Importance of Operational Management in Achieving Company Objectives

This article discusses the importance and value of operational management in achieving company objectives. It explores the different roles and characteristics of leaders and managers in motivating employee performance, as well as the various theories and models used by leaders to improve employee performance. The article also highlights the key approaches and roles of leaders and managers in operational management, and how they contribute to the achievement of business objectives.

Management and Operations

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different roles and characteristics of leader and manager in motivating employees
performance.................................................................................................................................3
Role of leader and function of manager in different situational contexts....................................5
Different theories and models of approaches that are used by leader to motivate employees so
that they can improve their performance.....................................................................................6
TASK 2............................................................................................................................................7
Key approaches and roles of leaders and manager play in operational management.................7
Importance and value of operational management in achievement of business objectives.........8
Factors within business environment that impacts upon operational management and decision-
making of leaders and manager.................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Operational management is a related to management of various operation activities such
as concerned with conversation of raw material into goods and services for maximizing profit
margin of the company. Marks and Spencer is a British retailer that operates its business across
various nation and is specialized in selling qualitative clothing, home and food products to its
customers. Different roles and characteristics played by leader and manager to influence
employees for achievement of Marks and Spencer objectives. Different models, theories and
approach such as situational, system and contingency leadership used by leader of company to
motivate employees to increases its productivity and performance. Leadership refers to process
where person that guide and influence other people to perform specific task and activities in
particular manner. Leaders play an important role in influencing its followers and guiding them
direction to perform various activities. Therefore, this report explains about importance of
operational management in achieving company objectives. Various role, characteristics and
function of manager and leader in different situation that helps in growth and survive of business
in the environment . At last, it analyses various environmental factors that impact upon
operational management and decision- making by manger and leader.
TASK 1
Different roles and characteristics of leader and manager in motivating employees performance
Leader and manager have different roles and characteristics in order to manage and
influence people as manger is responsible for management of people whereas Leader is
responsible for motivating employees in the organisation (Olukanni and Aremu, 2017). Manager
plan for growth and development of employees whereas leader ex-cute the plan and influence
individual to work effectively for achievement of company goals. Various roles and
characteristics of leader and manager in Marks and Spencer are as follows:
Manger set goals whereas leader creates a vision: Manager focus is to setting goals,
measuring and achieving objectives of company by controlling deviation and taking various
measure for attainment of objectives. Whereas leader of company influence, inspire and engage
employees to turn company vision into reality (Chakurkar, Mukhopadhyay and Babu, 2018).
Therefore, manager of Marks and Spencer set goals of company and leader motivate and
influence employees to work effectively for achievement of predetermine objectives of company.

Leader take risk, manager control risk: Leader of company always try to use new method to
motivate people even if the result of such technique is miserable (Łukowski, 2017). Whereas
manager of Marks and Spencer minimize risk by controlling various situation for effectively
achievement of goals.
Leader build relationship, manager build systems and process: Main function of leader in
M&S is to inspire people in the organization by building strong interpersonal relationship
between them thus increasing productivity and performance of employees (Ma, 2017). On the
other hand Manager is build structure that helps in quick and effective communication between
employees. Use various method and system to analysis performance of individual for attainment
of desired outcome. Thus, leader build relationship where manger decide roles and relationship
between employees for growth and success of company.
Manager of M&S plays an important role in planning, organising, staffing for its
employees so that they can enhance their knowledge and skill to perform various function within
organisation (Łukowski, 2017). It plans for organising appropriate training and development
plans so that employee by attending such training is able to enhance their knowledge and get
specialised in performing particular firm. Manager is responsible for effective management of
people and resources so that organisational goals can be achieved.
Different characteristics present in leaders of M&S for influencing employees are
honesty, delegation, sense of humour, ability to influence people, positive attitude, creative and
effectively communication . Whereas manager have analytical skill, time management ability,
high knowledge, communication skills and able to manage people and situation. Thus, all such
roles and characteristics of manager and leader helps in growth and success of business
(Olukanni and Aremu, 2017). There are various leadership theory such as behavioural, trait,
contingency, transactional and transformational leadership that can be used by leader to motivate
individual. Behavioural leadership theory is used by M&S leader to enhance performance and
productivity of company.
Behavioural leadership theory
This theory emphasis on leader's behaviour despite mental, physical or social
characteristics thus it is concerned with task and people. It means leaders are made they are not
born so anyone can become leader by learning and observing things form environment (Wei and
et.al.,2018). M&S create new leaders by providing various opportunities to individual to learn

things and enhances its knowledge and skill to motivate, lead people in the organisation. On the
other hand management theory used by company is differential piece wages rate to motivate
employees in the organization.
Taylor's differential piece Rate plan: Manager of company in order to enhance performance of
individual has use Taylor's differential piece rate plan. As most basic need of individual is money
so Taylor say that worker should be paid fair wages for fair work done by them Chakurkar,
Mukhopadhyay and Babu, 2018). Thus, lower pay will motivate lazy employees to work
effectively to get standard income whereas influence other employees to work more effectively
to get extra pay over normal piece rate.
Role of leader and function of manager in different situational contexts
Leader and manager of company play various roles and function in order to solve or face
any situation for attainment of company objectives. Manager by analysing various external
factors such as market condition and trends set goals of company whereas leader of company use
different techniques to motivate employees to retain and work effectively in different situation of
company (Łukowski, 2017). Therefore, leader and manager by performing various activities is
able to promote growth and sustainability of M&S in the industry. It can be explained through
various examples where leader and manager play important role in facing challenges or situation
of company.
New product launch: Marks and Spencer is planning to launch large size clothing in its product
range to caters needs of people that have larger size of bodies as compared to others for
increasing its profitability and market share. Therefore, manager will plan various ways to train
and develop employees knowledge and skill so that they can produce large size clothing for
customers. It also arranges various resource and equipment that are used in production for large
size. While leader is responsible to coordinate work of individual by building strong
interrelationship between employees (Ma, 2017). It also responsible to reduce conflict and
inspiring individual to work hard for achievement of predetermined goals of company. Manager
supervise and monitor all such activities to take corrective action in case of deviation and for
smooth operation of business. Thus, leader and manager both play important role in success and
growth of organisation as leader coordinate effort of individual and manager supervise that the
activities are performed as predetermined objectives.

Conflict among employees: M&S is a large organisation with number of people working in it
for achievement of company goals. People that are working in organisation have different
culture, preference and belief that result in conflict among employees thus reduce performance
and productivity. Due to ineffective organisational structures employees are confused regarding
roles and responsibilities of each individual and their interrelationship that lead to conflict and
miscommunication thus hinder company performance (Long, Yong and Chuen, 2016).
Therefore, manager of Marks and Spencer in order to solve such issue has planned a definite
structure for communication and assigned appropriate roles and responsibilities of individual in
an organisation. Whereas leader by building strong relationship and leading people as per
personal culture and belief of individual helps in enhancing performance and productivity of
employees.
Different theories and models of approaches that are used by leader to motivate employees so
that they can improve their performance
Various theories and models used by leader in order to motivate, inspire and lead
individual for achievement of common goals. Leader has to changes its leadership style in order
to lead different people in the organisation for enhancing their performance and productivity
(Chakurkar, Mukhopadhyay and Babu, 2018). Leader of M&S company analysis various
internal and external changes of environment and take decision to motivate employees for
effective performance. Thus, various styles of leadership to influence employees in M&S are as
follows:
Situational leadership: It refers to such styles when leader and manager has to adjust its
leadership style with situation of company or style that fit to influence its team members. Leader
does' not have specific skill in order to motivate employees in the organisation thus modify its
style as per situation (Łukowski, 2017). M&S leaders by using situational leadership can bring
changes in organisation easily and effectively by motivating employees. Advantages: Leader is
able to satisfy needs of each individual by providing good working environment as it changes its
leadership styles as per situation of company.
Disadvantages: It is ineffective in case of task oriented environment as leader or manager are
asked to follow particular set of rules, policies and regulations that are inflexible.
System leadership: In this theory leader create a system so that each employees at all level in
firm can work productively to their potential for achievement of organisational goals. Leaders

create model such as organisational strategy , good leadership that is based on human behaviour
System leadership is mostly suitable for large organisation such as M&S in it leader use
appropriate system and procedure to motivate and influence large of employees (Long, Yong
and Chuen, 2016). Therefore it helps in effective coordination of different individual as a proper
systematic method is used by leader as per situation of company such as working environment
and interrelationship among employees. Thus, leaders of M&S by developing effectively system
can enhance productivity and performance of employees.
Advantages: It is more effective as based on human behaviour thus helps in increasing
productivity and performance of individual.
Disadvantage: It consumes lot of times to perform particular task as a systematic method is to
used by leader to motivate employees in the organisation.
Contingency leadership: This theory states that leader effectiveness is contingent upon the way
leadership styles matches with the given situation (Long, Yong and Chuen, 2016). It is different
from situational leadership as there leader adapt its styles as per situation but in contingency
leadership leader match leadership style with right situation.
Advantages: due to its dynamic nature it can change as per situation thus allow leader and
manager can modify its policies and strategies to manage and lead people in organisation.
Disadvantage: It is more complex and difficult to implement such models in practical life.
TASK 2
Key approaches and roles of leaders and manager play in operational management
“Operational management is administration of business practices for effectively
utilization of raw material by converting it into finished products.”
“On the other hand as per it is concerned with planing, organising and supervising
production, manufacturing of products and services as effective for maximising profitability of
company.”
“As per view of Olukanni and Aremu, (2017)operational management is related to designing and
controlling process of production and business operation for achievement of
predetermined goals of company.”
Various approaches used by M&S for effective utilisation of raw material and achievement of
company goals are as follows:
Just in Time: It is management strategy that help in production of goods and services on time
with achievement of set targets. M&S use inventory strategies to increase efficiencies and reduce

wastage by ordering raw material as per requirement in production process. Thus helps in
reducing cost of production and increases profit margin of company (Wei and et.al.,2018).
Therefore, manager set specific goals to be achieved within limited time and leader motivates
and influence employees of M&S to enhance their productivity and performance.
TQM: It is continuous process of detecting and eliminating various errors that occur while
manufacturing of products thus improving customer’s experience. Manager supervises and
monitor various activities in order to maintain quality of all product while producing goods and
services in limited time (Łukowski, 2017). Whereas leader by providing good working
environment and attractive compensation benefits motivate and influences employees to
maintain quality of product to satisfy needs of customers in effective manner. This helps in
development and maintenance of employees satisfaction and loyalty for long term thus building
strong brand image of company.
Lean Production: It is the method that is used to minimise wastage of company while ensuring
quality of product thus increasing profitability and sales of company. This theory explains
various methods that can be used to get better result or output at minimum cost by reducing
wastage and enhancing productivity (Ma, 2017). Manager by arranging various resource and
planning for training and development of employee skill and knowledge so that they can produce
quality product at minimum cost or without wastage. While leader motivate people to attain
training for better performance and productivity in the organisation.
Thus, it can be stated that role of manager in operational management is to hire, recruit
and select most appropriate candidates for effective utilisation of resource and achievement of
goals. It is also responsible for arranging resource as per skill and potential of employees and
training and development program so that employees can easily use various update technology.
Therefore manufactures products with minimum wastage (Wei and et.al.,2018).. Leader analysis
and evaluate needs of employees to motivate it for effective performance by maximum
utilization of individual capabilities and potential in the organisation. It also by paying less to
inefficient employees reduces chances of wastage and production cost of company.
Importance and value of operational management in achievement of business objectives
Operational management is concerned with planning, organising process of production
and redesigning business operation for manufacturing of goods and services. Every company is
established for earning profit by selling products and services to customers so operational

management helps in effective utilisation of resource (Long, Yong and Chuen, 2016).
Operational management perform various function such as arrange finance, supervise operation,
plan strategy, prepare product design and maintain quality of products. Therefore, all such
function performed by operational management helps in providing qualitative products and
services to customers. The way operational management of M&S plays an important role in
growth and success of business are as follows:
Improves Employees productivity: Operational manager by continuous monitoring and
supervising activities of employees working in organisation helps in improving performance of
individual (Chakurkar, Mukhopadhyay and Babu, 2018). Leader and manager of operational
management trains and educate people for better performance.
Increase value of goodwill: It helps in enhancing goodwill of company by ensuring quality of
products and services to be delivered to customers (Wei and et.al.,2018). Thus, M&S is able to
established strong brand image and customers loyalty by providing qualitative and specialised
services and products to customers.
Optimum utilisation of resources: It helps in optimum utilisation of resource by converting
raw material into finished products (Long, Yong and Chuen, 2016). M&S manager by forming
appropriate strategies and continuous supervision and monitoring is able to make effective
utilisation of available resource for attainment of company objectives.
Motivates employees: It also helps in motivation of employees towards their role and
responsibilities to work effective. Operational management of M&S by providing good working
environment and definite roles and responsibilities is able to reduce conflict and coordinate effort
of individual towards organisational goals (Ma, 2017). Employees in company are rewarded and
remunerated according to their performance level thus everyone is motivated to enhance its
performance for better rewards.
Thus, it can be stated that operational management helps in achievement of
organisational objectives by ensuring various activities of company are performed as per plans. It
also helps in finding deviation and taking corrective measures for attainment of organisational
goals (Long, Yong and Chuen, 2016).. Therefore, it can be stated that operational management
plays an important role in achievement of objectives of Marks and Spencer.

Factors within business environment that impacts upon operational management and decision-
making of leaders and manager
Pestle Analysis
Political factor: UK is facing a situation of political instability thus increase debt of government
and people living the society. It also lead to increase in price of products thus operational
management has to consider such factors while performing its function (Ma, 2017). Cost of
production increase so operational manager has to plan arrange resource at affordable price
whereas leader has to motivate employees to minimise waste production.
Social Factors: Due to Brexit economic condition of UK is facing recession thus people are less
willing to make purchase of qualitative products and services at high prices (Wei and
et.al.,2018). Therefore it forces Marks and Spencer operating manager to plan for such technique
that can bring economic of scale and reduces cost of production. Leader to influence and
motivate employee to enhances their productivity and performance.
Economical Factors: Due to recession and high employment rate in UK government of country
is forcing M&S to recruit number of people in the organisation (Wei and et.al.,2018). Thus
manager of M&S can easily hire large number of employees at affordable price which helps in
reduction of production cost and enhancing profitability of company.
Technological Factors: due to continuous change in technology and customer preferences M&S
has plan to market its product through social media and use innovative techniques to attract large
numbers of customers (Chakurkar, Mukhopadhyay and Babu, 2018). M&S manager will plan
for training and development of employees and leader will coordinate effort of individual for
effective operation of business. Thus, innovative technology helps in reducing wastage and
production cost of company.
Environmental Factors; It also impact on operational management of company as it has to
manufacture products and services while ensuring protection and safety of environment
(Łukowski, 2017). Manager will ensure that minimum wastage of raw material and leader will
motivate employee to work effectively.
Legal Factors; Operational management of company has to ensure legal laws made by
government for effective operation of business. Leader will ensure health and safety of employee
and influence on equal basis to all employees (Long, Yong and Chuen, 2016)..
SWOT Analysis

STRENGTHS
Brand: Marks and Spencer's brand image and perception in the market is exceptional amongst
the competition. Cash Flow: M&S have good free cash flows which enable the company to
expand into new markets and products (Łukowski, 2017). Innovation: M&S lead the industry in
product development and innovation. Based on these strengths, M&S's operational management
and leadership should continue their operations while paying attention not to ruin brand
perception and image.
WEAKNESSES
Investment: With their large scale of operations and diverse markets, M&S need to invest more
into current technological advancements (Gürel and Tat, 2017). Mergers: M&S occasionally
merges with or acquires smaller firms, but their integration into M&S's culture has not been
highly successful in the past.Based on these weaknesses, M&S's operational management and
leadership should invest into current technologies and make an effort to better integrate smaller
merged firms to increase M&S's productivity, efficiency and profitability (Long, Yong and
Chuen, 2016)...
OPPORTUNITIES
Technologies: Installation of current technologies and machinery such as self-checkout counters
provide huge potential opportunities to M&S. International Markets: Expansion into new
international markets provide huge opportunities to M&S to grow their operations (Chakurkar,
Mukhopadhyay and Babu, 2018). Based on these opportunities, M&S's operational management
and leadership should invest into self-checkout counters as their implementation would decrease
staffing costs and increase operational efficiency, productivity and profitability in the long run .
THREATS
Substitutes: Alternative/ Substitute and counterfeit goods similar in functioning and design to
M&S products, pose a huge threat to M&S's operations (Phadermrod, Crowder and Wills, 2019).
Based on these threats, M&S's operational management and leadership should invest into
development and innovation of new products.
CONCLUSION
From the above presentation it can be concluded that operational management plays
important role in growth and success of business. It can also be explained that roles and function
of leader and manager are different in an organisation. Leader motivates employees to work

effectively whereas manager plans for growth and development of people in the organisation.
Both internal and external factors of environment affect on function of operational management
and decision making of leaders and manager of Marks and Spencer.
.

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