Introduction to Operations Management - Marks and Spencer

MANAGEMENT AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Definition and comparison of different roles and characteristics of a leader and a manager 1
TASK 2............................................................................................................................................3
P2 Roles of a leader and function of a manager apply in different situation along with
examples.................................................................................................................................3
P3 Different theories and models of approach including situational, system and contingency
leadership................................................................................................................................5
TASK 3............................................................................................................................................6
P4 Key approaches to operations management......................................................................6
P5 Importance and value of operations management.............................................................8
TASK 4............................................................................................................................................8
P6 Factors within business environment that have an impact on operational management and
decision making......................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Management and operations is considered as an effective department that provides basic
facilities through which company can increase their efficiency level. In addition to this, if firms
wants to gain maximum profits than it assist them in converting raw material into final goods
(Jacobs, Chase and Lummus, 2014). Company on which assignment will focus is Marks and
Spencer which is a leading organisation in United Kingdom and deals in retailing, selling
clothes, home products and appliances etc., Present report will focus on difference between role
and functions that are being performed by leaders and managers respectively. In addition to this
application of these role and function as per the different situations is mentioned in this
assignment. Other than this, understanding of relationship between leadership and management
in order to gain business objectives in included in this report.
TASK 1
P1 Definition and comparison of different roles and characteristics of a leader and a manager
Marks and Spencer is a leading company and was established in the year 1884, major
area in which firm deals are clothings, household products and retail. People who are working in
M&S are around 84,939 which are large in number and playing their part in providing company
with profits by dealing with customers in an appropriate manner. There are different kind of
management structure that can be followed by company but Marks and Spencer has adopted Flat
Organisational Structure which is explained below for better understanding:
Flat Organisational Structure of Management: Management structure depends upon the
nature of business that is going in an organisation thus, in context with Marks and Spencer, they
have incorporated flat structure of management, under which no level in the management system
is present and between superiors and employees as well. Therefore, while decision making it
becomes quick as they doesn't have to wait for the approval of executives (Chiarini and
Vagnoni, 2015). With the help of flat organisational structure, entire process of bureaucracy is
eliminated and it provides an opportunity to staff members of taking any kind of decision but
instead of this employees and their head to report to superiors of a particular departments. Main
purpose of adopting flat organisational structure of management is that it reduces operational
cost price and plays a crucial role in enhancing a better communication between other members
which assist them in working for a common goal.
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Managers: Managers are those who are in prime responsibility of managing a group in a
company. Their major work is to formulate objectives and addition to this, to make sure if these
aims and objectives are being achieved or not (Ahuja, 2017).
Leaders: They are determined as a person who are lead the team in such a manner so that
all the task can be achieved in speculated period of time. Further more, leaders guide or show
paths that are appropriate for attaining set targets.
Basis Leaders Managers
Approach According to Leaders their
main approach is to fix
directions which can further be
used as a help for completing
the desired goals and
objectives.
In terms of Managers, they
perform their task with the
approach of assigning roles
and responsibilities so as to
identify what task is to be
given to a particular person.
For this they monitor
behaviour of employees on a
regular basis thus, it will assist
them getting an effective
outcomes.
Vision With the help of better
communication leaders share
their vision so of where he/she
is seeing their staff members
after a couple of time. For this,
they develops strategies so as
to attain the set targets.
In terms of managers, they
make sure that whatever vision
is there all these are performed
with the help of available
resources within the
organisation.
Path This criteria comes after
setting up a vision, and to
attaining a particular vision it
is necessary that a define path
is being taken and these are set
Here, role of managers is to
provide with all the basic
facilities that will be needed
for completing the task. This
includes cost required,
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by leaders. Therefore, it has to
be very appropriate so that
success can be achieved.
resources and many more
(Chevalier, Lamas, Lu and
Mlinar, 2015).
Purpose Main purpose of leaders is to
encourage employees so that
they can feel motivated while
performing a task. As a result,
outcome will be effective in
nature.
In this, managers go through
the behaviour of an individual
and try to help them out if
workers find any difficulty in
coping up with situations. This
helps managers in establishing
working environment where
people can work selflessly.
Style Majorly transformational style
is being used by leaders for
accomplishing their task
because it gives them an
opportunity of identifying
modification that are required
to be done for developing a
vision.
In terms of managers,
transactional style is being
adopted as it assist them in
doing supervision so as to find
out to whom they can give
rewards and punishment
respectively.
Focus For doing their work they
mainly focus on people.
They focus on both people as
well as process for performing
their task and operations.
TASK 2
P2 Roles of a leader and function of a manager apply in different situation along with examples
In M&S both leaders and managers play their crucial role according to the different
situations and circumstances more over role of leaders and functions of managers are explained
below so as to understand it in a better manner.
Functions of managers:
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Selling and merchandising: In this commercial manager plays its crucial role as they
helps company in selling and merchandising their products which are made by the firm for
increasing its sales and profitability (Saucedo-Martínez and et. al., 2017). Thus, for this,
commercial manager use and identify ways through which they can sell their goods faster as
usual. For example: there may be some difficult situations where sales can be reduced so senior
manager can ask for the reason and guide respective manager to evaluate methods through which
it can be overcome. Like they can add some valuable features in their existing products. As a
result it will increase its sales and generate more and more revenues in return.
Influence in profit: Financial manager here plays a crucial role, they assist company in
making appropriate budgeting plan for executing plans in an effective manner. Computer and
security system are also considered in this and people of this department tends to make software
which can secure their financial data and no one can use them for any false conduct. For
example: if firm is going through with shortage of money than finance manager can go to
stakeholders or investors who can invest some amount of money or provide them with adequate
funds in return.
Staffing and training: This is considered as an important function that is performed by
managers and through this, process they tend to hire eligible and suitable candidates who are best
fit for the job. For example: there might be a situation when company is going through losses and
in this circumstances it is required that enterprise hire suitable candidates who can work and
provide maximum benefits to organisation (Ravindran, 2016).
Henceforth, all the above mentioned points are as per the role of managers that are
performed by managers in different situations, thus, with the status of business managers of
respective departments have to report to superiors who are at the top level and consider as
executives. As a result it will assist company in knowing about progression of company whether
it is in forward direction or not.
Role of Leaders:
Improve awareness amongst employees: Leaders while providing guidelines and
appropriate paths, go through external and internal factors which can have ans impact on
business operations and team performance. Leaders show appropriate path to workers which
improve knowledge and perspective of thinking in different situations.
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Great Motivators: Leaders are considered as great motivators and for this they utilised
different activities through which they can boost morale of employees and this will help them in
gaining superior position at market area (Hitt, Xu, and Carnes, 2016).
Role of leaders according to situations:
Directing its team members: In a team leaders are the one who are great motivators and
show appropriate paths to other team mates so that they can achieve goals and objectives in a
speculated time period. For example: company has provided an objective of formulating
strategies so that they can improve company's sales and profitability. So, here leaders can guide
them about the key points which they can incorporate for making and attaining the given task in
a better manner.
P3 Different theories and models of approach including situational, system and contingency
leadership
There are different types of management theories that can be adopted by companies for
having better growth in business operations thus, some of the theories are explained below for
having better understanding:
System Leadership: This kind of leadership theories is adopted by company in order to
perform their business activities in a systematic manner. In context with the managers of Marks
and Spencer, they provide appropriate environment where employees can share same feelings
and can work for a common goal.
Strengths: The biggest strength of this is that entire work is being done with systematic
manner without being interrupted and hierarchy moves from top to bottom level.
Weaknesses: Ineffective communication can leads to chaos and conflicts between
employees which can further mislead team while performing their task for achieving goals and
objectives (Dobrzykowski and et. al., 2014).
System leadership theory can be applied by Marks and Spencer for doing their activities
in an effective and systematic manner such as getting the product from whole sale to aligning
them according to their section. This theory assist them in performing their work in a better way.
Situational Leadership: If any company is going through crises and wants to gain
success in short period of time than this kind of theory is being used. For example: there is a
circumstance that a lot of products have been manufactured and sale is zero than managers of
company can use promotional activities for improving its sales. In terms of managers of Marks
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and Spencer, they are making adequate strategies according to current market situations and for
this, they are using various kinds of tools and technologies.
Strengths: Quick decision according to circumstances can provide maximum benefits
and assist companies in achieving short term goals.
Weaknesses: In some situations there can be a possibility that instead of giving benefits it
can be have a negative impact on business.
In relation with situational theory, Marks and Spencer can apply this theory like they can
act as per the requirement of company in different circumstances. For example: during high time
company can increase the process of selling goods and they can appoint more employees for that
time being in order to go through the situations.
Contingency Leadership: Company incorporate these theory for gaining maximum
benefits this can be have both positive as well as negative impact on business what important is
that firm make policies according to current market situations. For example: Marks and Spencer
is training workers using various activities so that they can work under pressure.
Strengths: This assist employees in performing their task in an effective manner using
their skills and knowledge (Brandenburg and et. al., 2014).
Weaknesses: Contingency leadership may restrict employees in using their brains for
executing their task in a creative manner.
This theory is applied when there is an urgent need of products thus, Marks and Spencer
can use this leadership theory for manufacturing and delivering a large number of products to a
specific customer or client.
Management theories:
Modern theory of management: This management theory is adopted by most of the
companies in order to gain maximum benefits and it is considered as a modern theory. In this for
manufacturing and producing goods company optimises latest tools and technologies which
increase their productivity level in speculated period of time.
Classical theory of management: This is a traditional form of management and it is used
by companies who run their business with a mindset of orthodox nature.
Henceforth, managers and leaders of Marks and Spencer are incorporating these theories
while performing their roles and responsibilities.
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According to Gao and You, (2015), it can be analysed that various theories adopted by
companies and increase in performance growth depends upon how they are implementing these
theories. With the help of using different theories they can make flexible strategies. So, if firm is
not getting appropriate results than they can make some changes and modifications.
TASK 3
P4 Key approaches to operations management
Operational management is a crucial part of a company which assist leaders and
managers in accomplishing their task as per the plan and strategies made by them. Thus, the
department gives appropriate things that are required for completing the works. Further some of
the theories are mentioned which are have been utilised by Marks and Spencer are explained
below:
Six Sigma Theory: This tool is used when company wants to attain their goals and
objectives as it assist firm in identifying and analyse issues which can hamper company while
executing their plans and action in an appropriate manner. Six Sigma theory, includes certain
factors which assist firms in reducing the process that use to be determined while manufacturing
goods and products. Along with this, it minimises effects of population. Therefore, it can be said
that Marks and Spencer are manufacturing goods as per the needs and wants of customers which
is enabling them in increasing their sales and profitability (Six Sigma Theory, 2018).
Just-in-time: This kind of a theory is being used by companies for producing good in
time frame. Thus, it is determined as an inventory system that assist firm in converting raw
materials into final products. Moreover, they help organisation in reducing waste product so that
products can be manufactured accordingly. Therefore, it can be said that this unit manufacture
goods when it is required. For example: For Marks and Spencer if there is a need of 100 units of
clothes than company will get raw material of these 100 unites so as to eliminate wastage
(Bromiley and Rau, 2016).
Lean Production: This is considered as an essential factor in order to get free from
wastage within the organisations. Thus, lean simply helps in minimising wastage that is a big
issue in organisation. Therefore, Marks and Spencer is making appropriate use of this theory and
as a result they are able to produce goods without wastage.
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Improvement on timely basis: With the change in course of time, a new technologies
emerges with the help of which company can produce goods that are according to the current
market scenario. In context with Marks and Spencer, they are making modifications in their
manufacturing process and other required materials which is assisting them in improving its sales
and profitability.
Role of leader and mangers:
Planning: For running any kind of business it is essential that proper planning is done,
for this leaders and managers both work in order to make strategies and plan of action which can
be implemented for better outcomes. Therefore, in context with Marks and Spencer, mangers and
leaders while planning they consider all the aspects that are available in the market as a result it
will assist them in transforming plan into reality (Gunasekaran, Irani and Papadopoulos, 2014).
Managing work: If the organisation is big like Marks and Spencer than managing work
for managers is quite difficult because it includes different departments who perform their task
separately. Thus, it is prime role of managers that they assign task as per the capabilities so as to
get an ideal outcomes. Whereas leaders guide and show appropriate paths to staff members in
order to attain set targets in a better manner.
Proper coordination: While working in a team it is required that a proper coordination is
maintained and for this both leaders and managers plays a crucial role by providing effective
workplace to employees.
P5 Importance and value of operations management
Marks and Spencer is one of the leading company in United Kingdom, who are providing
services and facilities to its customers. They are manufacturing products which are related to
households and clothing items. Organisational management assist company helps in developing
appropriate plans and designing things in such kind so that if necessary modification can be done
if necessary (Martínez-Jurado and Moyano-Fuentes, 2014). As a result it will improve its sales
and profitability in given period of time. In relation with Marks and Spencer, they are working in
providing effective goods and services and some of the factors are given below which can have
an effect on business operations are mentioned below:
Functions of Marketing: The purpose of this department in Marks and Spencer is to
improve sales and profitability of the company in a given time period. Thus, firm will use
effecting marketing tool like social media, advertisements etc., so that targets can be achieved in
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a limited time frame. Therefore, this will help company in attaining their set goals and objectives
which will gradually assist Marks and Spencer in attaining a superior position at market area.
Increase profitability: In context with Marks and Spencer, managers and leaders both are
playing their role as former one is managing entire operations by allocating task as per the roles
and responsibilities and in addition to this, they are providing latest tools and technologies that
are essential for completing task. Whereas leaders are guiding and providing appropriate paths
through which staff members can attain goals and objectives.
Function of Finance: Department of finance plays a crucial role in an organisation as
they provides funds which company want for executing their plans in a better manner. In terms
of Marks and Spencer, they have set a fixed revenue which they want to earn in a given period of
time. Therefore, better the services better the customer satisfaction. Thus, this will improve the
brand image of the organisation in front of their customers.
Customer's Satisfaction: Like other organisation Marks and Spencer, is manufacturing
goods according to the need and wants of customers so that customer satisfaction can be
fulfilled. Therefore, in order to know consumer's choices and preferences they are conducting
surveys and taking feedbacks from customers.
Functions of Human Resource Department: In every organisation HR department plays
an important role as they hire suitable candidates who are best fit for the job. Other than this,
they provide adequate amount of resources which can assist them in providing better services
and facilities to customers. Role of operational management in this is to increase the productivity
level of company and for this they have given responsibility to HR department for selecting
eligible candidates for the job. Human resource department, other than hiring and selecting
eligible candidates they look after the basic needs that are required by an individual working in
an organisation. Moreover, in order to do this, HRM department determine various division
within the company so that vacant post can be fulfilled. As a result, this will increase the level of
productivity of the firm in a speculated time frame.
Maximum use of resources: Producing goods in best quality must be the prime work of
companies. Henceforth, in relation tos Marks and Spencer, to its employees they are providing
proper training which is assisting them in increasing their knowledge and skills. As a result
workers are using resources accordingly without wasting them (Prashar, 2015).
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Cost management: It is a process in which proper planning are made in order to control
the cost that are included in a business. It is determined as one of the most challenging task for
the operation management because the have to consider different factors before formulating any
kind of strategies and action plan for business. In terms of Marks and Spenser, before making an
action plan they consider the activities of all the department such as sales and marketing,
production division etc., as a result, it is enabling them in making effective strategies that can
provide benefits to the company.
Importance of operational function: This department helps in performing day to day
activities which can provide benefits to the company. This assist firm in fulfilling the demands of
customers in speculated time frame. Other than this, it assist firm in accomplishing the task in a
systematic manner without any complications.
TASK 4
P6 Factors within business environment that have an impact on operational management and
decision making
With the raise in competition at market area it is crucial that company, while operating
their business make more precise and curate strategies through which they can get maximum
benefits. In this context operational management department plays an important role in
identifying the problems which can in future, hamper business operations and it is being done as
per external and internal factors that are given below:
Internal Factor: While running a business there are various factors which can have an affect and
it can be seen on task that are being performed by workers. In relation to Marks and Spencer is
explained below:
Human resource management: This department of Marks and Spencer are selecting
candidates who are skilled and have adequate knowledge of management (Kim, Sting and Loch,
2014). In addition to this, company is providing training to employees so that they can improve
their existing knowledge.
Organisational culture: Environment which is provided by Marks and Spencer is
appropriate and employees are given equal chance of presenting their thoughts and views. As
company is big so there is a chance that people of different culture are working and managers of
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M&S ensure and helps in providing better workplace where workers can face mutual
understanding while accomplishing the task. Thus, it is providing positive environment.
Employees: For an organisation workers are their valuable assets because they are the
one who so their activities for providing benefits to the company. Thus, it is important that
provide all the required resources with the help of which they can perform their action.
External Factor: These factors also have their impacts on business operations and it includes
factors that are beyond the control of company. Further elements that are included in this are
explained below:
Corporate Social Responsibility: This is used for enhancing customer value and it is
further linked with total quality for Marks and Spencer. Thus, this factor is being used for
manufacturing goods that are best in quality and assist companies in improving its sales and
profitability (Jacobs, Chase and Lummus, 2014).
Business Ethics: There are different kinds of rule and regulations that are formulated by
regulatory bodies and these are known as business ethics. Further more it is crucial that Marks
and Spencer perform their task remaining under this so, that unethical practice can be avoided.
Trade Laws: In this rules and regulations that are required while establishing company
are taken into consideration. This can differ from place to place where firm has implanted their
business operations. In addition to this, it involves negotiation skills so that trading can be done
in an appropriate manner as per the terms and conditions without any complications (Chiarini
and Vagnoni, 2015).
Furthermore, external factor can be understood with the help of PESTLE analysis and it
is explained below for better understanding:
Political Factor: This is an external factor that have an impact on business operations
because government are the one who formulates strategies, rule and regulations, laws and
legislations so that all the activities can be regulated in a better manner. As in United Kingdom,
governments are stable and no sudden change can be seen thus, for Marks and Spencer it cannot
have any kind of impact. But in some situations like limiting the resources for the organisation
can have a huge impact on firms and further it can decrease company's sales and profitability.
Economic Factor: This is also a crucial factor which company must keep in mind and
make strategies accordingly because a sudden change in economic policies like change in tax
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policies, export and import tax etc., can have an impact on business. As they have to modify their
policies for getting better results.
Social Factor: Marks and Spencer is a retail manufacturing company and they are
producing goods and products according to the needs and wants of customers. Research and
development department of M&S is conducting surveys in order to know the choices and
preferences so that best thing can be delivered to customer in quick time.
Technological Factor: Marks & Spencer has strong online or social media presence so it
is placed to capitalize in avenue. In this present time period, main focus on consumers is on
technological advancement and they also prefer the online retailing as comparison to in- store
buy.
CONCLUSION
From the above report it has been concluded that management and operations is one of
the important part of an organisation. They tend to work in order to give basic facilities that are
required for doing and performing business operations. In addition to this, leaders and managers
give appropriate training and programmes through which workers can increase their skills and
knowledge. Therefore, the entire report was done in order to evaluate the importance of
management and operation in an organisation.
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REFERENCES
Books and Journals
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.
Chiarini, A. and Vagnoni, E., 2015. World-class manufacturing by Fiat. Comparison with Toyota
production system from a strategic management, management accounting, operations
management and performance measurement dimension. International Journal of
Production Research. 53(2). pp.590-606.
Ahuja, R. K., 2017. Network flows: theory, algorithms, and applications. Pearson Education.
Chevalier, P., Lamas, A., Lu, L. and Mlinar, T., 2015. Revenue management for operations with
urgent orders. European Journal of Operational Research. 240(2). pp.476-487.
Saucedo-Martínez, J. A. and et. al., 2017. Industry 4.0 framework for management and
operations: a review. Journal of Ambient Intelligence and Humanized Computing, pp.1-
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Ravindran, A. R., 2016. Operations research and management science handbook. Crc Press.
Hitt, M. A., Xu, K. and Carnes, C. M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Dobrzykowski, D. and et. al., 2014. A structured analysis of operations and supply chain
management research in healthcare (1982–2011). International Journal of Production
Economics. 147. pp.514-530.
Brandenburg, M. and et. al., 2014. Quantitative models for sustainable supply chain
management: Developments and directions. European Journal of Operational
Research. 233(2). pp.299-312.
Gao, J. and You, F., 2015. Optimal design and operations of supply chain networks for water
management in shale gas production: MILFP model and algorithms for the water‐
energy nexus. AIChE Journal. 61(4). pp.1184-1208.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Gunasekaran, A., Irani, Z. and Papadopoulos, T., 2014. Modelling and analysis of sustainable
operations management: certain investigations for research and applications. Journal of
the Operational Research Society. 65(6). pp.806-823.
Martínez-Jurado, P. J. and Moyano-Fuentes, J., 2014. Lean management, supply chain
management and sustainability: a literature review. Journal of Cleaner Production. 85.
pp.134-150.
Prashar, A., 2015. Assessing the flipped classroom in operations management: A pilot study.
Journal of Education for Business. 90(3). pp.126-138.
Kim, Y. H., Sting, F. J. and Loch, C. H., 2014. Top-down, bottom-up, or both? Toward an
integrative perspective on operations strategy formation. Journal of Operations
Management. 32(7-8). pp.462-474.
Online
Six Sigma Theory. 2018. [Online]. Available Through. <https://www.sixsigmadaily.com/what-is-
six-sigma/>.
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