Operational Management and its Importance

This assignment delves into the world of operational management, covering various research papers, books, and online resources that discuss its significance, strategies, and applications. From managing local fisheries to optimizing energy systems and public transport, the assignment showcases a wide range of topics related to operational management. It also highlights the importance of leaders and managers in an organization and provides insights into the role of automation infrastructure in stand-alone power systems. The summary is useful for students looking to gain a comprehensive understanding of operational management.

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and characteristics of managers and leaders in an organisation..............................1
P2 Role of a leaders and functions of managers behind various situations in an organisation3
P3 Different theories and models of approaches to situations within an organisation...........4
TASK 2............................................................................................................................................6
P4 Analysing key approaches on operational management with leader's and manager's role6
P5 Importance of operational management............................................................................7
P6 Factors of business environment which affect management along with decision-making by
leaders and managers .............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Management and operations concerned with designing and controlling process of entire
production of an organisation. This process including the conversion of input like raw materials
into output as product and services (Strande and Brdjanovic, 2014). It also takes responsibilities
of managing whole process of business operations as well as taking part in decision making
process including strategies, product design, quality management, capacities, planning and
inventory control. Operations are main functions of any enterprises along with supply chains,
marketing and human resources. The present report discuss all these matters of operations by
taking Amazon company which discloses the role of leadership and management along with
quality of its products. This report also highlights theories, approaches of leadership and quality-
related cost. It also recommended here how management can improve its workplace by
describing the role of leaders and managers in the same.
TASK 1
P1 Roles and characteristics of managers and leaders in an organisation
Leaders: Leaders in any organisation play a vital role whose main responsibility is to
understand working environment and helps employees in motivating their winning strength by
which they can accomplish their work on time (Role and purpose of leaders and managers in an
organisation, 2017).
Managers: They are managing the whole process of operations in an organisation. Their
main role is to plan objectives, making strategies, managing resources as well as lead and control
work of employees to accomplish objectives in an effective manner.
Leader's role: Leaders help an organisation in fulfilling its objectives, main role played
by them are describing as-
Required at all levels: Leaders influences the people through their effective leadership
skills, so they are required at all levels of management.
Representative of organisation: They are like representatives of their enterprises at
seminars, conferences board meetings, etc. who are communicating the rationale of their firm to
outsiders (Tang and Musa, 2011).
Solicits support: They can gain support of employees by their skills of influencing
which results in willingness to work.
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Manager's role: Managers have played several roles in an organisation, some of them are
explaining as below-
Interpersonal role: This role of managers involve behavioural relationship of
management with people working at their workforce. This role helps them to communicate with
people for better improvements (Pinkerton, 2011).
Information role: Managers monitor the performance of each employee in order to get
their weaknesses and strength as well as to improve the same by giving necessary training.
Decision-making role: They handle decision-making process along with allocation of
resources (Rushton, Croucher and Baker, 2014).
Difference between roles and characteristics of a leader and manager:
Managers and leaders work are quite looking same, both are use to lead their team in a specific
directions but they have different ways to do their work.
Managers Leaders
 Managers managing the process and
functions of an organisation.
 They makes policies and strategies to
accomplish goals of a company.
 Managers always try to reduce conflicts
between employees and employers at
workforce.
 Their main job is to managing the work
progress.
 Leaders use to influence workers to
achieve a common objectives in a
specific duration of time.
 The policies made by managers are
executed perfectly by leaders.
 Leaders have to solve conflicts first
before executing the strategies in a
work.
 Measure of work progress is job of
leaders.
Functions of leaders and managers:
The functions of a manager are being a part of management who take responsibilities to
plan and organise resources for accomplishing goals of a firm whereas functions of leader
include to done the same but with a proper arrangement (Expósito and et. al., 2016). Leaders use
to include motivational theories, internal strategies to deliver work, performance of management
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etc. in their leadership while managers are focusing on resource allocation, achievements of
objectives through many strategies etc. with concerning on system and structure.
Amazon is an electronic commerce company of UK (Xu and et. al., 2012). It is the
second largest internet retailer in the world after Tech Giant as measured by revenue and market
capitalization. It has effective operational management at its e-commerce business. It has
expanded its business in over all so many countries. Thus, in addition to online-retail, it
continues to adjust its operational management for changes in various strategies. Its leaders and
managers play their effective role in its business expansions as in-
Planning: Planning the goals as well as setting them in order to increase revenues of
Amazon are done by its managers and leaders hold all responsibilities to execute them with its
employees in an effectively manner.
Organising and directing: Manager of Amazon organise all its operations in an effective
way by making various strategies. Its leaders use to encourage employees for gaining best
outcomes out of resources available.
Coordinating & controlling: Managers and leaders use to coordinate with its clients
properly by controlling all activities.
P2 Role of a leaders and functions of managers behind various situations in an organisation
The functions of managers and role of leaders helps the organisations to work in a
specific organisation for accomplishment of their goals (White, 2016). In Amazon, its
management has played various functions with different attribute and styles of leadership which
helps in proper functioning of its online retailing. With its online expansions, this company has
faced several issues including marketing, resource allocation etc. The main problems affect its
business are:
Technology: Since Amazon is retailing its complete business online so, its operational
strategy will live or die by its technological choice. The flexibility given by modern technologies
will also have a price as it wants a proper maintenance. So managers need to possess expert
human resources otherwise company will face higher cost and loss of control.
Increased shipping: Delivering the products on desired locations is main function of
managers and leader of this firm. So, accountability for sale of products is always a problem, as
managers need to monitor all functions of product delivering till it receive by correct hands.
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So its managers and leaders play different-different role to help company in overcome
from these situations (Lindström and et. al., 2012). They combines their efforts on focusing these
situations. Some theories of management implied with leadership skills and traits which
improves company's situation and helps in its growth are:
Administrative theory: It is based on several principles of management which is
considered as set of planning, organising, training, commanding and coordinating functions. This
theory helps Amazon to deal its situations. Managers of this firm involve in all activities like in
product planning, organising, making strategies etc. Leaders help them to organise the delivery
of the products to a correct customer as well as to manage all technological related issues.
Behavioural theory: This theory was developed in response to need an account on
behaviour of employee and their motivational power (Jacobs, Chase and Lummus, 2014). It
mainly focuses on worker's need for work-related satisfaction. So, managers of Amazon need to
provide all facilities and programmes for make performance of its employees better. Leaders
need to implement these programs in an efficient way which increases the skills and knowledge
of employees use to operate its online business.
Classical theory: This theory states that a company is like a machine where human
beings are like components of it. This proves that if a company wants efficiencies in work then it
can be achieved only by making human beings efficient (Ziogou and et. al., 2011). This theory
emphasis on structure with prescriptive about “what is good for a firm”. Managers of Amazon
adopt the concept of this theory in making policies and strategies used to enhance productivity of
business.
P3 Different theories and models of approaches to situations within an organisation
The management of an organisation needs to adopt an effective leadership by its manager
or leader who can manage and lead all employees in a desired manner. The various leadership
approaches and styles are present in theories with main focuses on qualities and behaviour of
successful leaders. These theories recognizes the following points:
 A leader should try to know what employees need to compete a task while
working at workforce.
 He must try to adopt an effective style in leadership to influence them and get
their willingness.
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 He should monitor performance of workers to evaluate their weaknesses and try
to help in reducing and improving the same with training programmes.
Various Leadership theories along with approaches:
Theories of leadership and its approaches helps management to bring motivational power
of employees by making them feel that they are also valuable assets of an organisation which can
bring efficiencies in their working (Loucks and Van Beek, 2017). The management can achieve
this by sharing their views on decision-making process with employees. On focusing these
concepts, some leadership theories are explained below that can affect operational management
of organisations including Amazon are:-
Situational leadership: This type of leadership depends upon skills, qualities and abilities
of employees working in an organisation. Thus, it allows the leaders or managers to change their
style according to situations of company to influence employees in order to complete a task. This
time Amazon is facing problems in resource allocation along with technological issues, so it is
better to adopt this theory in overcoming from such a situation (Cloudt and Willems, 2011).
System leadership: This theory technically combines management and organisation
development which helps managers or leaders to understand what they actually needs in their
leadership to accomplish a target. Adopting this leadership theory by Amazon helps it control all
operations in a systematic manner and its manager can easily analyse what causes problems there
through which they can easily handle it and solve in a specific interval of time.
Contingency leadership: This theory gives the best way to organise a culture, lead a
company or make decisions. It totally dependent upon internal and external situations a
company. According to this, organisation are such an open system which needs to careful
management for satisfying its needs and to adapt environmental circumstances (Slack, 2015).
Thus, Amazon as adopted this theory in dealing with customer’s needs by influencing its
employees towards their mission. The main objective of Amazon Company is to get customer’s
satisfaction and loyalty. So, to achieve this its management use contingency theory in its
leadership to accomplish the company's objectives.
Strengths and weaknesses of these theories:
Leadership theories proves beneficial for all types of organisations dealing with different
situations. These theories have its own strength in terms to handle a situation along with
weaknesses. From above descriptions, contingency leadership is grounded in empirical research,
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which has broaden its scope with best approach as trait. But it fails to explain what a leader
should do if his situation doesn't match with workplace. Within context of situational leadership
is beneficial when situation becomes more complicated for a leader so, it emphasis flexibility.
TASK 2
P4 Analysing key approaches on operational management with leader's and manager's role
The operational management is an important part of an organisation which administrate
activities of it along with improving quality of production. It is a process which mainly focuses
on utilisation of resources in a proper way including improvement of performance of employees
which increases productivity of company (Cruz and Rincon, 2012). Thus, to bring stability and
managing the functions properly, Amazon uses three transformational process in operational
management-
Redesign process: To meet changes in marketplace, managers of Amazon redesigned
some parts of its management. This firm is dealing with sales and products to attract its
customers so, to need to change in its operations in order to produce more sophisticated work.
Development process: To modify the management of Amazon's operations, it is need to
develop the social and technical skills of employee as its entire business is based on online
process.
Leadership Process: To redesign or modify operations of management, Amazon needs
effectively leadership skills to keep its employees motivation in accomplish their tasks.
Approaches to Management: Management of Amazon engage in providing best quality
of work. So, some approaches used by them are:
Total Quality-Management: It is a system of management which is based on a principle
that each employee of an organisation is responsible to maintain quality of its product. Amazon
wants from its management to manage performance and improvements in quality of its product
and services towards customers as well as to evaluate process which simplify approaches in
accomplishing business objectives.
Just-in-Time approach and waste reduction: This is an inventory strategy used in an
organisation to increase efficiency with decreasing wastage of goods which is useful in reducing
cost (Park and Jho, 2012). Managers of Amazon use this in its production which is helpful in
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reducing its wastage with inventory cost. It helps to enhance efficiency in management as goods
and products are kept in inventory only on customer’s demand.
6-sigma approaches: It eliminates six types of wastages including transportation, over
processing, wait, inventory, motion and defects in production. Thus, in order to improve process
of production with increasing in efficiencies Amazon has used these approaches in its
management.
P5 Importance of operational management
Operation management plays a vital role in each kind of firm. Management of operations
are set of activities that includes planning, controlling, organising and leading people for
ensuring better working style in corporation (Importance of operational management, 2018).
This section's work starts from changing in raw material, resources and labour into finished
goods and services in optimized way. In this section management tries to diminish all unwanted
cost that is increasing several expenditures in association by putting all relevant efforts while
checking that productivity must not be affected because if it is to be happens, in this case
profitability of company would be negatively affect. Operations management is a procedure that
runs on time it is a never ending process until task not get completed.
Amazon that is an online product delivery service always keeps eye on providing best
quality services to their clients and customers (Ziogou and et. al., 2011). Corporation always
want high level of satisfaction among consumers because strong customer base can make a
successful and growing association. Here are some importance of operations management
described below:
Profit Maximisation: OM always helps in reducing cost that ultimately increases profit
share and ensures regular enhancement in working pattern as well as in returns. Adequate
execution and maintenance of workforce, raw materials, consumers, profits etc. can lead
company into high rate of success with great earnings.
Optimized way of utilizing resources: At the time of production leaders need to be
focused on using resources as sources are limited and all corporations has to obtain them in that
manner so that environment should not get affected.
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P6 Factors of business environment which affect management along with decision-making by
leaders and managers
Today, all organisations need to follow the ethical standards in management and
operations to maintain values, ethics as well as bring sustainability in their businesses which is
help them in improving relationship with customers by providing satisfaction from its products
and services. Amazon operates its business in an effective manner to gain competitive
advancements in the marketplace. This firm is following all ethical standards in its operations in
order to establish a superior position from all its competitors . Apart from all these, it needs to
have a complete information about internal and external factors that influences on its business
operations. The factors that impacts upon Amazon business within its environment are
operational management and decision-making by its leaders and managers. Some of these factors
are describing in below:-
Internal Factors- Employees: Employees are main assets for any company who makes their production
well. Their performance affects the businesses. Amazon takes care of its employees and
provides appraisals, bonuses etc. to increase their motivations which improves
performance of them. Training and development: Amazon done its entire business on online process, so to
make its employees expertise in the technologies used, it has provide all basic training
programmes for developing their skills.
 Innovation and commercialisation: With innovation of technologies and
commercialisation, it is easy to do business in any part of world for the companies
including Amazon. It doesn't need for them to open their shops in a country where they
want to expand their businesses.
External Factors:
 Competitors: They affect on price strategies of a company which is to gain competitive
strength. Amazon, therefore, adopts changes in its price strategy on occasions to attract
the customers
 Trade Laws: It is a complex and an ever expanding area. It includes rules and customs
governing trade between countries. Today, all companies business are so much affected
by these laws. They have to follow all rules made by WTO( World Trade Organisation).
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 Economy: It affects the market conditions which implies that if it is good than
organisations will get better sales & higher profits and vice versa. Today, E-retail
businesses are going at top positions in marketplace so, Amazon can get much growth in
this sector.
 Lifestyle of customers: Customer’s choice, preferences and their taste affect the sales of
the production of any company. So, Amazon always tries to influence its customers with
its new products by offering them on discounts.
 Suppliers and Distributors: They have played an important role for all organisations.
Suppliers provide them with raw materials and resources use in their production.
Distributors deal their products in marketplace. So both have directly impacted on
business of a company including Amazon. So, it is better for them to maintain good
relationship with them.
CONCLUSION
This report has given the importance of operations and management in a company also
discussed briefly roles of leaders and managers with their functions over there. Management of
an organisation takes responsibilities of its entire operations including planning, organising and
managing. The functions of operations has described along with different leadership styles and
approaches use to manage workforce over there. This report also enhances strengths and
weaknesses of managers or leaders regarding their leadership skills and capabilities to manage an
organisation.
REFERENCES
Books and Journals
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implementation and operation. IWA publishing.
Pinkerton, E. ed., 2011. Co-operative management of local fisheries: new directions for
improved management and community development. UBC Press.
Expósito and et. al., 2016. Electric energy systems: analysis and operation. CRC press.
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Xu and et. al., 2012. Real time optimal energy management strategy targeting at minimizing
daily operation cost for a plug-in fuel cell city bus. international journal of hydrogen
energy. 37(20). pp.15380-15392.
White, P., 2016. Public transport: its planning, management and operation. Taylor & Francis.
Lindström and et. al., 2012. A development process for Functional Products: hardware,
software, service support system and management of operation. International Journal of
Product Development. 16(3-4), pp.284-303.
Jacobs, F .R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management. (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Loucks, D. P. and Van Beek, E., 2017. Water resource systems planning and management:
An introduction to methods, models, and applications. Springer.
Cloudt, R. and Willems, F., 2011. Integrated Emission Management strategy for cost-optimal
engine-aftertreatment operation. SAE International Journal of Engines. 4(2011-01-
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Park, H. K. and Jho, H. D., 2012. The management of vertebral artery injury in anterior
cervical spine operation: a systematic review of published cases. European Spine
Journal. 21(12). pp.2475-2485.
Cruz, A. M. and Rincon, A. M. R., 2012. Medical device maintenance outsourcing: Have
operation management research and management theories forgotten the medical
engineering community? A mapping review. European Journal of Operational
Research. 221(1). pp.186-197.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics. 133(1). pp.25-
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Ziogou and et. al., 2011. Automation infrastructure and operation control strategy in a stand-
alone power system based on renewable energy sources. Journal of Power Sources.
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Online
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Role and purpose of leaders and managers in an organisation, 2017. [Online] Available
through<https://managementstudyguide.com/role_of_a_leader.htm>
Importance of operational management, 2018. [Online] Available
through<https://www.ukessays.com/essays/business/importance-of-operations-
management.php>
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