Importance of Operation Management in Achieving Business Objectives

This document discusses the importance and value of operation management in achieving business objectives. It explores different approaches of operation management, such as lean production, six sigma, total quality management, and just-in-time, and explains the roles of leaders and managers in implementing these approaches. The document highlights the significance of these approaches in improving efficiency and profitability.

Management and
operations

Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Definition and comparison of roles and characteristics of organsiational managers and
leaders..........................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Role of leader and function of manager in different situation................................................3
P3 Different theories and approach.............................................................................................4
TASK 3............................................................................................................................................6
P4. Explain different approaches of operation management with role of leaders and managers 6
P5. Importance and value of operation management in achieving business objectives.............7
TASK 4............................................................................................................................................9
P6. Factors that affect business environment by impacting on operation management and
decision making concepts of managers and leaders....................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisations considers management and operation as essential practices which creates
high efficiency and profitable situations for the entity. Management is the practice that deals with
maintaining disciplines and managing human elements for achieving outcomes (Addo-
Tenkorang and Helo, 2016). Likewise, operations is a practice that practically applies principles
and processes for converting resources into tangible commodities for selling purposes. With the
both practices, daily activities are seamlessly managed for improving entire productivity of
institution. To develop information for management and operations, Aldi Company is
considered. It is supermarket chain that operates in 20 nations through managing 10000 stores
for satisfying demands for grocery and household products. Its headquarter was founded in
Germany in 1913. The report differentiates leaders role to that of functions of managers in
context to some criteria. It further highlights about application of leaders role as well as
managerial functions in particular contexts. It also demonstrates for appreciating roles that are
played by leaders and managers within operations functions. At last, it demonstrates in context to
understanding of relationships among management and leadership within business environment
that is contemporary.
TASK 1
P1. Definition and comparison of roles and characteristics of organsiational managers and
leaders.
Organisational profile: Aldi is leading supermarket chain that have head offices in
Germany since 1913. It is popular brand that was established as discount supermarket chain as
family owned business (Aldi, 2020). It works in more than 20 nations and have tangible presence
in approx 10000 locations. Its operations are related to manufacturing and delivering household
essentials in international market. For this, it has experienced and effective leaders and managers
that performs roles within organisational structure.
Definition, characteristics and roles of leaders
Definition: Leaders are defined to the personality which leads and commands people of
organisation (Bromiley and Rau, 2016). The individuals that have art to stimulate group of
workforce for acting towards attaining determined organisational goals are said to leaders.
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Roles: Leaders have various roles to perform in company. In case with Aldi, following
are roles of leaders:
 Leaders performs role of facilitator in which they makes practice easy for others.
 They also have delegator role in which they delegates activities in willing and strategical
manner that ensures all things are executed properly.
 Leaders of Aldi also have listener role wherein major issues and ideas of employees are
listened by them.
Characteristics: Leaders posses various unique characteristics. Certain characteristics or
qualities of leaders of Aldi are underneath:
 Leaders have quality of caring others in sincere manner. They cares people by
understanding their needs and providing them rewards, cooperation along with supportive
behaviours (Choi, Chan and Yue, 2016).
 Leaders are characterised as self control personality that posses sufficient drive along
with initiatives with clear vision together with focus.
Definition, roles and characteristics of managers
Definition: Managers are defined as individual who controls and administers overall
workings of company. The organisational people that have workings to supervise and oversee
activities and human elements for getting things done are organisational managers.
Roles: The roles of Aldi managers are as discussed;
 Managers have figurehead role in which they oversees social, legal and ceremonial
compliances.
 They also have spokesperson role to represent along with speak for entity and shares
information related to business and its achievable with outside world.
 Managers of Aldi performs disturbance handler role wherein unexpected roadblocks are
properly resolved and managed.
Characteristics: The essential characteristics which makes a person manager are the
followings:
 Aldi managers are characterised as administrators that oversees entire administration.
 The other characteristic of manager is decision maker at right time that leads in
successful outcomes (Faruk and et.al., 2018).
 Organisational managers have huge confidence and knowledge fore diverse fields.
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Differentiation among leaders and managers:
Differentiation basis Leaders Managers
Roles Leaders have roles of change
agent, coach, influencer,
delegator, visionary, strategist
and facilitator. In case to Aldi,
leaders performs diverse roles
including influencer, listener,
facilitators and decision
maker.
Managers works with various
roles that are interpersonal
role, informational role and
decisional role. For example,
Aldi managers performs roles
of liaison, disseminator,
spokesperson, resource
allocator and recruiter.
Characteristics Organisational leaders are
characterised as trustworthy,
courageous, communicator,
decision-maker, visionary and
enthusiasm,
Managers have specific
qualities that are knowledge,
experience, delegation,
administration, planner and
result oriented (Fettermann
and et.al., 2018).
TASK 2
P2 Role of leader and function of manager in different situation
To day's business environment based on the manager and leader who plays essential role
to maintain business activities in effective manner. They are facing different situation in each
task that require to sort out on time and take right decision in regard of Aldi. There are mention
different situation in which a manager and leader play important role such as:
Adaption to technology changes: In Aldi organisation conduct various kind of business
operations and keep every type of product in their store to increase sales of business. The
company wants to leading organisation so they applied advanced technology in regard of various
products that sale out by the store (Fisichelli and et.al., 2016). Such as, Aldi set up new
technology to fulfil the requirement of customers on time. These changes are not accepted by
staff member that impact on the business performance. This time a manager and a leader plays
essential role:
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 Role of leader: At this time a leader create group of different peoples and encourage
them for the changes. There is defined about the benefits which is achieved by the
employees after the changes. Due to apply these changes how an organisation effectively
achieve their objectives and provide direction for these changes.
 Function of manager: In present time, Aldi face many problems in regard of these
changes that influence the efficiency of business. So for this a manager apply modern
management theory. According to this theory manager sort out problem of staff and
provide training as er the changes (Gillen, Jacquillat and Odoni, 2016).
Lower productivity of staff members: Aldi is famous retail store which is offered
things in reasonable rate. To fulfil the demand of customer and satisfy them require to provide
effective services. All things are mainly depended on the manpower who are working in store.
Recently, company notice that productivity level of work force reduce that impact on the
organisational performance in negative manner. Due to lack of productivity require to raise
labour turn over ratio which is not favourable for business. Role of leader: At this situation a leader plays significant role to motivate all the
employees to do effective work and search out the reason to create this problem among
the work forces. According to that take right decision and inspire them to do effective
work which is beneficial for business and provide good results (Giuliani and et.al., 2016).
 Function of manager: To sort out these problems a manager conduct program in which
participate all the staff members and define about their problems. After that a manager
prepare plan to resolve problem and keep positive them for the work. It supports to work
force to give open feedback and conduct different operations.
P3 Different theories and approach
In any organisation a leader plays significant role that helps in encouragement of all staff
members by analysing the requirement and needs. To analysis the changes that arise from
external environment and take effective decision as per the changes are beneficial for staff
members. For this apply different leadership styles in the context of Aldi in respect to determine
the effective working at work place (Hitt, Xu and Carnes, 2016). There are defined different
theories of leadership in the context of different situation and also mention its strength and
weakness:
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Situational approach: It is a effective leadership style that has been developed and
research by Kenneth Blanchard and Paul Hersey. According to this style a leader as well as a
manager play their role to fit the improvement level of the followers and trying to influence
them. It is mainly related with the particular situation which are conducting by business
presently. Such as, Aldi are making effective decision by developing plans that supports to
business to face these problems as per the situation.
Strength Weakness
 It is effective approach that supports a
manager or leader into development of
effective plans and execute different
activities to tackle present situation.
 This approach helps to create effective
atmosphere for all the staff members.
 It is effective approach that complete
the requirement of business for long
term prospectives.
 It skills are not part of the leadership
skill (Kopardekar and et.al., 2016).
System theory: This theory based on the situation that develops by the leaders to
encourage all staff members in different situation. Such as, Aldi has decided to apply new
technology in their business so for this require to all the staff members adopt these new
technology and help to manager and leader to coordinate with each other. They are providing
training to all staff members for development programme that supports to apply advanced
technology effectively.
Strength (S) Weakness (W)
 It develops an orderly and efficient plan
of action to achieve success.
 This provides good basis to control
actions in systematic manner.
 It is very complex system which lacks
in universatility.
 This is over-conceptual system of
leadership style.
Contingency leadership:- This is an organisational theory which aims to develop
innovative idea for strategic decision making in planning process through co-operation of
employees to perform task for specific target. The role of ALDI managers and leaders develop
new idea that builds relation among workers through co-ordination with the motive to achieve
success.
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TASK 3
P4. Explain different approaches of operation management with role of leaders and managers
Operation management is described as the process to produce goods and distribute it to
target customers. It specially aims to achieve organisation goals with effectiveness and efficiency
through consumer satisfaction (Pärn, Edwards and Sing, 2017). It attempts to reduce cost for
increase in sales, which results in high net operating profit. There are various approaches of
operation management which are lean production, six sigma, just-in-time, total quality
management, etc. These approach of operation management are applied in Aldi organisation to
focus on designing and controlling process of products for effective production. It enhance the
organisation profitability by various market dynamics. Some of these approach of operational
management are described as under:-
Lean production:- It is an approach that focus on reducing waste in all stages of
production process. It identifies the value that are desired and get rid of elements which don't
create any value for organisation. It aims to determine cost by making business more efficient
and responsible for market needs and desire. Managers of Aldi implement this approach for
increasing product quality, increase sustainability with employee satisfaction, etc., which
consists all flow of quantity in process. Leaders of Aldi enhance profitability by concentrating on
employee efforts.
Six Sigma:- It is an approach for eliminating defects from manufacturing process to end
of production (Prevot and et.al., 2016). The statistical representation of Six Sigma describes the
quantity of products performed in process. It analyse, measure and control the existing product
process by improving its specification for incremental transformation. Managers of Aldi use this
approach to determine the changing requirements of customers, improving product quality,
reduction of cost and waste, etc. Six sigma leaders role in facilitating the selection of projects,
removing barriers of defects for successful completion of project, etc.
Total Quality Management:- It is an approach that is applicable by an organisation for
long- term success with consumer satisfaction. It is useful in meeting consumers requirements.
Managers of Aldi can use this approach in effective communication by integrating quality
discipline between culture and activities to maintain commitment towards continuous
improvement. Leaders of Aldi role to increase awareness of quality in organisation by managing
best quality with least cost.
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Just-in-time:- It is management strategy, which is referred to minimisation of inventory
with increase in efficiency. It also avoid overcapacity of work in process with high-quality
workmanship, no machine breakdowns and reliable suppliers. Managers of Aldi apply this
system of approach by reducing wastage, smaller investments, etc., to produce with least cost
and efficiency. Role of leaders in Aldi organisation is to determine problems occurring in project
rather than solving them.
P5. Importance and value of operation management in achieving business objectives
The operation management is the concerned with business practices to achieve high level
of efficiency in an organisation with improvement in quality of its production (Radnor and
Bateman, 2016). It plays a very essential role in the establishment and achievement of
organisation goal. Some of these importance implied in Aldi organisation are as follows:-
Utilisation of scarce resources:- Every organisation available in this competitive market
has to overcome with these scarce resources with high need and desire of consumers. Managers
of Aldi utilise these scarce resources in such a way which further results in profitability with
reduction in cost.
Minimising cost:- It helps to reduce cost by minimum investment with improvement in
wastage. Managers of Aldi leads to reduce cost with operation management in order to achieve
organisation goal with maximisation of profitability through increase in sales.
Improvement in product quality:- Operation management improve product quality by
determining the reliability and durability of products (Saucedo-Martínez and et.al., 2018) .
Managers of Aldi enhance product quality management for the effective delivery of products
with customer satisfaction by reduction in cost and wastage.
Increase consumer satisfaction:- Consumer satisfaction plays very vital role in
accomplishment of organisation goal as the consumers are king. Managers of Aldi ensures
product quality management by taking care of quality to meet the needs and desires of
consumers.
Increase in sales:- Operation management helps to increase revenue/ sale of an
organisation with proper quality management which leads to positive impact on industry.
Managers of Aldi aims to reduce cost with minimisation of wastage for attracting more target
market which results in increase in sale with expand in market share.
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Reduction in cost and waste:- Every organisation focus to least its price of product
which increase its consumption more and results in maximisation of profits (Thomé, Scavarda
and Scavarda, 2016). Managers of Aldi organisation targets to reduce cost and waste in reference
with operational management as it leads to manage inventory cost. It also helps to eliminate
waste which save money in unnecessary cost and improving process within organisation.
Operation management is explained as the process of multiple business tasking
performing each activity for the management of certain business aspects. There are various types
of values for operation management in an organisation to achieve its objectives. These values are
described as under:-
Optimising quality control:- Operation management increase value of organisation
through optimum quality control, by improving more superiority of product in market, which
leads to compete with rivals. Managers of Aldi value their organisation by having proper control
on their inventory quality, which leads to increase consumer satisfaction.
Managing logistics:- Operation management improve value of organisation by managing
its logistics for its stability in competitive market (Fettermann and et.al., 2018). Managers of
Aldi improve value by planing a solid plan, having contingency in plan, strong interpersonal
skills, learning from mistakes by measuring corrective measures.
Analysing value chain:- Operation management improve value of an organisation by
recognising which activity is most valuable to the firm as competitive advantage. Managers of
Aldi improve value by dividing various activity for analysing it separately which create value for
final product of organisation.
Design and develop products:- Operation management helps to increase value by
designing and developing products. Managers of Aldi focus on value of organisation by
introducing products with proper design and quality of products which attracts mind of target
market which initiate them to purchase.
TASK 4
P6. Factors that affect business environment by impacting on operation management and
decision making concepts of managers and leaders.
Business environment is the combination of internal and external environment. It is
defined as the condition and forces which are external to business with an indirect impact on
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business (Pärn, Edwards and Sing, 2017). Managers of Aldi also face these uncontrollable
factors of business environment. All the factors of PESTLE analysis are described in context of
Aldi organisation, which are as follows:-
Political factors:- These are the factors which includes government rules and
regulations, taxation policy, budgeting, international trade laws, etc., which affect business
environment. Managers of Aldi, affects decision-making process by trade restrictions because
change in government policies and laws have negative impact on organisation as it delay in
achievement of busiess objectives.
Economic factors:- These factors include GDP, National Income, exchange rates, etc.,
affects business environment. Managers of Aldi are affected by the fluctuation in exchange rates
which increase or decrease the exchange rate creates impact on decision-making of business
stability.
Social factors:- These are the factors that involve demographic conditions of an
economy, which affects business environment. The increase unemployment creates a negaitve
impact Manager of Aldi as these are unable to consume product and want to fulfil basic needs.
Technological factors:- These are the factors that consists of change in technology
through innovation and growing market, etc., affects business environment (Addo-Tenkorang
and Helo, 2016). The manager of Aldi are affected with this as it create negative impact on the
stability of firm as instant change in technology leads to have high competitive market.
Legal factors:- These are the factors which includes the following factors are change in
law and legislation, health and safety guidelines, etc., affects business environment. Manager of
Aldi have negative impact by changes in law and legislation affects the business stability and
profitability which delay in organisation goal achievement.
Environmental factors:- These are the factors that have factors such as new
environmental law, eco-friendly practices, pollution control, etc., affects business environment.
Managers of Aldi are affected by these factors in decision-making process by fluctuation in laws
which creates delays in goal achievement and lack of effectiveness and efficiency.
From the above discussed PESTLE analysis it has been analysed that these factors affect
Aldie organisation either positively or negatively, which also leads to fluctuate the firm's
stability. The economic factors have bad impact on manager of Aldi organisation is decision-
making process with the fluctuation of exchange rates. It also affect business through
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fluctuation in consumer behaviour, employment factors, interest rates, etc. It helps to reduce
poverty by providing employment to people which further increase consumer demand for the
product resulting increase in supply. It also leads to maximise sale and profits with decrease in
cost.
CONCLUSION
The discussion concludes that all companies have two business practices that are
operations and management which assist to improve efficiency and productivity as whole.
Managers have characteristics of managing administration, diverse knowledge and so on.
However, leaders are characterised as delegator, caring others, listening issues and many more.
Managers and leaders applies their roles and functions in different contexts of situations such as
adapting technological changes and improving lower manpower productivity. In a company,
various operations management approaches are used in which distinct roles are undertaken by
leaders and managers. Various factors are surrounded with contemporary environment that
impacts decisions and operations management of entity.
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REFERENCES
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Online:
Aldi. 2020. [Online]. Available through: <https://www.aldi.co.uk/>
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