Importance of Operational Management in Business

The assignment discusses the importance of operational management in businesses, highlighting its role in reducing wastage, improving sales, and enhancing customer satisfaction. It also explores the challenges faced by Marks & Spencer in adopting new technology and provides recommendations for future improvement.

Management
And Operations

M4_1542371485 (3)Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1 Introduction of organization with its management structure...............................................1
2 Define manager and leader and compare their roles and characteristics.............................1
3 Managerial functions and leadership roles by applying managerial theories......................3
4 Role of leader and functions of managers in different situation.........................................3
5 Apply different theories and models of approach, including situational, System and
contingency leadership theories.............................................................................................5
6 Strength and weakness of different theories........................................................................5
7 Impact of roles and leaders on organization and recommendations....................................6
REFERENCES................................................................................................................................7
TASK 2............................................................................................................................................8
1 Introduce operation management key approaches adopted by the organisation.................8
2 Roles and responsibilities of managers and leaders in successful management of the
operation of Marks and Spencer.............................................................................................9
4 How managers and leaders can improve operational efficiency.......................................10
6 Critical evaluation of application of operations management to manage factors in respect to
external environment............................................................................................................12
7 Conclusion and recommendation for future improvement of organization .....................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Management and operation is the administration of company's practices to develop the
biggest level of efficiency and effectiveness within an organization (Accomazzi and et. al.,
2012). In simple word, it is an area of administration concerned with planning and monitoring
the production process. In this report, given organization is M&S Ltd which is a major British
multinational retailer in UK. Main purpose of this report is to identifying the importance of
management and operational for success and growth of organization. This project divided into
certain parts which includes functions of manager and role of leader in different situation arise in
the company. Key approaches to operations management and its important for firm to achieve
better results is also explain in this study. Lastly, impact of internal and external factor on
decision-making of leader and manager and operational management is also cover in this
assignment.
TASK1
1 Introduction of organization with its management structure
M&S Ltd is a British multinational retail industry which was founded by Michael Marks
and Thomas Spencer in 1884 at London, UK. The business is engaged in providing their own
brand food, home products and clothes in its shop and online both in the UK and internationally.
The company is specialize in selling of lingerie, menswear, women wear, kids wear, home and
beauty products, serving customers via approximately 300 full-line outlets and Website,
M&S.com (Marks and Spencer Group PLC, 2018). Business has approximately 910 UK shops,
including over 220 owned and around 350 franchise simply food stores.
M&S Ltd has made a series of variations to its management structure and board duties to
allow “speedier decision-making” and provide all information related to business to the
customers. Mark & Spencer is establishing an unique operating committee that will be
responsible for the day-to day activities and execution of strategy. Its main canter of attention
will be on mending the home ware categories products and retailer's fashion.
Organisational structure is refer as an effective a process of supervision, coordination and
allocation of task for the achieving business aims. M&S requires to be flexible, efficient,
innovative and caring in respect to accomplishing a competitive benefits. For attaining the best
output, M&S select the flat organisational structure which are different as below:
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Flat organizational structure: M&S follow flat organizational structure in their
organization. Flat structure is also called as horizontal structure. This type of structure refers that
there is no flat between workers and administrators, therefore upper level managements can
contact with their workers and sales people in a direct manner. Flat structure can give major
advantages to the M&S such as quicker response to the worker leads the activity quality very
fast.
2 Define manager and leader and compare their roles and characteristics
In M&S, leader and manager play vital and effective role for increasing growth and
success of an enterprise (Ageron, Gunasekaran and Spalanzani, 2012). Both has different roles,
characteristics which are determined as under in detail manner:
Manager: A manager is an individual who manages and handles the organisation and is
accountable for planning, coordination, direction and control. Main aim of manager is attainment
of the required results.
Leader: A leader is also an individual who influence and promote their subordinates to
accomplish a specified goal (Benjaafar, Li and Daskin, 2013). Main aim of leader is to increase
growth and development for an organization.
Comparison between roles and characteristics of manager and leader of M&S Ltd
Basis Manager Leader
Roles Main role of the manager in
M&S is to make coordination
between the business and its
stakeholders such as
shareholders, suppliers,
customers, employees, society,
government and so forth.
Main role of leader in Mark &
Spencer is to influence and
inspire their followers to work
willingly so as to achieve
organization's long term goals
and objectives within
predetermined time.
Characteristics Leader of M&S Ltd should
have good communication
characteristic so that they are
able to communicate all
information to their team
One of the main characteristic
of M&S leader is innovation.
They increase management
innovation which is going to be
more essential and enduring
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members. This not only means
converting job expectations
and responsibilities, it means
listening to their group and
working with them in order to
produce better outputs within
their position.
sources of competitive benefits
for company.
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3 Managerial functions and leadership roles by applying managerial theories
Functions of managers:
As per the Henri Fayol management approach, there are 14 principles and functions of
manager which are essential for dealing different types of situation in a systematic manner. In
M&S Ltd, manger has five functions which are determined as under:
Planning: It is a role of manager is to plan an effective policies about performance
appraisal system. It is essential for the company to increase employees performance and
productivity by providing appraisal on yearly basis.
Organizing: It is another function in which manager has different role such as to
organizing and conducting research program. It is significant for the manager of M&S in order to
identify needs of customer's and market trends.
Commanding: In this manager is responsible for providing clear working instruction and
order to the employees. It will help in accepting changes about the up-gradation in mobile
application of M&S.
Coordinating: It is one of the main and foremost function of management which is play
by manager in order to make coordination among employees (Griffin, 2013). Therefore effective
coordination is essential for the development and growth of organization within predetermined
time duration.
Controlling: It is a last function which is important for the manager is to control all
activities and difficult situation systematically. Beside this, manage compare results with
standards and performance of workers and take corrective and preventive measures. These are
beneficial for the success and growth of company.
4 Role of leader and functions of managers in different situation
M&S is a biggest multinational retail organization in United Kingdom and many other
countries. Recently, company facing different challenges such as getting back in fashion,
excelling at e-commerce, sorting out its stores, keeping customers hungry for more and winning
Britain's hearts and minds. All these challenges are related with different situation which are
determined as under:
Stable situation: It is refer as a situation which does not chance in frequent basis; it is
changes rarely. In M&S, such type of situation is related with policies of performance appraisal
(Childe, 2011). It is not change on daily basis and provide by manager to their employees as per
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its performance in the organization. In this manager and leader play essential role in
implementing techniques of performance appraisal such as 360 degree.
Moderate situation- It is another type of situation in M&S which is related with changing
in taste and preference of customers. For example: M&S Ltd is specialize in marketing of
lingerie, menswear, kids wear, women wear, home and beauty products and so forth, so there are
changing is relate with customer's taste. Manager and leader of the company play essential role
in conducting research program. With the help of this, they easily identify needs and wants of
customers about business products.
Fast changing- In this situation, changes are frequently done on daily basis. In M&S
such type of change is mainly linked with up-gradation in mobile app which effect on business
performance and employee productivity. As in this some employees doesn't have any knowledge
about the technology which impact on its productivity and performance at workplace (Drake, and
Spinler, 2013). It is the role of manager is to provide accurate training to their employees about
technology.
In order to overcome all these situation in an effective and essential manner leader play
vital role. Beside this different functions of manager is also significant for dealing all these
conditions in a systematic manner. Role of leader and functions of manager are determined as
under:
Role of leader: There are different role of leader which are explained as under in a detail
way:
Provide proper guidance: It is a main role of M&S leader is to provide accurate guidance
to their subordinates about the up-gradation in their mobile application. With the help of
accurate information and guidance, employees are able to deal with fast changing situation in a
systematic manner.
Communicate all information time to time: It is another important role which is play by
the leader of M&S in order to communicate entire information about the market trends, customer
taste and so on. This role help in dealing with moderate situation easily.
Implement policies of performance appraisal: In this leader implement play vital role in
evaluating their eligible worker's performance on a yearly basis (Gimenez, Sierra and Rodon,
2012). Thus, it is essential for the M&S to maintain employees turnover and achieve better
results easily.
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5 Apply different theories and models of approach, including situational, System and
contingency leadership theories
There are different theories and approaches which are apply by the M&S Ltd such as
system leadership, situational leadership and contingency leadership. All these are essential and
important for the company to maintain their sustainable performance and improve growth. These
theories has their own Strengths and weaknesses which are explained as under in brief manner:
System leadership: This type of leadership is enables the leaders in an enterprise to
develop the situations where large number of person can work productively to their potential at
all levels (Ham, Hitomi and Yoshida, 2012). This theory uses sound principles regarding human
behavior in order to develop models of organizational strategy, good leadership, social process
and system design. It gives leaders with techniques that support to predict employee's behavior in
M&S Ltd. It also assist to make effective systems which cause productive behavior as well as
lead to an effective realization of the M&S purpose.
Situational leadership: This theory is studied and developed by Paul Hersey and
Kenneth Blanchard. It is refers to when the manager or leader of M&S must adjust their style in
order to fit the growth and development of their followers. In M&S, there are three types of
situation such as stable, moderate and fast changing that effects on business performance and
operations (Kerzner, 2013). It is the role of leader is to follow situational leadership style and
maintain all these situation by conducting research, implementing performance appraisal policies
and introducing information about up-gradation in mobile application to the employees.
Contingency leadership: This type of style should be applied in a specific condition
which is mainly relay on the subordinates maturity level. For example: if followers of the M&S
lack both responsibility and knowledge, the leader of the company should applied a directive
leadership in that situation (Kusluvan and et. al., 2010). It is a role of leader is to improve
knowledge of their employees by arranging training and development classes.
6 Strength and weakness of different theories
Strength and weakness of System leadership
Strengths Weaknesses
This style of leadership is assist manager of
M&S in order to perform operations and
activities in accurate format.
In order to develop unique and new approach
in organization, this style is take more time and
money.
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It gives a glossary of ways with the
investigators from various fields can be
understood.
It gives a better framework for the
interpretation and presentation of realities and
phenomenon.
It is more complicated and lengthy in nature as
it engage different interrelated parameters in it.
It is comparatively lesser adapted method with
a component of risk.
Strength and weakness of situational leadership
Strengths Weaknesses
Situational leadership style improve
communication between the firm and its
employees.
The group environment remains effective and
comfortable as it supports in building better
team unity.
It increases awareness as the workers monitor
closely the condition in order to be cognizant
of the leadership style that is to be used.
It is a time consuming leadership style for the
M&S.
Poor understanding of the demographics
differences because of lack of high quality
occurrence in the workers as they are not
followed to it.
It tends to focuses the short term scheme as it
emphasis only on the actual scenario.
Strength and weakness of Contingency leadership
Strengths Weaknesses
It gives an effective way to assess style of
leader that could be beneficial and useful to the
M&S Ltd.
It help an organization to address contingency
situation in an easy and proper manner.
This leadership style is not helpful and useful
for training and development program.
This style of leadership create conflict among
employees.
7 Impact of roles and leaders on organization and recommendations
Impact on organization: In each and every organization, leader and manager make effect
on business performance and productivity. Manager is play vital role of managing day-to-day
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activities and policies which is good for the development of organization (Laudon and Laudon,
2016). On the order hand, leader also play essential role for giving accurate guidance and
implementing policies at workplace. Thus, both person are important part for the success and
growth of firm at large scale. Role of leader in the organization is support the employees to work
easily and achieve better outcomes.
Recommendation: As per the above mentioned information, it can be recommended that
manager and leader are main assets for the company. M&S should invite their all staff members
in decision-making process of implementing strategies, policies and technologies. Business
should also provide training to their employees who have lack of knowledge about the
technology, business process and many other actives.
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REFERENCES
Books and Journals
Online
Marks and Spencer Group PLC. 2018. [Online]. Available through:
<https://www.reuters.com/finance/stocks/company-profile/MKS.L>.
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TASK 2
1 Introduce operation management key approaches adopted by the organisation
Operational management: It is refer as an effective area of management related with
controlling and designing the production process and redesigning business operations in the
manufacturing of products or services (Lewis and Brown, 2012). Operational management in
M&S is mainly related with an effective functions such as to transform resources into finished
goods. There are different approaches to operational management and in this manager and leader
roles are determined as under:
Total quality management: It is identified as the method of overseeing entire activities
and tasks wanted to retain a desired level of excellence. It includes implementing and developing
quality assurances and planning as well as quality improvement and control. In M&S, main focus
of this approach is to improve performance and quality in all departments, process and functions
across an organization to give quality services and products which exceed expectations of
customers (Moutinho, 2011).
Six sigma: It is an approach to eliminate the defects in manufacturing of the product and
services. By this approach the management can achieve maximum customer satisfaction by
minimize the defects of the product and achieves growth of the employees. It is implemented in
the operational management of the organization. M&S is adopted this approach to minimize the
defect of the product.
Just-in-time inventory: It is refer as an essential strategy which maximise efficiency and
minimize wastes of products only by collecting goods when they are required in the process of
production. Just-in-time in operational management is essential and helpful for M&S in
decreasing the storage space of business and saving the money (Nagurney, Masoumi and Yu,
2012).
Lean production: It is another effective system which is identified as systematic and
simple approach which assist in the reduction of wastage within a production system.
Implementation of this system in the manufacturing process can support in the operational
management of M&S by enhancing the product quality, increasing efficiency in the process of
production, decreasing the use of manpower etc.
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2 Roles and responsibilities of managers and leaders in successful management of the operation
of Marks and Spencer
Total quality management: In this role of leader is to ensure effective utilization and
involvement of the entire employees. On the other hand, in this, manager also play essential role
in order to treat suppliers as a partners of business.
Six Sigma: Role of leaders are to communicate the importance of six sigma and finding
the employees who supports six sigma. Role of managers are to monitor the implementation in
the organization. Prior to that it also supports the employee of the organization.
Just-in-time inventory: In this role of M&S manager is to maintain a better relation with
suppliers to ensure that they are supply the goods at affordable price. Role of leader is to control
and check the situations of each and every machinery followed in the production process.
Lean Production: In this role of leader is to supports the employees to know their actual
duty about lean production. On the other hand, role of manager is to reports the success to the top
authority. 3 Importance and value of operations management in achieving Business objectives
Operations can be defined as an effective activity of business that an enterprise engages
in to covert raw materials into finished goods or service, sell them to clients and earn maximum
amount of capital. Operations management involves the designing, overseeing and controlling
the procedures of production. It is very essential in business operations of M&S and help in
achievement of long term growth and success. Above discussed key approaches to operation
management are important and essential which are determined as under:
Control and distribution system: It is identify as an effective factor in operations
management of M&S. As it is responsible and accountable in monitoring the process of
production and ensuring accurate allotment of the goods and services in order to achieve
organization's objectives (Paryani, 2011). The effectiveness of the distribution and control
system can be enhanced by applying a powerful control system.
Transportation of raw materials into finished goods and service: It is important way in
operations management of the company as by evaluating the product demand of customers,
product raw materiel are utilized to produce final goods of the M&S after applying the business
resources in an effective and efficient manner. Therefore, it help in achievement of business
objectives which is to produce quality products or services for their potentials clients.
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Capacity management: It is identify as an another and essential function or approach in
operational management. As this function specifies the capability of the manufacturing process
so that no extra products are manufactured in a specific production process (Rosemann and vom
Brocke, 2015). As it will help M&S to maintain strong reputation at marketplace and fulfill their
objectives within predetermined time duration. The efficiency of this functions supports the
company to manufacture the accurate capacity of goods for the clients as per the market demand
and need of product.
4 How managers and leaders can improve operational efficiency
Leaders and managers of the M&S can maximise operational efficiency and effectiveness
of operational management in order to meet business objectives in successful manner.
Empowering remote workers to work productively: In this leader must endow their
employees to bring forth on the biggest levels while performing remotely. It can assist in the
operation management as an employees are acquiring a flexible to perform in their preferred
time and locations which in move will assist to retain product quality and maximize productivity
and performance of employees. In this role of manager and leader is to provide appropriate
guidance to their workforce so they can work with more effective and accurate manner. It is
essential for the growth and success of an enterprise and also support them to achieve better
results within predetermined time period.
Improving collaboration: It is identify as one of the essential tool that each and every
managers must be apply to maximize effectiveness level in operations management of M&S. It
assist in enhancing the group work among workforce which supports in accurate understanding
and bonding of the workers. This will fulfill the business objectives regarding promoting co-
ordination and co-operation within the organization. For this role of manager is to provide
accurate information about their business operations to their workers so that they can work
collaborative and gain competitive advantages for an organization. Along with this, leader also
play an essential role with leading all workforce accurately.
Provide employees with secure, consistent access to information: It is another important and
essential way of improving operational efficiency easily. It is a role of manager to provide
accurate secure information about operations to workers so that they are able to work time to
time. Beside this role of leader is to guide their all workforce to maintain business information
secure.
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5 Impact of external business environment factors on operational management by Leaders and
managers
The business environment gets impacted by a different number of external factors which
influence the business operations as well as decision-making of manager and leader (PESTLE
Analysis, 2017). In this PEST is main external factor the impact on decision-making and
operational management. These are determined as under:
Illustration 1: PESTLE Analysis
(Source: PESTLE Analysis, 2017)
Political: M&S experienced stalled growth and success in its international business
operations due to substandard infrastructure, global uncertainties and minimised profitability in
the new marketplace (Starr and Van Wassenhove, 2014). It highly effect the government role in
analysing environmental regulations, investment norms, taxes, establishing labour policies. All
these factors are impact on operational management because in this business manager and leader
are not capable to follow all rules and regulations of entire countries. It is also impacted on
decision-making process of manager and leader to where expand business operations and
activities.
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Economic: This factor determine industry growth and future economic outlook of the
M&S. Furthermore, such factors such as raw material cost, spending, inflation and many other
factors that impact on operational management and decision-making process (Stevenson and
Sum, 2015). For example: Fluctuation in raw material cost effect on operational management
and in which manager and leader of the company not take appropriate decision which impact on
business growth and development.
Social: This factor in the M&S includes populations demographics, buying patterns and
culture aspects. In this main role of manager and leader is to identify the trends and needs of
customers. Thus, this factor effects on operational management of the M&S and decision-
making process of leader and manager.
Technological: It is another factor which impact on the decision-making activity of
manager and leader. It is also impact on operational management of the company in direct
manner. For example: M&S decide to up-grate in their mobile technology which help an
enterprise to easily manufacture their goods (Tummala and Schoenherr, 2011). In this manager
and leader make decision about providing training to the employees about the technology.
Therefore, technological factor impact on business operation and activities in a direct way.
6 Critical evaluation of application of operations management to manage factors in respect to
external environment
Operational management is more essential and important part for the success and growth
of an organization. With the help of political factor, company is capable to identify rules and
regulations of different country and manufacture goods and services as per the need of people.
Company can produce better and good quality to the customers that will help an enterprise to
maintain economic situation of country. It will also help in attracting large number of customers
which will further assist in improving social factor. With the help of technology factor, company
can easily produce their products and services to the customers which will also essential for the
development and growth of company in limited time period. Inaccurate management of
operation is also effect on business performance and profitability in a direct manner.
Operation management is more essential and significant for the M&S in order to manage
their external sources in an effective manner. Crucial for operations. Short-term or Sudden
variation in demand effect on productivity, capacity utilisation, etc. Alteration in interest rates
also effect on the cost of financing capital investment in management of operations. Greater
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regulation and rules of the environment places unique challenges for objectives of operations.
Also very essential – particularly in marketplace where product life cycles are little, production
processes are costly and innovation is rife. With the help of operations management elements
such as Six Sigma, Lean production etc., company can easily manager their external environment
and achieve better results within predetermined time duration.
Operation management can assist an enterprise to implement strategic objectives,
process, strategies, planning and controlling. Thus with the help of this an organization can
easily enhance their success and growth at marketplace. High cost of equipment, difficulties of
adopting to changes in demand, under utilization of human capabilities are consider main
disadvantage for the operations of company.
7 Conclusion and recommendation for future improvement of organization
From the above mentioned information it can be concluded that operational management
is essential for the company because it help them in reducing wastage and improving sales. There
are some recommendation to the Marks & Spencer which are determined as under:
 Company should adopt different technology which will assist in producing goods and
services at quick manner.
 M&S should provide training and development to their workers who has lack of
knowledge about technology. Thus, it will also assist an enterprise to achieve better
results within predetermined time period.
 Company should try to innovate in their manufacturing process which will also essential
in attracting large number of customers and achieving long term goals and objectives.
 M&S should follow the concept of online purchasing which will help them to maximize
customer satisfaction and retain long run sustainability at marketplace.
 Another and main recommendation to the clothing sector is to use social media platform
which will help an organization to maximize customers base and increase their sales.
CONCLUSION
From the above mentioned information, it can be concluded that, operations management
is important for the company to produce quality products or better service to the customers.
There are different approaches to operations management which are used by the company to
maintain wastage of products and increase their profitability. In this leader and manager play
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vital role in maintaining three types of situation such as stable, moderate and fast change. For
this, situational, contingency and system theory of leadership also significant for the leader to
deal difficult situation in a systematic manner. External factor of business environment impact on
the operational management of firm in a direct manner. It will also effect on the decision-making
process of manager and leader of company about expanding business operation at large scale.
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REFERENCES
Books and Journals
Online
PESTLE Analysis. 2017. [Online]. Available through: <http://www.mbaskool.com/business-
concepts/marketing-and-strategy-terms/7249-pestle-analysis.html>.
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