Explore the roles of leaders and managers at Marks & Spencer, analyze theories in leadership, understand operations management approaches, and assess factors influencing operational management.
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MANAGEMENT AND OPERATIONS
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TABLE OF CONTENTS INTRODUCTION................................................................................................................................2 TASK 1..............................................................................................................................................3 P1 COMPARISON OF ROLES AND FEATURES OF LEADER AND MANAGER..................................3 P2 EXPLANATION WITH EXAMPLES THE APPLICATION OF ROLE OF LEADER AND MANAGER IN DIFFERENT SITUATIONS...............................................................................................................6 P3 THEORIES AND MODELS OF APPROACH IN LEADERSHIP.......................................................8 TASK 2..............................................................................................................................................9 P4 CHIEF APPROACHES TO OPERATIONS MANAGEMENT..........................................................9 P5 SIGNIFICANCE AND VALUE OF OPERATIONS MANAGEMENT..............................................11 P6 ASSESSMENT OF FACTORS IN BUSINESS ENVIRONMENT THAT HAVE INFLUENCE ON OPERATIONAL MANAGEMENT..................................................................................................12 CONCLUSION.................................................................................................................................13 REFERENCES...................................................................................................................................14 1
INTRODUCTION The concept of management and operations in business is concerned with formulating and implementingthestrategiesforeffectiveworkingofanorganisation.Itinvolvesthe management of best practices in business to reach uppermost levels of efficiency possible to increase the level of profits attained. In the assignment, the global retailer business, Marks and Spencer or abbreviated as M&S is taken into account to understand the ideas related to leadership and management. According to the given scenario, the management consultant of M&S is allotted the task to examine the impact that leaders and managers of M&S have on the operations of the firm. The investigation will include a description of understanding and compare the role of leaders and managers of M&S and the application of their roles and responsibilities. Further, another report will describe the preeminent practices and methods in operations management of M&S. It will include the effectiveness of leadership team and management in improving the operations of the company and the external factors will be examined that influence the operations management in the business. Figure 1: Marks & Spencer Source: [https://www.eveningexpress.co.uk/fp/news/local/new-n-east-food-store-to- launch-next-month1/] 2
TASK 1 P1 COMPARISON OF ROLES AND FEATURES OF LEADER AND MANAGER The company Mark and Spencer is a private limited company established 134 years ago in Leeds, the UK operating in the retail sector serving around the world with clothing and home products and also food products through retail stores, around 1433 stores and website across MiddleEast,AsiaandEuropewhichcountsfortotal55internationalterritories.The organisation is focussed towards establishing joint ventures and contract partnerships along with operating in self-owned markets (Grayson, 2011). It is a leading brand in the United Kingdom having its headquarters in London, UK and has acquired the food and clothing market on a large scale. The management structure of M&S till 2016 was the hierarchical structure but with the appointment of new Chief Executive of M&S, Steve Rowe changed the organisational structure to a flat structure having eleven people operating committee. The delayering process resulted in the elimination of many layers of authority and this led to more responsibilities on the shoulder of employees. The change in structure was the need of the hour for recovery of the underperforming business of the company. The flat structure facilitates quick decision making by a more focused team and simplification of the complexities of operations to understand the needs of customers closely (Varley, 2014). Figure 2: Management structure of M&S Source: [http://businesscasestudies.co.uk/marks-and-spencer/the-role-of-training-and- development-in-career-progression/organisational-structure-and-careers.html] Leader-A leader is an individual who guides, gives direction and influencesperformance and work of others for the achievement of a specific goal (Răducan and Răducan, 2014). The characteristics of a leader or leadership in context to M&S are- 3
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Leadership is an interpersonal procedure where a manager influences and guides subordinate towards achieving a specific goal. A leader must possess the qualities of maturity and intelligence to deal with diverse situations. Leader moulds the attitude of the group of individuals in order to attain the objectives of the company The best style of leadership has not been concluded but depends on the situations within the company The role of a leader requires the leader of performing operations at all levels of company management and represent the organisation. M&S has a team of leaders comprising of the chief executive, Chief financial officer and directors responsible for various company operations (M&S leadership, 2018). Also, he has the responsibility to integrate the personal objectives with the company’s goals and have supporting nature towards the team members (Bolman and Deal, 2014). Manager- The manager of M&S has the responsibility to perform three roles namely The interpersonal role involves the responsibility of the manager to interact and establish coordination with the employees and direct them to perform their tasks. The informational role comprises of handling the information and then analysing and sharing it. Decisional role involves the decision making authorities and responsibilities of the manager to allocate resources, negotiate, handling unexpected situations and take decision on new projects A manager must possess the characteristic of being self-knowledgeable and having professional skills along with effective management style and qualities of handling unwanted situations and must have the ability to effectively manage the changes within the organisation (Thorpe, 2016). Comparison of leader and manager on basis of certain factors listed below in table- Base factorManagerLeader OriginManager is appointed as per profile requirements Apersonisregardedasa leader based on his personal qualities AccountabilityManager is answerable for his workandperformanceof subordinates Leaderhasnofixed responsibilities given by the organisation Mutual relationshipA manager is himself a leaderItisnotmandatorythata leader will be a manager SanctionsManagerhaspowerfor allocating and distributing the sanctions Leaderhaspowerover sanctions but are informal in nature Role and stabilityManagercancontinuehisA leader is in power till the 4
dutiestillhefollowsthe ethical norms of the company followers want him to be and therefore his course of action is temporary (Algahtani, 2014) ConcernAmanagerworksfor achieving the company’s goals A leader’s major concern is teamgoalsandemployee satisfaction 5
P2 EXPLANATION WITH EXAMPLES THE APPLICATION OF ROLE OF LEADER AND MANAGER IN DIFFERENT SITUATIONS The growth and expansion of an organisation is the sole responsibility of its managers and the leadership team which move forward towards the progression of the organisation by carrying out the operations in a well-structured and organised manner and efficiently managing the workforce (Washington, et al. 2014). Marks and Spencer have seen financial instability and the crisis in its past and therefore the organisational structure and the responsibilities and duties of the managers of the company have changed in the past years. In 2007, Marks and Spencer launched the Plan A which was focused towards the achievement of environmental sustainability within 5 years and comprised of 100 commitments to be fulfilled in five years. The commitments were directed towards five themes namely change in climate, waste management and reduction, sustainable raw materials, impartial partnership and health measures. The execution of the plan A required the leaders and management of the company to guide its workers and other staff members to understand the need of the plan and the measures to undertake so as to successfully implement the commitments identified and decided for the environmental sustainability within the business (P. Wilson and Beard, 2014). The implementation of wind turbines for power supply in some stores of M&S required the team leaders and the responsible managers to work efficiently and in an organised manner and also guide and direct the workers to accomplish the task within less time than expected. Figure 3: Plan A, M&S Source: [http://www.greenalchemist.co.uk/blog/47-is-marks-spencer-s-plan-a-2020-the- blueprint-for-retailer-sustainability-success] 6
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Another situation occurred in 2016, where the chief executive came into power and changed the structure of the organisation and eliminated the layers of hierarchy which put an immense burden on, for instance, the finance officer to work towards strategy implementation and increased the responsibility of other higher authorities and officials. These led to increased workloadonmanagersandwereresponsibleforcommunicatingthechangestothe subordinates and assign them new tasks as per their designations and job roles. The employees were liable of executing the tasks on time and were led by the group leaders who played a vital role in leading and guiding the staff for working efficiently and teach them the methods to separate their old and new tasks and responsibilities (Cairns, et al. 2010). In the above-given situations, the managers of the company serving in different departments of the company are required to perform their tasks within given time and with full commitment so that there is no delay in the tasks and the objective of the company aiming at sustainable development are achieved successfully. 7
P3 THEORIES AND MODELS OF APPROACH IN LEADERSHIP In Marks and Spencer, various theories and leadership approaches can be applied that have helped the organisation to achieve sustainable growth over the years. The theories and approaches to leadership such as contingency theory, situational and system leadership help the organisation to deal with different situations and act accordingly. System leadershiphas been proved effective in the implementation of the ‘Plan A’ formed by M&S. Theleading peopleof various teams which are concerned towards environment protection have the authority and responsibility to monitor the performance and activities of the members of the team and also interact about the present situations and status of the activities going on so that the employees of the company can work further in order to achieve the objectives of ‘Plan A’. Each financial year accounts for high revenues and at the same time faces deflation in some aspects which demand modifications in the plan of the activities such as increase or decrease in the funds for investment etc. In such situations, the leaders have to upgrade the tasks of the team members and increase the operational efficiency (Landis, et al. 2014). Situational leadershipdemands that the leaders must act with maturity and intelligence in unanticipated situations such as the situation when the company faced huge financial decline during the late 1990’s which was a major challenge for the managers and leaders of the company to face and cope up with the tough situation. The company needed to introduce the acceptance of the credit cards and launch a new clothing range which was ‘Per Una’ so as to cope up with the financial crisis and re-establish its brand image. This process required the involvement of leaders and the different team members to work hard and accomplish the tasks in a small amount of time so as to re-emerge in the retail market. Contingency theorystates that there has been no best way devised for management of the business, rather the activities and actions taken for carrying out various operations depend upon the external and internal factors (Amanchukwu, et al. 2015). One of the theories is the management theorywhich is vital for solving the issues encountered during the operations of the company and which encourages the leaders to consult with the employees and discuss with them the prevailing issues and the methods to resolve them by following much-simplified approach. All the discussed theories ultimately lead to the sustainable growth of the organisation and contribute towards its development. The leaders and managers must perform their tasks keeping their roles in mind and the leaders need to be focussed equally towards the individual performance of the employees and the objectives of the organisation so that organisational goals are also achieved and individual development of the employees is also facilitated. 8
TASK 2 P4 CHIEF APPROACHES TO OPERATIONS MANAGEMENT In marks and Spencer, the operations management department requires skilled people to lead and manage the operations of the company which requires building of strong relationships with the team members, give a boost to the performance of the of the employees and communicate the ideas to perform the tasks in a better manner (Jacobs, et al. 2014). There are team leaders and functional area managers in the company which have the responsibility to effectively lead and guide the logistics operations as well as guide the employees of the shift and operations management department to perform their work in a well-organised pattern. There are various approaches to effective operations management which are described below- Six Sigma approach- This approach is a data-driven approach in which the defects are removed in any of the processes which may range from the manufacturing process to transactional process and from merchandise to service (Pepper and Spedding, 2010). Figure 4: Six Sigma Approach Source: [http://newline.tech/blog/six-sigma-methodology/] 9
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The managers in M&S by following the Six Sigma approach can plan the strategies for utilising the available resources in an efficient manner so as to achieve one of the objectives of ‘Plan A’. The management team along with the heads will have to first define the existing problems, then measure the current performance, analyse the prevailing issues and then work towards improvement and finally maintain the improved processes. The leaders of M&S have the sole duty to guide the team in improving its performance and achieve the goals. Total Quality Managementis an approach that works towards delivering customer satisfaction and achieving long-term success. In this, each and every member of the company participates in enhancing the processes, the delivered products and services and the work environment (Sallis, 2014). Total quality management has 8 principles which are evaluation of quality of services and products by the customers, employee participation, to give emphasis on process thinking, build integrated systems, follow strategic approach towards achieving business objectives, continue improvement of processes, decision making on basis of facts and figures and better communication between the different functional levels f organisation. The managers must ensure that these principles are followed by him as well as by the subordinates and the leader has the duty to effectively implement the basics of these principles so as to build a better team and contribute to the improvement of the organisation (Heizer, 2016). Also, the leaders must encourage the team members to adapt to the methods and principle of total quality management so as to ultimately enhance the quality of products and services delivered by M&S. The theories and approaches in the leadership above discussed are used by M&S for getting assistance in operations management. The Six Sigma approach and Total Quality Management are used for efficient and effective management of operations in the organisation. 10
P5 SIGNIFICANCE AND VALUE OF OPERATIONS MANAGEMENT The significance of operations management to achieve the business goals and objectives in M&S is described below in the following points- The increase in the competition from various retail supermarkets and clothing brands in the UK as well as other countries helps the company to enhance its manufacturing process and improve the whole supply chain management process to deliver the products on time and without any mistake. Thepriorities of the customers are met on timesuch as in the strategic points of control the products and services delivered have to be handled and transported and dispatched in the correct order to avoid any confusion between the orders of products to its delivery to the customer (Slack, 2015). TheoperationsmanagementinM&Sreducestheeffortsandtimeinvolvedin backtracking.This can be understood by the fact that the company manufactures and delivers the products to the customers within the decided time duration. In the case when a certain batch of a product is in the testing phase and some batches are ready, the company divides the same product into different batches for backtracking. Agility of the products is maintainedwith effective operations management as the company gets to know the needs of innovation in certain products and the operations management team works towards attaining the goals of innovation and thus flexibility is maintained and the processes are executed in a smooth manner (Goetsch and Davis, 2014). The smooth functioning of the operations managementprocesses develops a healthy environment in the organisationand helps in the establishment of better relations among the employees at different hierarchical levels. The operations of the company are transparent to the organisation’s employees which help in the development of a sense of belongings among the employees. The implementation of the production process in the U shaped form makes the processes to be controlled in an easy manner as the initiation and the end point of the production process are at the front end. The processes are executed ina sequential pattern. 11
P6ASSESSMENTOFFACTORSINBUSINESSENVIRONMENTTHATHAVE INFLUENCE ON OPERATIONAL MANAGEMENT The leaders in M&S are the liability of the management and the management team has to ensure that the leaders guide the employees in the right direction whereas the management has the responsibility to accomplish the targeted objectives and mission of the company. There are various external and internal factors that influence the management of operations in M&S and also impact its decision-making process (Seddon, et al. 2010). The leaders in M&S are an asset to the company and highly impact the decision-making process and contribute a lot to the progression of the organisation in one or the other way. The various factors are described below- The company, M&S must ensure that it performs well in the global competitive market and also timely check the innovations and changes taking place in the competitor companies because in the world of emerging technology the companies are focussed more on automation of its processes and sustainable development The managers and leaders are required to regularly assess the quality of the process delivered and also the company faces cost challenges and the customer’s feedback. The company management must ensure positive acknowledgement of the customer queries. The feedback received from the consumers end makes the organisation aware of the potential changes that can be done to improve the quality of products and services delivered and also since the company delivers products in the home products and food sector, so it has to maintain the cost as well quality of products to retain its loyal customers and also attract new customers because the increasing supermarket chains are continually attracting the people to buy daily use products at lower prices. The increase in the awareness about the Corporate Social Responsibility (CSR) in the industry standards presents a major challenge to the company to take effective steps towards the achievement of various CSR activities and also ensure that the company is capable of keeping a balance between the activities for charitable purposes and the profit gained by the organisation (Jacobs, et al. 2014). The scarcity of the raw materials and other resources impact the functioning of the operations of the organisation. In such cases, the operations which rely on the resources such as the raw material are disrupted and the whole production process is disturbed. It is the duty of the leaders and the management to smartly handle such challenging situations. 12
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CONCLUSION It is crucial for the organisations to effectively maintain its operations and manage them. In the assignment, the role of the managers and leaders has been elaborated with their contribution to the development of M&S and providing assistance in operations management and the ways through which the management and leadership are applied in different situations in the organisation. Further, various theories and models have been applied which depict the leadership approaches in the organisational context. Also, the main approaches to operations management have been successfully explained and applied with reference to M&S and the significance of the operations management with its value have been described. Lastly, the factors that have an impact on the operations and management of M&S have been illustrated with its importance in the decision-making process of the organisation. 13
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