Key Approaches to Operations Management and the Role of Leaders and Managers

This presentation discusses the key approaches to operations management and the role of leaders and managers in achieving business objectives. It explores the importance and value of operational management in achieving organizational goals and the factors of the business environment that impact upon operational management. The presentation also includes a comparison between leaders and managers, as well as a PESTEL analysis of the factors affecting operational management.

Management and
Operations

TABLE OF CONTENT
 INTRODUCTION
 Key approaches to operations management and the role of leaders and managers
 Leaders and manager can improve efficiencies of operational management to
successfully meet business objectives
 Importance and value of operational management in achieving organisational goals
 Factors of business environment that impact upon operational management
 CONCLUSION
 REFERENCES

INTRODUCTION
 Operation management is defined as the administration of practices which ensure optimum efficiency
in business. According to Bernheim and Bodoh-Creed, (2019), operation management is also defined
as the management aspect which is associated with process, business functions and government
systems which businesses must use to meet their objectives and to enhance their productivity,
effectiveness and efficiency.
 Management and operations can be understood as administration of business practises in a company
to create the highest level of operational efficiency possible with the proper utilization of resources.
 It is an important element for organization which refers to functions of converting materials and
labour into finished goods, services to maximize the profit of organization and the overall
productivity levels. Sainsbury is the second largest chain of supermarket in United Kingdom with
large variety of products and services catering to demands of consumers.

Key operations of organisation
The primary operations of an organisation are classified as follows:
Finance: These operations manages accounts and financial aspects related to business.
Operations: In order to meet the organizational objectives organisation is also required to
manage operations such as production, inventory and human resources and corporate social
responsibility.
Marketing: For sustaining long term growth organisation performs marketing functions so
that services can be improved and satisfactory services can be provided to customers.

Development of operational management
To gain competitive advantage Sainsbury aims at maintaining good quality of operational services.
For this purpose organisation can use variety of approaches:
 Craft manufacturing: In this approach skilled work force is utilized to produce low volume
goods with high degree of quality. It is mainly suitable for small scale operations and industries.
 Mass production: Organizations such as Sainsbury produces huge volume of goods with
minimum variety or personalization. Instead goods are produced and supplied as per the
organizational market research and plan.
 Continuous improvement: It includes approaches such as JIT, Kaizen or TQM to bring
continuous improvement in the existing services or product. The purpose of this operational
approach is to maintain high quality standards related to operations.

Key approaches to operations management and the
role of leaders and managers
Leaders and managers play an important role in operational management. They assure that operational
activities are performed in alignment with the budget, existing resources and long term organizational
goals. Leaders also manages human resources so that operational goals can be accomplished. Another
important role played by leaders or managers in operational management is conflict management so
that team or individual conflicts does not affect the efficiency of operational management approaches.
The key operational approaches which can be used by Sainsbury are as follows:
Just in time
 This approach focuses on identifying and correcting the obstacles in production process. It shows
the hidden problems of inventory in time prevents a company from using excessive inventory and
smooth the production.

Cont.
 Role of leader- Leader should be quick and efficient in delegating inventory
requirements details and supply information to team members. There should be
proper coordination among leader and other hierarchies for proper application
of this approach (Zidan and Otálvaro Herrera, 2019).
 Role of manager – Manager should be efficient in functioning out management
duties properly which includes researching about the total inventory
requirements, financial to be utilized for overall reaching of production targets.
Eliminating risks and inventory wastage by not ordering extra inventory.
Total quality management
 This approach focuses on long term success through customer satisfaction,
improving quality services and the organizational culture they work in.

Cont.
 Customer focused organisation
 Leadership
 Involvement of people.
 Process approach
System approach to management
 Continual improvement
 Factual approach to decision-making
 Principles of TQM
 Mutually beneficial supplier relationship

Kaizen Principle
 Kaizen approach focuses on creating continuous improvement based, ongoing
positive changes for major investments in company for higher profit margins. It is
based on cooperation and commitment in company, creating solutions for arising
management problems in company and analysing final results. (Muller, CommVault
Systems, 2020).
 Functions of leader- A leader by working with Kaizen approach has the function to
lead the team members with efficiency,get the best optimum results from human
resources working in company, by establishing systematic working criteria in
production target

Importance and value of operational management
in achieving organisational goals
 Operational management is responsible for managing resources of the company or its day to day operation for
achievement of organisational goals. Therefore, operational management is mainly responsible for managing
or manufacturing final goods or services of the company. Effectively performance of operational management
helps in increasing overall productivity and achievement of organisational goals. Thus, operational
management is important for Sainsbury company for following reasons:
 Achievement of company objectives: As operational management main function is to supervise and monitor
that activities are performed as per the plans. Continuous monitoring helps in effective completion of task and
take corrective action within time.
 Enhances quality of product: Operational manager ensure that while manufacturing and delivering of
services quality of product and services should be maintained.

Cont.
 Wastage Reduction: Operational management plays an important role in reducing wastage of material and
cost of production by continuous monitoring production process. Sainsbury can improve its overall
production by using lean manufacturing system which helps in reduction of waste and cost of production.
 Enhance goodwill: Operational management is responsible for manufacturing and offering quality product
or services to customers which helps in developing and maintaining quality of products. Sainsbury is able
to expand and grow its goodwill value by effective functioning of operational management.
 Optimum utilization of resources: Operational management by planning strategies for increasing overall
efficiency of production is able to make optimum utilization of organisational resources

Cont.
 Increase revenue: Operational management helps in increasing revenue of the company
by reducing cost of product and increasing customer's satisfaction by providing quality
products and services. Well-established brand image of company helps in attracting
potential customers as well as add new customers to the company. Thus, it helps in
increasing revenue and achievement of predetermine goals of company.
 Satisfaction of customers needs: Operational management satisfied the needs of
customers beyond their expectancy by providing quality products and services. Effectively
performance of Operational management helps in achievement of Sainsbury goals as it
lead to repeated sales by satisfying customers needs and maintaining customers loyalty.

Leaders and manager can improve efficiencies of operational
management to successfully meet business objectives
 A leader is a person who has the role of influencing a group of people which are the
team members towards achievement of goal, motivate them to work with strong
functionality to reach desired business goals.
 A manager is a person who is responsible for administrating or supervising the
company business structure for achieving essential objectives with
 efficiency.
 Managers must also improve communication so that constant planning and
development can be executed. The proper scheduling and control of inventory and
other organizational resources also help managers to achieve organizational goals.

Comparison between leader and manager
Basis of comparison Leader Manager
Leaders create vision, managers create goals
Leaders inspire and motivate, managers
supervise the structure
 Role of leader in building strong
productivity levels in company can be
understood as providing a vision and a
shared strategy and communicate it
powerfully to other team members for
proper execution and completion of
tasks.
 Leaders at Sainsbury have role to
develop leadership potentiality in
others and enhance their performance
through consistent feedback. Role of
leader is to be an effective role model,
inspire others by motivating teams
through timely feedbacks regarding
their performance levels and ensure
training needs are met.
 A manager’s role is very crucial in
Sainsbury as he is a planner, producer
and establishes strong coordination
between roles of all hierarchies.
Manager plays an important
elementary role for success of
company by creating goals and in
utilizing resources for achieving
business goals. Managers at Sainsbury
are responsible for supervising
management leaders and guide them to
function out their potential duties
effectively.

CONTINUE…
Leaders build relationships, managers build systems
and processes
 Sainsbury's leaders play an integral role of
building trust among other members and
inspiring subordinates with own character and
competence (MacBeath, J., 2019).
 A manager is the pivotal figure who directs
company in advanced methods of production,
marketing techniques and executing the
decisions in proper utilization of financial
resources. With strong communication skills, a
manager should have potentiality to establish
clear communication about company visions to
all subordinates working in Sainsbury.
Leaders take risks, managers control risks  Leader has goal to hold accountability regarding
functions of team members and subordinates for
strong coordination in effective management,
increase in profit margins and high productivity
results. He is responsible for establishing best
working standards for subordinates and team
members to produce high quality competitive
products and services at Sainsbury.
 Goal of an efficient manager is to direct the
activities regarding various projects, lead
production targets and researching cost effective
methods to create advance technological up
gradation. First line managers are usually called
supervisors. Middle level managers include all
levels of management between supervisory level
and top-level of organization(Sheninger, 2019).

Cont.
 Manager plan to introduce such techniques that helps in cost reduction whereas
leader will influence employees to use technology and to improve their
performance for enhancing production.
 To motivate employees for optimizing operational efficiencies managers also
give rewards and incentives to employees and make efforts to eliminate labour
redundancy.
 Thus, increase in employment performance and productivity helps in reduction
of wastage and achievement of company objectives.

Factors of business environment that
impact upon operational management
 Company in order to operate its business smoothly and effectively has to considered various
internal and external factors of environment. There are various internal and external environment
factors that impact on operational management and decision-making of leader and manager.
Internal environment includes element that exit within the organization such as physical, human
and financial resource of the company. It also includes value and culture of company, its goodwill
or brand image in the market. Internal environmental factor that impact on Sainsbury operational
management and Decision making of leaders and managers are as follows:
 Corporative objectives: It influences operational management as they have to produce goods
and services as per the objectives of corporative.

Cont.
 Finance: Operational management needs capital for purchasing of raw material , technology so financial
position of business helps in choosing the best available source for investment in technology. Manager and
leader of Sainsbury evaluate and analysis financial position of the company for preparing budget and capital
requirements in manufacturing of product and services thus impact on their decision-making.
 Human resources: Effective work force helps in enhancing overall productivity and profitability of the
company thus reduce work load of operational management. Manager and leader of Sainsbury has to put
fewer efforts in planning and influences people to work effectively as they are already highly motivated.
 Competition: Increase in competition level compel operational management to use update or efficient
technology in order to compete with other competitors in the market by providing quality product. Manager
also has to analysis competitors performance and bring new ideas that helps the company in gaining
competitive advantages. Leader will influence employee to enhance their skill and knowledge to achieve
organisational goals.

PESTEL Analysis
 Political factor: The political issues such as Brexit creates the instability and
thus can influence the continuity and demand of operations in negative way.
The liberal regulations due to political factors can also encourage the free and
effective operations by improved availability and flow of raw material.
 Economy: It includes interest rate, disposable income of people living in
society and employment level in the country. Economy of country impact on
operational management as sudden change in demand or supply affect overall
productivity and operational management of the company. Sainsbury is
operating its business in UK so it is facing situation of recession that means
people are less interest to make purchase.

Cont.
 Social : The social factors such as culture, perspective of people and beliefs affect the operational
strategies of Sainsbury. Thus leaders must ensure that they take all social factors into consideration
so that operational efficiency can be improved.
 Technological change: Change in technology forces operational management to adapt to new
technology for reducing cost of product and increasing profit margin of the company. Use of
updated technology helps in satisfying needs of customers in most effective manner. Manager of
Sainsbury have to plan various techniques to be used in manufacturing of product and delivery of
services. Leader have to influence employees to increase their skills and knowledge in order to use
update technology and achieve goals of the company.
 Environmental and legal factors: The operations of Sainsbury must be in compliance with
environmental and legal regulations so that operational cost can be reduced and there are no legal
conflicts. It also has positive impact on organizational performance.

CONCLUSION
From the above report it can be concluded that leader and manager plays different role that
are crucial for the success and growth of business.
It can also be explained that leader and manager have different characteristic and role in the
organisation. Role of leader and function of manager is different in different situation. There
are three types of leadership styles such as situational, system and contingency leadership.
Sainsbury leader use various styles of leadership in order to influence employees for better
performance and productivity.
.

REFERENCES
Books and Journals
 Antonakis, J., Simonton, D. K. and Wai, J., 2019. INTELLIGENCE AND
LEADERSHIP. Leader Thinking Skills: Capacities for Contemporary Leadership.
p.14.
 Bernheim, B. D. and Bodoh-Creed, A., 2019. A theory of decisive
leadership. Available at SSRN 3012726.