Operations Management and Operations Research

The provided assignment is about Operations Management and Operations Research. It includes references to books and journals related to the topic. The references cover a wide range of subjects, such as port logistics management, production scheduling approaches, stochastic-based scheduling, and real-time reservoir operation for drought management. The document aims to provide a comprehensive understanding of operations management and operations research, highlighting various methods and apparatus used in these fields.

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
Scenario 1 ......................................................................................................................................1
a) Differences and similarities between a leader and manger considering their roles and
characteristics. ............................................................................................................................1
b) Functions of a manager according to Fayol and how a manager in your organisation
performs these functions.............................................................................................................2
c) Situational leadership, systems leadership and contingency leadership using various
scenarios in your organisation.....................................................................................................3
Scenario 2.........................................................................................................................................4
1) Different approaches to operations management and identifying their implementation in
store.............................................................................................................................................4
TASK 2............................................................................................................................................5
2. Role Of Leader........................................................................................................................5
3. Importance of operational management in IKEA...................................................................7
4. Key outside factors that can have effect on the operations of IKEA .....................................1
6. Impact on decision making process of IKEA.........................................................................2
CONCLUSION................................................................................................................................3
References........................................................................................................................................4
Books and Journals.....................................................................................................................4

INTRODUCTION
In this topic we are taking IKEA as a company, IKEA is a Swedish company that sells
and designs ready to assemble furnitures. Its products include home appliances, kitchen
appliances and other goods and some occasional home services. It is the one of the largest
furniture retailer in the world. In this topic we will study about the Management and
Operations of the IKEA and how does it effect the performance of IKEA (Jacobs, Chase and
Lummus., 2014). In this topic we will study the differences between leaders and mangers, their
roles and characteristics. We will also study about various leadership styles like situational
leadership, systems leadership and contingency leadership. This study will also lay emphasis
on the different approaches of operations management, importance of operations management
in the IKEA store, outside factors that effect the operations management of IKEA and hoe
these outside factors will impact the decision making of store manager.
Scenario 1
a) Differences and similarities between a leader and manger considering their roles and
characteristics.
Leaders and the managers are the vital part of the organisation as they help in creating
the vision, set directions, inspires the team, focus on the functions. They help in organising the
work as per their abilities and skills. But there are some common similarities and differences as
per their role which are discussed below.
Similarities: leaders and the managers of IKEA have some common similarities as per
their roles and characteristics like both of them have to supervise a certain group of people or a
team which are led by them. Both of them have to critically evaluate their employees as per
their performance. Both leaders and the managers are accountable for the results which are
achieved through their teams or groups (Ferguson and et.al., 2017). Both use different metrics
and procedures to measure the performance of their teams or groups which help them in
increasing their team or group performances. Both leaders and the managers have to rely on the
effective communication which is two way process. Honesty of leaders and the managers is a
great deal in common. Leaders and the managers are good in their in empathy and their self
self awareness. Both of them requires a team or a group to lead or manage. Both of them have
to guide their groups towards achieving their goals and objectives. Both of them have to

influence others and make them to follow them (Song and Parola., 2015). Both of them help in
making the plan of specific activities in order to achieve their goals and also help in
coordination, controlling for the better organisation.
Differences: leaders of the IKEA have to influence only its sub-ordinates in achieving
its determined goals while as manager is managing the entire organisation. A leader has to set
the directions which to be followed by his followers while as manager has to formulate the
plans. A manager takes the decisions with in the organisation but its the duty of leader to
facilitate these decisions. A manager sets the goals but a leader creates as vision to achieve
these goals. Leader have to take the risks but the mangers have to control the risks which are
faced by the organisation. A quality of a leader is to build the relationships with its followers
but the quality of manager is to build the systems and the processes. Leaders provides the
coaching while as the manager give the directions about the tasks assigned and also provides
the guidance how to achieve these tasks.
b) Functions of a manager according to Fayol and how a manager in your organisation
performs these functions.
There are various functions which a manager of IKEA have to perform in the
organisation are:
1) Planning: A manager of IKEA helps in formulating a good and effective plan of actions and
its is considered the hardest part among the functions of the manager. Through the effective
plan it bridges the gap between where they are and where they want to reach. A manager
coordinates the plan at various levels by following the the time, its implementation. Manager
has to make the planning on continuous basis and is flexible. Managers planning covers the
entire organisation and it divides or segments at various levels of management. For example an
IKEA manager plans a vision to create a better ways to serve the people in everyday life by
setting a goal that all people should be able to by furniture from IKEA.
2) Organising: An organisation can function properly only when the organisation is well
organized. A manages help in the proper organisation of IKEA. It is the function of the
manager to facilitate enough capital, proper staff, ensure availability of the raw materials etc
which helps in running the organisation smoothly. A manager manages the appropriate
organisation culture of IKEA in order to ensure that the activities and plans are carried out
properly. For example, a manager assigns the qualified employees to work, he delegates

various authorities and responsibilities in order to achieve the goals and objectives of an
organisation.
3) Commanding: a manager has to give commands to its employees in order to get the work
done and also provide the information what is needed from them. A manager has the integrity
to communicate with clarity so that they can understand what is needed from them which help
in the clarity of achieving the goals. For a manager commands his employees about the targets
to be achieved in month.
4) Coordinating: it is also the function of the manger to coordinate and give an instructions to
the employees in order to achieve the goals and objectives of an organisation. A manager
motivate the employees and also encourage them ton take the initiatives. It is the essence of the
management for sustaining the harmony and the peace within the organisation (Cucoranu.,
2015). A manager coordinates both externally and internally too. Internally a manager
performs the functions like planning, organizing, actuating and controlling and externally a
manager has to coordinate with the constitutions, social, technical factors etc. For example a
manger has to set a coordination with his employees in order to achieve the tasks an coordinate
at various levels of tasks for the smooth functioning.
5) Controlling: In every organisation there is a system of controlling. A manager also
performs the function of controlling. A manager sets a various performance standards which
are based on the organisational objectives, a manager assess the reports on the actual
performance, manager compares the performance standards with the actual results and based
up on these result a manager take the corrective actions or preventive measures. For example,
an IKEA manager sets a target to be achieved within a month, after a month a manger cross
checks the performance of the employees and takes action accordingly.
c) Situational leadership, systems leadership and contingency leadership using various
scenarios in your organisation.
Situational Leadership: Situational leaderships is a type of leadership style in which
the leaders or the managers have to adjust his or her style in order to fit the development levels
of its followers in order to influence them. It helps in the motivation and supporting the work
environment so that the productivity of the work is increased. It is the main duty of the
manager or leader to increase the productivity and the performance of the organisation by
applying the situational leadership style he or she builds a morale and enthusiasm which helps

in creating productive environment. For example an IKEA applies this style when a employee
has fully committed his task, a manager gives him or her a responsibility for leading other
members in the team that too without a direct supervision.
Systems Leadership: Systems leadership is a type of leadership style that allows the
leaders to create a such conditions where the employees at various levels work effectively and
productively through their potentials. A leader uses the principles of human behaviour that
helps in creating a good leadership, formulating strategies, designing a system and other social
processes. It is the a collaboration of leadership networks of the employees at various places
and even at different levels in creating a system of shared attempts and cooperating towards a
significant change (Nakagawa, K., 2015). As an organisation is made of interrelated and
interdependent parts, system leadership helps in maintaining the barriers between the different
systems of an organisation. For example IKEA applies system leadership when an IKEA has
small or limited project it helps in achieving the success of limited projects, it also gives the
capacity withstand the difficulties from the external factors like political, social, economical
factors etc while maintaining its key characteristics.
Contingency Leadership: Contingency leadership theory suggests that, an
organisation has no best way to be organized properly or to take the decisions or to lead a
company. It also suggests that an effective leadership depends on the matching a kind of
leadership at a given situation. It explains a definite situational factors that effects the
relationship between dependent as well as independent variable. It focuses on the single
aspects of the situation and lead the organisation accordingly. Personality of a leader, his
attitude, abilities, skills of a leader is the important factor to lead the organisation. For example
in IKEA this leadership is applied when it has to measure the effectiveness or ineffectiveness
of an employee in a particular tasks.
Scenario 2
1) Different approaches to operations management and identifying their implementation in
store.
There are various approaches of operations management that has resulted in the growth
and increased the performance of IKEA. Various approaches used by IKEA are
1) Lean Management: Lean management involves the running of an organisation through
process of continuous improvements. A lean environment will result in the improving of the

quality. If any quality issue arises company implements the problem solving techniques in
order to root cause such problems. Its use in IKEA store is that it increase the efficiency, it
increases quality standards of IKEA, it reduces the manpower and is easier to manage. It has
enhanced the culture of stores of IKEA as its team members are quickly developed on regular
basis. It helps to reduce the space in the store by decreasing wastes through the process of
waste reduction. It brings the safer environment in the store and makes the store more
organized.
But there are certain challenges which IKEA store have to face, there may high
employee resistance and it may prove costly to the company(Yabuki., 2015).
2) Total Quality Management (TQM): TQM integrates all functions of the organisation like
finance, manufacturing, services, marketing etc in order to focus on fulfilling needs of the
customers and achieve the organisational objectives. In stores of IKEA TQM brings higher
productivity, eliminates wastages and defects, improves the focus on customers needs. It has
enhanced the marketing image of IKEA as customers are satisfied with its products and
services offered by IKEA. TQM has resulted in bringing the innovations and improved the
performances of the employees in IKEA stores. It has also resulted in deduction of costs of
production. It has resulted in the better management of IKEA stores.
The main disadvantage of TQM in IKEA store ().e is that it faces the challenges of
proper implementation, if TQM is partially implemented it may not bring the suitable results. It
is also expensive as quality brings expenses.
3) Six Sigma: Six sigma is a management technique which improve the capabilities of
business process by increasing the performances and brings profits to the company by reducing
the defects by applying various organisation tools. It is the methodology which helps to
improve the business processes with the help of various statistical tools and techniques. In
IKEA store this factor have resulted in much quality and the efficiency within the stores
(Burns., 2014).It has increased the quality of its products and resulted in the continuous
improvements of its product. It brings perfection by reducing the defects at negligible level.
But the negative point of six sigma is that it requires highly skilled and highly trained
employee who can make use of statistical tools and techniques for its implementation, it can
not be done by normal or inexperienced employee.

TASK 2
2. Role Of Leader
A leader has different roles that he has to perform in an organisation. Every
organisation has a different leader; with different qualities. IKEA is an organisation, which is
having a very potential and energetic leader, that can perform multi tasks and can motivate the
employees in performing their respective tasks with full energy and putting the best efforts so
that the organisation can achieve its desired goals and can set a new benchmark of success in
front of its competitors (Fera, and et.al., 2015). Leader of IKEA is having the following
qualities that, has made him a role leader of that organisation.
 Coach:- Most important role of a leader is to be a coach of his team. He plays the role
of a mentor for all of them. He guides them regarding what strategy they should follow
so that, the organisation can reach to its desired height of success (Fera, and et.al.,
2015).
 Strategist:- The another most important role of a leader is to be good strategy maker.
He should know, how to make the best strategies for the team, with motive of defeating
the competitors in the market. IKEA is the organisation, that, is having such strategies,
by framing them an organisation can become one of the leading organisation in the
market.
 Visionary:- A leader should have the ability to, make plans and strategies for the future.
A good leader is the one who frames the strategies by keeping in mind the future
planning as to at where the company should reach after a particular point of time (Fera,
and et.al., 2015).
 Change Maker:- A team leader is the one who suggests the company, that what are the
needs of market, the needs of customer, and the ways in which an organisation, can
make its efforts to satisfy them. In short, a leader should show path to the company as,
remedies that a company can take.
 Innovative:- Every time, there is a need of innovation in the market. A leader should
always come with innovative ideas that can help the organisation and also inspire the
team mates to work with a creative mindset for the enterprise (Tang, 2017).
 Team Player:- It's very essential for the leader to play in a team. To have the team spirit
within himself. Actually, an individual can surely achieve anything and at anytime, but,

along with the teammates, he can achieve those targets, in a more efficient and effective
way (Tang, 2017).
Functions Of A Store Manager:- In every organisation, the manager has to perform certain
function that are part of his job and he is accountable for all the work and responsibilities that
has been given to him. So, following are the functions of a store manager at IKEA:-
 Management Of Employees:- The first and foremost duty of a store manager is to
manage the employees of different departments in the organisation.
 Recruiting, Training And Development:- Since, he is the manager, at an MNC like
IKEA so, his first work would be to recruit the right person at the right job at the right
time and he should be assigned with the right task (Tang, 2017).
 Cost Minimization:- A manager like personnel should, work on the cost minimization
or the cost cutting of expenses in a very effective and well organised manner. The task
of cost minimizing is very crucial in case if, an organisation is running on low cost
(Tang, 2017).
3. Importance of operational management in IKEA.
IKEA company UK, is considered as the greatest example of a company that
effectively aligns its business model and operating model. Further, it has been determined that
to deliver its customer the promise of rendering quality furniture at cost effective prices, the
company depends on its value chain to modify its manufacturing and operating cost (Althaher,
Mancarella and Mutale, 2015).
Operational management of the company is responsible for managing the process of
creation of products and services. Operation management is a process that includes planning,
organising, managing, controlling and supervising the production and manufacturing
procedures. Furthermore, the key goal of operation manager is to make sure delivery on time of
the goods and to effectively turn the raw materials into the finished goods. Therefore, operation
management plays critical role in smooth functioning of the business. Below are its major
advantages to IKEA company:
 Likewise, management for every industry or business irrespective of their nature of the
operation is involved in operation management. IKEA's operational management is
accountable for planning, organising, controlling, etc. Also, it is responsible for
company to manage the daily workings smoothly. Apart from this, with the help of

operational management organisation is able to make better use of its resources such as;
raw material, money, labour and so on.
 IKEA's operational management will help the company to improve the entire
productivity. The ratio of input to output is defined as productivity. It provides a
measure of the ability of the manager as well as workers. The is because the discipline
concentrates on utilising the existing resources in the best way to attain defined goals,
hence, it enhances the overall productivity (Montwiłł, Kasińska and Pietrzak, 2018).
 Operation management in IKEA contributes in making the goods match with the
requirements of customers. It has been discovered that, operation management is
considered as the heart of the company as it manages the whole operation.
 Under the management of operation, there is optimal usage of resources leading to big
profits of the company. With the help of OP in the organisation efforts of staff members
and various raw materials are efficiently used and transformed into the services and
goods required by IKEA. Therefore, crucial role is played by operation management in

4. Key outside factors that can have effect on the operations of IKEA
Operations and management of IKEA can get affected by the outside environmental
factors. This can also lay impact on the decision making process of the firm. Company needs to
lay keen emphasis on these environmental components. As it can lay impact on the efficiency
and productivity of the firm. It can be better analyse by doing PESTLE analysis These factors
include the following.
Political factor: Political factor basically includes the laws, rules and regulations given
by government that needs to be addressed by IKEA while expanding their business. It includes
various acts like consumer protect act, health and safety act that safeguards the rights and duties
of customers (Montwiłł, Kasińska and Pietrzak, 2018). Company needs to follow these laws in
order to gain competitive advantage. Laws and rules can lay positive and negative impact on the
firm. Like for example increase in tax can reduce the demand of the products supplied by
industry. This can reduce their profitability. Also efficiency can be reduced by it.
Economical factor: Economic factors includes components like fiscal policy, inflation
rate, labour rate and many more. It can lay impact on the working of IKEA. Like for example
increase in labour rate can make the creation of products more hectic task. This can lay keen
impact on their efficiency. Also, firm should have an idea about the regions economic conditions
where they are going to expand. This can help them in gaining competitive advantage. Also firm
would be successfully able to get establish in that region. This can also support them in
increasing their productivity as well as efficiency.
Social factor: IKEA can also get impact by the social factors that includes beliefs, values
and attitude of communities and societies where company is going to expand their businesses. It
can lay positive and negative impact on their growth. Firm needs to have proper idea of the
attitude and belief of people so that they can better able to identify their needs and demands.
Also it makes their image good in the market. If company is engaged in hurting the sentiments of
people by not addressing their social issues than this can hamper their growth. Also, it can lay
negative impact on the mind of customers. They can lose their consumer base.
Technological factor: With the advancing technology Ikea must also involve in using it.
This can support them in gaining competitive advantage. Making use of technologies like social
media marketing and promoting their products by the help of Facebook, Instagram and Twitter
can support company in exploring wide range of customers. This can support them in enhancing
1

their productivity and profitability. Also it can lay positive impact on the mind of customers.
Ikea would be able to establish an unique image in the mind of customers. Apart from this, with
the help of operational management organisation is able to make better use of its resources such
as; raw material, money, labour and so on.
Legal factor: It means following rules and regulations implemented by government. Ikea
needs to address these laws, policies and rules. Not following of the laws like providing trustful
products to consumers so that they can gain competitive advantage. Also, good image can be
form in the mind of customers. By this they would be able to attract and retain more customers
and consumers. This can make their work more efficient. Also, firm would be successfully able
to get establish in that region. This can also support them in increasing their productivity as well
as efficiency. IKEA can acquire more consumers with the help of it.
Ecological factor: IKEA needs to also make use of ecological factors in order to gain
competitive advantage. They must perform corporate social responsibilities so that new and
unique image can be form in market. They must use their resources, product and services
effectively in order to gain sustainability. Also, ethics must be followed by the firm or industry
so that good image can be form in mind of consumers (Talari, Yazdaninejad and Haghifam,
2015). They can involve in doing charity shows and also convince customers to make use of
paper bags instead of poly bags. Apart from this, with the help of operational management
organisation is able to make better use of its resources such as; raw material, money, labour and
so on.
6. Impact on decision making process of IKEA
All the environmental factors lays keen impact on the decision making process of IKEA.
Like for example they need to analyse market before making any decision related to price, and
design of products. Also, company must get engage in developing products according to the
needs and demands of consumers. Decision will be fully based on that. Also it will help them in
gaining competitive advantage. Economic factors like increase in rate of price of tabor can lay
keen impact on their decision making process. Increase in labour rate can also reduce the demand
of their products. This can reduce the profitability and productivity (Espa and et.al., 2016).
Decision can also get effected by technological factors like making use of technologies
like social media marketing and promoting their products by the help of Facebook, Instagram
and Twitter can support company in exploring wide range of customers. Also, it can help them
2

in increasing their profitability and productivity. It can also help them in enhancing their
efficiency. Legal factors can also impact the decision making process. Not addressing rules and
regulations by given by government can hamper their growth and efficiency. Profitability can
also get reduced. Ecological factors can also effect the decision making process, company must
get engage in corporate social responsibilities.
CONCLUSION
From the above study, it has been summarised that role of leaders and managers has
effected the decision making process of IKEA. Also, legal and political factors has impacted the
growth and profitability aspects of firm. System leadership has helped firm in creating a good
leadership, formulating strategies, designing a system and other social processes. It has also
helped company in gaining competitive advantages. Also productivity and effeciency has also
been enhanced by making use of total quality management.
3

References
Books and Journals
Burns, M. G., 2014. Port management and operations. CRC Press.
Cucoranu, I. C., 2015. Laboratory Information Systems Management and Operations. Surgical
pathology clinics.8(2). pp.153-157.
Ferguson, N. T and et.al., 2017. Secure management of operations on protected virtual
machines. U.S. Patent 9,578,017.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Nakagawa, K., NEC Corp, 2015. Operations management apparatus, operations management
method and program. U.S. Patent 8,930,757.
Radnor, Z. J., Bateman, N., Esain, A., Kumar, M., Williams, S.J. and Upton, D.M. eds.,
2015. Public Service Operations Management: A Research Handbook. Routledge.
Song, D. W. and Parola, F., 2015. Strategising port logistics management and operations for
value creation in global supply chains.
Yabuki, K., NEC Corp, 2015. Operations management apparatus, operations management
method and program thereof. U.S. Patent Application 14/488,893.
Fera, M. and et.al., 2015. Production Scheduling Approaches for Operations
Management. Operations Management.pp.113-139.
Tang, C. S., 2017. OM Forum—Three Simple Approaches for Young Scholars to Identify
Relevant and Novel Research Topics in Operations Management. Manufacturing & Service
Operations Management.19(3).pp.338-346.
Talari, S., Yazdaninejad, M. and Haghifam, M.R., 2015. Stochastic-based scheduling of the
microgrid operation including wind turbines, photovoltaic cells, energy storages and
responsive loads. IET Generation, Transmission & Distribution. 9(12). pp.1498-1509.
Nohara, D., Hori, T. and Sato, Y., 2018. Real-time reservoir operation for drought management
considering operational ensemble predictions of precipitation in Japan. In Advances in
Hydroinformatics (pp. 331-345). Springer, Singapore.
4

Palizban, O., Kauhaniemi, K. and Guerrero, J.M., 2014. Microgrids in active network
management–part II: System operation, power quality and protection. Renewable and
Sustainable Energy Reviews.36. pp.440-451.
Espa, P. and et.al., 2016. Controlled sediment flushing at the Cancano Reservoir (Italian Alps):
management of the operation and downstream environmental impact. Journal of
environmental management.182. pp.1-12.
Albrecht, T. and Dasigi, M., 2016. ON‐TIME: A Framework for Integrated Railway Network
Operation Management. Traffic Management. 3. pp.167-181.
5