P1 Define and compare different roles and characteristics of leader and manager (Doc)

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and compare different roles and characteristics of leader and manager................3
M1....................................................................................................................................................5
P2 Application of role of leader and function of manager in different situational contexts.. 5
P3 Theories and several approaches of leadership.................................................................6
M2....................................................................................................................................................7
D1.....................................................................................................................................................8
TASK 2............................................................................................................................................8
P4 Key approaches to operation management........................................................................8
M3..................................................................................................................................................10
D2...................................................................................................................................................10
P5 Importance and value of operation management............................................................10
TASK 4..........................................................................................................................................11
P6 Different factors that impacts on decision making and operational management..........11
M4 .................................................................................................................................................12
D2 ..................................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management and operation plays various roles and functions that help company to
achieve success. Coordinating, managing and controlling are major functions of management
whereas on the other hand, operation management is concerned with company's daily activities
which they perform in order to increase their profits. This management also includes different
phases or stages that are involved in product development (Slack, 2015). Zara is a Spanish retail
company which was founded in 1975. It is headquartered in Artexio, Spain. This assignment will
enlighten different roles and characteristics of leaders and managers with different approaches of
leadership. In addition to that, key approaches and numerous importance of operation
management which help business to achieve business objectives. It also covers, different factors
of business that have impact upon operational management.
TASK 1
P1 Define and compare different roles and characteristics of leader and manager.
Organisation cannot operate well or establish a strong position in the market if they don't
have managers and leaders in their company. Both are crucial parts of management and performs
numerous functions and duties to ensure success for company by increasing profits and
productivity of enterprise. Leaders formulate vision for company which is best suitable and
managers develop different missions and objectives so that their staff can achieve that vision.
Managers don't have to perform all activities, they should be capable enough to make their
employees perform their tasks. Both of them ensure that business activities are carried out in a
proper manner and disciplined is maintained. They should posses different and unique skills that
can guide and direct their subordinates properly and in right direction. Manager is basically a
person who is responsible for developing, managing and controlling business activities and lead
company to its success (Barratt, Choiand Li, M., 2011). On the other hand, leader is a person
who guides and direct their subordinates in right direction and maintain discipline within
company. Zara is a very big company and is operating worldwide and its important for both to
manage and lead company in proper manner in order to avoid any risks and also maintain market
position. It is also important for company to hire experienced and highly talented managers and
leaders which can maximise profits and revenue for company. As they are operating in many

countries, they should be prepared for every challenge and circumstances that can come anytime.
Roles of managers and leaders are mentioned below:
Role of manager:
As a manager, they have to perform several functions like motivating, inspiring,
communicating and encouraging team spirit. They should be efficient in managing and
coordinating all activities of employees, this involves the activity of liaison. By performing thois
role, they get to interact with other managers of different organisation. This role help managers
to represent their company.
Managers collects information through his peers, environment, employees and superiors.
This information is basically related to internal and external factors which helps in better
understanding of the environments and organisation.
Role of a leader:
Leader should be efficient in planning their activities, if they fail to prepare good
strategies, then the company won't be able to achieve their goals on time. After preparing plans,
they should communicate to every people which are associated with that (Weinmann and et al,
2013). Leader can also develop a framework, this will help them to achieve their vision on time.
A leader is basically a representatives as it represents his company to outer world and at
other places like conferences, seminars, business meetings, etc.
Above are some roles of leaders and managers which they perform and following is the
comparison between their roles:
MANAGER LEADER
They are basically concerned with formulating
goals and objectives for the company.
They are responsible for guiding and directing
employees and maintaining discipline within
organisation.
Functions of managers are planning,
organising, staffing, directing, controlling
Functions of leaders are inspiring and
motivating their followers.
Managers takes risks. They minimise risks.
Managers are versatile in nature, supportive,
creative, expertise in their field.
Leaders have emotional stability, dominant in
nature, enthusiastic, etc.
Manager have authority to make decisions on Leaders have both authority and power to

their own. make decisions and implement within firm.

M1
Managers and leaders both play different roles and functions which aid organisation to
achieve its desired success. As mentioned above, manager is majorly responsible for managing
and coordinating business activities and ensures that every employees is properly understood
about the activity which they have to perform. On the other hand, leader are involved in
formulating vision statements of company and also direct and lead their employees.
P2 Application of role of leader and function of manager in different situational contexts.
Managers and leaders both are focused towards company's growth and success. They
keep on improving their business activities so that they can easily compete with their
competitors. For analysing external threat and opportunities, both should have the appropriate
knowledge and experience of outer market (Kale, 2013). Zara have good leaders and managers in
their board members and they are highly efficient at their job. They make plans and run their
activities in the manner in which they can gain highest profits and revenues. They mainly deal in
clothing sector and this requires up gradation according to the current trends in the market. Both
should be aware about the fact that changes are uncertain things and can occur anytime. For this,
managers and leaders should make their company about different situation that may occurs and
should formulate counter plans in order to avoid any loss.
Zara might face unpredictable situations that can affect company's productivity and
profitability. To avoid that, company can pre plan their situations and easily avoid their ups and
downs. Also, they should prepare their employees about future contingencies and brief them
about new modification and changes which will take place in the company. For tacking those
situation, both can implement different solutions, some of them are given below:
These are unpredictable circumstances which can occur at any time within campus of
company. At this time, manager and leader should know the root cause of the fight and try to
resolve it as soon as possible without any loss of both parties. They should not perform any type
of partiality at the time of making decisions.
Sometimes, company might face situation where employees are resigning from their
posts frequently and company is facing high turnover rates. At this time, it is necessary for
company to hire candidate for vacant position in order to reduce the turnover rate. For hiring best
candidates, managers can list down specific features that will be required in that candidate and

hire according to that. Company can also perform internal recruitment in order to shift
employees from one post to another.
Company should be updated with recent advancements in order to stay ahead of their
competitors. In Zara, managers ensures that their technologies and equipment are up to date
(Bendoly and et al, 2010). This helps in maximizing productivity and enhances quality of
products.
Above are some situations and their solutions that can be implemented at uncertain
situations. This will help company to overcome from certain problem and they will easily return
back to their normal functioning.
P3 Theories and several approaches of leadership
There are different approaches and theories which can be used by company according to
their suitability. They can adopt any of the leadership and management theories and approaches
which defines their business operation in best manner. Zara has also implemented several
theories that help them to operate smoothly and also maintain disciplined and healthy work
atmosphere. Leadership theories are basically used by leaders of company in order to direct their
subordinates in right directions and also the company can achieve success in better manner. The
main aim of these approaches are to maximize company's efficiency and improve their
functioning. These theories keeps on changing according to change in different situations and
circumstances. Leaders can modify and change to different styles for providing company with
their best. Some of the leadership approaches used by Zara are mentioned below:
Situational leadership is concerned with self adaptation of leader of company to fit into
the development level of employees to whom he wants to influence. In this, leader has to change
his current style depending upon the situations. This theory changes according to needs of
organisation (Terzi and et al, 2010). Telling, directing, supporting and delegating ate various
functions that are involved in this leadership.
System leadership, superiors divide their difficult tasks and activities into small and
simple tasks which can be easily achieved. This helps employees in proper understanding and
completion of objectives. This leads to proper management and smoothly functions of activities
and this leads to time completion of vision and missions. Both leaders and managers assign
different responsibilities to associated employees according to their specialization. This leads to
more efficiency and productivity.

Behavioral theory is basically analyses the nature and behavior of leaders and basically
covers three types of leaders. They are mentioned below:
Democratic leaders have supportive and kind nature. They help their employees at each
step and provide them with all necessary resources for performing activities. Leaders encourage
subordinates to participate in decision making process and other important management
procedures. They also provide proper guidance and direction to employees so that they can
perform their jobs in right manner.
Autocratic leader are very strict and disciplined and like to control everything. Their
normal nature is bossy and authoritative. They work on their principles and opinions and does
not focus on others advice (Baird, Jia Huand Reeve, 2011). They make their own choices and
does not like to be judged by someone else. This type of leader enables dictatorship within
organization.
Laissez – Faire leader give their responsibilities to their employee and tell them to
formulate critical decision for the company. As employees have less experiences about
management and other things, company faces low productivity as well as profitability. They
keep a watch on every activities and also provide them with necessary requirements and
resources to them in order to implement several business activities.
There is no perfect situation because it keeps on changing. So this leadership talks about
the effectiveness of leadership in different situations. This is mainly used by leaders at the time
of unpredictable circumstances in order to avoid possible threats and loss. This theory have
several advantage as it exposes employees to several situations and they become more talented
and confident about the world. This motivates them and make them a better person.
M2
There are different approaches and theories that an organisation use in order to maintain
discipline within organisation and also formulate proper framework for company. If they have
positive aspect, then also have the negative impacts also. Negative impact of leadership theories
may be that, in some situations, leaders have to behave strictly with employees as they have
work pressure and may follow dictatorship within organisation. This reduces the confidence
level of employees and also they become scared of their leaders. If managers exhibit democratic
leadership style and involve employees in management activities, then it will build the
confidence in them and also impact positive effect on them.

D1
According to (Agha, Alrubaiee and Jamhour, 2011), it is clear that implementation of
different leadership theories and approaches of leadership are crucial for company to achieve
success. This also facilitates timely completion of company's goals and objectives. Different
theories pose different impact on company's operations. It is responsibility of managers and
leaders to select best theory and approach and implement within organisation. At the time of high
turnover rates, managers and leaders can make strategies and implement systems like
compensation, reward and benefit, leaves and holidays, etc which can help them in retaining
employees better.
TASK 2
P4 Key approaches to operation management
There are different approaches that are used by company to improve their functioning as
well as productivity. These approaches mainly includes total quality management, lean
principles, six sigma, JIC, JIT, etc. Amazon is an American based e – commerce website which
is situated in Seattle, Washington. It was established on 1994. following are some approaches of
operation management:
Total Quality Management :- TQM is a managerial approach organise in 1950 and it
become more popular in 1980. Main objectives of TQM is to managing attitude, culture, and
workflow, structure of a industry for easily satisfying the needs, wants and desire of customers
in market. It is the main function of operation management because managers are focus on
regular quality improvement of manufacturing the goods and services. In business TQM is
mixture of quality and management technology for increasing profit in company or reducing
cost of losses due to wast at a time of producing product.
Six Sigma :- Six sigma is an tool and technique which is utilised in organisation for
improving or maintaining quality of their entire working. This results in minimising wastage,
reducing cost, eliminating errors, using high quality of raw material and time saving (Urgaonkar
and et al, 2010). Managers are focus on determining critical situation or identifying operation,
after whole process they trying to managing current working process in business.
Lean principle :- In operation management lean principle are based on the controlling
quality and reducing wastage at a time of producing product without any losses. With the help of

these techniques mangers control the wastage in organisation and achieving maximum
return. Many factors like high burden and over load of woke are increasing damages and all
wastage manage by lean principle. Highly developing company are provided valuable product to
their customer for satisfying needs with the help of lean thinking principle there for it is reasons
that managers adopted this techniques in managing operation in company.
JIT :- Just in time is a thought of management not a tool, main function of JIT is to
manufacturing goods according to full filling the demand of consumers and offering at a right
place in right time. It is regularly focused on managing quality and quantity of items, effective
storing, time reducing or improving the quality of working in business for getting high result.
This function of operation management are based on utilising multiple communication sources
and high quality of raw material for better manufacturing or producing product to end users at
lower price with good attributes.
JIC :- Just In Case are based on controlling, managing, supplying, storing and
maintaining resources for manufacturing product. Many difficulty arising out from lower
control on quality of production, natural problem, poor distribution structure in undeveloped
organisation, are control with the help of JIC. It is uses for maintain minimum level of material
and these utilising at time of emergency in business there fore process of production not
affected.
Kaizen :- For increasing and maintaining right quality in operation Kaizen is adopted. It
is a continuous process for developing and improving structure in a particular organisation.
This techniques are not focus on working system but it giving training or developing employees
for enhancing the level of business and earning high return (Atasu and Wassenhove, 2012).
This function are satisfying needs of consumers and employees for regular eliminating or
changing the defect.
Role of manager: Some of the crucial role played by manager of Amazon are mentioned below:
Staffing: Main responsibility of manager is to recruit talented people by taking their
interviews and recruiting them.
Administration: They have to handle activities and communicate important information
to other. They also correspond with other departments.
Planning: Managers formulate strategies and plan their future activities efficiently so
that company can achieve desired success.

Role of leaders:
Directing: Leaders of the company provides proper direction to their followers so that
they can perform their work in right manner.
Leading: They posses leadership qualities and lead their team. They also support them at
each step and give proper guidance. Good leader inspire and empowers their employees and also
motivate them to perform better.
M3
Leaders and managers are mainly responsible for maximizing the efficiency of company
by implementing several approaches within company. By implementing these approaches, they
can lead in the market as well as they can maximum profits out of it.
D2
According to (Lee, Lee and Wu, 2010), it is clear that operational management have
several benefits if an organisation implement it within working of company. If leaders and
managers are efficient enough then they can manage their operation proficiently and this will
pose positive impact on the company. If they fail to do so, then it might pose negative impact on
company.
P5 Importance and value of operation management
Operational management involves several activities such as planning, staffing,
supervising related to manufacturing or provision of services. Amazon is one of the leading
websites and this has become possible because they have highly efficient operation management.
This increases their productivity to better extent. They believe in continuous improvement and
enhancing their skills and abilities. With effective operation management, Amazon have
expanded their business and is achieving desired success. Following are some importance of
Amazon's Operation management:
Quality management: With strong operation management, company can manage and
even improve their quality of output in order to satisfy the expectations of customers. They
believe in continuous improvement and increases their efficiency. Amazon uses their
organizational structure in order to support their innovative and creative ideas.
Location strategy: Access to resources and markets are covered under strategic
decisions of operation management. This strategy focuses on location of warehouses or

fulfillment centers. Importance of this strategy is that, this help company to manage and maintain
warehouses that are near to large number of customers of the online retail business.
Supply chain management: In this company streamline their supply chain in order to
support organisational objectives. It is necessary for Amazon to have strong supply chain system
in order to make products available to customers on time. This help in increasing the efficiency
of company.
Improving goodwill: Amazon have established strong reputation in the world of e –
commerce websites or online stores. This has become possible because of their proper
management of operations (Grant, Wong and Trautrims, 2017). Company can also provide their
products at low prices which help company to improve their goodwill among customers.
TASK 4
P6 Different factors that impacts on decision making and operational management
The two main leading factors that affects a company's success and growth are internal
and external factors .
Illustration 1: Internal and External factor
(Source: Factor impacts on decision making and operational management, 2015)
Internal factors: these factors comprises of internal attributes that directly affects business
performance and its productivity. Mentioned below are most prominent internal factors
presented within company:
Competitors: Amazon being a global brand have to compete with a number of other
leading brands that effects its business decisions related to its product, pricing and other

strategies. Being in retail business Amazon has to face competition with other aggressive
retailers. For instance, Amazon leading rivals includes brands like Walmart, which has a large
market share and online presence through its website. This enterprise offers products and
services that like physical stores , book stores and others that serves as a substitute for Amazon's
online and small retail stores giving tough competition to it.
Customers: Consumers are the most critical factors that greatly affects firms profitability,
thus every firm strives to provide products and services of high quality at reasonable prices as
per customers demand. This helps company to attain its long term objectives with maximum
returns. Amazon follows a customer centric approach to its e-commerce business. As today
customers are having access to high quality information related to its various online retailers
and products sell by them Amazon gets affected a consumers are presented with other
alternatives such as Walmart that are selling close substitutes goods like Amazon.
External factor: External factors affecting Amazon could be identified with the help of PEST
analysis:
Political: This factor relates to political stability, tax policy, rules and regulations, laws
etc. of a particular country to which a business is enforced to be adhered by. Amazon being a
multinational firm with its operations running worldwide is subject to a number of online and
other legislations of countries it is conducting its activities in. For instance, with support of
government Chinese online retail firms are diversifying their business that is likeable threat for
Amazon.
Economic: These factors includes factors like fiscal policy, economic stability, income of
people etc. Amazon is greatly affected by the economic situation prevailing in nations it is
running its operations. For example developing economies like Asia and Africa forms
opportunities of growth and development for the company.
Technological : These factors relates to consequences of emergence of new technology
in the market and how innovative and distinct technology is adopted by a company in
manufacturing its products. Amazon in this era of digitalization is subject to the threat of rapid
technological obsolescence , which exerts pressure on firm to continuously introduce innovation
in its products to maintain its lead in the market.

M4
There are majorly two factors internal and external that greatly influences business
operation of a firm. It includes customers, competitors, PEST analysis which forms essential
part in growth and development of a company as they have a direct influence in firm productivity
and sustainability.
D2
According to the Heizer, (2016). internal and external factor business environment
directly effects performance and operation management of a firm. Thus, to enhance its
performance and effectiveness level, manager of an enterprise should formulate and implement
new policies and plans systematically.
CONCLUSION
From the above report, it can be concluded that operation and management are crucial to
implement within organisation as they help in providing proper framework and structure to
organisation. This increases the efficiency of business activities and help company to achieve its
vision. Every organisation have key personnel in which they involve leaders and managers which
represent the company in outer world. They perform various key roles and functions that leads to
more productivity and profitability. To achieve that, they should posses different and unique
skills sets and talents. In large organisation like Zara, it is very difficult to operate and manage
all activities with perfection. It requires great dedications and hard work. But the company have
leader and managers that are working efficiently and managing business activities properly and
they are the main reason behind the success of the organisation.
Heizer, J., 2016.