Strategic Management and Risk Assessment

This assignment delves into the crucial connection between strategic management and risk assessment. It requires students to analyze diverse theoretical frameworks for strategic management, including those by Hill, Jones & Schilling and Hugos. Further, it necessitates an understanding of risk modeling and assessment as outlined by Haimes. Students are expected to synthesize these concepts, applying them to real-world examples like reservoir management (Wu et al.), supply chain management (Hugos), and hospital information systems (Haux et al.). The assignment encourages critical thinking about the influence of environmental factors on business management (smallbusiness.chron.com) and leadership theories within organizational contexts (smallbusiness.chron.com).

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Roles of leaders and managers with their characteristics in organisation........................1
TASK 2............................................................................................................................................3
P2. Role of leaders and functions of managers to handle different situations in organisation . 3
P3 Different theories and models of approaches applied on situations within an organisation..4
TASK 3............................................................................................................................................6
P4 Key approaches to operations management and role of leader and manager in HSBC....6
P5 Importance of operational management and its value in HSBC Bank..............................8
TASK 4............................................................................................................................................9
P6 Factors within Business environment that affect operational management and decision.9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management and operations is the main branch of an organisation. It involves planning,
implementation and execution of strategies and systems. These strategies help a business to work
in a desired manner. Managers in this management take care of all functions of corporation.
They work particularly in planning and organising the resources (Hill, Jones and Schilling,
2014). They also help in developing an efficient system of operations using various theories of
operational management. This unit has briefly discussed about the operational management and
its importance in a company like HSBC Bank. It is the seventh largest multinational bank of UK
by total assets. It has revealed about how operational management of this bank deals with
ensuring products or services in the most efficient manner. This unit also highlights the role of
managers and leaders with their functions in an organisation.
P1. Roles of leaders and managers with their characteristics in organisation
Leaders: Leaders in an organisation possess leadership qualities in order to influence
people around them. They lead people in attaining the objectives enthusiastically. They guide
and direct people to work together through a good vision of thinking. Their leadership helps an
organisation to defeat its competitors in the marketplace.
Managers: Managers manage all operations and functions of an organisation. They work
in a disciplined and systematic way through their effective management skills. They possess an
art of getting the work done through and win others within an organisation. Main functions of
managers in a company are planning, controlling, organising, leading, motivating and decision-
making.
Role of Leaders
The main role of leader in a firm is to persuade people in right directions. They influence
people for digging out talent in them. Some of the major roles of leaders in a firm are described
as below:
Communication: Leaders need to have effective communication skills in their
leadership. They communicate objectives, plans and diversities of a company to all its employees
(Hugos, 2018). Leaders give proper directions to employees so that they can work in an efficient
way.
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Strategies: Leaders develop good strategies with the help of operational management to
achieve mission and objectives of a company. They help in implementing these strategies
successfully within organisation (Lahou and et. al., 2012).
Support: Leaders support an organisation and its managers to execute their operational
plans and strategies in a desired way.
Policy: Leaders take all responsibilities to redirect the policy of a company on
employment, diversities, etc.
Role of Managers: Managers in a firm take responsibilities of arranging and maintaining
its 5Ms i.e. Men, Material, Money, Machine and Methods. They assist the organisation in
accomplishment of its goals and objectives. Some of the major roles of managers are described
as below:
Administration: Managers must ensure that all requirements of a company will meet on
time. They administer the departments as well as formulate policies and procedures.
Organise and implement: Managers organise the production, workforce, necessary
training and resources need to do a specific task. They implement various strategies in order to
accomplish the desired goals of a company.
Difference between roles of managers and leaders with their characteristics
Managers Leaders
 Managers manage all activities and
operations of an organisation.
 They control the people through their
management skills.
 They implement policies and
procedures.
 They are reactive in nature.
 Managers bring stability.
 Leaders lead people through
encouraging and motivating them in
order to achieve set objectives.
 They require trust of people on their
leadership.
 They established principles and
guidelines.
 They are proactive in nature.
 Leaders bring change.
Functions of leaders and managers in HSBC Bank: Managers and leaders both are
inseparable in nature and so, they are the most important part of an organisation. A firm requires
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effective qualities in managers who need leadership skills to inspire their subordinates. In HSBC
Bank, there is the manager in its each department having number of leaders (Marchington and et.
al., 2016). These leaders work with their teams in assisting the organisation. This bank needs to
adopt effective leadership and management skills for its growth and survival in the marketplace.
TASK 2
P2. Role of leaders and functions of managers to handle different situations in organisation
A leader in an organisation has different approaches. These approaches will include
involving others who are effective by decision making process. Leaders involve people through
consultation that depend upon situational analysis and demand of task. They apply various
approaches in their leadership based on situations so as to fulfil the demand of organisational
goals. Since decision-making process is done by the managers of a company, so they also use
many approaches in management. Managers are trained in their part of job. They have
responsibility and authority of decision-making according to the assigned task. HSBC Bank has
applied various approaches of leadership and management in its different situations.
Management task of this bank are mainly provided by integrating its two fields via control
functions of its internal operations and services (Moeini, Afshar and Afshar, 2011). Some
situations arises in this bank are discussing below with role of leaders and functions of manager
to deal with the same:-
Situation 1:
Market of financial services: HSBC Bank needs to allocate price of its services based on
current situation of market. This bank require to measure the current activities and growth of
business by considering the modifications in services as well as its introduction to market.
Situation 2:
An adequate situation for technological environment: Generally situation of a bank is
defied by its communication systems and information technology. Since trend at marketplace
require innovation in services of bank which makes its old services disappear.
In order to handle these basic situations of a bank, HSBC has adopted various theories of
management and effective leadership skills that can be described as:
Classical theory of Management: In order to analyse current financial situation of
market, managers of HSBC Bank applied this theory in their management. They explain the
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given task to its employees in order to enhance productivity and increasing the efficiency of
business perspectives (Qi, Liu and Christofides, 2011). Leaders use to communicate with
associated members of this bank about the same. Better communication between employees and
employers help to increase productivity of individuals as concerning on importance of given
task.
Contingency theory of Management: This theory of management is based on effective
programs. These programs are undertaking for emphasis on the desired output. Managers
analysed demand and factors on the present situation of this bank. They analysed with increasing
decision-making process. This management approach helps its leaders to motivate its employees
for accurate decision-making process.
Transactional leadership: To deal with implementation of new technologies for bringing
innovation in services, managers and leaders of HSBC Bank use this theory. Transactional
leadership is like a form of managerial supervision. Managers use this theory to enhance
performance level and generate the optimum result. Leaders applied this theory in their
leadership for basis of rewards and punishment. Leaders identify best performers on past and
recent performance of employees for providing appraisals to them.
Transformational leadership: Through this leadership theory, leader of HSBC
encourages and motivates its employees to a high standard. Since, in second situation, bank
needs to introduce innovative techniques and technologies in its organisation. So, its managers
can apply this theory in its management (Tang and Musa, 2011). They identify training and
development needs of employees to adopt this change in their part of work. Managers and
leaders with coordination, organise few meetings to agree with majority of employees. This
meeting is organised to discuss about type of training need and developmental plan for
employees. So that they can work in a desired way.
P3 Different theories and models of approaches applied on situations within an organisation
HSBC, one of the largest banking and financial service in the world, aims its
management team to play multiple roles within organization that are designed in a structured
manner. Purpose of management is to direct efforts of employees in right path to achieve
organisation's goals and objectives. Therefore, an effective leadership theories must be adopted
by them in order to achieve desire target. Successful execution of theories is determine on the
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basis of degree of influencing employees (Witt, Brooke and Buckley, 2013). While leading a
team, a leader or manager of financial sector must develop following factors in employees:
 Team members must have interest and willingness to execute a task. Their level of
enthusiasm must be maintained in order to seek best result.
 Strength and weakness of every team member must be analysed properly and their
performance is thoroughly monitored.
 Approach must be positive in nature as well as must result in resolving of conflicts that
arises in work place.
Leadership theories along with approaches: Leadership theories are chosen very
wisely by managers of HSBC bank. They are implemented for smooth functioning of
management activities and help employees in achieving goals (Different theories of leadership
applied on situations within an organisation. 2017). Various approaches of leadership is used to
motivate employees and boost up their morale. Below mentioned are few of the approaches used
by HSBC bank:
System leadership: In this leadership, communication among employee and management
is greatly focused. Manager convey every demand and operational process to its employees.
Using system approach, employees are made to work according to company's requirement and
needs. Managers notify every employee about changes in the operational process and guides
them about how to perform those activities in process (WU, WANG and CUI, 2013). Also,
explains benefits of changes and track performance of every individual.
Situational leadership: Under this leadership style, a leader can adapt his managing style
according to the situation. In HSBC business operation changes are very frequent hence it
require strategy that not only resolve sudden conflicts but also make managers critical thinkers.
Also, developing employees by moulding them according to situations make them flexible in
work area.
Contingency leadership: It helps in constructing strategies for business. This approach
can be made when business depends upon internal or external environment. It lead leaders to
develop their thought processes according to sudden needs. Hence, developing pro-active nature
rather that re-active. Culture of HSBC is maintained with the help of contingency leadership
style in order to enhance customer satisfaction by providing effective service on time.
Strengths and weaknesses of these theories-
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While dealing with different situations in above mentioned organisation it chooses two
theories that fits the best. One is situational and other is system leadership. As every theory has
its pro's and con's but by thorough analyses it is concluded that situational leadership is
beneficial to overcome spontaneous situations that arises in HSBC bank. On the other hand,
system leadership aims at enabling managers to get the best out of employees while leading
them. Thus proving that organization is implementing these theories effectively to obtain their
goals and objectives.
TASK 3
P4 Key approaches to operations management and role of leader and manager in HSBC
In every kind of organisation, operation management takes care that business activities
are taking place properly (Wu and Chen, 2012). They require to utilise resources efficiently;
thereby conducting training and development programmes to enhance quality of manufacturing
process. As in HSBC bank, superior are able to improve productivity and profitability of firm.
By providing adequate services to people through which manager is able to attract and sustain
interest of customers for longer period. These are approaches which manager and leader applies
in system, to make it function properly are as follows:
Six Sigma approach: This specifies that manager check and monitor that operations are
being conducted properly. They require that firm uses quality raw material so that efficient goods
and services are produced. So, according to this methodology superior examine items and take
care that there are no defects in them. Hence, HSBC bank offer effective services through which
they are able to satisfy customers and make them loyal towards firm.
Role of managers:
 This approach help subordinates to work properly as manager provide them adequate
information about duties they require to accomplish. Manager implement six sigma approach in HSBC company, thereby checking workers
performance so that they offer products in according to customer need and wants.
Role of leaders:
 In HSBC, leader provide guidance to employees to keep them dedicated and motivated
towards their work.
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 Leader conduct training plan to enhance skills of staff members, so that they work
properly and there are no faults in items.
Total quality management: Firm require to take care that they offer quality products and
services to people. So it is superior duty that they distribute duties in according to skills and
knowledge of staff members. This help company to position themselves superior than
competitors and attract large number of customers.
Role of manager:
 In HSBC bank, manager take care that employees have good communication skills,
through which they are able to retain clients for longer period. They keep monitoring performance of subordinates and have connection with suppliers
through which they are able to deliver quality service to people.
Role of leaders:
 Leader perform role that they keep employees dedicated so that they provide appropriate
information to people. In HSBC, leader take care that subordinates have capability through which they deliver
quality services to clients.
Lean production: This approach consists three stages which are design, prepare and then
implement. So, superior are able to utilise resources efficiently. They have construct connection
with suppliers through which they are able to firm acquire material when required, thereby
manufacturing them according to customer requirement (Fayol, 2016). As in HSBC bank,
superior use assets in effective way so that they offer adequate services to people. They are also
able to utilise funds properly as there is no cost involved in storage.
Role of manager:
 In HSBC bank, manager offer services in according to customer wants. They keep
upgrading system through which they are able to provide adequate information to clients. Manager also take care that they have adequate funds and resources available through
which they are able to complete requirement of people.
Role of leader:
 Leader keep workforce skilled so that they deliver appropriate service to people.
 So, HSBC bank is able to improve their market image as they communicate with clients
properly.
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P5 Importance of operational management and its value in HSBC Bank
Operational management helps organisation to make system function properly. As,
administration conduct functions such as planning, organizing, leading and controlling business
activities. So, by using modern tools and techniques, through which manager is able to deliver
quality products and services to customers (Dineshbabu, Thomas and Radhakrishnan, 2012).
They take care that designing of offerings, coordinating and controlling business activities
properly. This benefit firm to utilise funds, manpower and material properly; thereby enhance
image and goodwill in marketplace. As HSBC bank, these are various responsibilities which are
performed by manager to execute operational management in firm are as follows:
Control and distribution of system: Through operational management, superior make
implementation of tools and techniques through which appropriate offerings are produced. So
this help them use resources properly and take care that cost are minimum. Hence, management
in HSBC bank have system through which they deliver quality services to customer's.
Conversation of raw materials into finished goods: Firm require that they deliver
offerings to serve society by providing people adequate product and services. Superior make
employees perform activities through which raw material are transformed to manufacture items.
As HSBC bank, superior provide facility to people through which they are able to safeguard
money and giving them return (Georgakakos and et. al., 2012). Management of firm process
activities through which they keep information about clients accounts. Thereby, making system
function properly so that people are able to conduct adequate transactions.
Profit maximisation: Superior provide services through which firm generate adequate
revenue for their business. By involving workforce and using appropriate distribution channel
through which firm is able to deliver offerings in according to need and wants of people. As
HSBC bank, has market image through which they are able to attract customers to open accounts
and take their services. This benefit bank to make adequate profit through which they are able to
provide interest to their clients to retain them for longer period.
Utilisation of resources: Superior require that staff members function effectively and
complete tasks effectively. They require to take care that resources are used efficiently; and that
there is no duplication in work. As HSBC bank, management construct relationship with clients
so that they have adequate funds available with them (Haimes, 2015). They take care that system
function properly, so that they are able to generate sufficient revenue for business.
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Therefore, operational management benefit HSBC to enhance their market position and
share. By conducting training and development programmes to improve skills of subordinates so
that they function effectively. Superior distribute duties and provide adequate instruction to staff
members; so that they complete targets within specified time frame. Henceforth, bank provide
efficient service to people through which they are able to generate adequate profit for business.
TASK 4
P6 Factors within Business environment that affect operational management and decision
In organisation, superior require that they provide adequate duties to staff members and
instruction. They should construct healthy relationship with employees, so that they function
properly and complete work timely. By examining elements which may impact business
activities and thereby taking appropriate decisions which are good for firm (Factors of
environment of business that affect on management of a company. 2016). Hence, in HSBC bank
superior evaluate internal and external factors so that system function effectively.
Internal factors: These are elements which exist inside firm and are affecting firm
activities are as follows: CSR: Firm require that they provide offerings to serve requirement of society by
delivering adequate goods and services (Fang and et. al., 2012). Superior require that
system function properly and is not emitting pollution in environment. If companies are
conducting activities to fulfil need and wants of people; then they are able to improve
their market reputation. As HSBC bank is conducting corporate social responsibilities
through which they are able to advantage community and attract people. Business ethics: Executive formulate policies and rules in according to government laws
which members are required to follow. This help them to make system function
effectively, by making appropriate decisions which help in making business environment
sustainable. So stakeholders and manpower connected with firm are advantage through
ethical norms. In HSBC bank, leader and manger take care that they provide adequate
service to people. They provide sufficient information to clients so that they are able to
retain them for longer period.
 Stakeholders: Investors, employees, creditors, suppliers and so on are parts of company.
They help system to function properly, by taking out appropriate activities (Christopher,
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2016). Firm require to produce products and services through they deliver offerings in
according to requirement of people. This help them to earn adequate profit for business.
As in HSBC bank, superior make employees deliver appropriate services to clients so that
they are able to retain them for longer period. Thereby, making workers attain targets; so
that firm is able to generate sufficient revenue for their business.
External factors: These are components which exist outside firm and have impact on
business operations are stated beneath: Political factors: Organisation require that they make system function in according to
government laws and legislations. Executive require that they have information about
trade policies and taxation of countries in which they have established business. They
require to make appropriate decisions and changes in system. As HSBC bank, has
branches in different nations (Haux and et. al., 2013.). So superiors require that they
make employees function properly; so that they are able to deliver adequate service to
people.
 Technological factors: This element define that firm should use appropriate tools and
techniques through which they are deliver quality offerings to people. Superior require to
implement modern technologies; through which they are able to quickly manufacture
items and thereby provide creative products. By making changes through which firm is
able to position higher than rivals and deliver quality offerings to customers. In HSBC
bank, superior are using upgraded technologies through which they are able to provide
adequate service to clients (Aliahmadi, Sadjadi and Jafari-Eskandari, 2011). As firm
require that they record transactions and keep data of their clients. This benefit bank to
serve society properly. Management even require that they conduct sessions to provide
skills and knowledge to workforce so that they are able to function effectively.
Henceforth, this can be comprehended that executive require that they distribute duties
among staff members; so that they are able to accomplish goals and objectives. Superior require
to examine influence of internal and external factors. Thereby, taking care that business activities
are conducting effectively. This help management to enhance productivity and profitability of
HSBC bank.
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CONCLUSION
From the above report, it can be concluded that administration should take care that
business operations are occurring properly. By making system function through which firm is
able to compete with competitors and deliver offerings according to client's demand. They
require to distribute duties to staff members in according to their skills and knowledge. Manager
frame strategies through which they are able to direct employees and make them function
effectively. Thereby, it is leader responsibility to keep subordinates motivated and dedicated
towards their job. They even require to conduct training and development programmes to
enhance capabilities of workforce; so that they attain targets within specified time frame. So, this
benefit company to generate adequate profit by providing adequate products and services to
people in according to their requirement.
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REFERENCES
Books and Journals
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Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Dineshbabu, A.P., Thomas, S. and Radhakrishnan, E.V., 2012. Spatio-temporal analysis and
impact assessment of trawl bycatch of Karnataka to suggest operation based fishery
management options. Indian Journal of Fisheries. 59(2), pp.27-38.
Fang and et. al., 2012. Flood management selections for the Yangtze River midstream after the
Three Gorges Project operation. Journal of hydrology. 432, pp.1-11.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Georgakakos and et. al., 2012. Value of adaptive water resources management in Northern
California under climatic variability and change: Reservoir management. Journal of
Hydrology. 412. pp.34-46.
Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Haux and et. al., 2013. Strategic information management in hospitals: an introduction to
hospital information systems. Springer Science & Business Media.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Lahou and et. al., 2012. Microbiological performance of a food safety management system in a
food service operation. Journal of Food Protection. 75(4). pp.706-716.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Moeini, R., Afshar, A. and Afshar, M. H., 2011. Fuzzy rule-based model for hydropower
reservoirs operation. International Journal of Electrical Power & Energy Systems.
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Qi, W., Liu, J. and Christofides, P. D., 2011. A distributed control framework for smart grid
development: Energy/water system optimal operation and electric grid integration.
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Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics. 133(1). pp.25-
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Witt, S. F., Brooke, M. Z. and Buckley, P. J., 2013. The Management of International Tourism
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side management. Journal of Xi'an Jiaotong University. 47(6). pp.90-96.
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Factors of environment of business that affect on management of a company. 2016. [Online].
Available through: <http://smallbusiness.chron.com/internal-external-environmental-
factors-affect-business-69474.html>.
Different theories of leadership applied on situations within an organisation. 2017. [Online].
Available through: <http://smallbusiness.chron.com/organizational-leadership-theories-
284.html>.
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