Understanding Operation Management and Its Impact

The provided report analyzes the operation management of an organization, focusing on its effective functioning and resource utilization. It highlights the significance of contingency theory in achieving organizational goals and objectives. The assignment also touches upon the impact of internal factors on business environments and explores the role of operation management in enhancing productivity.

MANAGEMENT AND
OPERATIONS

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different roles and characteristics of a leader and a manager................................................1
P2 Role of a leader and the function of a manager in different situational contexts...................3
P3 Different theories and models of approach.............................................................................4
TASK 2............................................................................................................................................6
P4 Key approaches to operations management...........................................................................6
P5 Importance and value of operations management..................................................................7
P6 Factors within business environment that impact upon operational management and
decision-making by Leaders and managers.................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation Management is considered as the area of controlling, managing, directing and
redesigning of the process of production area in order to produce effective products and services.
Operation management is an effective method with the help of which organisation can achieve
its targeted goals and objectives of the company in effective manner (López and et. al., 2015).
Kingfisher Plc, a British multinational retailer which was established in 1982. This company is
headquartered in London, United Kingdom. This report describes role and characteristics of a
manager and leader in organisation. It elaborates about various management theories, approaches
of operation management. It describes about importance of operation management in the growth
of business organisation.
TASK 1
P1 Different roles and characteristics of a leader and a manager
Operational management refers to main function of a company which helps in introducing,
managing and utilising the resources in optimum manner. Under this process, managers take
various responsibilities like planning, organising, controlling and monitoring entire activities of
business. It would helps in producing and delivering best quality of products at marketplace. In
context with Kingfisher Plc, it is considered as one of the best multinational retailers of UK
which operates its business in many countries (Bala Subramaniam, 2016). It was founded in
1982 and right now has more than 75,000 numbers of employees. This company follows flat
organisational structure under which employees, managers and other persons are not
differentiated on basis inferiority and superiority. All have given rights to participate in decision
making activities and get information about policies of business. Thus, it would help in getting
support of employees in attaining success of business. In this context, managers and leaders play
important role in managing workplace and extract more work from employees.
Leaders
Leaders are those persons who have possessed an art or skills of persuading people
towards achievement of business goals and objectives. They guide team members and give
direction so that they work in collaboration and give best performance for completing a task.
Therefore, with effective leadership skills, a leader helps Kingfisher Plc. to give a tough
competition to rivals within same marketplace.
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Managers
Managers in a company take various responsibilities to manage people and overall
resource. They play a main role in controlling as well as administrating all the activities of
working operation. They focus more on utilisation of resources in perfect manner which leads
Kingfisher Plc to produce high qualitative products and reduce cost of production as well.
Role of managers
Managers of Kingfisher Plc play various roles in managing the business activities and
workplace, as described below: Informational role: It refers to one of the main role where managers of Kingfisher Plc
give necessary information to leaders and employees about target of business (Fayol,
2016). This would help in achievement of goals within predetermined time period. Interpersonal role: In order to get support of employees and their high contribution,
managers of Kingfisher Plc also establish a friendly and positive environment at
workplace. Along with this, they also develop and maintain better relations with workers
too.
Role of leaders
As main role of leaders is to lead workers towards achievement of business goals
therefore, for this process, they carry out following functions:- Communication: Leaders of Kingfisher Plc have possessed effective interaction skills
which help in influencing workers to work in collaboration and give efforts to compete
a task in time. With proper communication, they provide information about strategies,
objectives and business plans to all team members. Guiding employees: Main duty of leaders is to provide proper guidelines to workers by
developing effective relationship with them. This would help in getting high support of
them for accomplish business objectives.
Characteristics of managers
It is necessary that managers should have strong communication skills which will help in
connecting with their workers of the company. It will aid in easily providing of important
information about objectives and targets effectively. Management should have proper knowledge
about concepts and theories for taking effective decisions and judgement in the term of market
situation and objectives.
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Characteristics of leaders
Honesty is considered as main characteristic of leaders through which they can influence
people more easily. Further, for inspiring people towards work and provide clear vision,
inspiration and vision are other main characteristic of leaders. Ability to face challenge and
implement changes at workplace makes a leader more effective.
The manager characteristics
Managers have possessed abilities to execute a plan more successfully at workplace and
give for growth of business as well (Kerzner and Kerzner, 2017). With sharp skills and presence
of sense allows them to predict what outcome will be got after execution of policies. Therefore,
they formulate effective strategies and take right decisions.
It has evaluated that both have some common qualities and functions, but still there are
slightly differences to use characteristics. For example: Managers use their vision to create
processes while leaders for inspiring people.
Differences between the manager and the leader
Managers Leaders
 Main role of managers in Kingfisher
Plc is to formulate policies and
strategies which help business to gain
sustainability and competitive
advantage.
 They measure performance of workers
to evaluate the need of training
program.
 They concern on increasing
productivity of workplace.
 While leader’s role is to implement
policies at workplace, by reducing
chance of occurrence of their
resistivity.
 While leaders monitor performance of
employees to ascertain their
weaknesses and strengths.
 They focus on enhancing skills of team-
members so that higher performance of
them can be obtained.
P2 Role of a leader and the function of a manager in different situational contexts
Kingfisher Plc deals in retailing sector where it has faced an intense competition due to
presence of other companies. It includes Tesco, ALDI, Morrisons and more. Therefore, in order
to stay in competition, Kingfisher Plc has created modifications in business strategies on regular
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basis. This would create various problems in business like employee resistivity, labour turnover,
loss control over budgetary plan etc. For example: For influencing workers to accept change,
managers provide proper training to them. While leaders give vision how such changes will
prove beneficial for them in enhancing their skills and growing career as well (Jørgensen and
Zaccour, 2012). Some other changes where role of leaders and functions of managers can be
differentiated are:-
Team building: In building a strong team and bring collaboration in each member seems
to be a most difficult task. As when people belongs to different-different background then
various conflicts occur between them. Therefore, under this situation, managers of Kingfisher
adopt autocratic style of leadership and give command to team-members to work in group. While
leader develop trust among workers towards each other so that they can make effective
relationship. This would help in forming a strong team and achieve set goals in predetermined
time. For example: To build an effective team where all workers are high skilled and talented
then to develop positive relationship among them, managers of Kingfisher use Tuckman Theory.
This technique covers six main stages for making a team- Forming, Storming, Norming,
Performing and Adjourning. Therefore, by completing all these stages managers get success to
develop a team. While leaders use to monitor process of each stage to ensure if it is executed in
desired manner or not.
Project management: Success of business depends when it makes and executes every
project in desired and right manner. Therefore, managing project also seems to be most difficult
task where managers prepare various strategies. It includes introducing resources, set activities in
proper time-frame, assign roles and responsibilities to workers etc. While, leaders monitor
performance of each member and provide training to them so that they can give their best efforts
for completion of project. They also provide clear guidelines to workers which would help in
managing project more effectively. For example: To handle a new project, managers of
Kingfisher concern first on resources and time required to complete the same. They also focus on
developing proper strategies as per aims and objectives. While leaders concern on skills and
knowledge of team-mates and evaluate need of training first before execution of project
activities. They also provide proper guidelines and information in clear and concise manner to
each member so that better outcomes can be obtained.
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P3 Different theories and models of approach
In conducting operational and other activities of business, a company face various issues on
daily basis. It includes employee resistivity, conflicts, mismanagement, labour turnover, change
in trend of marketplace and more (Thaler, Priest and Fuchs, 2016). Therefore, managers of
organisations like Kingfisher Plc have adopted various leadership theories in order to handle and
deal with such issues more effectively. Some theories of leadership which help in resolving
problems of business are given as below with main strengths and weaknesses:-
System theory of leadership:
This theory mainly emphasises on the actual rules and regulation and systems of the
company. It has evalauted that in this theory, leaders of the company creates an environment in
which their employees can work with their full potential and give good results. For example: A
manager of the company believes in maximising productivity of the company in order to meet
targeted goals and objective of organisation. For this, they used to allot different types of works
to employees for increasing their knowledge which helps them in performing their job
responsibility effectively (Mendis, Muttaqi and Perera, 2014).
Strength: This approach mainly focuses on achieving individual goals as well as organisational
goals.
Weakness: It is not possible for Kingfisher Plc to always go with this theory as it may delay in
decision making process.
Situational theory:
In this theory, manager of the organisation applies different approaches according to
requirement of the business. For example: Manager of production department remains strict with
their workers so that can perform their business activities effectively without being lazy towards
the work. This enhances production level for according to their seasonal requirement.
Strength: This approach is flexible in nature which helps in achieving organisation goals quicker.
Weakness: This approach creates more focus on the instant need and may distract focus of
managers of Kingfisher Plc from long term goal of company.
Contingency theory:
This Theory says that none of marketing theory is perfect and fulfils requirement of the
need of organisation. It suggests to the manager of the company to evaluates actual need of
organisation and then decide which theory suits best to the situation (Handschin and Petroianu,
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2012). As a result, it contributes in fulfilling demand of the business as well as customers both.
In relation to the Kingfisher PLC, this theory of management suitable for this organisation as it is
dealing with new situation at every day. For an instance: In order to develop positive working
environment at workplace, managers of Kingfisher Plc use this theory to evaluate factors which
create negativity.
Strength: It helps in developing and maintaining flexibility within workplace of a company. It is
generally used to handle market situation and reduce unfavourable circumstances of
business.
Weakness: This theory fails to give effective result when a company has to modify its
organisational structure as per trends of marketplace.
Thus, managers and leaders of Kingfisher Plc are required to adopt effective leadership
theory for handling situations of business. In order to increase efficiencies of operational
management, they should provide effective training to workers and motivate them to give their
best performance. Leaders should encourage staff members to provide effective and timely
services to customers at stores so that they can purchase commodities in repetitive manner.
TASK 2
P4 Key approaches to operations management
Operational management is a main function of a company where managers concerns on
introducing and utilising resources in a proper manner. The main function of operational
management is to increase efficiencies of production. In this regard, operational managers of
Kingfisher Plc adopt various key approaches to reduce cost of production and wastage as well. It
includes TQM (Total Quality Management), Lean Production, Just in Time and more. All these
approaches help in maintaining stocks at its stores as well as deliver products on time as per
demand of customers. Process of these key approaches of operational management can be
explained in following manner:-
Total quality management approach: It is the process by which organisation aims to
enhance its success level by converting it to the long term approach. In this approach, all
member of organisation including its employees participates in improving products, services,
culture as well as process in which they works together. Main objective of this approach aims to
increase satisfaction level of customers by availing them high quality of products and services. In
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relation to Kingfisher PLC, management team of the company aims to improve quality of its
services at regular basis by involving employee in the improvement process.
Just in time: It is the process of manufacturing where the time between the procurement of
raw materials from suppliers and production is minimum. This approach of operation
management emphasis on reducing waste by producing only limited amount according to its
need in the production department (Giuliani and et. al., 2015). This approach is beneficial in
reducing the cost of production department. Thus, in context with Kingfisher Plc., using JIT
management approach, managers can maintain and manage stock of inventories in proper
manner. As per demand of particular product, they can make availability of the same in stores
which reduces the cost of maintaining extra stock.
Lean Production: It emphasises on reducing wastage from production department by
eliminating those parts of product which is not adding any value to the final product.
Apart from this there are some more key approaches of operation management which influences
work of manager as well as leader.
Along with this, Kingfisher Plc also adopt following strategies to increase efficiencies of
production and enhance performance of business:-
Find right employees: Manager as well as leader of Kingfisher PLC emphasis on hiring
best employees for performing their business activities. It can be said that by having good staff
organisation can achieve its targeted goals and objectives
Avail quality services to customers: the company also focuses on providing training to its
existing staff so that they can avail high class services to the customers as a result it enhances
goodwill of company at market place.
Role of manager: In Kingfisher PLC, manager of this company checks whether the
above stated approaches are applied in the organisation or not. As after its implication
operational activity of the company will be executed properly which will be beneficial in
achieving targeted goals and objectives of organisation.
Role of Leader: Main role of leader of Kingfisher PLC is to evaluate that employees of
the organisation are using these approaches in their business operation or not. Along with this,
they also motivates workers of company in order to enhance their interest towards approaches,
As these approaches are helpful in increasing productivity level of employees more effectively.
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P5 Importance and value of operations management
Operation management refers to function with the help of which organisation leads to
achieve its targeted goals and objectives. It is responsibility of the manager to execute all the
business activities in effective manner. For this, they prefer to identify best possible with the help
of which they can easily avail products and services of the company to its customers effectively.
Operation management is an effective practice with the help of which organisation can achieve
its predetermined goals in less period of time (What is Operations Management?, 2014). It is
considered as an essential activity which added value to the satisfaction level of the customers. it
helps organization in finding out actual way with business can generate maximum benefit. For
example: operation manager of Kingfisher PLC hires an effective communicator as its customer
care executive. This decision will be beneficial for the company as it hired employee can easily
communicate to its customers in polite as well as convenient manner which helps them in
satisfying these customer. This decision of choosing employees is not only beneficial for the
company but it also satisfies its customers as well. These hired employees will definitely
generate huge amount of money for company by retaining its loyal customers with effective
services as well. For example: Operational managers of Kingfisher Plc concerns on business
objectives first to ensure which type of approach is effective. It would help in increasing
efficiencies of business objectives accordingly. Mostly, this company applies process of TQM
approach for better quality of products.
Apart from this, there are certain approaches like just in time, lean production, continuous
improvement etc. which added value to the operational activities of Kingfisher PLC. As
continuous improvement approach helps the firm in modifying its existing services that is
according to the changing demand of customers as well as their responses while using these
services. In addition to this, lean production contributes in minimising amount of waste
production level which ultimately reducing expenses of the company too. Thus, all such key
approaches of operational management helps Kingfisher Plc in enhancing efficiencies of
production and reduce cost as well. Through this process, it can offer products on reasonable
rates and gain high efficiencies as well.
Role of manager in operational management:
In Kingfisher Plc, operational managers play main role in implementing key approaches
of management successfully at business (McPherson and Pincus, 2017). They monitor entire
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process of production and do efforts in utilising the resources in optimum manner. For this
assistance, they provide essential training to workers so that they can understand the concept of
TQM, JIT and other approaches. This would help in executing such approaches more effectively.
Role of leader in operational management:
Leaders also play an important role in increasing efficiencies of operational management in
Kingfisher Plc. They give proper direction and instruction to workers so that high performance
of them can be obtained for delivering products or services at marketplace in desired manner.
P6 Factors within business environment that impact upon operational management and decision-
making by Leaders and managers
Business organization is a sum up various factors which influences its operational activities
as well as its growth (Fayol, 2016). It has been observed that there are two essential factors
which have its own impact over the organisation and decision making process of its management
staff. Both of these factors are described as below:
External factors: Factors which belongs to external area and owns the ability to impact
growth or becomes obstacle in achieving its targeted goals and objectives. It includes political,
economical, social, technological, environmental and legal. In relation to Kingfisher PLC, these
are the main factor which might influence decision making of manager and leader of this
company.
Internal factors: Internal factor of business are the one which belongs to internal area of
the company. In relation to Kingfisher, internal factor which might influence its business are
funds, equipment, employees, targeted customers etc. It has been analysed that mainly internal
factor of Kingfisher PLC are dealing with the corporate social responsibility, business ethics and
stake holder management in order to enhance its productivity level (Balasubramaniam and et. al.,
2016). It can be said that internal factors can be controlled or monitored by business
organisation.
Corporate social responsibility: CSR activities are performed by business organisation
to give their contribution to the society and in its welfare causes. As these activities influence its
customer interest towards the company and enhances its sustainability level at market place.
Business ethics: It refers to the norms and laws of company which are transferred to the
employees through management department. These business ethics works as the guidelines to the
employees. It also suggests which decision are in favour of companies norms and which are not.
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As a result employees takes right decision for the company which also contributes in the
enhancement of satisfied customers for company.
As per opinion of Giuliani and et. al. (2015), it has analysed that different type of external
and internal factor of business environment which might influence growth of Kingfisher PLC.
With demand of CSR activities, if this company would not make investment for social welfare,
then it may impact on brand image in negative manner. Along with this, during decision-making
process, it is also necessary for managers to concern on benefits of stakeholders. Otherwise, it
will impact on performance of employees as well as company might loss support of them in
achievement of business objectives.
Therefore, it is recommended to managers of Kingfisher Plc to include participation of all
stakeholders while taking important decisions related to business expansion and product
development. It has been evaluated that stakeholders have strong impact on organisation.
Stakeholders include employees, employers and customers to whom services are being offered.
Stakeholder impact decision making as policies are made as per requirements of organisation.
Decisions are made depending upon issues which occur within organisation which can have
impact on services being offered to customer. Apart from this stakeholders are main part who
have interest in success of organisation and will be directly affected by that. It is necessary for
organisation to meet expectations of all stakeholder so that organisation can enhance their
productivity.
CONCLUSION
According to the above mentioned report, it has been analysed that operation management
refers to the effective functioning of the organisation which helps them in utilising all the
available resources in effective manner. It has been observed that contingency theory of
operation management is best suitable for the organisation as it helps in achieving targeted goals
and objective of company in positive manner. It can be said that internal factors affects business
environment of the company as they are internally related to the organisation and its operational
activities.
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REFERENCES
Books & Journals
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microgrids during islanded operation. Electric Power Systems Research. 137. pp.133-
141.
Fayol, H., 2016. General and industrial management. Ravenio Books.
Giuliani, M., and et. al., 2015. Curses, tradeoffs, and scalable management: Advancing
evolutionary multiobjective direct policy search to improve water reservoir operations.
Journal of Water Resources Planning and Management. 142(2). p.04015050.
Handschin, E. and Petroianu, A., 2012. Energy management systems: operation and control of
electric energy transmission systems. Springer Science & Business Media.
Jørgensen, S. and Zaccour, G., 2012. Differential games in marketing (Vol. 15). Springer
Science & Business Media.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
López, M. A. and et. al., 2015. Demand-side management in smart grid operation considering
electric vehicles load shifting and vehicle-to-grid support. International Journal of
Electrical Power & Energy Systems. 64. pp.689-698.
McPherson, R. A. and Pincus, M. R., 2017. Henry's Clinical Diagnosis and Management by
Laboratory Methods E-Book. Elsevier Health Sciences.
Mendis, N., Muttaqi, K. M. and Perera, S., 2014. Management of battery-supercapacitor hybrid
energy storage and synchronous condenser for isolated operation of PMSG based
variable-speed wind turbine generating systems. IEEE Transactions on smart grid. 5(2).
pp.944-953.
Thaler, T. A., Priest, S.J. and Fuchs, S., 2016. Evolving inter-regional co-operation in flood risk
management: distances and types of partnership approaches in Austria. Regional
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Online
What is Operations Management?. 2014. [Online]. Available through:
<https://www.topmba.com/mba-programs/what-operations-management>.
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