Fayol's Management Theory: A Systemic Overview

This assignment provides a detailed analysis of Henri Fayol's management theory, focusing on his 14 principles and five processes. It discusses the evolution of management thought within the 20th century, highlighting key paradigm shifts and theoretical frameworks. The assignment also explores various aspects of management, including leadership, employee job insecurity, multi-criteria decision-making, and stakeholder analysis in different contexts.

Management and Operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Differences and similarities of leaders and manager with their roles and characteristics..1
b) Functions of manager according to Fayol with examples..................................................2
c) Situational leadership, system leadership and contingency leadership using various
scenarios.................................................................................................................................5
TASK 2.......................................................................................................................................7
1. Different approaches to operation management and their use...........................................7
2. Role of a store manager with example...............................................................................8
3. Importance of operations management in your store.........................................................9
4. Outside factors that impact management operation.........................................................10
5. Factors affecting decision making of store manager:.......................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is a type of business function which handles processes of creation
of services and goods. It includes planning, organizing, coordinating and controlling all types of
resources required to produce organisation's services and goods. It is mainly focused on
controlling and designing the process of production and business operations (Zhang and Feeney,
2018). In this report, here is description on the traits, responsibilities and functions of leaders and
managers of Morrisons. Functions of Fayol are also illustrated in detail and various types of
leadership styles are shown. Operation management is an important part of organisation because
it is concerned with converting labour and material into goods and services efficiently.
TASK 1
a) Differences and similarities of leaders and manager with their roles and characteristics
Differences between leader and manager
Leader Manager
1. Leader of Morrisons holds paramount
position and have high degree of controlling
his/her staff. His/her influence is not so
friendly with team members and he/she has the
right to take decisions individually.
1. Manager of Morrisons takes entire
responsibility of controlling and administrating
group of employees. He/she has some special
charge and managerial skills of controlling
his/her subset.
2. Leaders are responsible for making the
vision of the organisation (Babalola and et.al.,
2017).
2. On the other hand, manager creates goals
and think beyond individual's perception.
3. They can be considered as the change agents
of Morrisons and arrogant disrupters.
3. But manager is always adhered to his/her
work and likes to maintain status in company.
4. They participate actively and are self-aware
in building the personal brand. They are
specific in decision making and working with
their team members.
4. On the other hand, manager mimics and
copies competencies and behaviour they have
learned from all around and adopt different
leadership styles and traits.
5. Leaders of Morrisons aim at building
relationship with stakeholders so that they can
5. Managers of Morrisons are concentrated on
the systems and processes (Babalola and et.al.,
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achieve their goals quickly. Their mission and
vision are transparent and decisive in nature.
2017). They focus on ensuring analytical
procedure so that meaningful results could be
achieved.
Similarities between Leaders and Manager
1. Leadership and management both motivate their team members and entail working with them.
Leaders and managers of Morrisons are responsible for creating the functional structure and
foundation of organisation.
2. Management and leadership impact the environment and work structure of Morrisions
positively (Agnihotri and Krush, 2015). They both concentrate on achieving the objectives of
organisation. Thus, they are clear with the mission and vision of the company. They both make
outstanding decisions so that desired results could be achieved for organisation.
3. Leadership includes capability to lead or direct employees towards predetermined goals and
many traits are expected from a good manager to navigate their social relationships effectively
(Arrigo, 2015). They both direct their team members and explain their roles and responsibilities.
No confusion is created among employees.
4. Effective leadership is good management. It is an ability to organize group that is equivalent
to efficient manger. Managing organisation and group mainly include the ability to direct
particular group of individuals.
5. They both work together and their major role is to develop vision, mission and goals as well as
every employee has to strive to gain effectiveness in his/her work.
6. In order to reach the highest level of efficiency, managers of Morrisons have to be efficient
enough so that they can perform their roles effectually in organisation.
7. They both are responsible for allocation of resources in such a way that they can be used
efficiently and effectively (Chiu, Balkundi and Weinberg, 2017). They are concerned with goal
achievement of the firm. This is essential so that in crucial times there is no inadequacy of
resources and materials.
b) Functions of manager according to Fayol with examples
Functions of Manager according to Fayol
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There are five functions of Fayol which focus on the relationship between management
and personnel. Managers of Morrisons take use Fayol through following functions
1. Planning: Planning is the hardest among the five functions of management. It needs complete
participation of employees. It should be connected and coordinated on various levels with respect
to implementation and time. Planning includes flexibility of personnel and organization's
available resources in proper way.
2. Organizing: Organization of Morrisons can only function if it is appropriate and well-
organised. For this, there must be skilled staff, adequate capital and raw material in order to run
it smoothly and build strong working structure (Lam and et.al., 2015). It is important that all
tasks should be performed by different departments with good division of function. There is
expansion of the firm in horizontal and vertical manner when function increases. Thus, a
different leadership trait is required.
3. Commanding: Employees are cleared to their roles when they are properly instructed and
given orders. Good leaders communicate properly and have integrity that makes them decisive in
nature on regular audits. They encourage their team members so that they can easily take
initiatives.
4. Coordinating: When all practices of Morrisons are harmonised then organisation performs in
a better manner. Employees should possess positive attitude towards their roles and
responsibilities (Molan, Matthews and Arnold, 2016). It focuses on maintaining discipline within
group dynamics and provoking motivation among them.
5. Controlling: Controlling in Morrisons takes place in various steps: performance standards are
build up that are based on firm's goals. Then, actual performance is measured and reported.
Results are then compared with standards and finally preventive and corrective measures are
taken as required.
6. Managerial : Fayol's last function is managerial which is related with all the above activities
and drawing up a broad plan of how business will operate, organise, controlled and finally
monitored so that plan is actually carried out (Walker, Gowland and Points, 2018).
Example:
If any problem related to the pricing is raised while launching a new product by
Morrisons then it by applying Fayol's functions managers and leaders of the organisation would
firstly draw a good plan of action which would include costing, net profit and marginal value of
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that product while launching in the market. Then, organization will take into account various
functional areas that could solve the problem immediately. A team of employees will be formed
that could provide return in terms of profit. Clear communication will be done and positive
behaviour would be expected from all employees (Morgan, Tallontire and Foxon, 2017). Then,
while controlling the planning process all standards of new product will be compared with the
competitive ones in the market and corrective measures will be taken by the team. Thus, analysis
of the plan would be done effectively that would end with implemented solution.
c) Situational leadership, system leadership and contingency leadership using various scenarios
Situational Leadership
Situational Leadership style has to be adjusted by leaders and managers of Morrisons that
they can fit development of followers he is trying to influence. It is totally dependent on the
leader whether he wants to change his style or not. It should meet the demands of other team
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Illustration 1: Fayol Model
(Source:Fayol’s five processes of management. 2018)

members in organisation. It is a top-to bottom approach and all employees perform as it is they
are told to do (Ho, 2014). Leaders are involved in routine activities with selling and coaching
style of leadership. But the decision lies with the leader itself. Employees are still supervised and
they are properly mentored about the tasks. It includes telling and directing, selling and
coaching, participating and supporting and delegating to employees. Follower decides the
situational leadership style where high needs and little experience or vice versa style can be used.
For example: If some delegates are involved with projects of Morrisons then few employees are
allowed to support and participate in the project work of Morrison. With this style, employees
get to know their roles and responsibilities more clearly.
System leadership
System leader facilitate the situations within which other can make progress towards
social change. This leadership have capabilities to see larger system, more conversations and
shift collective focus from active problem solving to create future (Marttunen, Lienert and
Belton, 2017). They examine information by collecting data from outside work area by
implementing new approaches so that current thinking could be improved. Their actions and
behaviours have developing capability by generating system for succession. They foster
collective leadership. For example, Morrisons organised a community youth development
program in UK and moved towards system leadership where leaders and managers worked with
youth. Many of its previous staff members are now on streets and this programme helped them to
redirect their lives. On the risk of this program, Morrisons entered with a new social bonding
with youth (Yudha and et.al., 2018). Thus, system leader aims at creating situations that can
create change and eventually lead to self-sustaining.
Contingency Leadership
Contingency leadership is a style where the traits of leaders are matched according to the
circumstances of the organisation. Tasks can be completed by using resources of the position.
This style structures the nature of leadership all around office and relationship with subordinates.
Low legitimacy needs moderate hand while high level requires administration and management.
Various variables in the office are stressed that define the nature and relationships between the
two things. This style focuses upon difficulty and complexity of the work of organisation and
complexity of activities decides the nature and environment of organisation. For example, if the
leaders of Morrisons have position where long-standing tradition of work methods exists then
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they are not leaders (Kolios, Read and Ioannou, 2016). In such a case, problem may arise which
can interrupt the glow of work or decisions made by other managers. Thus, a leader has to be an
administrator. But if technicians are effective then no such problem for leadership could survive.
Only over sightedness is there.
TASK 2
1. Different approaches to operation management and their use
Various approaches to operation management includes Lean Production, Six Sigma and
Queuing Theory as well as Total Quality management.
Lean Production: Lean Production is an approach which aims at ensuring quality and
eliminating all types of waste. It is a systematic procedure which cuts out waste within
manufacturing industry and maximizes productivity. Its benefits are reduced operating costs,
minimized lead times and improved product quality. It helps in valuing customer's perspective
and analyse flow of information, eliminates functional barriers (Khorasani and Almasifard,
2017). Wastage of lean production are unnecessary transportation, excess inventory, waiting and
defects. Morrisons can apply Lean Production and reduce waste and improve its productivity.
Queuing Theory: Queuing theory is the study of queues. According to this theory customer
grabs services from station and wait for few hours and then leaves the system after receiving the
service. With each queuing system, number of arriving customers, departing of them and total
time taken for each request are being measured. It determines all variables and makes easy to
make decisions for business. It sounds typically straightforward. This is used when resources are
limited and help in the formation of balanced systems that can serve customers promptly and
effectively. It is also called as Waiting Line Theory.
Six Sigma Theory: Six Sigma theory is a quality control program and aims at statistical
improvements in a business process (Voxted, 2017). It follows an approach called DMAIC
(define, measure, analyse, improve and control). It improves efficiencies and quality of the
processes and maximizes bottom-line profit. It also uses DMADV method which means
defining, measuring, analysing, designing and verifying the program. It clarifies the roles and
responsibilities of different participants. It proposes that the projects are organised under
constraints of scope, cost, time and quality. Every organisation can apply six Sigma theory.
Morrisons can also apply this theory and improves its business system.
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Total Quality Management (TQM): Total quality management is a management approach that
seeks integration in all organisational functions to focus on meeting organisational goals and
customer needs. Organisation must strive to improve continuously by incorporating experience
and knowledge of workers (Witzel and Warner, 2015). It is infinitely adaptable and variable. It is
based on principles of management commitment, employee empowerment, continuous
improvement and customer focus.
Use of approaches in Organisation
Lean production theory can be used to recognize change in Morrisons and removes waste
like excess inventory, waiting time and overproduction. It also helps in streamlining the
company's processes and manufacturer works at its full potential. Queuing theory in Morrisons
helps in employee management, avoid congestion and maintains a regular flow in all directions.
It helps store manager to make sure that this system is working efficiently and helps to take
average of variables like waiting time, customers and average cart (Ionescu, 2016). Six Sigma
can be used in Morrisons by the store manager for cost management, to improve quality, increase
productivity and reduce delivery time.
2. Role of a store manager with example
There are various roles and responsibilities of store manager of in the operation department:
1. Prime responsibility of store manager of Morrisons is recruiting employees for the store.
Right candidates have to be hired and trained for the entire operational department. All
employees including department manager, floor manager and cashier must participate as
well as contribute to full potential for the impressive functioning of the Morrisons Store.
It is the duty of store manager that all workers are acquainted with the latest trends in
newly installed software or latest trends. Store members should motivate his/her members
from time to time.
2. It is responsibility of store manager to look that his/her store is earning profit and meeting
all targets (Chow and et.al., 2017). He should take care of all accounts and payments.
Store manager should be capable of handling issues related to payment of employees. All
workers should know their work and store manager should clearly communicate with
them weekly or on monthly basis. Thus, he/she is responsible for the effective
functioning of the store.
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3. Overall image of store is managed by store manager of Morrisons. It is his/her
responsibility that merchandise should be properly displayed so that customers are easily
attracted to the store. It immediately catches attention of them. Expectations of customers
are met which lives up their brand image (Uzuegbu and Nnadozie, 2015). Positive
ambience should be there and store should be well-ventilated so that customers feel
friendly while purchasing products.
4. Store manager is also responsible for organizing the assets of the store. Safety and
security of the store are prime responsibilities which ensures adequacy of inventory and
avoid being 'out of store'.
5. Store manager of Morrisons is responsible managing profit and loss, planning process,
handling cash as well as revising regular sales and other related reports. He must ensure
that store doesn't suffer any theft. Proper security should be maintained by him.
Example: Store managers of Morrisons is leading from the front. It is the responsibility of them
to listen to colleagues and customers that attend Morrisons Store and purchase products. Store
managers are capable of solving problems in positive manner and grow sales. They shape store
plan and with more front-line colleagues in store they serve customers in a better manner in order
to improve product availability and help them at checkouts. They develop and inspire high
performing store team so that customers make repetitions. Store managers of Morrisons keep
merchandise according to the season as well as latest trends.
3. Importance of operations management in your store
Operation management in Morrisons plays crucial role in planning, organizing,
coordinating and controlling of all available resources. It involves designing, overseeing and
monitoring of stock and other activities of production and redesigning of business operations in
the manufacturing of services and goods (Thompson and Glasø, 2015). It is a bunch of practices
that run in Morrisons regardless of whether the final product is good or service. Many firms are
using operation management to compete effectively in a global market. In order to support
mission of the firm they have an operation strategy and overall corporate strategy. Morrisons
involves this system in its management because it is all about making the processes work
correctly. Concept of effectiveness and efficiency revolves around the organization. It is one of
the three major functions of organisation (marketing, finance and operation) of Morrisons. It
supplements various activities of the firm.
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Research and Department aims at developing that kind of product which satisfies
customer needs and could survive in the market. Product should have enough market potential.
Cost considerations are concerned with the finance department that can forecast or create
projected statements about the productions in term of variable cost, fixed and overhead costs.
Human resource department is responsible of hiring well-qualified and skilled staff for
Morrisons (Fiedler, 2015). It has capability to make fine predictions according to the requirement
of staff so that good job descriptions could be developed and employed people are further trained
so that operations are run smoothly. Thus, various department perform their role effectively in
Morrisons to ensure effective utilization of resources and increase productivity.
Operation management is a management procedure in Morrisons under which various
business activities take place that contribute in making the products to align with needs of
customers. It controls entire operation of the company. Products would be sold at rapid rate if
they are supplied according to requirements of customers. Main importance of operation
management in Morrisons is that there is the best utilization of resources that results in large
amount of profit to the organisation. All efforts of employees are used and different raw
materials are efficiently used which are converted into goods and services as required by the
Morrisons (Dinh and et.al., 2014). It manages all activities seamlessly and makes efficient use of
all resources like money, labour and raw material and other resources.
Operation management is also important because its strategy is based on decisions related
to customer and targeted markets. Three generic strategic strategies are used in this management
system namely cost leadership, differentiation and market segmentation. It carries operation
performance objectives which are based on quality, speed, dependability and flexibility of the
operation. Quality of the product should meet customer requirement. Speed means time at which
product is delivered to the customer. Dependability means all things should be done at right time
so that customer complaints are not encountered. Finally, flexibility is the capability to change
operation in some manner (Alavi and et.al., 2018). Thus, operation management is very
important in Morrisons for a good or service to be effective or efficient because it directly
influences profitability and productivity of the organisation.
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4. Outside factors that impact management operation
There are various external factors which impact operation management. These factors
include political, economic, social, technological, environmental and legal factors. So through
PESTLE analysis company's functioning can be examined:
Political factor: In 2016, Britain voted against EU and predicted many political upheavals and
uncertainty in the UK economy. This caused Brexit inflation as prices escalated due to which
there was weakening of pound made imports costlier which raised more worse situation and if
Britain would not leave EU before 2020 than the condition would get more drastic (Arrigo,
2015). Thus, lot of uncertainties was created in policies and regulations because it was major
political event. There has a huge influence on UK food retailers because of multiple government
legislations. This created negative impact on Morrisons from last few years.
Economical Factor: There was a regular declination in pounds which resulted in inflationary
pressures through increased costs of raw materials, energy, packaging, employment as well as
transport costs. Morrisons already seeing increased food consumer price inflation over 2016
which resulted high food prices. But the saving grace of Morrisons have right foundation to
raise prices in the UK that being passed on to consumers. Thus, it created significant inflationary
pressures and fluctuations in currency. There are more manufacturing sites in UK which means
that there will be less reliance on outside supplies especially from Europe which is a positive
factor because when UK will leave EU then products produce there will become significant.
Technological factor: Information and computer technology are making huge impact on
retailing industry. Online retailing is supermarket sales of Morrisons and opening up
competitive drive for both non-food and food sales (Lam and et.al., 2015). It has reduced
wastage effort and cost that has made business more responsive to customers. Morrisons use
digital data to identify emerging future trends and serve their customers in a better manner. This
has made it among the four largest supermarkets introducing e-commerce grocery.
Environmental factor: Current trends that would influence retail market of UK involves
environmentally and ethically conscious consumers who regularly demand organisations to
adopt practices like use of renewable resources, paper packaging and use of recycled materials.
Morrisons use poly boxes in supply chain system and has launched returnable 'bins' for sea
products. Zero waste has been applied to landfill in the manufacturing sites. Carbon emission
has been reduced to 26.9% and UK is aiming for 30% by 2025 (Molan, Matthews and Arnold,
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2016). Morrisons has been entitled as the 'Most sustainable retailer of the year' in 2013 retail
industry award. It engages itself in pro-environmental practices and follows consumer opinions.
Legal factor: Legal factors include changes made in new Workplace Pensions Legislation that
needs mandatory deduction of pension contribution from payslips of workers which was
introduced in 2014. Many ethical trade audits were undertaken by the government in 2016 in
order to ensure integrity. Morrisons complies with legal standards and food safety like FSA
targets (Kolios, Read and Ioannou, 2016). Company has legal guidance and policies that support
various regulations. Thus, Morrisons does not face any legal challenges in the UK as it
cooperate with all rules and regulations.
5. Factors affecting decision making of store manager
External factors described affect management level to a great extent. Store manager of
Morrisons should learn and communicate mission and ideas from organisation's external factors
that would result in exchange of opinions which would lead to benefit of both organisation and
environment. Economic factors affect the patterns of demand and supply of Morrisons. It has to
keep track on related economic indicators and check them over time. Real wages are deceased
by inflation rates. Store manager should emphasize on top-of-the line products value and focus
on promotion of these goods. High price items are more valued during recession (Ho, 2014).
New technologies influence traditional method of the store in terms of payment collection,
marketing, customer awareness regarding products, customer service. It helps in reducing
production costs efficiently counter inflation and recession. Mobilised technologies have
enabled companies to produce better products with lesser costs and distributing them
economically.
For example, Store manager of Morrisons can earn profit by offering products to most
profitable customers through social networking sites. Thus, it can use the power of Internet to
know demands and future trends of their end customers. Similarly, it also helps in knowing
competitors and their designing tools in the market. They equip their customers with these
design tools and so they their own goods and services. Socio-culture factors also influence the
products' price, effectiveness of particular promotions, where and how people are going to
purchase them. But societies change gradually. Thus, it is the most difficult variable that has to
be considered by store manager of Morrisons (Uzuegbu and Nnadozie, 2015). Through socio-
culture factors, manager could predict and forecast marketing plans and integrate them
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accordingly. Values of a person are strong determinants and affect the choice of customers.
Organisation must focus on the demands on their demands and it should be customer oriented.
They have become discriminating, inquisitive and demanding.
Today, customer’s interest is more bend towards multiple lifestyles instead of traditional
stereotypes. Thus, their complexity increases with the buying habits. Furthermore, multiple
lifestyles have resulted in choosing multiple products and services (Fiedler, 2015). Lastly,
decisions are also affected by constitutional provisions, government interventions, political
stability, foreign policy, etc. Thus, all these factors affect the decision making of store manager
as well as organisational environment of Morrisons.
CONCLUSION
Finally, it can be concluded that Morrisons' leaders and mangers should know their roles
and responsibilities very well. Morrisons apply different approaches to operation management
and take use of Fayol theory for smooth functioning of departments. According to it, situational
and contingency leadership should be implemented by their leaders so that all tasks could be
completed on time and resources are utilized at full potential. Morrisons know the importance of
operation management and before taking any further step in market, it analyses market
economically, politically, technologically and legally. Thus, Morrisons know how to handle
operation management significantly. It has reviewed the government policies, laws and
customer demands properly.
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Online
Fayol’s five processes of management. 2018. [Online] Available through:
<http://www.open.edu/openlearn/money-management/management/the-role-the-
manager/content-section-1>.
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