The Importance of Operations Management

The assignment provided is a comprehensive analysis of the importance of operations management in today's business landscape. It highlights the key approaches such as six sigma and lean manufacturing systems that can improve operational efficiency and enhance competitive advantage. The document also emphasizes the need for managers to consider external macro-environmental factors while formulating strategies and policies.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction and management structure of Toyota.................................................................1
2. Role of manager and leader.....................................................................................................2
3. Different roles of managers and leaders in different organisational situations.......................4
4. Theories of leadership.............................................................................................................4
5. Conclusion and recommendations..........................................................................................5
TASK2.............................................................................................................................................6
1. Introduction to key operations of Toyota................................................................................6
2. Key operational function and roles and responsibilities of managers in it.............................6
3. Key operational approaches of operational management.......................................................7
4. Impact of external business environment factors and their influence in decision making.....8
5. Increasing operational efficiencies..........................................................................................9
6. Conclusion and recommendations..........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is a process which includes organising and supervising the whole
functions of the firm so that improvement can be done for getting high productivity. In addition
to this, it is a activity which deals with managing of operations and procedures of firm. The taken
organisation for this assignment is Toyota Motors that was established in 1933 in Toyoda city
and providing its services in auto-mobile industry. This assignment will discuss about the role
and functions of leaders and managers along with differences through applying a large number of
theories and concepts. It will also discuss about the strength and weaknesses of approaches
which are applied in the work environment. In the last, the external factors which are influencing
the operational activities of the firm will also discussed in this report.
TASK 1
1. Introduction to Toyota.
Toyota motors is a well known automotive industry which is based in Japan and also
known as the largest automotive manufacturer. It also provide a mass hybrid vehicles around the
world. The company is operating their operational activities in 28 countries and providing their
products in more than 150 nations around the globe. The company have more than 350000
employees who are providing their loyal services. Operation management is more essential
because it is necessary for managing day to day activities.
1.1 Management Structure of Toyota
The management structure of Toyota is based on different business operations across the
world. The managers of firm are following the traditional structure. The effectiveness of this
structure is shown as the global presence of firm in all over the world. Their organisational
structure guides them for optimal utilisation of resources so that the efficiency of operations can
be maintained (Chiarini, 2015). The firm has also a divisional structure which is used for
overcome the safety issues. The characteristics of structure are given as under:
 Global hierarchy : The management of firm is using centralised structure in their firm
and their headquarters in Japan so the headquarter has liability for taking all the decisions
which will be adopt by all divisions. For example- suppose that, if a division head is not
providing reports on the regular basis or not communicating in well manner then the
manager of head office have rights to take decisions regarding the existence of this unit.
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So that, it can be said that all the head of divisions have to provide report to their
headquarters which are established in Japan.
 Geographic divisions : As the company is operating their functions in 8 geographic
divisions around the world and their head have to provide all reports to the headquarters.
This function is useful because it improves the business functions and also increase the
efficiency of the firm. Each branch has a branch head who has authority for taking final
decision of that specific branch but for implementing the decision branch head have to
take permissions from the headquarters.
 Product based divisions : In this, the managers have divided their structure in four parts
so that the product line and brand management can be maintained. They also makes a
way so that the operation can be handled smoothly (De Roover, 2017). They provides
authority to the managers of each department so that the issues can be resolved in easy
manner.
2. Definitions of manager and leader.
Managers and leaders both plays an important role in the firm. They have different kind
of roles and responsibilities which are essential for firm for achieving the goals. In management
of operations,
Definition of managers - Managers are the person who have responsibility for handling the
different functions so that, the firm can achieve the target.
Definition of leaders - Leaders are the one who is responsible for guiding and motivating the
employees so that goals can be achieved within the given time period.
2.1 Differences between managers and leaders
Basis Managers Leaders
Definition It is an art which is used for
organising the functions and
things in an efficient way
Whereas, it is a skill which is used for
leading the others
Basis Managers have duty to
control and manage all the
functions of the firm.
Whereas, leaders have to control and
supports all the functions which are
related with a specific task.
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Focus Managers have to emphasise
on managing the functions
within the firm so that
expected targets can be
received in given time
period.
While, leaders have to focus on
completion of given task for this they
motivate and supports their team
members so that the allotted work
will be completed in effective
manner.
2.2 Characteristics/Qualities/Functions of managers and leaders
Functions of managers in Toyota
There are a large number of functions which have to performed by the managers of
Toyota. The functions are given as under:
 Planning : The managers have responsibility for making effective plans so that the task
can be completed in effective manner. They have also responsible for determining the
goals and targets of Toyota along with methods for completing these goals.
 Organising :Managers are liable for organising the firm through establishing
relationships with the individuals and other resources so that the productivity of firm can
be increased.
 Controlling : It is a major responsibility of managers to control all the activities so that
the functions can be carried out by the staff members in effective manner.
Function of leader
There are a large number of functions which have to perform by the leaders in Toyota the
functions of leaders are given as under:
 Setting clear vision : The leaders have to clearly define the roles and responsibilities to
their team members so that they are aware from their duties and perform on the task in
given manner.
 Initiating actions : The leaders have to take necessary actions according to situations so
that the upcoming conflicts can be resolved in easy manner (Harrison,2017).
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 Act as link between management and workers : They have to act as a bridge between
the managers and workers so that the conflicts and issues of workers can be resolved in a
short time period.
2.3 Roles of leader and Managers
There are various roles which are performed by the leaders of Toyota. They are:
 Training : They have to provide effective training to their team members so that targets
can be achieved in allotted time period.
 Motivation : They have to provide motivation to their team members so that the workers
will be dedicated towards work. They can provide motivation in financial or non financial
terms.
Roles of manager
The managers have to play different kind of roles in their daily life within the firm which
are explained as under:
 Informational roles : This role is concerned with the various informations that have to
provide by managers to their staff members for completing the task
 Decision making role : As the managers have to handle top position in the firm so they
have liability for making decisions which will be helpful for the firm in achieving desired
goals and objectives.
Roles of managers and leaders under different situations
There are two kind of situations which is faces by the management of Toyota in their
daily activities. The roles of managers and leaders for this situations are given as under:
Fast changing situation
In every firm, There are many situations in which managers and leaders have to take
decisions quickly. In these situations managers have to conduct environmental analysis through
which they can take decisions for overcome the influence of these factors. Whereas, the leaders
have to follow autocratic leadership style so that team members can be adopt the changes which
are necessary for taken without wasting the time (Laudon, 2016).
Slow changing situation
It provides influences on the sustainability of firm. In these situations, market is stable for
this managers have to analysis of market situations so that current plans and methods can be
improved within small time period. Managers have to perform this functions in quickly manner
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so that future outcomes can be estimated easily. For this situations leaders have to follow
democratic leadership style through which the employees feels motivated in the workplace and
provide better suggestions in decision-making process in the firm.
3 Theories of Management along with strength and weakness
There are various theories which can be used by the managers for gaining profitability
and making effective decisions are briefly explained in above task.
3.1 Classical theory of management
It is based on a belief that employees who are working in the organisation have only physical and
economic kind of requirement. According to this theory, managers of firm gave their focuses on
the achievement of objectives without considering the needs of employees. This theory is very
helpful for the managers in enhancing the productivity, profitability and decision-making.
Strength Weakness
This theory is used for increasing the
productivity of firm so that the better position
can be achieved in the marketplace
While, it is not considered any requirement of
the employees due to which their performance
level and motivation is reduced and they can't
perform on the given task in proper manner.
3.2 Behavioural Theory along with the strength and weaknesses
This theory focuses on maintains relationship with the employees along with identifying their
needs and fulfil them accordingly. This theory states that managers have duty to make effective
relations with the employees so that the major conflicts can be resolved which takes places in the
workplace and expected results can be received within allotted time period.
Strength Weakness
This theory is helpful for the employees in get
recognition from the managers of their
performance.
The major weakness of this approach is that all
employees are not always prepared for
maintaining relations with their superiors due
to which the conflicts can takes places at the
workplace.
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3.3 Systems Theory of Management
It is also an important theory of management in which organisation is considered as an open
system that is composed of interdependent and interrelated parts are known as subsystems of
firm. Some strengths and weaknesses of this theory are given as under:
Strength Weakness
It enhances the adaptability of organisation
which encourages the employees to adapt the
changes so that goals can be achieved in given
time period.
It does not provide any specific styles of
management to managers due to which they
can't perform their duties in proper manner.
4. Theories of leadership.
There are several theories of leadership which can be adopted by leaders while working
in Toyota. Some kind of leadership along with strength and weakness are given as follows:
4.1 Situational leadership theory along with strength and weakness
In this style, leaders have to adjust their behaviour as per the situations. The leaders have
to adopt necessary actions for changing situations through which their efficiency and strengths
will be improved and they make several decisions for achieving the goals. This theory is not
based on the specific skills of leaders whereas, it is based on their flexibility for making
decisions as per the situations.
Strength Weakness
It provide flexibility to the leaders so that their
efficiency and strengths are improved for
handling the situations.
The confusion level of the team members are
increased due to which they can't perform
properly on the given task.
It increases the maturity level of leaders
through which the issues can be overcome and
employee relations are improved.
This theory is used only for current situations
so that the leaders can not uses the concepts
and theories of leadership.
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4.2 Contingency Leadership theory along with strength and weakness
This theory was given by Fred Fielder in 1958. This theory says that leaders have to
adjust their behaviour according to the situations. It is also known as situational theory of
leadership which emphasizes that leader's effectiveness is depends on matching leader's style to
right situations. For example, Leaders at Toyota performs are using old leadership styles in the
workplace which is not appropriate for every situation. The situations can be changed at any time
so the leaders have to adjust their behaviour according to this style. With the help of this, they
will able in controlling and managing the activities during the task through which effective
outcomes will be received in future
Strengths Weaknesses
It provides flexibility to the leaders due to
which they can take effective decisions which
are beneficial for achieving organisational
goals.
This theory not provides effective results at
every time which increases the confusion in
decision-making process.
4.3 System leadership theory along with strength and weakness:
In this leaders have to provide a systematic structure to their team members so that the
workers can aware from their responsibility and provide maximum efforts for completing the
task. This theory also uses the principles of human behaviour so that their good leadership skills
and decision-making skills will also increased. It also improve their presentation skills so that
team members can aware from the negative aspects of not performing the task.
Strength Weakness
Through using it, leaders can increase their
awareness about complexity of the atmosphere
and formulate a suitable structure at the
workplace through which the organisational
goals can be achieved in the given time period.
It is not used in every situations and all the
team members can't perform their duties
according to structure which negatively affects
on the decision-making process.
Analysis:
If leaders of Toyota will adopt system leadership approach in their workplace then they
have to make systematic structure through which all employees of their firm will be aware
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regarding their roles and duties. This theory also includes human behaviour through which
Leaders of organisation can easily make good relations with their employees and take their
supports in making decisions as per the situations. It also assists them in improving presentation
skills so that the employees of the firm easily understand their duties and perform on the given
task in proper manner. Whereas, if Leaders of Toyota will adopt contingency theory of
leadership then they will be able in taking decisions according to the situations along with their
positive and negative aspects which are beneficial for employees and organisation.
5. Conclusion and recommendations.
It has been concluded from the above tasks that managers and leaders are important for
the firm in order to achieving the goals. Management structure of Toyota which is followed by
the managers is hierarchy model in which every division head to take permissions for
implementing their decisions (Mahadevan,2015). The leadership theories are also plays
supporting role for their leaders due to which they understand their strength and weaknesses. It
can be said that the managers and leaders have to create a better communication structure in their
workplace so that communication process can be improved through which the employees will
easily understand their roles and duties. With the help of it, they will easily face different
challenges during the task and their skills and efficiencies will also improved which will helpful
for firm in achieving the competitive advantage in marketplace. It is recommended that leaders
and managers have to formulate an effective communication structure at their workplace so that
good relations with the employees can be created and organisational goals will be achieved in
proper manner. It will also helpful for the organisation in enhancing the standardization of goods
through which they will be able in providing good products in the marketplace.
TASK2
1. Introduction to key operations of Toyota.
Definition of operations management - Operations management is an essential part of
management which engages in implementing controlling and supervising the process of
production. It also make systematised the processes of the organisation in the workplace so that
the business operations of firm are done in an effective manner.
As the Toyota has made their global presence in all over the world which is created
because of their effective strategies and operations. Key operations are also known as the
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primary functions which are carried out by the managers for achieving huge revenue and
profitability for the firm. These operations are also helpful in manufacturing the quality products
so that the desired demands of the customers can be fulfilled in effective manner. The
management of Toyota have divided their key operations in various parts such as designing of
products, quality, process designing, supply chain etc. For these departments, management have
to take effective decisions so that the firm can easily achieve their objectives in marketplace.
2. Key operational function and roles and responsibilities of managers in it.
Every organisation have to manage their multiple functions so that the organisation can
achieve growth and sustainability in the marketplace. The managers have to monitor the process
and operations in the firm so that the functions can be performed by the workers in effective
manner. The operational functions of Toyota are given as follows:
 Designing of goods and services : The firm has adopted the advance technologies so that
the features can be applied in new products for increasing attraction of the customers. For
this, managers have to perform research and development programme so that advance
features can be implemented in the products (Starr, 2014). Managers have to make effective
relations with suppliers so that the raw material can be received in lower prices through
which they will easily add new features in it without enhancing the costs.
 Quality management : It is connected with the quality of product which have to
maintained by the managers. The production managers of Toyota have to monitor the whole
activity of production process so that unessential activity can be identified and removed
accordingly. For this, managers have to make continuous improvement in their products so
that the quality of products can be maintained in effective manner.
 Supply chain management : It is connected with delivering of products which are
produced by the firm. The management of Toyota uses the Lean manufacturing system for
supplying the products. In this, managers have responsibilities for using automatic systems
so that real time adjustments can be done in the supply chain activity. It also helps the
managers of Toyota in reducing the costs from the production process which will increases
the supply of new offerings.
3. Key operational approaches of operational management.
There are a large number of approaches of operational management which are used by
managers of Toyota for increasing their profitability. The approaches are given as under:
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 Just in time : This is an approach which is used by managers of Toyota for managing
their inventory systems so that labour, raw materials can be delivered in the production
department when it requires. It also supports the management of Toyota in determining
the obstacles within the production department. Due to which, the managers can easily
reduce the expenses from the production process. With the help of it, the inventory and
productivity of Toyota will be maximised. It also helps the managers in making effective
relations with the suppliers due to which quantity of the raw material will not reduced in
the firm.
 Six sigma : This is a quality method which is used by the managers for satisfying the
needs and wants of customers, minimising the cost and make efficiency in leaders. This is
a data driven approach or method which is used for removing defects from the overall
functions of the Toyota so that the overall performance of the firm can be improved. In
this process, the managers of Toyota have to make measurement of the product and
services so that the improvement of the product can be possible (Vashneya, 2017). It
helps the managers of Toyota in removing unessential activities from the process and
functions so that the quality of products can be delivered in the marketplace.
 Lean manufacturing : This is a method which emphasizes on reducing the wastage from
the manufacturing system due to which the productivity of the firm can be increased.
Managers of Toyota have to use this because it helps them in continuous improvement of
their offerings. It also guides the managers in taking feedbacks from the customers so that
the required changes can be done in the current offerings of Toyota. It is also helpful for
the production managers in eliminating the barriers from different functions and also
identify the ways for make changes in the production process. so that products can be
delivered in the market on time and brand image of Toyota will be maintained in the
marketplace.
4. Impact of external business environment factors and their influence in decision making.
Business environment is defined as the surrounding atmosphere of firm which includes
internal and external factors that influences the decision-making process of the firm. It is very
essential for the firm to analysing the factors in which leaders and managers have to play very
crucial role so that the influences of these factors can be overcome in future. For this, they have
to conduct a PEST analysis which is given as under:
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 Political factors : As the firm is performing their operational activities in various nations
so that they have to consider the political factors which are related with the stability of
government, free trade agreements etc. managers and leaders have to consider these
factors and make changes in their organisational structure accordingly. Various nations
has made their own environmental legislations so that firm have to make eco-friendly
products so that their operations can't be affected by this legislations (Starr, 2014). For
this, managers have to make proper decisions for planning and designing of products.
Whereas, leaders have to provide effective training to their team members so that they
perform their tasks in given structure.
 Economic factors : It also influences the development of firm. These kind of factors are
related with the economic environment of firm which consists of interest rates, inflation
rates, GDP etc. for example when economic conditions will be better then productivity
will be increased and it also provide employment opportunities to the individuals. On the
other hand, leaders have to provide guidance to their team members so that their
knowledge and skills can be increased which will helpful for effective decision-making.
 Social factors : These factors are connected with social and cultural factors which
provides a major influences on the sales of firm such as changes in preferences, needs
and demands of customers etc. for this, the management have decided to taking
feedbacks from their customers so that additional features can be implemented in the
existing products. In order to make changes in the products leaders have to provide
effective training to the employees so that they can get knowledge about the changes and
work on the task with full confidence.
 Technological factors :This is the main factor in present situation because modern era is
based on advancement of technologies so, it can be said that any firm can not take growth
and success in the marketplace without implementation of advanced technologies. For
this, management have to analyse the market trends so that necessary changes can be
created in the firm within a short time period.
As per the above macro environmental factors, organisation have to consider corporate
social responsibilities, values, ethics etc. which are essential for organising the business
operations in effective manner.
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CSR- Environment of business is greatly influenced by CSR policy because it is related
with the responsibilities of the firm and also promotes the firm in performing their social
responsibilities.
Values- Toyota also gave importance to the values which are related with the society or
where they are operating their activities. It also helps the firm in getting better ideas so that
company can better promote their products and satisfying the potential needs of their customers.
Ethics- Managers of Toyota have to ensure about the ethics which are followed by them
to provide transparency in their business and helps the firm in selecting best path for selling the
products.
The stakeholders of Toyota and their expectations are:
1) Shareholders expect that they want better returns on their investment.
2) Government expectations of the company are that the company should pay their tax
duties on time.
3) Suppliers expect the company to pay for raw materials supplied on time.
4) Employees expectations from the company are that they wants recognition of their
performance from their superiors so that they can get promotion and incentives.
5. Increasing operational efficiencies.
Business objectives – This is defined as an outcome which is company wants to achieve.
It includes a time frame and resources from which Managers of organisation can decide their
goals or objectives. For example- Management of Toyota wants to provide better quality
products in the marketplace along with gaining competitive advantage in automotive sector. For
this, managers of Toyota have decided to implement Lean manufacturing and six sigma in their
production department in order to provide good products to their customers so that their brand
image will be maintained in the marketplace.
Importance of operations management in achievement of business objectives –
operations management plays an important role in achievement of business objectives such as It
provides assistance to the employees through formulating proper plans and strategies like what
kind of resources will be used or what are the functions will be performed by the employees.
With the help of operations management, Toyota can easily determine the best and lower
performer of the firm through which the expected skills will be gained by the lower performers.
It indirectly helps the organisation in improving the operational efficiencies of firm. Due to this,
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they will able in controlling the quality of products which will helpful for gaining competitive
advantage in the marketplace.
Managers of cited firm can adopt the decision theory approach through which operational
efficiency can be improved. Management approach of this theory is given as under:
Scientific management approach – This theory says that employees have to perform
their task in suitable or right manner so that the productivity of firm will be increased ( Laudon,
2016). In the case of Toyota, Their manager has to determine the conditions and make effective
modifications accordingly due to which the operations can be performed by the employees in
effective manner.
For enhancing the operational efficiency an approach of leadership can also used by
the Leaders of Toyota which is discussed as follows:
Transformational theory of leadership – This approach is useful for the managers
because it helps them in determining the expectations of each employees who are providing their
services in their organisation. As the Toyota firm is using Japanese organisational structure due
to which they have to consider all the demands of their employees and fulfils them accordingly.
By doing this, the employees will motivated and perform their task in effective manner
6. Conclusion and recommendations.
It can be said from the above tasks that operational management is very essential in the
cited firm because Toyota is providing services in automotive industry. With the improved
operational functions firm can easily achieve sustainability and growth in the marketplace. In
order to achieving a huge success various approaches of leadership and management are used by
managers so that efficiency and productivity of the firm can be increased which will help the
managers in achieving competitive advantage in marketplace.
CONCLUSION
From the above report, it has been concluded that management of operations is very
essential part for getting success to the firm. It also provide assistance to the managers in
enhancing the efficiency of the business operations due to which firm can get profitability in the
future time. Various approaches of management and leadership are also important for enhancing
the performance level of employees due to which the firm can easily gets competitive advantage
in the marketplace. The key approaches such as six sigma, lean manufacturing system etc. are
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implemented for improving the operational efficiency of organisation. It has been recommended
that managers should consider various kind of external macro environmental factors such as
political, technological, social etc. which can influences negatively on the decision-making of
organisation. So that, it is very important for the managers of organisation to consider such
factors through which they will able in formulate effective strategies and policies.
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