Approaches to Operations Management and the Role of Leaders and Managers
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This document discusses various approaches to operations management, including lean production and Six Sigma, and explores the roles of leaders and managers in implementing these approaches. The focus is on the case of John Lewis Partnership.
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Introduction: Management of operationsis a process where business practices which helps in achieving profits in the management. It is a process where raw material is converted into goods and services in the company for maximizing the profit for the organisation. It helps in maintaining the balance between the cost and the revenue of particular activities in the management of the company. It is a managerial activities which include variousthingslikevarious stages of management activities in the organisation. The main purpose isto provide good quality of product and service in the market and gain profit in lieu of the services provided. This assignment is stated on London company, John Lewis Partnership , it is a organisation founded in 1929 by the John Spedean lewis in the London. This company provides clothes, watches and jewellery and various housewares in different stores in UK market.Under this report, various roles of leader and manager are discussed. LO 1: P1: Explain the role and responsibilities of the leader and manager Leader :He ispersonality whohave a influence on the management term for obtain the objectives of the organisation on the large scale.In the other words, leader is a individual person in the organisation who motivate the employees to complete the given task on time and in efficient ways. In the context of John Lewis partnership Inc., This company have a good leaders and manger in their organisation so that pre-determine goals and objectives can be achieved on time and in efficient ways(Balasubramaniam and et.al.,2016) Roles of leader: he is person who have to handy the performance of the overall organisationfor the betterment of the company.Look the following rolesof the leader are as following: Encouragement :Here employees needs to be motivated to perform and provided with tools to perform their duties in efficient ways. Leader always encourage its workforce to perform better in the management activities so that goals and objectives can be achieved. Setting mission and vision:Here leader influence theworker to evaluated their performance according to the vision of the organisation. Characteristic of leader :Heis individual who have different quality to lead a group of people in theorganisation to obtainthe standard outcomes. In the context of John Lewis, a good leader should have following characteristic with them. 1
Positive attitude and leadership skills :These skills are difficult to learn as they are more behavioural in nature of the leader. A positive leader will always motivates and guide its employees to perform better in the task and have clear vision about the organisation goal in the long run(Gerasimov and Gerasimov 2015) Ability to face challenges:A good leader always face challenges with the confidence in its approachessuch that people will look up to their methods in the organisation.. Theirare not afraid of thecoming challenges in the organisation and in the industry. Manger:Manger is a individual who is incharge of group of people for performing a particular task in the company. A certain set of people whoare answerable to the managerabout their duties in taken task. Manager and its team work for thegenerating the predetermine results in the company.In the context John Lewis partnership.Following are some oftheroles and characteristic of the manger: Roles of manger:Manger has to perform different responsibility about the overall performance of the organisation .Manger should have ability to execute a vision by making a strategic vision into small steps and follow such step to complete the given task on time. And another role is to make work rules in the team followed by the processes and standards to execute the task in the team. Manger has to make sure that all the member of the team are allotted with the respected duties so that activities are followed smoothly in the team(Hitka and et.al.,2018) Characteristics of the manger:With the references of John Lewis partnership, manager should have a strong characteristicswhich can influence the whole team for the betterment of the organisation. Some of the them are as follows: Strong communication:A good manager is a one who have a strong communication skills in the term, so that they can deliver important information to all the employees and see what needs to be communicated in the organisation for achieving the set goals on time. Delegation: Manger should be delegated towards the responsibilitygiven to them so that task can be completed on time and in efficient ways. Comparison between the Managers and leaders: BasisManagersLeaders 2
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Meaning Vision Subordinates Risk taker Style Manager isa individual who have a reasonsfor managing the different activities in the organisation . Amanagerhasavisionto completethegiventaskon timeandinefficient ways(Johnstone, 2016) Managerhasateamof followersfortheparticular task . Mangertake less risk in the task. Managerfollow transformational He is one whofocus on the influencingitsemployeesto performbetterinthe organisation. Agood Leaderis one to takesstepsfordevelopment and growth of the organisation. Leader have employees as a subordinates. Leadertakeriskinits approachesforcompleting task. Leader followstransactional style. M1:Apply different theories and concepts about the manger. There are different concepts and theoryin the management which can be utilized by the leader and manager to have a effective administration and have effective workforce in the organisation. In the context of JohnLewis , following theories are implemented in the company for better performance(Karangelos and Wehenkel, 2016) Transformational Theory of leadership:Under this leadership , a positive change is seen in a individual and in social system. Herefollowers are converted into leaders by creating measurable changes in the attitude of the worker. it is the bestsuitable in the organisation that aims for good future of the company in the market. 3
Classical management theory:this approachis based on thefacts that worker have economic needs in the organisation . It is suitable for the company here production is aim aim in the team. D1:explain the leadership in the contest of approaches: In the context of John Lewis partnership, leader and manager have used different theories and concept to increase their productivity and enhance growth of the organisation .transformational theory of leadership provide ways to transform follower into leader and on other hand, this lead discrimination among the employees according to their performance. Whereas, classical theory of management take into account needs ofeconomic and physical needs but it ignore other needs of the team.(Liu and et.al.,2014) LO2: P2:provide different situational function of the manger The role of agood team andthe functions of it manager are evaluated undervarious situations of the company. in thecontext of John Lewis partner,the following two situation are discussed as follows: Fast changes:In the dynamic environment, where taste and preferences of the customer are changing with the new trends in themarket. Here organisationhave tochangetheir product and ,desire and wants of their target market and to stay in the market. For example John lewis is retail stores provide the clothes, housewares and electronic devices. Now , if new trends is seen in the market and such changes attract customer then John lewis has to change their product and services and alienated them according toneeds and wants of the customer and attain their customer in the market. Technology changes are occurred at highest rate in the market so accordantly company have to changes its technology before its gets obsoleted in the market. Manger and leader make sure that they keep a see on every small steps inthemarket(López and et.al.2015) Conflict resolution:Under this situation, employees have conflict among the team member due to ineffective communication within theteam and between the manager and its team . Conflict can be raised due to different point of view, following different method in the task and ineffective interaction with the manager or with the leader. Under such condition, leaderhasa 4
good involvement insolving the conflict of the management for having better performance and enchaining the profit for the team member as well as for the organisation. Their are many situation where manger and leader have to perform together to achieve the goals and objectives of the organisations. P3:Apply different theories and modes of approach, including situational,systems and contingency leadership . There are various approaches and theories for having effective leadership in the organisation to have a profit. In the context of John lewis partners, manager and leader comes together for having effective outcomes in the long run. Situational leadership:under this leadership, a leader can notbaseon one ofthe management stylemethod in the company.Here manager and leader should be flexible in their leadership styles to get bestresult in the market. It include four leadership style such as selling, participating and delegating the task which are beneficial for the company. John lewis uses such theories as it is flexible in the nature,develop effectiveness according to different situations and have a good cooperation between the team members and analysis different levels of maturity of individual.(Mazidi and et.al. 2017) System leadership theory :this enables that leader in the organisation create a conditions where all the people are working at their full productivity levels .In the context of John lewis, this theory helps in providing safe, secure, healthy andfriendly situationforthe employees so that they can work in effectively ways. This theory uses principle about the human behaviour to createmodels of good leadership, organisational strategy, system design and social process. Contingency leadership theory:Under this leadership,their isone things that leader does not reply on his ability .There are various factors such as company culture and work environment which have impact on the success of the leader. This approach is beneficial because it changes accordingtosituationsandchangespoliciesoftheorganisation.Itstatesthatleader effectiveness is contingent upon leadership style matches to the situation and can be flexible due to change in the situation(Mendis,Muttaqi and Perera 2014) 5
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M2: Examine strengths and weaknesses to appraise different approaches to situations within the work environment. different theories of leadership are discussed as follows : TheoriesStrengthsWeaknesses SituationalTheempowers followerstobe responsiblefortheir action and decision. Leader who delegate its duties,havetimeto focus on other matters. Thisleadership isopen to abuse the power. A leader who delegate thetasksbut accountability still lies with the leader. System theoryItincreasethe organisation adaptabilitytothe changing environment focusonachieving individualaswellas organisation goals. The decision are delay in the management I Natureofinter- dependenceisnot stated.(Minchala And et.al; 2016.) Contingency leadershipIt changes according to the situation provideleaderto increasetheir leadership skills helps in designingthe organisational structure. It is reactive in nature whichisdifficultto handle the situations ithavecomplex approachwhenits cometopractical things.(White, 2016) 6
LO 3: P4. Key approaches to operations management and the role that leaders and managers play There are several conception of operation management in which variousroles are played by the leaders and administrators.In Context of John Lewis there are diverse approaches are described as below: Lean production-It is an tool and technique whichmainly concretes on reducing wastage in the production process and increasing the productivity. It can be implementedto all characteristic of a business concernsuch asfrom create, bymanufacturingto arrangement.The major motive of this approachis to cut costs bydevising businessmore efficaciousor efficient and accountable tomarketplace requirements. In John Lewis, if the administration of the company applied it then the firm can minimise thewaste of origins in manufacturewhich help in risingtheproductivity and profitability of the firm. Roles of leaders- In this, leader play a crucial role because they assists the employees to theirdutiesandresponsibilitiesincontextofleanproduction.Leadersalsodirecttheir subordinates for the maximisation of the manufacturing. Roles of managers-They play an effective role because they conduct analysis about the efficiency of the products and checks the production process that no useful materials are wasted and destroyed (Wrightand et.al., 2014) Six sigma- It is an approach which is explained as a concept thatis controlled in quality and informationprovided.This tool actsas a method for obviating imperfections in any activity ranging fromproducingto transactional and fromgoodsto services crosswiseseveral company. If the management of John Lewis implement this approach in the operational management activities of the firm then the organisation can accomplish maximum level of consumer satisfaction in term of decreasing defects, enrich return on sales, investment, attain employment development in the production procedure and prevent imperfections in the manufacturing activities. With the assistof this method theadministrationof the respective company can make improvement in the capableness of their business concern activity.It help in maximising execution and minimising in process variation. This approach bis effective for the company because it assist in developing the culture of the companywhere workforce perform effectively. 7
Roles of leaders- In it, leaders help in providing training and resources bin context of six sigma. They support employees to apply this approach and provide information about the importance of it. Roles of managers- The administrators help in determining the application of this approach in the company and reviewing or supporting workforce and top management in context of implementation of this tool(Zhang. and et.al.,2016). TQM- It define as a consumer oriented procedure and aims for continuous improvement of business operations.TQMis the ongoingactivityof minimising issues and problems within theproductionprocess,contouringsupplychainmanagement,enrichingtheconsumer experiencesandassuringthatworkforceproperlyspeedupwiththetraining.Withthe implementation of this approach the management of John Lewis can make improvement in its manufacturing process and minimise the issues which are arising within it. Roles of leaders- The leaders assure efficient involvement and use of the total employee simplyemployeesareperformingeffectivelyintheorganisationsactivities.Theyset performance measurement for the activities and procedures. Roles of managers- The administrators play a crucial role by assuring continuous development of the business and manufacturing procedures. They also make focus on internal and external consumers so that the needs and demands can be analysed and improvement can be make as per their needs. P5. The importance and value of operations management in accomplishing business objective Operationadministrationindicates to the process and activity of managing the business enterprise functions, acts and operations which are executing by the administration of the firm to operate the business. In John Lewis, the management of the company assess in determining and dominating the actions ofmanufactureand programbusiness concernenterprise activities in the manufacturing of products and services. Thegrandness and value of operations administration in accomplishing business impersonal can be definedby different operation management functions which are explained as below: Process design- This function is crucial for the company because it can assist in designing and generating production activities of the company. It is important for John Lewis becausewith the assistance of it, the administration ofthe respective organisationcan make improvement in the manufacturing activities and manufacture products as per the need and 8
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requirement of the consumers. It is crucial for the organisation because it assist in accomplishing the business aims and objectives in term of providing goods and services to target audiences as per their requirements. Logistic and inventory- It is another important function to the company because if the firm will not have effective support of the logistic, products then it can not be supply in the marketplace when there are level of requirement is high cause of its consumers. In John Lewis, with the help of it, the administration of the firm can make focus on product management to stock the worthless product of production. It is essential for the organisation because it help in making the effective administration of the products and services which are required in the market so that the firm can effectively fulfil the consumers needs on time. Control and distribution system- It is an effective substitute in operation management which assist to devise power on manufacturing process of the company. This function is important for the companies because it is responsible to control the production activity and assuring effective allocation of the goods in context to fulfil the objectives of the company. The effectiveness of thiscontrol and distribution methodcan be developed by accepting astrongand appropriatecontrol method and to enrich the supplyinfrastructural of the firm in context of attaining thebusiness concern aimsof the firm. In John Lewis, withthe assistance of this function, theadministration of theorganisationcan effectively manage the resources and minimise the wastage. M3: Evaluate how leaders and mangers can improve efficiencies of operational management to successfully meet business objectives. In the context of John lewis partnership, Manager and leader of this company focus on increasing the productivity of the organisation by reducing the wastage of unwanted process of task. They both tries to have a effectively operational management in the organisation by following the six sigma, it is controlled, data -drivenapproach which providesconstant improvement by eliminating default in the product and service. sigma represents the standard deviation which is a measure of the variation. Another method their follow is total quality management, under this approach manger and leader tries to reduces the problems while conducting production process. Overall operationalperformance of the organisation are improved by decreasing the unwanted process in the management. 9
D 2: Critically evaluate application of operations management and factors that impact on the wider business environment. The of management of the teamwhich can effect the productivity of the organisation as whole. . Their are different types of leadership which provide a efficient waysperforming the task and maximised the profit in the marketplace. Company maintain the responsibilities of the manager so that their preform their duties in effective ways and on time. Their are various method which provide different ways to increase theprofitof the organisation by eliminatingthe unwanted process and steps which consume the lot of time of the management team. LO 4: P6. The factors within the business environment that impact upon operational management and decision making by leaders and managers The business environment gets impacted by numerous external components that affects the operation of the business organisation and also the decision making of the firm. To analyse the impact of business environment factors upon operational management and decision making, the management of John Lewis can use PEST analysis which is as beneath: PEST analysis It is a structure or tool which is utilised by the management to determine the factors of external environment that create impact upon organisation's activities and operations. It consist various components like political, social, technological and others. Politicalfactor-Itconsistauthoritiespolicy,politicalstablenessandunstableness corruptness, foreign trade policy, taxationpolicy,trade restrictions and others. Free trade is an effective factor which positively affect the John lewis. Becausewith the assistanceof it the administration ofthe organisationcan trade its products and services without pay tax. It favourablyimpactoperationaladministrationanddeterminationdevisingofleadersand manager. Because due to it, the company can operate its business effectively and leaders and administrators also take appropriate decision which help in the development of the company. Economical factor- This factor include growth rate, exchange rate, inflation, interest rate, currency rates, monetary policies and raw material costs etc. In UK, the economic system of the nation facing recession and very sensitive to changes in interest rates. This negatively affect John 10
Lewis because when changes are occurred in interest rates and in this situation the management raise fund for effective running the business then the firm pay more interest rate. It negatively affect the company, it operational management and decision making. Because in change situation the leaders and mangers will not decide that how much fund they should raise and where should they raise in term of sources of finance. Social Factor- It consider customer service, need, demands, taste & preferences, religion, culture, life style and others. Change in consumer needs and demands is the major factor which highly affect John Lewis. When changes are occurred in clothing products due to trend and fashion, changes are also generated in consumer's desires. So if the company do not provide products as per their needs and demands then target audiences of the firm switch to another organisation. It negatively affect the firm and decision making because the due to ineffective decision of leaders and managers, the firm did not able to fulfil their potential clients needs. Technological factor- It consist technology and abstractions infrastructure, laws around technology, rival technology,automation, advance technology,researchand creation, technology incentivesand others. Now these online shopping or internet shopping is the major trend in retail sector which instantly affect the sales approach of the company. In John Lewis, it positively affect the company because decision of utilisation of online shopping techniques assist in improvingsalesandprofitabilityofthecompany.Paperlessoperationandtheeffective management by using IT systems make flexibility in the operations of the firm. M4: Analyse how these different factors affect the business environment and wider community. In the context of John lewis partner inc. there are variousreasons that have different impact on the business environment such associal environment,technology and economic impact present in the environment effectproductivity of the organisation. Their areinside and outside things that can affect the business operation in the large scale. Operational management is very important aspect of any organisation which needs to be performing good in the activities. To increase the profits in the organisation manager should make sure that all the activities are carried out in effectively in the organisation. 11
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Conclusion: After in-depth discuses on operation management, it is conclude that it is important factor which provide a right direction to the manger to obtain results sothat business can earn thedesire profits in the specific time period. In any organisation ,manger and leader are important human resource which are used to enhance the productivity of the management. Their are different types of culture, ethics, values in the organisation which have a different impact on the ways the manger perform their duties on time. 12
REFERENCES : Books and journals: Bahmani-Firouzi, B. and Azizipanah-Abarghooee, R., 2014. Optimal sizing of battery energy storage for micro-grid operation management using a new improved bat algorithm. International Journal of Electrical Power & Energy Systems56. pp.42-54. Balasubramaniam, K. and et.al.,2016. Energy management system for enhanced resiliency of microgrids during islanded operation.Electric Power Systems Research. 137. pp.133- 141. Gerasimov, B. N. and Gerasimov, K. B., 2015. Modeling the development of organization management system.Asian Social Science. 11(20). p.82. Hitka, M. and et.al., 2018. Strategic tool of human resource management for operation of SMEs in the wood-processing industry.BioResources. 13(2). pp.2759-2774. Johnstone,S.,2016.Labourandmanagementco-operation:workplacepartnershipinUK financial services. Routledge. Karangelos, E. and Wehenkel, L., 2016, June. Probabilistic reliability management approach and criteria for power system real-time operation. In2016 Power Systems Computation Conference (PSCC)(pp. 1-9). IEEE. Liu, B. and et.al.,2014. System operation and energy management of a renewable energy-based DC micro-grid for high penetration depth application.IEEE Transactions on Smart Grid. 6(3). pp.1147-1155. López, M. A. and et.al.,2015. Demand-side management in smart grid operation considering electric vehicles load shifting and vehicle-to-grid support.International Journal of Electrical Power & Energy Systems. 64. pp.689-698. Mazidi, P. and et.al., 2017. Impact of health indicators on maintenance management and operation of power systems.Proceedings of the Institution of Mechanical Engineers, Part O: Journal of Risk and Reliability. 23 (6). pp.716-731. Mendis, N., Muttaqi, K.M. and Perera, S., 2014. Management of battery-supercapacitor hybrid energy storage and synchronouscondenser for isolatedoperation of PMSG based variable-speed wind turbine generating systems.IEEE Transactions on smart grid. 5(2). pp.944-953. Minchala-Avila, L.I. And et.al;.,2016. Optimal energy management for stable operation of an islanded microgrid.IEEE Transactions on Industrial Informatics. 12(4). pp.1361-1370. Parisio,A.,Rikos,E.andGlielmo,L.,2016.Stochasticmodelpredictivecontrolfor economic/environmental operation management of microgrids: An experimental case study.Journal of Process Control. 43. pp.24-37. Pavlineri, N., Skoulikidis, N. T. and Tsihrintzis, V. A., 2017. Constructed floating wetlands: a review of research, design, operation and management aspects, and data meta-analysis. Chemical Engineering Journal. 308. pp.1120-1132. Peng, C. and et.al., 2015. Uncertainty management in power system operation.CSEE Journal of Power and Energy Systems. 1(1). pp.28-35. Reim, W., Parida, V. and Sjödin, D. R., 2016. Risk management for product-service system operation.InternationalJournalofOperations&ProductionManagement.36(6). pp.665-686. Strande, L. and Brdjanovic, D. eds., 2014.Faecal sludge management: systems approach for implementation and operation. IWA publishing. 13
Ulewicz, R., 2016. Quality Management System operation in the woodworking industry.Path forward for wood products: A global perspective, proceedings of scientific papers, pp.51- 56. White, P. R., 2016.Public transport: its planning, management and operation. Routledge. Wright, S. and et.al., 2014. The design, management and operation of flexible transport systems: Comparison of experience between UK, Japan and India.Research in Transportation Economics. 48. pp.330-338. Zhang, Y. and et.al., 2016. Model predictive control-based operation management for a residential microgrid with considering forecast uncertainties and demand response strategies.IET Generation, Transmission & Distribution. 10(10). pp.2367-2378. Bahmani-Firouzi, B. and Azizipanah-Abarghooee, R., 2014. Optimal sizing of battery energy storage for micro-grid operation management using a new improved bat algorithm. International Journal of Electrical Power & Energy Systems56. pp.42-54. Balasubramaniam, K. and et.al.,2016. Energy management system for enhanced resiliency of microgrids during islanded operation.Electric Power Systems Research. 137. pp.133- 141. Books and journals: Gerasimov, B. N. and Gerasimov, K. B., 2015. Modeling the development of organization management system.Asian Social Science. 11(20). p.82. Hitka, M. and et.al., 2018. Strategic tool of human resource management for operation of SMEs in the wood-processing industry.BioResources. 13(2). pp.2759-2774. Johnstone,S.,2016.Labourandmanagementco-operation:workplacepartnershipinUK financial services. Routledge. Karangelos, E. and Wehenkel, L., 2016, June. Probabilistic reliability management approach and criteria for power system real-time operation. In2016 Power Systems Computation Conference (PSCC)(pp. 1-9). IEEE. Liu, B. and et.al.,2014. System operation and energy management of a renewable energy-based DC micro-grid for high penetration depth application.IEEE Transactions on Smart Grid. 6(3). pp.1147-1155. López, M. A. and et.al.,2015. Demand-side management in smart grid operation considering electric vehicles load shifting and vehicle-to-grid support.International Journal of Electrical Power & Energy Systems. 64. pp.689-698. Mazidi, P. and et.al., 2017. Impact of health indicators on maintenance management and operation of power systems.Proceedings of the Institution of Mechanical Engineers, Part O: Journal of Risk and Reliability. 23 (6). pp.716-731. Mendis, N., Muttaqi, K.M. and Perera, S., 2014. Management of battery-supercapacitor hybrid energy storage and synchronouscondenser for isolatedoperation of PMSG based variable-speed wind turbine generating systems.IEEE Transactions on smart grid. 5(2). pp.944-953. Minchala-Avila, L.I. And et.al;.,2016. Optimal energy management for stable operation of an islanded microgrid.IEEE Transactions on Industrial Informatics. 12(4). pp.1361-1370. Parisio,A.,Rikos,E.andGlielmo,L.,2016.Stochasticmodelpredictivecontrolfor economic/environmental operation management of microgrids: An experimental case study.Journal of Process Control. 43. pp.24-37. 14
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Pavlineri, N., Skoulikidis, N. T. and Tsihrintzis, V. A., 2017. Constructed floating wetlands: a review of research, design, operation and management aspects, and data meta-analysis. Chemical Engineering Journal. 308. pp.1120-1132. Peng, C. and et.al., 2015. Uncertainty management in power system operation.CSEE Journal of Power and Energy Systems. 1(1). pp.28-35. Reim, W., Parida, V. and Sjödin, D. R., 2016. Risk management for product-service system operation.InternationalJournalofOperations&ProductionManagement.36(6). pp.665-686. Strande, L. and Brdjanovic, D. eds., 2014.Faecal sludge management: systems approach for implementation and operation. IWA publishing. Ulewicz, R., 2016. Quality Management System operation in the woodworking industry.Path forward for wood products: A global perspective, proceedings of scientific papers, pp.51- 56. White, P. R., 2016.Public transport: its planning, management and operation. Routledge. Wright, S. and et.al., 2014. The design, management and operation of flexible transport systems: Comparison of experience between UK, Japan and India.Research in Transportation Economics. 48. pp.330-338. Zhang, Y. and et.al., 2016. Model predictive control-based operation management for a residential microgrid with considering forecast uncertainties and demand response strategies.IET Generation, Transmission & Distribution. 10(10). pp.2367-2378. 15