Operational Management Techniques and Strategies

The provided report focuses on operational management as a key department within organizations, emphasizing production and delivery of goods and services. It discusses various techniques used by managers to optimize efficiency, including reducing waste and managing personnel across different departments. The report also highlights the importance of worker efforts in achieving business success and growth.

MANAGEMENT AND
OPERATIONS

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
TASK 3............................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Operations management concept deals in designing and controlling of production process.
This concept mainly deals in converting raw material and labour into effective goods and
services. It helps business organisations to generate high level of efficiency in their workplace
(Pudar and et. al., 2014). In this report, company which is chosen here is Amazon which is an
online shopping industry. It is an UK multinational electronic company. In this project report,
characteristics and functions of leaders and managers have been discussed. Different theories and
models of approaches are included in this report. This project also contains importance and
values of operations management in achieving business objective.
TASK 1
P1 Define and compare roles and characteristics of a leader and a manager
Leader
A leader is a person in an organisation who influences its team members for achieving their
specific goals and objectives. In this regards, it is essential for the chosen organisation
Amazon to motivate their employees towards their objectives, which leads in making
effective workforce in an organisation.
Manager
A manager is a person who manages all business operation with a motive to improve overall
performance of an organisation. In this context, it helps the chosen organisation in retaining
their productivity in a competitive business environment for a longer duration.
Difference between role of a leader and a manager
Role of Leaders Role of Managers
The main role of a leader is to follow the
objectives, which are set by top-level
managers(Ghadge, Dani and Kalawsky, 2012).
In this context, it will helps the chosen
organisation Amazon in improving their
overall performance.
The most important role of managers of
Amazon is to set objectives, which are
followed by its sub-ordinates for overall
development of an business entity.
They provide direction to their team members
only for achieving their specific goals and
Managers of Amazon provide direction to
groups as they are monitoring overall business
1

objectives. operations.
Its main role in the chosen organisation
Amazon is to inspire employees to achieve
their goals and objectives.
Its main role in Amazon is planning various
business strategies that increases overall
growth of a business organisation.
They motivate their team members to work in
accordance with the assigned task.
The direct the work to their employees
The leader of Amazon implements the ideas
that are created by their top-level managers.
On the other hand, manager of Amazon creates
innovative ideas for betterment of an
organisation.
Characteristics of a leader
(a) Positive attitude
A leader should have a positive attitude towards its team members, which will help them
in achieving their specific aims and objectives (Caplan, 2014). In this context, it is essential for
leaders of Amazon to be positive at the time of difficult situation that will helps its team
members in improving their productivity.
(b) Focused approach
A leader of an organisation should be focused towards work of its team members in order to
achieve their objectives. According to the present report, it is essential for leaders of
Amazon to stay focused at the time of difficult situation and also to monitor its team on a
regular basis.
Characteristics of a Manager
(a) Delegate with knowledge and foresight
It is necessary for managers of Amazon to ensure that right people are doing the right job at
a right time. It means manager should delegate the work in accordance with skills and
knowledge of its employees. This will makes workforce of an business entity result oriented
in a business environment.
(b) Set context and boundaries
In this context, it is important for managers of the chosen organisation Amazon to set
boundaries for its employees, which will helps the chosen organisation in creating a healthy
and strong relationship between managers and subordinates.
2

According to the present report, if mangers and leaders of Amazon follows their roles effectively
then it will helps the chosen organisation in improving their performance and gaining
competitive advantage in business environment.
P2 Examine examples of how the role of a leader and the function of a manager apply in
different situational context
Amazon company deals in electronic commerce and operating its business activities in a
global market. It is essential for chosen organisation to make an effective business strategies in
order to be competitive in a dynamic business environment. It is also essential for managers and
leaders of the chosen organisation to play their role effectively, which helps an organisation in
gaining competitive advantage (Katsikopoulos, and Gigerenzer, G., 2013). It is necessary for
Amazon to change in accordance with the business environment. For instance, leaders should
influence its team members to adopt new changes in their work environment and also motivate
its employees to improve their skills and knowledge. On the other, the role of a manager is to
give emphasis on overall development of an organisation. Some other changes where role of a
leader and function of a manager can be differentiated are as follows:
(a) Team building - The team-building task is most difficult tasks for an organisation because
there are many members from different organisational culture. In this context, managers of
Amazon follows autocratic style of leadership in order to make their workforce to work as a
team. In which managers command its team members to work in a team, which leads in
improving their performance in a competitive business environment. On the other hand,
managers of Amazon tries to build trust among its staff members, which leads in creating a
positive and healthy work environment in an business entity. These practises by managers
and leaders of Amazon helps an organisation in achieving their set goals and objectives in
specific time. Team building practise will helps Amazon in encouraging creativity among
their workforce and also helps its employees motivation to achieve their specific goals and
objectives.
(b) Project management
The productivity of many business organisations depends on execution of their projects in
effective and efficient manner (Natarajan, and Swaminathan, 2014). This step is also considered
difficult for an organisation as is essential in this step to choose effective business strategies. In
this context, it is essential for Amazon to utilise their resources effectively and efficiently and to
3

operate business activities with a motive to achieve aims and objectives in a proper time frame. It
is also essential for the chosen organisation to assign roles and responsibilities to their staff
members in accordance with their abilities. In this context, the main role of leaders of Amazon to
monitor performance of its team members and also provide training sessions, in order to increase
their skills and knowledge. On the other hand, the role of a manager is to provide proper
guideline to their staff members, which leads in making the workforce effective and efficient in a
competitive business environment.
P3 Different theories and models approach in operational management.
Operational management is concerned with reducing wastage and improving quality of
products and services( Diabat, Abdallah, and Henschel, 2015). Leaders are an integral part of
every organisation especially ones dealing with production as their main activity. Leadership is
an ongoing and continuous process which is very important for every business concern to
improve its growth efficiency. There are numerous theories and approaches for improving
organisational efficiency of Amazon that are explained as under:
Situational leadership: It is most important and basic theory of management which pays
equal importance to all leadership styles and approaches and is bias to no single leadership
approach. Situational theory of leadership says that no single leadership style can be judged as
best leadership style. Instead, choosing a leadership style is a tricky task for Amazon as it depend
totally upon current situation faced by managers of Amazon. According to nature of situation,
managers choose their leadership styles. As per this theory, an effective and efficient leader is
one who is able to adapt to current prevailing situation and find a suitable solution to it. This
theory is also known as Hersey Blanchard theory.
Contingency theory: This approach of managers is used when managers of Amazon have
to focus on any specific situation or factors that affect operations management. It studies and
evaluates factors which have a direct impact on relationships between independent and
dependent variables. Also, this theory believes that there is exact rocket science attached to how
an organisation functions or behaves. Also there is no exact set pattern or formula to solve any
organisational problem, it is more like a trial and error method used by Amazon to find out
about disputes between employees.
System leadership: This is another very important leadership process which enables and
helps leaders in an organisation to create a healthy working environment for each and every
4

employee so that he is comfortable and feels motivated. It further helps in increasing
productivity levels of employees equally at all levels. This approach uses sound organisational
policies that help Amazon in creation of excellent and healthy leadership models, various
organisational strategies as well as system design and social processes.
These are some major approaches or techniques that are used by operational managers for
improving effectiveness and efficiency of employees.
P4 Key approaches of operations management and role of leaders and managers.
Operations management is a vital part of any organisation which helps in managing
production and processing activities in any business concern (Diabat, Abdallah, and Henschel,
2015). It also seves other functions converting inputs into outputs. Numerous approaches of
operations management are available, some of which are explained below:
Just in time: It is a type of management approach used by Amazon which helps its
managers to directly align or assign raw material requirements from suppliers to production
schedules of an organisation. It is mainly use to increase efficiency level of employees involved
in production process and reduce wastage.
Lean Production: Lean production is a name given to a systematic process that lays its
emphasis on minimising or controlling waste generation within production and manufacturing
systems of Amazon while aiming at maximising productivity. It helps to identify value of
products and services from a customer’s point of view and also increasing profitability. This
principle further involves recording and analysing flow of information and raw materials
required to produce or generate goods and services.
Six sigma: Six sigma is a quality control technique that aims at achieving near perfection.
It is a well disciplined , data driven approach which helps in eliminating or removing waste in
each and every part of production process beginning from production to manufacturing (Hazen
and et. al., 2018). It is normally made up of two sub methodologies namely DMAIC(define,
measure, analyse, improve, control) and DMADV(define, measure, analyse, design, verify).
These are some important techniques that help managers of Amazon in assessing
efficiency and effectiveness of goods and services in an organisation.
Role of leaders: Leadership is an all pervasive function and exists at almost all levels
and functions of an function. A leader should be able to inspire trust and confidence in his
employees in both forms as a competent individual as well as character. Also, a leader should be
5

able to generate vision for his subordinates and followers so that they can achieve efficiency in
their work.
Role of managers: Managers are people who manage and look after all vital job
responsibilities in a vast organisation like Amazon for meeting demands and requirements of
business functions manager performs various important role like interpersonal roles in which he
plays a figurehead at its initial stage leader at next and liaison at third. Other most important role
performed by managers include performing informational role which means transmitting
information from one department to other at a timely basis.
P5 Importance and value of operations management
Operation management is a wider concept which deals to maintain production process of
goods and services. It helps to improve overall productivity of organisation (Braman and et. al.,
2013). This process helps to generate highest level of efficiency in company. In Amazon
managers are using various ways to concert materials and labours into effective goods and
services. This process helps company to maximise their profit. This process includes planning,
organising, supervising and controlling production of goods and services. Operation management
plays crucial role in any organisation to run their business successfully. Activates that are
included in this process describes below:
Planning: It is first and foremost function requires conducting any plan. It is a process to
make plans and procedures. With help of this process Amazon Company can able to make
strategic actions according to their objectives. It benefits company to determine their overall
requirement of resources. It also helps to reduces organisation wastage level.
Organizing: It is a process of defining activities to each and every individual those who
are connected with any particular project. This helps to establish effective relationships among
employees. In Amazon their leaders and managers formulate systematic process through which
they can co- ordinate their task and activities in effective way. This helps company to enhance
their production and growth.
Staffing: It is a management process through which company can able to fill their vacant
positions. It is a process of acquiring skilled workforce in every department of organisation. With
the help of this process Amazon Company can able to create effective workforce. It is a basic
and continuous function of organisation that is performed by all managers.
6

Directing: It is a process which is done by managers to guide and instruct their
employees in order to enhance their performance (Mason and Bauer, 2015). This process helps
Amazon company to motivate their employees and increase productivity of organisation.
Motivating: In this process managers and leader adopt various measures to increase
efficiencies of their employees. In Amazon mangers keeps on motivating their workers on
regular basic to maintain effective working conditions in their workplace. By using different
motivation techniques company can able to increase their overall productivity and performance.
Table of Content
 Marketing Issues
 Economic Environment
 Technological Changes
 Legal & Environmental Factors
 Socio-Cultural Dimension
Factors within business
that impact on
operational management
and decision making
Marketing Issues: Regular change in
consumer taste and preferences affect
organisations. Sudden change in customer
needs is also an important factor that affects
decision making skill of managers. Managers
and leaders of Amazon Company keep on
regular updating of their knowledge for new
marketing trends. This will benefit company
7

to increase their profit and enhance their
employee performance.
Economic Environment: Sudden change in
demand related to any product and services
affect decision making skills of leaders and
managers. There are some major changes like,
short- term change in demand and supply of
any product, change in interest rates and
capital investments which affect organisation
management.
Technological Changes: This factor plays a
significant role in determining decision
making skills of managers and leaders.
8

Regular change in technologies affect product
life cycle of company product. Managers of
Amazon keep on updating technology with
their organisation in order to maintain smooth
working process.
Legal & Environmental Factors: Rules and
regulations of government affect organisation
strategies. For having smooth working
process it is necessary for Amazon manager
to have proper knowledge of government
legislations. This will help them to work in an
effective manner.
Socio-Cultural Dimension: Cultural values
and morals prevailing in society where
organisation is operating are termed as socio-
cultural dimensions (Kaplan and Atkinson,
2013). These dimensions need to study well
by managers and leaders of Amazon. This
will help them to conduct their business
according to standard of conducts.
9

With help of these above mentioned points,
managers and leaders of Amazon Company
can able to run their business according to
overall prevailing conditions in any sector. A
proper and systematic strategies made by
manger or a leader will help them to increase
company productivity and employee
performance level.
P6 Factors within business that impact on operational management and decision making
There are various factors which affects decision of leaders and managers in decision
making process. By attaining knowledge of different factors manager can able to enhance their
decision making skills and can bring uniformity in their decision making skills. Factors that
influence operational objectives are described below:
Marketing Issues: Regular change in consumer taste and preferences affect organisations.
Sudden change in customer needs is also an important factor that affects decision making skill
of managers. Managers and leaders of Amazon Company keep on regular updating of their
knowledge for new marketing trends. This will benefit company to increase their profit and
enhance their employee performance.
Economic Environment: Sudden change in demand related to any product and services affect
decision making skills of leaders and managers. There are some major changes like, short- term
change in demand and supply of any product, change in interest rates and capital investments
which affect organisation management.
Technological Changes: This factor plays a significant role in determining decision making
skills of managers and leaders. Regular change in technologies affect product life cycle of
company product. Managers of Amazon keep on updating technology with their organisation in
order to maintain smooth working process.
Legal & Environmental Factors: Rules and regulations of government affect organisation
strategies. For having smooth working process it is necessary for Amazon manager to have
proper knowledge of government legislations. This will help them to work in an effective
10

manner.
Socio-Cultural Dimension: Cultural values and morals prevailing in society where
organisation is operating are termed as socio- cultural dimensions (Kaplan and Atkinson, 2013).
These dimensions need to study well by managers and leaders of Amazon. This will help them
to conduct their business according to standard of conducts.
With help of these above mentioned points, managers and leaders of Amazon Company can
able to run their business according to overall prevailing conditions in any sector. A proper and
systematic strategies made by manger or a leader will help them to increase company
productivity and employee performance level.
CONCLUSION
This report studies about operational management and its various aspects. From this report,
it can be summarised that operational management is main department of an organisation whose
main function is to lay emphasis on production and delivery of goods and services. Operational
managers use many methods and techniques to reduce wastage and improve efficiency level.
Along with this, managers manage people of all departments as well as their activities and
provide them various facilities so that they can work in a desired manner. Efforts of workers
assist companies to achieve success and growth in business appropriately. Also this report
focuses on various techniques of operations management and role played by leaders and
managers in any given business concern.
11

REFERENCES
Books & Journals
Pudar and et. al., 2014. Remote power usage management for plug-in vehicles. U.S. Patent
8,912,753.
Ghadge, A., Dani, S. and Kalawsky, R., 2012. Supply chain risk management: present and future
scope. The international journal of logistics management. 23(3). pp.313-339.
Caplan, R., 2014. A new trusteeship?: the international administration of war-torn territories.
Routledge.
Katsikopoulos, K. V. and Gigerenzer, G., 2013. Behavioral operations management: A blind spot
and a research program. Journal of Supply Chain Management, 49(1). pp.3-7.
Natarajan, K. V. and Swaminathan, J.M., 2014. Inventory management in humanitarian
operations: Impact of amount, schedule, and uncertainty in funding. Manufacturing &
Service Operations Management. 16(4). pp.595-603.
Diabat, A., Abdallah, T. and Henschel, A., 2015. A closed-loop location-inventory problem with
spare parts consideration. Computers & Operations Research. 54. pp.245-256.
Hazen and et. al., 2018. Back in business: Operations research in support of big data analytics for
operations and supply chain management. Annals of Operations Research, 270(1-2).
pp.201-211.
Braman and et. al., 2013. Climate forecasts in disaster management: Red Cross flood operations
in West Africa, 2008. Disasters. 37(1). pp.144-164.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kaplan, R. S. and Atkinson, A. A., 2015. Advanced management accounting. PHI Learning.
Neudorff, L. G., Mason, J. and Bauer, J., 2012. Glossary for Regional Transportation Systems
Management and Operations Terms. Transportation Research E-Circular, (E-C166).
Heaslip, G., 2013. Services operations management and humanitarian logistics. Journal of
Humanitarian Logistics and Supply Chain Management. 3(1). pp.37-51.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A Decision-Oriented Introduction to the Creation of Value.
12