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 ofoperational management system and decision making by managers.............................................................9 CONCLUSION..............................................................................................................................11 REFERENCES..............................................................................................................................12
INTRODUCTION Management and operations are considered as two important business functions.As managementand operations, these two activitieswill 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 processincludesplanning,organising,directingaswellascontrollingoperationalor 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. ManagerLeader 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 asFunction of leader is to manage their team and 1
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 tocontrol 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 ofmarksand 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. 2
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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 managementpracticeswithinanenterprise led to high levelof 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 marksand 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 effectivelyas well as continuouslywith employees.Aseffective 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 isthe 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 marksand Spenser Company to adopt the supportive leadership style, as this 3
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,andsupportivenatureassistthemindevelopingaswellasmaintainingstrong 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 maturitylevel of those being led and leadership style. According to this theory,leadership styles originates from four basic behaviours these areparticipating,delegating, telling and selling (Aga, Noorderhaven and Vallejo, 2016). Situational leadership is considered to be asthebest approach in order to motivatepeople to improve their performance and increase working efficiency which is crucial for increasing productivity. Byutilising situationalleadership approach, manager or leader in an enterprisecan increaseemployee morale and develop productive environment. Directing:Leaders with this type of attitude or behaviours commands other people to execute specific activity.Thistype 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 leadershipstyle forinfluencing people or followers to increase their commitment.The main purpose of adopting coaching leadership style is to engagefollower in various group activities.Leader with this type of leadership style providesregularfeedback,suggestion and guidance to followers in order to enable them to improve their performance at workplace. 4
Delegating leadershipbehaviour:This leadership style is adopted by leaders for making followers realise their responsibilities.Leaders with delegating leadershipstyle 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 leadershipbehaviour:Leaders with this type of leadership approach participatesin-groupactivities. As this strategyassist leadersin measuringthe 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 managersto 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-thistheory of leadership states that effectiveness of leadersis completelybasedonleadershipstyleappliedbyanindividualduringspecificsituation. 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 andhave supporting nature. As this quality will provide leaders or manager an ease in managing people. 5
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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 ofmarks 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:Itisconsideredto beasinformationdrivenoperationalmanagement 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 marksand Spencercan bring improvement in existing procedure. Lean production:Lean productionis 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,marksand 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. 6
Just in time:This is the inventory management approach. It is considered to be an effective approach, which helps in increasingproduct 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: Itis 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 inmarksand 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 ofmarksand Spencer; it has an objective to deliver high value as well 7 Illustration1: Six Sigma approach (Source:Ghosh, 2015)
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 ofmarksand 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 inmarksand Spencer canutilise thevaluechain analysis toensure that thecompanyisachievingall its strategicaimsandobjectives. Significance of operational management in context ofmarksand 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 managementsystemwillhelpanenterpriseineliminatingadditionalcost,hencehelps 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 systembusiness entity can serve good quality of products to customer at reasonable price.While company applyoperationalmanagement approaches and implement operationalmanagement 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 efficiencywhich further help business entity 8
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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 possiblein 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 decreaseand hence overall profit margin will increase which is the main purpose for which every organisation is established by an entrepreneur. In context of marksand 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 ofoperational management system and decision making by managers In present and highly competitive business environment, it is quite difficult for an enterpriseto 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 planningwillassistmanagerinprovidingappropriateresponsetochangesinbusiness environment.Changes in internal as well as external variables can have direct as well as significantimpacton businessactivities.Somechangesinexternal macroenvironmental constituents might have adverse influence on organisational performance of marksand Spencer. 9
When manager in an organisation makes any decision related to business operationthen 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 tomarksand 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 ofmarksand 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 inmarksand Spencerhas to take many important decision which will surely influenced by changes in macro environmental factors. Manager in order to make decisionrelated 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 developmentmade 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, whichmight 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 10
income level , economic situation in nation , etc. (Ghosh, 2015) when deciding the price of product. Technological factors:Thiscomponent can impact the operation of the business because in everyfunctionaldepartmenthastechnology.Managerandleaderhavetoanalysethe 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 approacheshas been suggested which can be utilised by management in marks and Spencer Company for improving quality.s 11
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