Table of Contents INTRODUCTION...........................................................................................................................1 TASK1.............................................................................................................................................1 P1 Comparison between different roles and features of manager and leader.............................1 P2 Function of manager and Responsibilities of leader in different situational context............3 P3 Approaches and theories of leadership..................................................................................4 TASK 2............................................................................................................................................5 P4 Key approaches of operation management and role of leader and manager.........................5 P5 Significance and value of operations management in attaining organisational objectives....6 P6 Factors which impact on operational management and decision making..............................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION According to Henri Fayol, management is all about controlling, planning, organizing, commanding, forecasting and coordinate activities of others. Operations means the tasks which are performed by company for generation of revenue. These activities are carried out on daily basis and managers are responsible for supervising and controlling them (Barratt, Choi and Li, 2011). M&S is an organisation which is known for their clothing business. This company mainly operates in retail sector and offering can be categorised on basis of clothing, food items, furniture, beauty products etc. This project will include differences between characteristics of leader and manager. Their roles in different situation will also get discussed in this assignment. There are many theories of leadership and they will be explained in this file along with some key approaches. Operational management is essential part of every company and its rapprochements will be included in this project (Berger and Solferino, 2012). Besides this, their importance in achieving organisational goal will come under this file. This assignment will talk about the factors which influence decisions that are taken by leaders and managers. TASK1 P1 Comparison between different roles and features of manager and leader M&S is a public limited organisation which is running their business in retail sector. This business was founded in 1884 and now possess a worldwide presence. When M&S started their business, they were only focused on selling high quality of cloths but gradually they entered in other segment like food, home décor etc. At present, it has been identified that Food section is experiencing major expansion when compared with clothing line-up of the company. Management structure of M&S Marks and Spencer has a flat management structure. When an organisation has global presence then they have to give power to all the managers who are present in different countries and at different levels. Executive director is the key person in this company and directors of various other divisions report directly to this person. This organisation has different segment and every section has its own manager (Bhasin, 2011). Director of food, Head of Retail, Head of Human resource, Head of Communication & Investor and Head of corporate Governance are few departments who directly report to Executive direction. Scalar chain in M&S is not lengthy and employees who are working at ground level can easily reach to managers of their division. 1
Manager– Manager is a person who is responsible for administration and monitoring. He/she take orders from top level management and convey it to people who are working in his/her team to achieve rightful completion of the tasks. Leader– Leader is a person who lead a team and he/she also have followers. This person has power to motivate others and, have a vision for whole organisation. Leader do not get involve in daily business but he/she is responsible for taking big decisions for the company. Comparison between characteristics, function and role of manager and leader BasisManagerLeader VisionManager do not have a vision. They just follow the command which is provided by leader to them. It is the duty of manager to assist company in moving forward towards their vision. Leader always have a vision. FounderofM&Swantedto providegoodqualityof product to every person and as aleader,thiswastheirkey characteristic. PlanningPlanning is done by managers buttheydonotmakelong termplan.Theymake strategiesforachievingso companycanexecutivelong term plans in an effective way. Leaders make plans for long term.Theirthoughtsarenot limited to profits, their make plansocompanycanattain their mission. FunctionManagersmakerulesand establishprocessofdoinga task. Leadersbuildteamand communicategoalsto managersinordertoseek commitmentfromall employees. 2
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CharacteristicsManagers have to possess few qualitiesofleaderliketeam building, so they can do their job in appreciable way (David, 2011). Leaders do not need the skills of manager because their work andmindsetiscompletely different. P2 Function of manager and Responsibilities of leader in different situational context M&S is an organisation which has global presence. Change in business environment environment bring challenges to every company and if manager and leader will not understand theirroleinthesesituationthencompanymayfailtoachievetheirsetgoals.Leaders accountability and manager's function is mentioned below: Formulation of strategies– M&S understand that they cannot get stable at a single point and they have to expand their business in countries like China and India, as Asian region possess a potential in driving growth of this undertaken business. When M&S decided to enter in Indian market, they have to make strategies so they can compete with their global rivals like ZARA, H&M etc. Managers play an important role in understand the Indian market and they gathered all the significant information which is required for formulation of strategy. This company was entering in a market which is going to moderate changes. Manager's function was not limited to getting ground knowledge, they also got the responsibility of executing the strategies which was made by management (Johnstone, 2016). Leaders of M&S knew that they have to be flexible and make those strategies which can be modified with time. They were accountable for showing direction to the employees and motivate them to work without an unnecessary burden. Decision making– Last year M&S took a big decision i.e. to get out of the Chinese market. China has the world biggest retail market and M&S could earn huge amount of money from this country. The change in this market was predictable because every retail company knew that buying power middle class group is increasing and urbanisation will assist retail companies in attain desired growth. Managers of different stores of M&S monitored the growth of company and found that company do not have much scope of growth because of the issue of less ''brand awareness''. They helped Leader in making a big call i.e. to exit from China. Leaders role in these type of situation is very important. They have to motivate their employees that sometime 3
things do not go according to the plan of company but this does not means that they stop moving forward in right direction and take right step (Liker and Morgan, 2011). Contingency situation– Brexit developed an environment of uncertainty in UK. M&S have sound presence in domestic market by rapidly changing business environment is increasing number of problems and opportunity to Marks and Spencer. Leaders normally do not get involve in daily operations but in this situation, they have to work like a manager and get involve in everydayoperationssothatsustainabilityinthebusinessoperationscouldbeachieved. Managers, on the other hand, analyse market so they can communicate the changes which is happening in the market and assist leader in making fast decisions. P3 Approaches and theories of leadership Every leader has his/her own style of leadership. It has its own strengths and weakness but this does not mean that leader switch his/her leadership style by copying a successful leader. Following are leadership approaches and theories: Situation leadership– This type of leadership demand alterations in the leading style which a leader have to adopt according to the situation. M&S support democratic leadership but sometime situation force their leaders to follow autocratic style so leader can get more power and bring some strictness in the organisational work. Situational leadership has a unique advantages i.e. it is a realistic approach which can adopted by any leader (Luna and Bott, 2012). The drawback which is attached to it is the confusion which come in the mind of followers when leader make changes in his/her working style.M&S have certain organisational policies which is same in all the countries where they are present. For example, they never support heavy discounts on their products because their cloths and other offering get launched in premium segment. But at the time of entering in India, they adopted different approach and situational leadershipstyle.Initiallydomesticleaderswerefollowingthispolicysetbytoplevel management but after sometime, by analysing situation, they started giving heavy discounts on their offering. Leaders acted according to the market condition and it impacted company in a positive way. Systems leadership– M&S is a successful firm because they have a system for every task which they have to perform. Compared to other, this is a bit different kind of leadership where leadership is not related to one person. All the key people who are responsible for generating a productive environment comes under the tag of ''leader''. System leaders have authority to make 4
decisions and it is given by management of the organisation. Strength of this approach is that it allow individuals to attain own targets along with the organisational objectives.M&S is using system leadership in their big or prime stores. They allot different kind of responsibilities to an employee and check that which work he/she can do better. After analysing strengths of every employee, they develop a process where specialised workers work together on a system and move forward towards organisational purpose. Contingency leadership– Contingency theory argues that there is no perfect leadership style and a leader have to change his/her attitude and thinking according to the scenario. Rigidity would not allow leader to tackle a problem and this is why contingency approach focuses on flexibility. Merit of contingency leadership is that it is a practical approach and it support flexibility. But the major issue with it, is the complexity and confusing which happen when leadership changes his/her mindset. M&S try to avoid this type of leadership because of its fit- ability in the organisation (Mendis, Muttaqi and Perera, 2014).Last year, head of M&S at India decided to leave his post and top level management at London decided to appoint James Munson as the new managing director. They analysed whole situation and found that they need a person who must have good experience of retail and marketing because competition in India is tuff. Contingency leadership follow the concept of fit-ability and choosing a person from marketing field over finance can be considered as its perfect example in business context. M&S basically follow situational leadership but their leaders should make sure that they do not make major changes in the process and their working style because it may distract employees from proceeding towards company's mission and vision. Leaders should explain every decision which they are taking to the employees so the issue of confusion and moving in wrong direction get resolved. TASK 2 P4 Key approaches of operation management and role of leader and manager Operations management is one of the most important part of an organisation's business and it assist managers & leaders in developing a sound process of manufacturing goods (Operations and Project Management (OPM),2017). These approaches do not only concentrate on reducing cost of operations, they also help in delivering high level of customer satisfaction. 5
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M&S is serious about quality of their products and below are few operational approaches, along with responsibilities of leader and manager, which is used by this company: Hybrid approach– M&S understand the old approaches of operational management are losing their importance with time so they adopted a new approach which is popular by the name of lean six sigma. In operational management, these are two different approaches but M&S develop a hybrid version where they focus on reducing expenditure of all the operational process like manufacturing, delivery, etc. With that, they also tried to increase quality of their production by use six sigma tool. This tool assist an organisation in developing a system where, if a company produces 100000 goods then only one of them is found defective. Quality main concern for M&S so they have adopted an approach which minimises wastage of resources and increase quality of company's goods. Employees have to go through training when they company work on hybrid approach. Leaders are responsible for convincing employees and managers to increase their working hours so they can do their routine work and joining training session. They inspire them by communicating the advantages of learning new things and hard work. Managers role in this situation i.e. work on hybrid approach is basically of monitoring and controlling. They check that whether the process is followed or not, according to the demand of top level management. Total quality management (TQM)– It is an old but very effective approach where organisation develop an atmosphere which promote continuous improvement. This work is not done by only having a meeting of top managers and leaders, various stakeholder like customer, workers, suppliers are involved in it (Niknam, Meymand and Mojarrad, 2011). This approach have 5 principles, quality production, concentrate of buyers, develop strategic approach of improvement, regular improvement and mutual respect. Managers resolve various issues which is faced by employees and customers on daily basis for ensuring that operational processes run without any hindrance. Leaders motivate workers and managers to overcome own weaknesses and use their creative minds so company can focus on continuous improvement. Leader also take big calls like whether new machinery should be installed in company of not. P5 Significance and value of operations management in attaining organisational objectives M&S want to sell their quality products in all the part of this world. They want to reach every single customer who is interested in buying better quality of cloths and other products. Rivals of this company has tainted their image by projecting them a company who charge huge 6
amount from the customer in the name of quality products. Now, one of the key objective of M&S is to ensure ''value for money''. M&S want to become a trust brand and regular innovation is their another target. Importance and value of operational management approach is as follows: Hybrid approach –Marks and Spencer adopted this operational management approach because they wanted to reduce prices of their commodities but without sacrificing quality of goods. Their is no doubt that the products like cloths of M&S is expensive. Hybrid approach reduces various kind of unnecessary expenditure which was increasing burden of cost on the organisation's product. Six sigma helped company is developing an effective process which is assisting company in achieving their targets (Palizban, Kauhaniemi and Guerrero, 2014). M&S seek high customer satisfaction and they know that providing value for money is only possible when they sell quality products at competitive price. Hybrid approach helped M&S is attaining all the objectives at same time. TQM-TQMisanapproachwhichpushesanorganisationtowardscontinuous improvement. Customer satisfaction is important for growth of an organisation and prime objective of M&S satisfy all the needs of their customers. TQM do not only involve leaders, employees also give their inputs at the time of making a call regarding systematic approach for proceeding towards organisational goals. Total quality management include fact based decision making. This help managers of M&S in making more realistic strategies and it reduces risk elements which is involved in any plan. Innovation is essential for business organisations in this era. TQM promote innovative ideas and it allow company to get ''out of the box'' solution of issues like reduce cost but increase quality, at same time (Zhang and Chen, 2014). Leader's and manager's responsibility in improving operational efficiency M&S is a successful organisation because their leaders and managers understand their responsibilities and they know if they are not serious about effective execution of approaches then company can never achieve their set targets. Leaders play an important role in motivating employees to serve their thoughts in-front of management. They also evaluate all the option relation to operational process and make decision about which procedure or technique of production should be considered by the organisation. Adopting hybrid approach was a decision which was taken by leader of M&S and it is now assisting company in attaining organisational 7
objectives. Managers are among most important people of the firm and they monitor as well as control whole operational process. Employees make mistake at the time of following approaches like TQM. Managers make sure that employees does not repeat same mistake and workers innovation get convert into reality. P6 Factors which impact on operational management and decision making External factors have capacity to influence the decision-making process by leader and manager (Vogel, Güttel and 2013). One can make plans for those things which are in hand of company but managers & leaders cannot control external elements. Impact of external elements on wider business environment and decision making: Economic condition– M&S is operating in many countries and economic condition of every nation is different. In UK, economic growth of country is in poor condition and it is creating hurdles for leaders and managers in making decisions daily operations. M&S want to open more stores in UK but because of low economic growth of country, they are have to make change in their decision. They understand that demand of goods will be low if economic growth is down. Technology– M&S want to reduce their cost of business so they can sell their products at competitive price butthey have to adopt new technology with time in order to run their business in effective manner and save their business model from getting obsolete. Leaders of this company try to make strategy for minimising expenditure but rapid change in technology negatively impact the decisions which they are making after thorough research (Shuxin, 2011). Globalisation– Every country is opening their economy for foreign investment and import-export restriction are also changing with time. Their was a time when M&S wanted to expand their business operations in limited region gradually but when managers and leaders found various advantages of globalising their operations then make a big change in their decision and adopted an aggressive expansion plan. This external factor positively affected growth of company's operations. Apply operation management for managing impact of external factors: The reason behind adopting a hybrid approach in M&S is demand of the situation. Technology is assisting M&S in improving their business but it is putting an addition burden of operational cost by forcing company to adopt new technology. Hybrid approach is minimising the negative impact which technological changes in doing on company's operation (Travis and 8
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Rekhtman,2011).Thisapproachisreducingcostofbusinessandimprovingqualityof organisation's products. TQM is an important approach which is assisting M&S in increasing their number of stores and assuring that more customers are getting attach to company. Recommendations for improvement M&S should develop more hybrid approaches and they should also focus on proper execution of these approaches. If they will concentrate on these two things then will not remain vulnerable in-front of external elements. Planning does not assure success, proper execution of approaches of operational management is also important. CONCLUSION Attheend,itcanbeconcludedthatleader'sandmanagersmayhavedifferent characteristics and role but if either of them will not do their job according to the need of time then company cannot attain desired outcome. A leader has to make amendment in his/her leadership style according to the situation. Every organisation has their own approach of operational management but these approaches are inspired by or hybrid version of famous and effective approaches like Lean manufacturing, TQM etc. Operational management approaches help a multi-national organisation in reaching their aim. Manager and leaders has to follow their responsibilities order to executive various approaches in proper way. External factors like increased competition, globalisation etc. affect the plan which is made by leaders. Sometime, managers are forced to change their decision relating to operations management because of the influence of external factors. 9