The Importance of Operations Management

This assignment delves into the significance of operations management in different sectors. It discusses how effective operations management can impact business success and customer satisfaction. The document cites various references from books, journals, and online sources to support its arguments. It also highlights the role of technology in airline management and the importance of big data analytics in operations management.

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 comparing role of a leader and manager...........................................................................1
LO 2.................................................................................................................................................3
P2 The role of leader and manger in different situations.......................................................3
P3 Different theories and models of approach......................................................................4
LO 3.................................................................................................................................................5
P4 explain the role of leaders and managers with the help of key approaches in operation
management............................................................................................................................5
P5 Assess the importance of the operation management and how they help to achieve the
objective.................................................................................................................................6
LO 4.................................................................................................................................................7
P6 Explain the operation management impact of decision making by leaders and managers on
business environment.............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Management is the heart of any organization. No firm can work without proper
management. There is different responsibility for assigned for manager and leader in an
organization. Manager do all the work related to planning, organising, directing and
controlling. He manages the employees of the organisation and guides them to work
towards the success of the organisation. Leaders are also important part of the
company. Workers always prefer to go to leaders rather than managers. Leaders are
more connected to the employees as compare to managers. They know the people
better than anyone else. A good example of good managership and leadership is
Starbucks. Starbucks is an American coffee company founded in Seattle, Washington
in the year 1971. It was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker. It
established more than 30,000 outlets in the world. Kevin Johnson is the present CEO of
Starbucks. Starbucks offers a variety of coffee. Total number of employees in
Starbucks are around 2,90,000 all over the world. The hierarchy of Starbucks company
is less seen in any company(Gibson and Parkman, 2018).
LO 1
P1 comparing role of a leader and manager.
Leadership is required at all levels of management. No organization can work
without having a proper leadership. Leadership is required at all levels of organisation.
He is the representative of the organisation. He combines the personal goal with
organizational goals. Manager is a person who takes the decision of the company
regarding planning and organising. The orders of manager are followed by everyone in
the company. A manager can be a leader but its not compulsory that a leader is
manager. People by their desire follow the leader and by their responsibility follow
their manager.
Basis Role of Leader Role of Manager
Meaning A leader is a person who leads
people towards their own
benefit.
Manager is a person who
manages the company and do
all the things which are
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beneficial for the company.
Decision-making Leaders helps manager in
decision-making
Manager by his experience
makes all decisions.
Subordinates People willing follow their
leader as they have trust on
him(Saucedo-Martínez And
et.al., 2018).
Manager is being followed
because of his post and his
experience in the company.
Focus The focus of leader is on the
future of the employees like
what problems they may face,
future needs etc.
Focus of manager is on the
present that what employees
can achieve and how to
increase their skills for the
benefit of the company.
Goal The goal of leader is the
maximum effectiveness in
work.
The goal of manager is the
maximum efficiency of the
employee.
Aim The aim of the leader is the
social welfare of workers with
achievement of targets.
The aim of manager is the
maximum growth of the
organization.
Scope Leaders has a narrow scope. Manger has a broader scope as
a manager can always be a
leader.
Responsibility The responsibility of a leader
is limited to the workers only.
The responsibility of a
manager is towards the whole
organisation.
Skills required To become a leader a manager
requires various skills like
good communication, high
motivation, leader attitude etc.
To become a manager a person
need decision-making skill,
excellent managing skills.
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Authority The authority of a leader
comes from the top level
management.
The authority of a leader
comes from the skills,
knowledge and experience he
possesses(Slack and Brandon-
Jones, 2018).
LO 2
P2 The role of leader and manger in different situations.
The role of leader and manager are different. They are important in their fields.
Managers should change the duties of employees so that they can get experience of all
the fields. There are different leadership styles which are used by leaders in different
situations. Leaders should not use the same style again and again. Managers and
leaders face different situations in a company and they react accordingly to different
scenario. Different situational context are:
11 1) Technological changes in the company: technological changes affect the
company very much. It is tough for employees to adjust with new technology.
Leaders and managers play roles in helping them to adjust. Managers help the
employees by explaining them the use of new technology. Leaders guide the
employees the benefits of new technology and how this will reduce their work
load. Managers should not force changes but should slowly and easily explain
them. Leaders should divide the work in teams so that the work gets divided in
them and no load is given to an individual person(Lubbe and Potgieter, 2018).
Starbucks has made changes in its digital sector and this has increased it
revenue. Proper changes in the company will always increase the profits of the
company.11 Staff turnover: Staff turnover means the employees of the company are exiting
the firm frequently and there can be various reasons for this. Too much
workload, No proper working conditions, no increment etc. are some reason for
increase in staff turnover. Managers should find ways to reduce staff turnover
so that the company don't have to incur too many expenses on recruitment and
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selection. Leaders should ask from the workers the problems they are facing
and the expectation they have from the company. The expectation of the
workers should be met and all their correct demands should be fulfilled.11 Declining sales: The sales of Starbucks are declining from some months and
managers and leaders are trying to find it. Some reasons of decline can be
reduction in quality and quantity, increase in price, less availability in market
and more. Managers should find the ways to increase the sale. They can bring
innovation in the company, serve proper quantity, should reduce the profit on
each product etc. Leaders should motivate the workers to be more efficient and
motivate them to work more(Schönsleben, 2018). More advertisement should
be done of the brand in social media and in all sectors.11 Increasing competition: The competition in the economy is increasing every
day for all the businesses. It has become tough for managers and leaders to run
the company smoothly. Managers must with time bring innovation to the
company and bring new machinery so that the company can stand against its
competition. New equipments increase the confidence as well as the interest of
the workers in the company. Leaders should always motivate the employees to
be competitive and get ahead of other companies. Increment should be given
by managers to those employees who have worked well then other employees.
P3 Different theories and models of approach.
There are different theories and models of approach of leadership. These
approaches are used by managers and leaders in their company for better control of the
organisation in their hands. Different approaches are:
11 Situational Leadership: This type of leadership is used in those companies
which are not very strict. The main element of this model is the adaptability of
it in various environment(Bogaert and et.al., 2018). Situational leadership is
based on the skills of the leader and how he manages to use those skills in
different situations of the company. It is applied in those situations in which
style can be changed. The leader must be able to change its style according to
the strategy which fits in the organisation. Different styles come in situational
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leadership. Some are defined by Goleman, Paul Hersey and Ken Blachard.
There is no one leadership style which is best and it only depends on the
situation to change it. Leaders have to change their style and not the people
following change their ways to understand it.11 System leadership:System leadership is a style used in all stages of leadership.
The conditions are created for employees to work properly and with maximum
efficiency. Starbucks have such working conditions which allows employees to
share their ideas and it helps them in individual growth(Choi,Wallace and
Wang, 2018). Due to this fewer people exit the organisation and profits are also
increased. Leader must motivate employees and various social programmes
should be held for employees for their development. Manager must give
appraisal to employees who are efficient and disciplined. Innovative ideas by
the employees must be encouraged. Leaders play the role of conflict-solver in
the company. They find the reason of fights between the employees. This
leadership style help leaders in predicting the nature of the people.11 Contingency leadership: The style of leadership in which style of leadership are
fixed and they cannot be changed according to the leader in different situations
are called contingency leadership. A leader can work properly only when he
can change his style according to the situation. The situation should be
according to the goal and it should be matched with the style of leadership. In
every situation manager should help employees and create good working
conditions for the employees to work. A manger should be well versed to his
knowledge and he must be that much capable that he can convert the wrong
situation into the right one(Chang and Seely, 2018).
LO 3
P4 explain the role of leaders and managers with the help of key approaches in
operation management.
Starbucks company working from 1971, the company set as the different
company and made connection with coffee and introduced the rich tradition for coffee
in people. The operation management in Starbucks follows various process from
manufacturing to reaching to the customers. Stage one green coffee beans are bought
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from distributor which are present in many parts of world to provide the finest coffee
beans for starstruck company. Next stage is to roast the beans and store them, further
the beans are sent to various retail shops which delivers the best coffee in the world to
the customers. In this process the responsibilities and duties of manager and leaders
plays an important role in operation management to achieve the goal of the company
which are as follows:
SIX SIGMA : In this operation management the Starbucks mainly focuses on the
quality of the product from supply of green beans to the manufactured coffee in the
hands of customers(Dierynck and Labro,2018). With maintaining the quality of the
product the company emphasis to reduce its waste and make proper utilisation of
resources that are available to the company. The leader makes take decision regarding
improving the quality of product which will increase the efficiency of company to
provide innovative product delivery to the customer and new services to the customers.
The objective of Starbucks company could be achieved by improving quality product
will increase its efficiency to enter in new market and provide its services.
LEAN MANUFACTURING: In lean manufacturing the company mainly focuses on
reducing the cost on production, reduce time of manufacturing with less waste and
deliver the product to the customer within less time. Maintain the quality and the cost
of production with keeping in mind customer satisfaction. The leader is responsible to
motivate its employee to work towards company objective. Increase the production
within the time and work efficiently(Filimonau and Delysia, 2019). The efficiency of
the company can be improved from controlling the time management within the
employee through this the company achieve the objective to provide faster services to
its customer within less time which will increase the satisfaction among the customers.
TOTAL QUALITY MANAGEMENT: In this operation management the company
works on the overall management activities related to product to convert the different
objectives in single goal of the company. The working of the organisation is based on
the customer satisfaction from the product as the customer provides the feedback to the
company to improve product quality. The role of leaders is to create potential in
employee to meet the demands of the customers. The efficiency of the organisation can
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be improve the customer relationship and build the trust. The goal of the organisation
can be achieved by teamwork and coordination between different department of the
Starbucks.
P5 Assess the importance of the operation management and how they help to achieve
the objective.
In business cycle of the Starbucks company the operation management is
important part of the business without operation management the main part of product
manufacturing will be missed(Manikas, Patel and Oghazi, 2019). To understand the
operation management of Starbucks its importance in becoming goal oriented are given
below:
PRODUCTIVITY AND PROFITABILITY: Operation management helps Starbucks to
increase the profitability of the company by increasing the overall operational
productivity of the company helps to develop economic growth in the company and
increases the living standard in the people. The quality of product plays important role
in the success of the company. The design, size, quality and many other factors of
product development are key to attract the consumers by making changes in the
operating activity of product. The organisation can bring different flavours in the
varieties of the coffee. Objective of the company to get more customers will increase
the demand to produce more and revenue will increase automatically for the Starbucks.
STRONG OPERATION FUNCTION: In organisation the operation is strong part of
business it benefits the organisation to achieve the success with higher perspectives. If
the operational activities are the efficient and making the company to grow faster
within less time it will make the organisation successful in no time(Pietsch and et.al.,
2018). Through this the company can reduce its production time and manage to
increase the production of the company within no time which will make path for the
company to work towards its objectives.
CUSTOMER SATISFACTION: when the company produces good quality of product
due to efficiently management in operating activity in manufacturing of the product
and produces the quality product. The customer gets satisfaction and feels that the
product was worth paying for the customer. Once customer get satisfied from the
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product they get attracted to buy the product again and again. Starbucks creates quality
product which increases the customers to get attracted towards the coffee and spreads
information of the product quality among the consumers it increases the company sales
and revenue and helps to create the goodwill of the company(Importance of operation
management, 2019).
RESOURCE MANAGEMENT: the company manages to utilise its resources with the
operation management it increases the productivity and reduces the cost of the product.
The management of resources to best use decreases the expense spend on getting more
resources for manufacturing of the coffee. The waste material if possible can be
recycled and used in next manufacturing process(Gibson and Parkman, 2018). Through
this the company is able to reduce the cost of the product and can invest its remaining
money in other operating activities which benefits the company to work efficiently
towards its goal.
LO 4
P6 Explain the operation management impact of decision making by leaders and
managers on business environment.
Business environment refers to all the facts and forces related to the factors that
influence the working of an organisation. External business factors are not in control of
the business decision it influences the working of operating activity in an organisation.
Starbucks deals with many such factors which affects the decision of the leaders and
mangers on the company. Some key factors are discussed
CULTURAL FACTOR: leaders and managers takes decision based on the culture of
people. Cultural factor is the determines the tradition, languages, practices of the
people, etc. The employees work according to the customised product. The Starbucks
made the product according to the need and wants of the people. The product designed
by company keeping in mind the cultural requirement of the people. Operational
management is responsible to provide product which people can relates in their daily
routin(Saucedo-Martínez and et.al., 2018).
ETHICS AND VALUE: Starbucks earns revenue from its business but with the help of
following ethical and social values towards the society. The managers and leaders
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decisions are based on the benefits and the welfare of the society. Ethics that the
company follow is the laws related to the consumer protection. The mangers ensure the
quality and safety of the product that does not harm the consumers. Operation
management takes responsibility to check on the quality of the product according to the
consumer law standards.
SUSTAINABILITY: the company is focusing on using environmental friendly product
packaging. The managers take decision to use the product packaging as eco-
friendly(Lubbe and Potgieter, 2018). The company also takes decision regarding the
maintenance of standard of the product with the farmers and the Starbucks company
the agreement called as C.A.F.E.(Coffee and Farmer Equity) which is an international
conservation. It converses the farmers to supply standard quality coffee beans and in
return the company is helping the farmers by paying higher prices for the beans
produced by the farmers. The company is doing fair trade and has certified trade mark.
The operation gets influenced to provide quality raw material and increase the
production.
CORPORATE SOCIAL RESPONSIBILITY: mangers takes decisions to ensure the
quality of Starbucks coffee with the highest quality product. Social hand are extended
by the company to provide education, employment and training to the people by
investing in these fields. The decision is also taken on reducing the environmental
footprint and even making others to do the same. The company is focusing on the
renewable sources up to 50% is storage energy sources. The company managers
focuses to the building a positive customer relationship to increase the knowledge for
company to understand the what customers needed(Lubbe and Potgieter, 2018).
Operation management will provide cost effective product and will give more discount.
CONCLUSION
From the above study, it is clear that the Starbucks company produces the
highest quality product with the help of advance operation management in the
company. The responsibilities and duties of the manger and leader plays a key role in
the development of the Starbucks. The manager and leader give guidance and motivate
the employees to work hard and achieve organisational goal. The company aims to
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build the trust with the people and emerged the culture of coffee among the people. The
company leads its employee to work as efficiently in the company and maintain the
quality of the product with the optimum utilisation of the resources. The importance of
operation management helped Starbucks to grow its reputation globally in the world
and the company. The people started to rely and trust the company. The quality and
taste attracted most to the customers(Pietsch and et.al., 2018). The business factors
which influence mostly the decision of the managers and leaders due sustainability ans
corporate social responsibility.
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REFERENCES
Books and Journals
Bogaert, M. and et.al., 2018. Analyzing data management-related and/or contract
management-related operations of an organization. U.S. Patent Application
15/689,661.
Chang, K. and Seely, B., 2018, April. The challenging nexus of technology and
security in transportation management center operations. In Proceedings of the
Fifth Cybersecurity Symposium (p. 1). ACM.
Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management.27(10). pp.1868-1883.
Dierynck, B. and Labro, E., 2018. Management accounting information properties and
operations management. Foundations and Trends® in Technology, Information
and Operations Management.12(1). pp.1-114.
Filimonau, V. and Delysia, A., 2019. Food waste management in hospitality
operations: A critical review. Tourism Management.71. pp.234-245.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality
perspectives. Routledge.
Lubbe, B. and Potgieter, T., 2018. The role of technology in airline management and
operations. In The Routledge Companion to Air Transport Management (pp.
331-343). Routledge.
Manikas, A.S., Patel, P.C. and Oghazi, P., 2019. Dynamic capital asset accumulation
and value of intangible assets: An operations management perspective. Journal
of Business Research.103. pp.119-129.
Pietsch, U. and et.al., 2018. Advanced airway management in hoist and longline
operations in mountain HEMS–considerations in austere environments: a
narrative review This review is endorsed by the International Commission for
Mountain Emergency Medicine (ICAR MEDCOM). Scandinavian journal of
trauma, resuscitation and emergency medicine.26(1). p.23.
Saucedo-Martínez, J.A. And et.al., 2018. Industry 4.0 framework for management and
operations: a review. Journal of ambient intelligence and humanized
computing.9(3). pp.789-801.
Schönsleben, P., 2018. Integral logistics management: operations and supply chain
management within and across companies. CRC Press.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management:
principles and practice for strategic impact. Pearson UK.
Online
Importance of operation management. 2019. [online]. Available
through<https://www.planettogether.com/blog/importance-of-effective-
operations-management>
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