation(White, 2016). H&M, is chosen for this report which is a
fastest growing clothing sector that deals in different segments such as men, women, teenagers
and child. This report focuses on defining roles of both manager and leader as well as gaining
difference between management and leadership. Moreover, evaluating role of management and
leadership in business context with concept and theories as well as evaluating strength and
weaknesses of difference approaches to leadership. Furthermore, defining key function and
responsibilities of managers, operational effectiveness with appropriate approaches so that
business objectives can be fulfil along with recommendations for further improvements.
TASK 1
Introduction to organisation management structure
H&M, is an organisation which is known to carry out its functions in numerous countries
and known for its fastest growing brand in clothing industry. It dealing in wider range and
variety of products for every segment such as men, women and children as they are offering
fashionable clothes with premium quality at affordable price. This organisation is following
functional organisation management structure for their business operation and function.
Basically, focusing on the job function and different areas they are necessary to fulfil
organisational objectives for an organisation in an impressive manner.
P1 Comparison between different roles and characteristic of a leader and a manger
If a organisation want to become competitive and success that he should have both
leader and mangers so that they can set strategies and follow towards the achievement of gaols
and objectives. Leadership is all about understanding peoples roles and responsibilities in vision
of their work that are need to be achieved. Where as manger role is about managing and dealing
with activities and making sure that day to day activities are taking place as want to.
Leader: A leader is define as a individual who influences a association of people towards the
achievement of a goal(Strande and Brdjanovic, 2014). Leader has the ability to guide and
influence behaviour to work towards accomplishment of goal in an appropriate manner.
1
Operation management refers to is defined as an administration process of a business
organization which practice to create high level of efficiency that is achievable within an
organisation. It is a process of converting raw material and labour into final output in order to
maximise profit of an organisation(White, 2016). H&M, is chosen for this report which is a
fastest growing clothing sector that deals in different segments such as men, women, teenagers
and child. This report focuses on defining roles of both manager and leader as well as gaining
difference between management and leadership. Moreover, evaluating role of management and
leadership in business context with concept and theories as well as evaluating strength and
weaknesses of difference approaches to leadership. Furthermore, defining key function and
responsibilities of managers, operational effectiveness with appropriate approaches so that
business objectives can be fulfil along with recommendations for further improvements.
TASK 1
Introduction to organisation management structure
H&M, is an organisation which is known to carry out its functions in numerous countries
and known for its fastest growing brand in clothing industry. It dealing in wider range and
variety of products for every segment such as men, women and children as they are offering
fashionable clothes with premium quality at affordable price. This organisation is following
functional organisation management structure for their business operation and function.
Basically, focusing on the job function and different areas they are necessary to fulfil
organisational objectives for an organisation in an impressive manner.
P1 Comparison between different roles and characteristic of a leader and a manger
If a organisation want to become competitive and success that he should have both
leader and mangers so that they can set strategies and follow towards the achievement of gaols
and objectives. Leadership is all about understanding peoples roles and responsibilities in vision
of their work that are need to be achieved. Where as manger role is about managing and dealing
with activities and making sure that day to day activities are taking place as want to.
Leader: A leader is define as a individual who influences a association of people towards the
achievement of a goal(Strande and Brdjanovic, 2014). Leader has the ability to guide and
influence behaviour to work towards accomplishment of goal in an appropriate manner.
1
Role of a leader within an organisation
Formulating strategies: In an organisational context, a leader is responsible for
formulating plan of action so that desired gaols and targets are fulfilled. A leader of H&M are
creating more towards effective strategies formulation that create value for both customer's and
organisation.
Representative of an organisation: In an organisation a leader is termed as
representatives of business operation. A leader of H& M are conducting seminars, conferences as
it is essential role to communicate to general public.
Characteristic of a leader
Decision-making capabilities: Within an organisation leader must have power to
undertake decision at the different circumstances and time period. or when ever required. For
such purpose a leader of H&M need to analyse each and every circumstances so that effective
decision can be taken that create a positive impact within organisation.
Creative and innovation: In today's context a leader to be high creative and innovative
with business environment. It must have ability to think creative and come up with new and
attractive innovation that is think out of the box so that they can achieved their desired within
stipulated period of time.
Manger: A mangers is define as a person who play's a vital role in managing and controlling all
business operation function and actualities.
Role of manger within organisation
Decisional role: A manger is a person who is assumed with certain risk that may effect
an organisation function. The mangers of H&M needs to take appropriate decision such as
handling business project, conflicts b, proper allocation of resources so that gaols and objectives
can be achieved.
Informational role: An informational role of manager is to collect and gather
information as communicating the same to the people. The mangers of H&M are
communicating each and every message to the employees and subordinate so that there is proper
flow of communication and actives are performed accordingly.
Characteristic of a manger
2
Formulating strategies: In an organisational context, a leader is responsible for
formulating plan of action so that desired gaols and targets are fulfilled. A leader of H&M are
creating more towards effective strategies formulation that create value for both customer's and
organisation.
Representative of an organisation: In an organisation a leader is termed as
representatives of business operation. A leader of H& M are conducting seminars, conferences as
it is essential role to communicate to general public.
Characteristic of a leader
Decision-making capabilities: Within an organisation leader must have power to
undertake decision at the different circumstances and time period. or when ever required. For
such purpose a leader of H&M need to analyse each and every circumstances so that effective
decision can be taken that create a positive impact within organisation.
Creative and innovation: In today's context a leader to be high creative and innovative
with business environment. It must have ability to think creative and come up with new and
attractive innovation that is think out of the box so that they can achieved their desired within
stipulated period of time.
Manger: A mangers is define as a person who play's a vital role in managing and controlling all
business operation function and actualities.
Role of manger within organisation
Decisional role: A manger is a person who is assumed with certain risk that may effect
an organisation function. The mangers of H&M needs to take appropriate decision such as
handling business project, conflicts b, proper allocation of resources so that gaols and objectives
can be achieved.
Informational role: An informational role of manager is to collect and gather
information as communicating the same to the people. The mangers of H&M are
communicating each and every message to the employees and subordinate so that there is proper
flow of communication and actives are performed accordingly.
Characteristic of a manger
2
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Problem solving: Within an organisation an manger have the ability to solve problem.
The mangers of H&M are taking responsibilities in solving problem and issues so that an ethical
approach can develop in solving problems.
Communication: A mangers with an organisation must be good communicator as well as
appropriate listener too(KatoNEC Corp, 2015). The mangers of H&M must listen to its
subordinate effectively so that harmony in the organisation could be sustained.
Thus, the above mention are the crucial functions carried out by a leader and manger with an
organisation. It can be understood in better way with the difference of management and
leadership.
Basis Leadership Management
Meaning A leadership is referred to a
skill of leading other in an
effective manner.
Management is an art of
coordination different tasks
and functions of a business
and ensuring consistencies.
Focus Leadership implements
strategies and innovative ideas
so that organisation aims and
objectives can be fulfil
Management come up with
different strategies that help
towards the growth and
development as well as
expansion of an organisation.
Formulation of strategy Proactive in nature. Principles
an guidelines are followed
Reactive in nature. Policies
and procedures are followed.
TASK 2
P2 Role of a leader and function of manger in different situational context
Within a business environment a manger and leader have different roles in assuring that
organisational targets are accomplished with available resources. Both have different function,
roles and responsibilities within organisational context which is determined below:
Conflict management: In an organisation, it is natural to arise conflicts between employees and
workers. Mainly this come into existence when employees belong to different culture, non
3
The mangers of H&M are taking responsibilities in solving problem and issues so that an ethical
approach can develop in solving problems.
Communication: A mangers with an organisation must be good communicator as well as
appropriate listener too(KatoNEC Corp, 2015). The mangers of H&M must listen to its
subordinate effectively so that harmony in the organisation could be sustained.
Thus, the above mention are the crucial functions carried out by a leader and manger with an
organisation. It can be understood in better way with the difference of management and
leadership.
Basis Leadership Management
Meaning A leadership is referred to a
skill of leading other in an
effective manner.
Management is an art of
coordination different tasks
and functions of a business
and ensuring consistencies.
Focus Leadership implements
strategies and innovative ideas
so that organisation aims and
objectives can be fulfil
Management come up with
different strategies that help
towards the growth and
development as well as
expansion of an organisation.
Formulation of strategy Proactive in nature. Principles
an guidelines are followed
Reactive in nature. Policies
and procedures are followed.
TASK 2
P2 Role of a leader and function of manger in different situational context
Within a business environment a manger and leader have different roles in assuring that
organisational targets are accomplished with available resources. Both have different function,
roles and responsibilities within organisational context which is determined below:
Conflict management: In an organisation, it is natural to arise conflicts between employees and
workers. Mainly this come into existence when employees belong to different culture, non
3
flexible working hours and miss communication among themselves. In case of conflict
management both leader and manger carry out different roles and responsibilities.
Management by objectives: With the use of MBO approach management of H&M can
assure resolution of conflicts that are arising within workplace. From this theory they can set out
targets of each and every employees accordingly to their skills, role and responsibilities as well
as job designation. By diving the roles and responsibilities an organisation can manage conflict
within workplace.
For example: If there is conflicts between the manger and employee for not performing
job according to required manner then it may lead to have conflicts among them. Thus, with the
help of MBO a manger can maintain proper schedule of working criteria of their employees so
that there is conflict.
Role of a leader in conflict management: A leader role within an organisation involved in
defining mission and vision in an appropriate manner so that gaols and objectives can be
achieved. Leader of H& M typically deals with the conflict management as handles such
situation in an effective manner. H&M leader are using their power and position as well as their
excessive control over their subordinates. So that it can identify the root cause of the problem in
an effective manner. Eventually, encouraging on active listing and asking employees to ensure
harmony in the organisational environment.
Function of a manger in conflict management: Function of manger during this issue is that to
find out reason of conflict, listen to its subordinates and clear their queries to understand the full
situation so that effective measure can be adopted. The mangers of H&M should
collaboratively identify solution with its employees and subordinate in order top bring out
conflict peaceful resolution. It is defined as set of organisation function so that business
operation are carried out in an effective manner. From such instance a manger can use concept of
management by objectives in resolving conflicts that are arising within workplace.
Planning: In an organisation planning is defined as fundamental management function. It is an
rational process in which objectives of an organisation are develop in various course of action
through using planning structure appropriately.
Chaos Theory : With the help of Chaos theory a business can form a plan in an
appropriate so that their gaols and objectives can be attained in an effective manner(Gokhale and
4
management both leader and manger carry out different roles and responsibilities.
Management by objectives: With the use of MBO approach management of H&M can
assure resolution of conflicts that are arising within workplace. From this theory they can set out
targets of each and every employees accordingly to their skills, role and responsibilities as well
as job designation. By diving the roles and responsibilities an organisation can manage conflict
within workplace.
For example: If there is conflicts between the manger and employee for not performing
job according to required manner then it may lead to have conflicts among them. Thus, with the
help of MBO a manger can maintain proper schedule of working criteria of their employees so
that there is conflict.
Role of a leader in conflict management: A leader role within an organisation involved in
defining mission and vision in an appropriate manner so that gaols and objectives can be
achieved. Leader of H& M typically deals with the conflict management as handles such
situation in an effective manner. H&M leader are using their power and position as well as their
excessive control over their subordinates. So that it can identify the root cause of the problem in
an effective manner. Eventually, encouraging on active listing and asking employees to ensure
harmony in the organisational environment.
Function of a manger in conflict management: Function of manger during this issue is that to
find out reason of conflict, listen to its subordinates and clear their queries to understand the full
situation so that effective measure can be adopted. The mangers of H&M should
collaboratively identify solution with its employees and subordinate in order top bring out
conflict peaceful resolution. It is defined as set of organisation function so that business
operation are carried out in an effective manner. From such instance a manger can use concept of
management by objectives in resolving conflicts that are arising within workplace.
Planning: In an organisation planning is defined as fundamental management function. It is an
rational process in which objectives of an organisation are develop in various course of action
through using planning structure appropriately.
Chaos Theory : With the help of Chaos theory a business can form a plan in an
appropriate so that their gaols and objectives can be attained in an effective manner(Gokhale and
4
Vibhor, 2017). For such purpose H&M are adopting this theory in planning structure so that
they can deal with uncertain situation.
For example: If an manger have proper planning techniques with the help of chaos
theory then they will achieve their gaols and objectives in an effective manner.
Role of a leader in planning: In an organisation context to H&M, a leader role is to getting
things done by other by understanding and belief in vision of success. Herein ,a leader plan out
their to bring out clarity in function and essential activities with proper planning structure.
Function of a manger in planning: The manger of a respective organisation need to implement
that plan in an effective manner so that each and every task are managed and control with proper
administration. It also make sure that each and every activity are managed in an effective manner
so that organisation gaols and objectives can be fulfilled.
Thus, the above mention are the role and function of a leader and manger in different
organisation situation. Both have their different role and function in handling different situation
that arise within an organisation.
Leaders functions Manager function
It concentrate upon creating changes as well as
movement
It concentrates upon creating order as well as
consistency.
Setting Directions
formulating strategies
clarity
Budgeting as well as Planning
resource allocation
establishing schedules
Aligning People
Commitment
objectives of communication
developing teams and coalitions.
Organising and staffing
facilitating framework
developing placements for jobs
formulating regulations and policies
Encouraging
Accomplishing unmeet requirements
Subordinates empower
Problem resolving and Controlling
Taking corrective action
developing creative solutions
5
they can deal with uncertain situation.
For example: If an manger have proper planning techniques with the help of chaos
theory then they will achieve their gaols and objectives in an effective manner.
Role of a leader in planning: In an organisation context to H&M, a leader role is to getting
things done by other by understanding and belief in vision of success. Herein ,a leader plan out
their to bring out clarity in function and essential activities with proper planning structure.
Function of a manger in planning: The manger of a respective organisation need to implement
that plan in an effective manner so that each and every task are managed and control with proper
administration. It also make sure that each and every activity are managed in an effective manner
so that organisation gaols and objectives can be fulfilled.
Thus, the above mention are the role and function of a leader and manger in different
organisation situation. Both have their different role and function in handling different situation
that arise within an organisation.
Leaders functions Manager function
It concentrate upon creating changes as well as
movement
It concentrates upon creating order as well as
consistency.
Setting Directions
formulating strategies
clarity
Budgeting as well as Planning
resource allocation
establishing schedules
Aligning People
Commitment
objectives of communication
developing teams and coalitions.
Organising and staffing
facilitating framework
developing placements for jobs
formulating regulations and policies
Encouraging
Accomplishing unmeet requirements
Subordinates empower
Problem resolving and Controlling
Taking corrective action
developing creative solutions
5
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P3 Different theories and models of an approach of leadership
Leadership is define as framework that deals with the objectives and challenges of an
organisation as well as take decision and inspire individual to carry out their work in the most
appropriate manner. There are certain approaches of different leadership style that are beneficial
in fufilling gaols and objectives which are discussed below:
Below is the mention of a leadership approaches which can be helpful in achieving
organisational goals:
Situational leadership: It is an adaptive style of leadership that basically work on assumption as
changes occur from situation to situation (Webb, 2017 ).This leadership style can be adopted by
the mangers of H&M to deal with contingency situation which arise for a business enterprise. It
will help manger to direct and guide their employees so that effective decision can be taken in
achieving gaols and objectives in critical situation.
Strength: If this approach of leadership is adopted by the mangers of an organisation that
it will help them to deal with each and every situational in an effective manner. It creates
flexibility within a leader to deal with so that it can deal with unwanted situation. moreover, this
help leaders to become flexible do not have to comply certain set of rules. Also, respective firm
perform to develop style which depends upon readiness level of its requirements and team.
Weaknesses: Here, situation may change on continuous basis that may lead and
organisation to face may issues and problems which may not be controllable by an leader. This
theory is not so much effectual into task oriented environment as well as do not faciliate more
information for few leaders.
System leadership: It assist a leader within an organisation to create such a condition where all
level of people can carry out their work with their potentiality. Herein, leader of H&M are
creating models and other strategies to predict an organisation behaviour within an organisation.
Strength: It help a leader to build an effective method which help it to drive a productive
behaviour that will lead to have effective realisation of an organisation. This theory is helpful to
concentrate upon accomplishing people and whole objectives of the respective company.
Moreover aids leader to make uniform decision so that no one can obtain preferential treatment.
Weaknesses: If a leader of an organisation fails to predict behaviour of an individual that
it will lead to create an negative image within an workplace as well will not bale to focus on the
6
Leadership is define as framework that deals with the objectives and challenges of an
organisation as well as take decision and inspire individual to carry out their work in the most
appropriate manner. There are certain approaches of different leadership style that are beneficial
in fufilling gaols and objectives which are discussed below:
Below is the mention of a leadership approaches which can be helpful in achieving
organisational goals:
Situational leadership: It is an adaptive style of leadership that basically work on assumption as
changes occur from situation to situation (Webb, 2017 ).This leadership style can be adopted by
the mangers of H&M to deal with contingency situation which arise for a business enterprise. It
will help manger to direct and guide their employees so that effective decision can be taken in
achieving gaols and objectives in critical situation.
Strength: If this approach of leadership is adopted by the mangers of an organisation that
it will help them to deal with each and every situational in an effective manner. It creates
flexibility within a leader to deal with so that it can deal with unwanted situation. moreover, this
help leaders to become flexible do not have to comply certain set of rules. Also, respective firm
perform to develop style which depends upon readiness level of its requirements and team.
Weaknesses: Here, situation may change on continuous basis that may lead and
organisation to face may issues and problems which may not be controllable by an leader. This
theory is not so much effectual into task oriented environment as well as do not faciliate more
information for few leaders.
System leadership: It assist a leader within an organisation to create such a condition where all
level of people can carry out their work with their potentiality. Herein, leader of H&M are
creating models and other strategies to predict an organisation behaviour within an organisation.
Strength: It help a leader to build an effective method which help it to drive a productive
behaviour that will lead to have effective realisation of an organisation. This theory is helpful to
concentrate upon accomplishing people and whole objectives of the respective company.
Moreover aids leader to make uniform decision so that no one can obtain preferential treatment.
Weaknesses: If a leader of an organisation fails to predict behaviour of an individual that
it will lead to create an negative image within an workplace as well will not bale to focus on the
6
aims and objectives of an organisation. As leaders can not bale to assume the behaviour so that
leaders do not assign and handle employees in effective manner.
Contingency leadership: Contingent leadership is a framework that discuss how an individual
leadership style match out in different circumstances. Leader of H&M are ensuring that
employees and staff member activities are monitored in an effective manner so that deal to any
type of situation within an organisation. individual performance is analysed effectively in order
to expect and determine different situation within an organisation.
Strength: In this a leader is given authority to analyse work performance of their
employees as well as reward them or punish them it all depend on work criteria. This is
considered as the predictive powers as well as consider leaders into optimal situation.
Weaknesses: It is complex approach of leadership as it become difficult to analyse the
need and situation of a person within workplace. Moreover, this is a complex theory and
reactive in nature. It is not effectual situation.
Herein, in context to H&M, each and every leadership play's an effective role in maintaining
and having ability to solve out different leadership so that each and every situational can be
handle in an appropriate manner.
TASK 3
P4 Key approaches to operations management and role of leader and manger play
Operation management refers to a group of actions which involves planning, organising,
managing, controlling and supervising the activities performed within the organisation. This is
involved in utilizing resources from staff, materials, equipment and technology in order to
deliver goods and services to customers as per their needs and abilities of a company. Its aim is
to ensure timely deliver product and successful turn raw material into finished products. They
key approaches that are used within operation management are given below:
Six sigma: Six sigma is the quality control method as it is used in data driven review in
order to limit out mistake or defects in process. It consist of postulation of standard deviation that
is affected by measure of variation from which data is being collected about the process. In this
process defectives are measure with specification of limits that help in separating goods and
services from the bad out come of the process. In this manner it provides enough buffer between
process natural variation and specification limits (Eyal and Haim, 2014).This method is adopted
7
leaders do not assign and handle employees in effective manner.
Contingency leadership: Contingent leadership is a framework that discuss how an individual
leadership style match out in different circumstances. Leader of H&M are ensuring that
employees and staff member activities are monitored in an effective manner so that deal to any
type of situation within an organisation. individual performance is analysed effectively in order
to expect and determine different situation within an organisation.
Strength: In this a leader is given authority to analyse work performance of their
employees as well as reward them or punish them it all depend on work criteria. This is
considered as the predictive powers as well as consider leaders into optimal situation.
Weaknesses: It is complex approach of leadership as it become difficult to analyse the
need and situation of a person within workplace. Moreover, this is a complex theory and
reactive in nature. It is not effectual situation.
Herein, in context to H&M, each and every leadership play's an effective role in maintaining
and having ability to solve out different leadership so that each and every situational can be
handle in an appropriate manner.
TASK 3
P4 Key approaches to operations management and role of leader and manger play
Operation management refers to a group of actions which involves planning, organising,
managing, controlling and supervising the activities performed within the organisation. This is
involved in utilizing resources from staff, materials, equipment and technology in order to
deliver goods and services to customers as per their needs and abilities of a company. Its aim is
to ensure timely deliver product and successful turn raw material into finished products. They
key approaches that are used within operation management are given below:
Six sigma: Six sigma is the quality control method as it is used in data driven review in
order to limit out mistake or defects in process. It consist of postulation of standard deviation that
is affected by measure of variation from which data is being collected about the process. In this
process defectives are measure with specification of limits that help in separating goods and
services from the bad out come of the process. In this manner it provides enough buffer between
process natural variation and specification limits (Eyal and Haim, 2014).This method is adopted
7
by the mangers of H&M that assist leader and manger of an organisation in maximising the
working level of employees within an organisation. With this approach they will able to have
huge number of statistical tool in minimizing errors between requirement of output and
production. Mainly, this approach is adopted by the mangers and leader to identify the
performance evaluation of their employees and subordinates. Thus, six sigma will help them to
improve the quality performance and as well as match up with standard performance.
Just in time approach: It is defined as an inventory approach within management that
consist of raw materials and order from supplier that are related towards manufacturing
outcomes. Many compliances are using this strategies so that they can bring out changes which
is increasing efficiencies within an organisation by reducing unwanted material and making use
of those goods and services that consist of low inventory cost.
With this process both manger and leader can bring effectiveness in production process. It
indicates that manufacture can quickly move from one product and another product. Moreover,
this product reduces cost by minimising warehouse needs. For such instance an organisation can
spend less money on raw materials as they have enough resources to increase the efficiency in
competitive marketplace.
Total quality management: Total quality management is defined as an continual process of
defecting and reducing or eliminating errors in manufacturing goods and services. Moreover,
H&M are using this process so that they can improve their supply chain management, improving
customer management experience that is accountable for overall quality in delivering its final
product and services.
Kaizen: Kaizen theory of management is defined as continuous improvement process that help
in improving performance of employees as well as business operation. It is used by many
company at wider area of business function and operation. This theory help manger of H&M in
improving their daily procedures, ensuring employees satisfaction in an effective manner.
Hence, the over all gaol of this method is to make small changes over longer period of time that
are beneficial in improving improvements in competitive marketplace.
P5 Importance and value of operational management in achieving business gaols and objectives
Operation management is a crucial section in the organisation which plays an important
role in managing a business operation are running them successfully in competitive marketplace.
Its main value is to make sure that business operation is running smoothly and effectively by
8
working level of employees within an organisation. With this approach they will able to have
huge number of statistical tool in minimizing errors between requirement of output and
production. Mainly, this approach is adopted by the mangers and leader to identify the
performance evaluation of their employees and subordinates. Thus, six sigma will help them to
improve the quality performance and as well as match up with standard performance.
Just in time approach: It is defined as an inventory approach within management that
consist of raw materials and order from supplier that are related towards manufacturing
outcomes. Many compliances are using this strategies so that they can bring out changes which
is increasing efficiencies within an organisation by reducing unwanted material and making use
of those goods and services that consist of low inventory cost.
With this process both manger and leader can bring effectiveness in production process. It
indicates that manufacture can quickly move from one product and another product. Moreover,
this product reduces cost by minimising warehouse needs. For such instance an organisation can
spend less money on raw materials as they have enough resources to increase the efficiency in
competitive marketplace.
Total quality management: Total quality management is defined as an continual process of
defecting and reducing or eliminating errors in manufacturing goods and services. Moreover,
H&M are using this process so that they can improve their supply chain management, improving
customer management experience that is accountable for overall quality in delivering its final
product and services.
Kaizen: Kaizen theory of management is defined as continuous improvement process that help
in improving performance of employees as well as business operation. It is used by many
company at wider area of business function and operation. This theory help manger of H&M in
improving their daily procedures, ensuring employees satisfaction in an effective manner.
Hence, the over all gaol of this method is to make small changes over longer period of time that
are beneficial in improving improvements in competitive marketplace.
P5 Importance and value of operational management in achieving business gaols and objectives
Operation management is a crucial section in the organisation which plays an important
role in managing a business operation are running them successfully in competitive marketplace.
Its main value is to make sure that business operation is running smoothly and effectively by
8
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using minimum resources and meeting customer expectation. In context to H&M The objectives
are based on operation mangers who are ensuring about high quality of goods and services that
are made for its potential customer's. Importance of operation management are discussed below:
Cost reduction: Cost reduction is plays an important role with in operation management.
It is defined as an effective tool to find out cost regrading waste within an
organisation(,Shabanpour-Haghighi and Seifi, 2015). For such purpose managers of H&M need
to find out innovative and effective waste to reduce cost and make use use of maximum
utilization of the resources that are available to them. Moreover, a leader of the company need to
encourage employees as well as staff members so that it leads to accomplishment of work as
desired as well as provide appropriate training and development so that effective result can be
outputted.
Increasing over all productivity: Increasing productivity is very importance aspect of
each and every organisation. The mangers and leader of H&M are concentrating on various key
elements which is very useful for employees in their work task so that they can accomplish their
gaols and objectives. On the other hand leader are playing an essential role in providing good
working culture so that all the employees and team members can increase their efficiency in
competitive marketplace.
Thus, operational management play's an effective role in creating value for an
organisation as well as help both managers and leader to achieve their gaols and objectives in an
effective manner.
TASK 4
P6 Accessing factors with business environment and its impact upon operational management
and decision-making
In organisation context to H&M, the management are using PEST analysis in identifying
and examining the factors which influence a business's operational management and decision
making are as follows:
Political Factor: A political factor refers to those areas in which government policy or
changes in legislation that may affect economic or specific industry(Karangelos and Wehenkel,
2016). In case of H&M are facing economic instability in North America which are affecting the
9
are based on operation mangers who are ensuring about high quality of goods and services that
are made for its potential customer's. Importance of operation management are discussed below:
Cost reduction: Cost reduction is plays an important role with in operation management.
It is defined as an effective tool to find out cost regrading waste within an
organisation(,Shabanpour-Haghighi and Seifi, 2015). For such purpose managers of H&M need
to find out innovative and effective waste to reduce cost and make use use of maximum
utilization of the resources that are available to them. Moreover, a leader of the company need to
encourage employees as well as staff members so that it leads to accomplishment of work as
desired as well as provide appropriate training and development so that effective result can be
outputted.
Increasing over all productivity: Increasing productivity is very importance aspect of
each and every organisation. The mangers and leader of H&M are concentrating on various key
elements which is very useful for employees in their work task so that they can accomplish their
gaols and objectives. On the other hand leader are playing an essential role in providing good
working culture so that all the employees and team members can increase their efficiency in
competitive marketplace.
Thus, operational management play's an effective role in creating value for an
organisation as well as help both managers and leader to achieve their gaols and objectives in an
effective manner.
TASK 4
P6 Accessing factors with business environment and its impact upon operational management
and decision-making
In organisation context to H&M, the management are using PEST analysis in identifying
and examining the factors which influence a business's operational management and decision
making are as follows:
Political Factor: A political factor refers to those areas in which government policy or
changes in legislation that may affect economic or specific industry(Karangelos and Wehenkel,
2016). In case of H&M are facing economic instability in North America which are affecting the
9
business function,. Thus, in this manger the decision-making process of leader and manger are
affect within an organisation.
Economic Factor: This factor consist of different key factors that are related with the
economic growth and stability, such as inflation and recession, supply and demand etc. Herein,
H&M are facing changes in economic scale, labour laws and regulation as well as increasing
disposable income emerging in marketplace. Thus, changes in such rate and income mangers as
well as leader of a respective company are not bale to have appropriate decision regarding it.
Social factors: Social factors consist of demographic and age distribution, culture
attitudes and workplace and lifestyle and trends. H&M are know for its fastest growing brand
within clothing sector, they are coming up attractive and new design for their customer's as they
know about the taste and requirement of their customer's. Thus, in manger both leader and
manger have good impact on tier decision making process. Thus, in this they will bale to have
sustainability for longer duration of time in competitive marketplace.
Technological factors: Technological factor is considered as the specific development
of technologies within the sector of an organisation as well as wider use of trends and
technology. Herein, manger and leader must take decision regarding their product and services
such as they should take decision regarding eco friendly product and services . Moreover they
should have proper climatic condition in order to know what kinds of apparel customer's are
demanding.
Thus, by accessing pestle analysis an organisation can know what are impact of
external factors that are impacting the decision of a leader and a mangers within an
organisation.
Business ethics: it is the standards, rules etc. which is implemented into company a nd
leads towards smooth functioning. It is necessary for a respective organisation to
maintain business norms and regulation so that they can operate in competitive
marketplace without any difficulties. Moreover, they should make sure that their
advertisement must be ethical so that it dose not effect on any culture or hurt sentiment
of people. So, the leaders and manager of respective firm has to develop as well as
maintain effectual ethics by which workers will clarify their work and duties.
Corporate social responsibilities: It is necessary for each and every organisation to
maintain corporate social responsibilities so that they can have good name and image
10
affect within an organisation.
Economic Factor: This factor consist of different key factors that are related with the
economic growth and stability, such as inflation and recession, supply and demand etc. Herein,
H&M are facing changes in economic scale, labour laws and regulation as well as increasing
disposable income emerging in marketplace. Thus, changes in such rate and income mangers as
well as leader of a respective company are not bale to have appropriate decision regarding it.
Social factors: Social factors consist of demographic and age distribution, culture
attitudes and workplace and lifestyle and trends. H&M are know for its fastest growing brand
within clothing sector, they are coming up attractive and new design for their customer's as they
know about the taste and requirement of their customer's. Thus, in manger both leader and
manger have good impact on tier decision making process. Thus, in this they will bale to have
sustainability for longer duration of time in competitive marketplace.
Technological factors: Technological factor is considered as the specific development
of technologies within the sector of an organisation as well as wider use of trends and
technology. Herein, manger and leader must take decision regarding their product and services
such as they should take decision regarding eco friendly product and services . Moreover they
should have proper climatic condition in order to know what kinds of apparel customer's are
demanding.
Thus, by accessing pestle analysis an organisation can know what are impact of
external factors that are impacting the decision of a leader and a mangers within an
organisation.
Business ethics: it is the standards, rules etc. which is implemented into company a nd
leads towards smooth functioning. It is necessary for a respective organisation to
maintain business norms and regulation so that they can operate in competitive
marketplace without any difficulties. Moreover, they should make sure that their
advertisement must be ethical so that it dose not effect on any culture or hurt sentiment
of people. So, the leaders and manager of respective firm has to develop as well as
maintain effectual ethics by which workers will clarify their work and duties.
Corporate social responsibilities: It is necessary for each and every organisation to
maintain corporate social responsibilities so that they can have good name and image
10
among people within society. Thus. H&M are engaged with high number of CRS
activities such as they are providing various donation for the welfare of the society and
economy at large. Its CSR initiatives involves more utilisation of organically grown
fibres, minimisation into usage of hazardous chemicals in their supply chain and
production lines, maximised employees rights protection and efforts to develop water
conservation and others. So, the leaders and managers of the H&M have to motivate their
employees, make plans, use creative tactics and many more.
Sustainability: Respective company sustainability vision is to utilise their size as well as
scale for goods with the assistance of innovation and technology. Moreover, its strategy
for sustainability is to lead the changes towards circulation as well as renewable fashion
while being equal and fair firm. Therefore in order to accomplish the sustainability vision
their leaders as well as manager has to formulate strategies and plans which will be
advantageous for them like improve its brand image and so into competitive market
place.
Culture: All the firm have their own culture. Accordingly their employees as well as
staff members have to adopt that culture and perform as well. So, the respective company
culture is the structure by which they can regularly manage their performance, perform
together as well as motivate new talents.
CONCLUSION
It can be concluded from the above report that operation and management are important
within an organisation. Within a firm a leader and manger perform different role, function and
characteristic that all together work towards the achievement of gaols and objectives. Herein, a
respective organisation is adopting different theories and approaches that help both manger and
leader to deal to different circumstances so that effective decision can be taken. Apart from this
there are various factors the may affect an business function and operation so that its play's an
influential role in decision making process. Thus, management and operation supports an
organisation to achieve their goals and objectives in an effective manner as well as ensuring
sustainability for longer duration of time.
11
activities such as they are providing various donation for the welfare of the society and
economy at large. Its CSR initiatives involves more utilisation of organically grown
fibres, minimisation into usage of hazardous chemicals in their supply chain and
production lines, maximised employees rights protection and efforts to develop water
conservation and others. So, the leaders and managers of the H&M have to motivate their
employees, make plans, use creative tactics and many more.
Sustainability: Respective company sustainability vision is to utilise their size as well as
scale for goods with the assistance of innovation and technology. Moreover, its strategy
for sustainability is to lead the changes towards circulation as well as renewable fashion
while being equal and fair firm. Therefore in order to accomplish the sustainability vision
their leaders as well as manager has to formulate strategies and plans which will be
advantageous for them like improve its brand image and so into competitive market
place.
Culture: All the firm have their own culture. Accordingly their employees as well as
staff members have to adopt that culture and perform as well. So, the respective company
culture is the structure by which they can regularly manage their performance, perform
together as well as motivate new talents.
CONCLUSION
It can be concluded from the above report that operation and management are important
within an organisation. Within a firm a leader and manger perform different role, function and
characteristic that all together work towards the achievement of gaols and objectives. Herein, a
respective organisation is adopting different theories and approaches that help both manger and
leader to deal to different circumstances so that effective decision can be taken. Apart from this
there are various factors the may affect an business function and operation so that its play's an
influential role in decision making process. Thus, management and operation supports an
organisation to achieve their goals and objectives in an effective manner as well as ensuring
sustainability for longer duration of time.
11
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