Operational Management and Leadership Approach

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The assignment explores the role of managers and leaders in operational management, highlighting the importance of total quality management (TQM) in improving productivity. It also examines various operational management approaches that can be applied to Marks and Spencer Company to enhance quality.

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MANAGEMENT AND
OPERATIONS

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Lo 1..................................................................................................................................................1
P1 Defining as well as comparing the functions and characteristics of leaders or manager.......1
Lo 2..................................................................................................................................................3
P2 Analysing the way function of leader and role of manager can be applied in different
situational context.......................................................................................................................3
P3 Theories and Models..............................................................................................................4
Lo 3..................................................................................................................................................6
P4 Key approaches to operational management ........................................................................6
P5 Significance as well as value of operational management in achieving business objectives.
.....................................................................................................................................................8
Lo 4..................................................................................................................................................9
P6 Assessing the factors in business environment which have major effect of operational
management system and decision making by managers.............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Management and operations are considered as two important business functions. As
management and operations, these two activities will help in driving the firm towards
achievement of success.. Operational management is defined as an administrative procedure
which is executed with the purpose of increasing working efficiency and improving productivity.
Management and operations assist business entity in improving quality of products or
services. Operational management is mainly concerned with transforming the input into output.
This procedure might also include redesigning of operational system. Operational management
process includes planning, organising, directing as well as controlling operational or
manufacturing activities.
The purpose of report is to develop an understanding about the operational management
system and its significance in an organisation in context of marks and Spencer. It has focus on
identifying roles of leaders or managers in different situational context.
Lo 1
P1 Defining as well as comparing the functions and characteristics of leaders or manager
Manager – An individual who have knowledge about management is recognised as
manager. They are mainly responsible for managing business, activities and people within an
enterprise. An individual in order to become the best manager requires to posses managerial
skills and in-depth knowledge about management.
Function of manager is not only limited to managing people but also due to increase in
competition, there has been a change in role as well as increase in responsibility of manager.
Now, in present scenario, function of manager is to develop strategies to drive an enterprise
towards achieving desired objectives.
Leaders - These are those people who are mainly liable for managing people and
activities performed by their subordinates.
Manager Leader
Function of manager is to establish objectives
for an organisation.
Role of leader is to set short as well as long-
term targets for team members.
Role of manager is to manage all people as Function of leader is to manage their team and
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well as activities within an enterprise. is responsible for activities of subordinates.
Manager has high decision-making and
influencing power.
Leaders posses charismatic as well as
leadership quality.
Manager has high potential to control risk. Leaders have high strength to take risk.
Role of manager is to concentrate on managing
business operations.
Function of leader is to develop their focus on
providing suitable guidance to people.
Function of manager is to support an
organisation in improving business
performance.
Role of leader is to help their subordinate in
improving their performance at workplace.
Manager work for driving firm towards
achievement of business objectives.
Leaders work for accomplishing group targets
or common objectives.
Manager is oriented towards results. Moreover,
ensures that they are constantly motivated to
reach their objectives.
Leaders are more concerned about completion
of procedure or activity in systematic manner.
Qualities of Manager are assertiveness,
delegation, leadership, etc.
Characteristics as well as qualities of leaders
are they have strong communication skills,
passion, integrity and positivity.
As per Henry Fayol , following are the roles of
manager such as planning , organising ,
coordinating ,directing and controlling . In
addition to this, function of manager is to
develop plan and forecast situations.
Task of leader is to make plans, develop
strategies and provide suitable guidance or
direction to followers.
In context of marks and Spencer, an enterprise has highly talented as well as skilled
manager and leaders who support in achieving success. It is the unique quality of an effective
manager that they have focus on identifying the suitable techniques for completing their task and
fulfilling their responsibilities in an effective manner. (Zhang and et. al., 2017). Manager in order
to perform this specific function, analyse periodical records and gather information from
different stakeholders.
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Lo 2
P2 Analysing the way function of leader and role of manager can be applied in different
situational context
The success and growth of an organisation is completely based on the performance of
leaders as well as managers. The important role of manager or leader is to support an
organisation in overcoming complex and difficult situations. They have various roles to play in
different circumstances.
Marks and Spencer is recognised as the leading organisation operating in retail industry.
As it is a multinational company, business entity has to face issues due to human resource
management. Ineffective management practices within an enterprise led to high level of
dissatisfaction among workers which has further resulted into increase in employee turnover rate.
Many workers are unsatisfied with the company policies and new recruitment procedure
followed by human resource manager for hiring candidates. All these factors have results into
conflicts between management and employees (Kroll, 2015). Such problems have direct as well
as significant impact on business performance of marks and Spencer Company. In such situation,
function of manager or leader in an enterprise is to support in dealing with such complex
situations.
In such circumstances, function of manager is to create suitable strategies for retaining
workers and providing appropriate response to issues. Role of leader is to communicate
effectively as well as continuously with employees. As effective communication strategy will
help leader in demonstrating their concern about the problems faced by them. It will also assist
leader in developing mutual understanding with workers, which is very much important in order
to deal with problem in systematic manner and managing situation. Manager in such situation is
required to take high initiatives for identifying the root cause of such issues as this activity will
help them in analysing suitable solutions to problems (Slack, 2015). Proper analysis should be
conducted by manager for identifying cause. It is the duty of manager to make improvement in
business system, procedure, human resource management practices etc. As change strategy will
assist an organisation in retailing the highly talented workers and reducing the employee
turnover rate. Furthermore, role of manager is to ensure that all employees at work place are
treated equally and no discrimination is done on the basis of gender, caste, age etc. It is required
by leaders in marks and Spenser Company to adopt the supportive leadership style, as this
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specific leadership pattern will help them in dealing as well as managing situation in systematic
manner.
P3 Theories and Models
The best leader posses’ different unique qualities, skills and core competencies which
enables them to become different from other people within an organisation. Few characteristics
as well as qualities of leaders such as effective communication, influencing power, positive
attitude, and supportive nature assist them in developing as well as maintaining strong
relationship with followers. These skills also support leaders in inspiring people to improve their
performance and increase their participation in business activities. It is required by an individual
to develop an understanding about several theories and models, as this will help a person in
becoming effective leader.
Situational leadership- This theory states that there is no specific leadership style, which can be
applied by leaders to different situational context. Manager or leaders should select or adapt
leadership style by analysing situations as well as identifying needs of subordinates. Situational
leadership has focus on mainly two things, these are maturity level of those being led and
leadership style. According to this theory, leadership styles originates from four basic behaviours
these are participating, delegating, telling and selling (Aga, Noorderhaven and Vallejo, 2016).
Situational leadership is considered to be as the best approach in order to motivate people to
improve their performance and increase working efficiency which is crucial for increasing
productivity. By utilising situational leadership approach, manager or leader in an enterprise can
increase employee morale and develop productive environment.
Directing: Leaders with this type of attitude or behaviours commands other people to
execute specific activity. This type of leadership style is generally required by new candidate. As
new workers are formative and they do not have prior experience of working. It is required by
leader to pay attention to work.
Coaching: manager or leader adopts this leadership style for influencing people or
followers to increase their commitment. The main purpose of adopting coaching leadership style
is to engage follower in various group activities. Leader with this type of leadership style
provides regular feedback, suggestion and guidance to followers in order to enable them to
improve their performance at workplace.
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Delegating leadership behaviour: This leadership style is adopted by leaders for
making followers realise their responsibilities. Leaders with delegating leadership style delegate
tasks to the follower and observe with minimal follow up. Such types of leaders have no
concentration on work and lack of interest in building relationship with subordinates.
Supporting leadership behaviour: Leaders with this type of leadership approach
participates in-group activities. As this strategy assist leaders in measuring the performance of
workers and analysing behaviour of people during task. Supporting leadership style also supports
leaders in making suitable decision for their team members. It also allows leaders or managers to
identify difficulty faced by their followers in executing specific task or activity. Situational
leadership also enables leaders or manager to analyse training needs by workers and assist
manager in making proper arrangement for same.
System leadership- It is recognised as comprehensive approach to leadership. Leaders with this
type of leadership approach take high initiative to bring social change. These type of leaders
have focus on development of business (Dentchev, Balen and Haezendonck, 2015). Leaders
with system leadership approach intends to develop sustainable high performance environment
within an organisation in complex situation. Leader with the system leadership approach have
clear objective. Such type of leader establish their own standards.
Contingency leadership- this theory of leadership states that effectiveness of leaders is
completely based on leadership style applied by an individual during specific situation.
Effectiveness of leaders is also dependent on way they deal with complex or difficult situation.
This leadership approach states that the leadership style adopted by leaders is completely
contingent (Mossalam and Arafa, 2016). Leadership style as well as leader behaviours are
greatly or highly influenced by internal as well as external situation.
Behavioural leadership approach – This type of leadership approach is adopted by leaders for
inspiring people to make significant contribution in driving organisation towards achievement of
objectives. This approach states that leader behaviour has direct as well as major influence on
their followers as well as their performance at workplace. It is important for leaders to develop
positive attitude and have supporting nature. As this quality will provide leaders or manager an
ease in managing people.
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Lo 3
P4 Key approaches to operational management
Operational management is defined as the procedure which is carried out by management
for monitoring as well as controlling production or manufacturing process. It involves various
activities such as operational or product planning, organising, directing, coordinating and
controlling the production procedure. The main objective of operational management is to
improve the quality of product and increase production capacity. An effective operational
management system helps in minimising waste and supports manager in ensuring effective as
well as efficient utilisation of resources (Heizer, 2016). In context of marks and Spencer
organisation, the company has to face the customer complaint regarding the quality of goods
which has negative influence on reputation of firm and adverse impact on business performance.
It is required by management in an enterprise to make improvement in operational management
system and also in production procedure. There are several approaches that can be adopted or
implemented by business entity; these are:
Six sigma: It is considered to be as information driven operational management
approach. The major objective of six-sigma approach is to help business entity in reducing waste
generated from production of goods or services.
Six-sigma approach also aid business enmity in eliminating the additional cost. As per
this operational management approach, manager or leader in an enterprise needs to follow a
systematic procedure which includes measuring, analysing, improving and controlling the
production system.
It allows an organisation to bring improvement in processes as well as support in
enhancing quality of goods or services. By applying the six-sigma approach manager or leader in
marks and Spencer can bring improvement in existing procedure.
Lean production: Lean production is considered to be as an effective approach, which
concentrates on business model over business plan. It also promotes development of new system
or process. By applying the lean management approach to operational system, marks and
Spencer can deliver high value as well as satisfaction to client. Lean production approach is
considered as systematic procedure of minimising waste, which making compromises in product
or quality of products. It also assists business entity in eliminating the defects.
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Just in time: This is the inventory management approach. It is considered to be an
effective approach, which helps in increasing product efficiency and reducing cost of storing
goods. Just in time approach states that company should maintain minimum stock and should
purchase raw materials when it is required in production process. The purpose of using this
approach is to control inventory cost.
Total quality management: It is recognised as an important approach to operational
management. This specific approach has been applied by marks and Spencer which has assisted
business entity in improving the quality of products or services. Total quality management
approach allows all employees in an organisation to participate in improving quality and
productivity (Wachs, 2017). By implementing total quality management approach, a manager or
leader in marks and Spencer can bring improvement in all aspects of business such as culture ,
working environment etc.
P5 Significance as well as value of operational management in achieving business objectives
Operational management plays an important role in driving firm towards accomplishing
business goals. In context of marks and Spencer; it has an objective to deliver high value as well
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Illustration 1: Six Sigma approach
(Source: Ghosh, 2015)
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as satisfaction to customers. Another purpose is to gain customer loyalty and offer people with
good quality of product at reasonable price. Marks and Spencer can achieve all business targets
by developing as well as implementing effective operational management system (Burke and
Noumair, 2015). Improve in customers is another target of marks and Spencer that can be
achieved easily by making changes or redeveloping operational management system.
Operational management system has great importance in an enterprise. The main aim of
operation management is to manage all business activities and operations in such manner
through which right outcome can obtain at the right time. Operational manager in marks and
Spencer can utilise the value chain analysis to ensure that the company is achieving all its
strategic aims and objectives.
Significance of operational management in context of marks and Spencer are:
Improvement in quality of goods or services: The operational management has
important role to play in enhancing the quality of products.
Minimisation in waste: It is considered to be the major problem faced by every
organisation , due to which many business entities has to face legal issues. Appropriate solution
to the problem is to bring improvement in operational management system. This specific
management system will help an enterprise in eliminating additional cost, hence helps
organisation in maintaining profit margins.
management of business operations or activities: other major value or significance of
the operation management in an organisation is that it supports manager or leader in managing
the all business operation and activities. It also supports business entity in ensuring desired
outcome.
Customer satisfaction: operational management plays very important role in supporting
enterprise to deliver high value as well as satisfaction to client. By developing an effective
operational management system business entity can serve good quality of products to customer
at reasonable price. While company apply operational management approaches and implement
operational management system then it helps in improving the quality.
Increasing productivity: manager can increase production capacity and improve
productivity by applying the various operational management approaches.
Increasing the highest level of efficiency: Operational management system in an
enterprise contributes a lot towards increasing the efficiency which further help business entity
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in eliminating delay in delivery of product or services. This procedure or management system
have focus on transforming material into finished goods as efficiently as possible in order to
help an enterprise in increasing profitability.
Ensuring proper utilisation of resources: Appropriate operational management system
assist supports manager or leader in ensuring proper utilisation of resources. It also plays
important role in preventing losses as well as misuse of resources during production or
manufacturing activity (Agarwal and et.al., 2012). If resources are used carefully then there are
chances that the production cost can get decrease and hence overall profit margin will increase
which is the main purpose for which every organisation is established by an entrepreneur.
In context of marks and Spencer, Operations management plays a very important role as
they produce professional managers, which are capable of achieving strategic business goals in
defined period. This specific management system also supports manager or leaders in dealing
with different issues related to designing of product, , operation, maintenance. It also plays
crucial role in bringing improvement in organisational system, which is required for producing
products or services.
Lo 4
P6 Assessing the factors in business environment which have major effect of operational
management system and decision making by managers
In present and highly competitive business environment, it is quite difficult for an
enterprise to maintain positions or survive. Manager in stagnation is required to develop as well
as implement suitable strategies for support firm in maintaining sustainability in highly intense
and competitive market. When formulating a plan or business strategies, it is very important for
manager or leader in a firm to consider few factors in business environment, which might have
adverse effect on the productivity and other business activities. Manager should create business
plans as well as required to execute market analysis. As development of tactics and proper
planning will assist manager in providing appropriate response to changes in business
environment. Changes in internal as well as external variables can have direct as well as
significant impact on business activities. Some changes in external macro environmental
constituents might have adverse influence on organisational performance of marks and Spencer.
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When manager in an organisation makes any decision related to business operation then
it is very important for him to analyse and consider this factor of the business environment. In
addition to this, manager should make decisions related to development of product by analysing
needs as well as demands of customers in the market. With regards to marks and Spencer,
purpose of firm is to serve premium quality of products or services at reasonable price to
customer (Iqbal and Sharma, 2012). Changes in external environment factors have direct as well
as major influence on business plans, policies, strategies, system and procedures.
In context of marks and Spencer, business entity wants to bring improvement in quality
of goods or services. An enterprise is also planning to take high initiative related to reduce the
cost of production. In order to accomplish such objectives , manager or leader in marks and
Spencer has to take many important decision which will surely influenced by changes in macro
environmental factors. Manager in order to make decision related to business have to consider
various elements of the business environment.
These constituents are:
Customers – These are the important stakeholders those who assist business entity in generating
revenue and profit. Changes in demand, taste and preference by customer has direct as well as
major influence on decision related to product development made by manager in an enterprise.
Workers – They considered being an important people, as employees contributes towards the
growth of company. Manager in an organisation when making decision should consider the
interest of these stakeholders.
There are several macro environmental factors, which might influence the Decision made
by manager and leader. These are:
Political and Legal factors: manager is required to be considering political as well as legal
variables when making business decision. It is required by management in marks and Spencer to
keep update themselves with the latest amendments in regulation and norms, as this strategy will
assist business entity in eliminating legal obligation.
Social and cultural factors: These are considered to be an important element which has major
influence on the decision made by manager or leader related to the development of existing
goods or introduction of new product in the market.
Economic factors: It has major influence on the pricing decision by manager. Manager in marks
and Spencer organisation is required to consider various factors such as changes in as , individual
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income level , economic situation in nation , etc. (Ghosh, 2015) when deciding the price of
product.
Technological factors: This component can impact the operation of the business because in
every functional department has technology. Manager and leader have to analyse the
technological factor at the time of taking any changes in the business operation.
CONCLUSION
It has been concluded from the assignment that manager or leaders in an organisation
plays crucial role in operational management. Manager or leaders in a firm help business entity
in dealing with several operational issues. It has been concluded that operational management
system has an important role towards accomplishment of business objectives. Project has also
concluded that total quality management is the best operational management approach that helps
in improving productivity.
The various operational management approaches has been suggested which can be
utilised by management in marks and Spencer Company for improving quality.s
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REFERENCES
Books and Journals
Aga, D. A., Noorderhaven, N. and Vallejo, B., 2016. Transformational leadership and project
success: The mediating role of team-building. International Journal of Project
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Agarwal, U. A. and et.al., 2012. Linking LMX, innovative work behaviour and turnover
intentions: The mediating role of work engagement.Career Development
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Burke, W. W. and Noumair, D. A., 2015. Organization development: A process of learning and
changing. FT Press.
Dentchev, N. A., Balen, M. and Haezendonck, E., 2015. On voluntarism and the role of
governments in CSR: towards a contingency approach. Business Ethics: A European
Review. 24(4). pp.378-397.
Ghosh, K., 2015. Benevolent leadership in not-for-profit organizations Welfare orientation
measures. ethical climate and organizational citizenship behaviour. Leadership &
Organization Development Journal. 36(5). pp.592-611.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Iqbal, S. and Sharma, R. R. K., 2012. A study of organization strategies, structures, culture
dimensions and management control systems of various retail formats. Journal of
International Business Strategy.12(1).
Kroll, A., 2015. Exploring the link between performance information use and organizational
performance: a contingency approach. Public Performance & Management Review.
39(1). pp.7-32.
Mossalam, A. and Arafa, M., 2016. The role of project manager in benefits realization
management as a project constraint/driver. HBRC Journal.12(3). pp.305-315.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Wachs, M. ed., 2017. Ethics in planning. Routledge.
Zhang, D. and et. al., 2017. Energy-efficient distributed filtering in sensor networks: a unified
switched system approach. IEEE transactions on cybernetics.
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