Operational Management and Business Factors

This assignment delves into the core concepts of operational management, examining its role in coordinating processes from production to consumption. It emphasizes the impact of various business environment factors – including economic conditions, technological advancements, regulations, competition, supply chains, and customer demands – on operational management decisions made by leaders and managers.

Running head: MANAGEMENT AND OPERATIONS 1
Management and Operations
Name
Institution

MANAGEMENT AND OPERATIONS2
Part 1
a. Define and compare the role and characteristic of leader and a manager
Manager
A manager in a food company I work for Nestle Limited can be defined as an individual who is
responsible for planning, controlling, directing and organizing people or activities in an
organization. Additionally, a manager can also be defined as an individual who controls
professional business activities of an organization
Leader
A leader in Nestle Limited is a person who commands, rule, guide or inspire a group of people in
an organization.
In the words of Jeremy Tozer, a leader is a personal who is responsible for achieving set
objectives through other people by creating a conducive environment that enhances teamwork.
Besides, a leader is also a person who is superior and can influence the behavior of the
subordinates and pursued them to follow a particular direction or take a certain action.
Leadership roles
Leadership refers to the art of leading a group of people in an organization to achieve set goals.
A manager or a leader performs various leadership roles in the organization. These roles can be
divided into three categories which are informational, interpersonal and decisional roles.
Interpersonal roles

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In playing the interpersonal role, a leader in Nestle Limited acts as a figurehead, leader and
liaison roles. A leader is a figurehead who performs legal and social duties thus acting as a
symbolic leader. Some of the duties performed include signing legal documents and giving host
receptions to visitors of the organization. A manager also acts as a leader who motivates and
directs the subordinates by performing tasks such as interaction with them to issue instructions
on how to carry out a given task. As a Liaison, a manager maintains a good contact within the
organization and outside the organization. A manager participates in meetings as a representative
of the organization and responds to inquiries of other organization.
Informational role
In performing this role, a manager at Nestle Limited acts as a monitor, Disseminator and a
spokesperson (Mouton & Wildschut, 2015). As a monitor, a manager seeks information that is
work related from reports, seminars, periodicals and training among others. Furthermore, a
manager is a disseminator who communicates work related information to other people in the
organization for example by sending memos and reports. A manager is also a spokesperson who
communicates to the outside community on behalf of the organization. As a spokesperson, a
manager passes memos, reports and participates in conferences.
Decisional role
A manager also performs the role of an entrepreneur, resource allocator, disturbance handler and
a negotiator. As an entrepreneur, a manager identifies new ideas and come up with new projects.
A manager also plays the role of a disturbance handler by handling disputes and taking
corrective action. For instance, a manager can settle a dispute between the subordinates and can
also overcome crisis situations in an organization. Due to the scarcity of resources a manager

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plays the role of a resource allocator who decides where to apply different resources by
approving budgets, plans and setting priorities. In a business environment every individual wants
to reap the maximum benefit from a contract, and therefore a negotiator is needed by every
organization. As a negotiator, a manager defends the interests of business for example, by
participating in a negotiation within a department.
Leadership and managerial traits
Leadership traits are the qualities of a good leader, and they include vision strategy, strategic and
motivate.
Vision strategy
A leader has the ability to create an ideal future look of an organization and develop techniques
to lead the organization to achieve its vision.
Motivate
This is the trait of inspiring other people or stimulating enthusiasm to carry out an activity or to
do something.
Strategic
This characteristic of a leader revolves around to identify long-term goals and develop means of
achieving these goals.
Managerial traits include.
Tactical

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It is the ability carefully plan and carry out activities strategically to achieve the desired results.
Managers are tactical individuals plan and take calculated actions.
Detail oriented
Managers are individuals who pay attention to details. The make conscious effort to find out why
results are as presented and find out carefully the root cause of a problem.
Short terms
Managers at Nestle Limited focus on short term goals of an organization. This is because they
are obliged by the organization to produce something tangible in the short term. Additionally,
managers are employed on a contract basis and exist the organization when their contract
expires. Due to this fact, the manager has to focus on short-term achievements.
Comparison of a leader and a manager (Bose, 2013).
Manager Leader
A manager in mostly found in organizations A leader can also be found in informal groups
The authority of a manager comes from his
positional role which is given by the top
management
The authority comes from his or her virtues,
skills, abilities or knowledge
Applies transactional leadership style Applies transformational leadership style
Task oriented Goal oriented
Directs people to perform various tasks to
achieve set objectives
Inspires or empowers people to achieve the
objectives
A manage has to be a good leader A leader does not need to be a manager
Recruit talents into the organization Attract talents in a group of people or in the

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organization
Conform to the standards of an organization The individual is innovative and flexible in
undertaking various tasks
Implement tactical actions Creates new visions in an organization.
Applies existing rules and policies Comes up with new rules and policies.
Ensures there is stability of a system Energizes the system
They are motivated by compensation They are motivated by achievements
Focus on the systems as well as the structures
in an organization
Puts much focus on people.
A manager does things in the right way Leaders do the right thing
Averts risk Takes and appreciate risks
Provides instructions to the subordinates
Provides instructions to followers
b. Applicationof the role of a leader and the function of managers in different situations
i. Role of a leader
The role of a leader in Nestle Limited as discussed in the previous question is applied in
situations that enhance leader-member exchange. These leadership roles are applied in
communicating information to the corporate organization, representing an organization in
outside world, negotiating business deals and handling disputes within an organization.
ii. Functions of a manager.

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Management functions include planning, organizing, coordinating and leading. In the
performance of these functions, a manager aims at maintaining a good relationship with the
subordinates. In return, the subordinates cooperate and perform the duties given by manager thus
the concept of leader-member exchange.
Planning
This function involves thinking about something and organizing necessary activities and
resources to achieve the desired result. Planning involves setting clear goals and determines the
most appropriate course of action to achieve these goals (Bose, 2013).Planning is applied in
setting organizational goals and also in formulating strategies.
Organizing
A manager controls the overall structure of an organization. A manager brings related activities
and resources together to function well. This function also involves delegating jobs and
responsibilities to employees with skills needed to perform them. For example, this function is
applied in gathering employees and getting them ready for training.
Coordinating
It is the function of bringing together unrelated department to work together. Coordinating is
applied in various situations, for example, coordinating financial department team to work with
human resource team to carry out recruitment process.
Leadership
A manager is a leader in an organization who influences people to follow certain direction or
take certain action (Bose, 2013). Leadership function is applied in many situations for example

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in motivating people to prioritize the objectives first before their personal interests in the
organization.
c. Application of theories and models of leadership
I. Situational leadership theory
It was developed by Ken Blanchard and Paul Hersey in the mid-1970s (Northouse, 2013). It
states that no single leadership style can be taken as the best style; however, effective leadership
is task oriented. Effective leaders adapt to a leadership style that suits the people they are
leading. Therefore, leadership style varies with the people being lead and the task to be
accomplished.
high
Relationship
Focus
focus low high
Task focus
Participating style
Coaching style
Delegating style Directing style

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In a practical example, coaching style is applied in dealing with interns in an organization. This
is because, the relationship between the manager and subordinates is key, at the same time the
quality of task is core to the organization. Application of other styles will either low the quality
of task or the relationship between these parties. A directive style is applied in the manufacturing
sector where the quality of work is highly considered at the expense of the relationship between
the parties involved. A participating style is often applied while dealing with the board of
directors in developing new policies.
II. Contingency theory
Fiedler's leadership model states that there is no single set of traits that makes effective
leadership, however, the interaction between traits held by an individual with the current
condition is what makes leadership effective (Northouse, 2013). Following this argument, an
effective leader is an individual is a person whose personal traits match with the situation to be
handled. In the application of these styles, managers identify the various leadership style and
match them with the situations at hand.
III. System leadership
In an organization, there is a formal organization structure, policies, and procedures that must be
followed in performing a particular task. These policies and procedure are highly valued, and all
employees are expected to follow them. The system leadership theory proposes that an effective
leader should adhere to the system of the organization. The leadership style adopted by managers
depend on the system of an organization. If the organization emphasis on doing as the order
states, a manager have to use directive rather that participatory leadership style

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Part 2
Importance and value of operation management in achieving business objectives
Operation management is a critical part of an organization that improves productivity, helps an
organization to meet customer needs and also utilize available resources in an organization.
Operation management by Appling various approaches such as continuous improvement, total
quality management and just in time production which is aimed at reducing wastage and
enhancing customer satisfaction thus improving productivity.
Operation management is significant in helping an organization meet the need of customers. One
principle of TQM focuses on customers. This involves identifying the needs of employees and
designing a product that fulfills the need of this employees.
Resource are scarce, and every organization strives to utilize the available resources effectively.
Through the help of this operation management department, an organization can allocate
resource in the most effective way possible. For example, a small business can utilize just in time
production to save on storage space and cost of managing stock. Additionally, the application of
total quality management helps an organization to utilize employees through the principle of
total employee involvement.
a. Approaches to operation management the role of leaders and managers
Operation management deals with controlling business operations and production process in the
most effective and efficient way. It utilizes various approach such as Just-in-Time Inventory
(JIT), Total Quality Management (TQM) and Kaizen which is the concept of continuous
improvement.

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Total quality management
It is an approach to the management of an organization which seeks to integrate all parts or
functions of an organization to meet organization objectives and customers’ needs(Dale, 2015).
The functions that are integrated include finance, marketing, employees, designs, client services
among others. In total quality management, an organization strives to improve continuously by
incorporating knowledge and experience. Total quality management has eight basic principles of
its success. They include; customer focus, centralized process, total employees’ involvement,
integrated systems, communication, systematic and strategic approach, fact-based decision
making and continual improvement (Slack, Chambers, & Johnston, 2010).
Managers or leaders play a significant before and after implementation of a TQM in an
organization. Firstly, they play a role of an instigator. They initiate a TQM program in their
organization. This program has some cost associated with its initiation an application in an
organization. As an instigator, manager assembles all the resources needed and gather them to
gather of the implementation of the program. Some of the resources include financial resource
and human resource.
Secondly, leader or manager act as a facilitator. In this role, they create a time of knowledgeable
people who will communicate the core concept of this program and the preferred behaviors to
other members of an organization. As a facilitator a manager assembles all resources required,
organize training for employees and facilitate recognition of champions of TQM program.
Additionally, a manager facilitates adoption of this program by all the barriers to the
implementation. One of the barriers that are evident in many organization is employee resistance
to change. A facilitator can remove such a barrier by involving the employees in the

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conceptualization stage of incorporating TQM in the organization alongside giving them some
financial rewards and recognitions for championing such a product.
The implementation of a TQM program in an organization needs effective training. These
employees can be trained by TQM experts or consultants hired from outside the organization.
However, leaders and managers can play the role of a trainer. Several benefits stream from
managers taking this role as compared to outside consultants. For example, a manager can
improve his/ her competencies since teaching TQM to necessitate the need to gather knowledge
and all concepts of this program. Additionally, depending on the relationship between this
manager and the employees, the staff members can learn easily from a manager than an outside
consultant.
Managers are also role models. They must practice TQM alongside preaching it to co-workers.
They can be good role models by using planning and data collection tool such as cause-and –
effect diagrams, flow charts Pareto and control charts. Additionally, they can champion TQM by
making decisions based on customer preferences and providing frequent reports to the
management team highlighting continuous improvement.
Furthermore, managers must communicate the benefits of TQM to all organization members.
They may decide to call all the stall member to a common platform to address the importance of
adapting TQM. in the communication managers focus of letting these employees understand that
the successful implementation of total quality management will not only benefit customers but
also employees associated with it.
Leaders have a role in creating a proper environment that enhances total quality management. In
creating such environments leaders focus on having an environment that facilitate the application

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of TQM concepts that relate to the collection of data, analyzing results and offering services to
customers. This environment is characterized by the availability of working resources that are in
line with TQM principles, the total involvement of employees and making the employees
responsible for their actions.
Just in time inventory
Just in time inventory is an operation management approach to increase efficiency and reduce
waste by receiving and produced goods on demand (Slack, Chambers and Johnston, 2010).
Goods are received on demand for production and produced on demand for consumption. This
approach tends to avoid unfavorable situations like the inventory exceeding demand thus adding
the cost of taking care of these goods until their consumption. The concept of just in time was
developed upon the realization that excess inventory needs storage and management costs. This
approach requires accurate forecasting of demand. This approach if advantageous because it
reduces the cost of operation however it has some risk associated with it. By choosing to produce
using Just in time approach an organization opts to have little stock. This implies that in case an
organization fails to project increased demand accurately; it will land in problems of meeting
customer needs.
In just in time production, a managers have a role of forecasting demand to produce products
that will meet the demand of clients. This role requires an analysis of concepts like the history of
demand for such a product in last 4-5 years and an analysis of current trends in the economy.
Effective forecasting is the key to success of Just in time production.

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The production process requires a systematic and smooth flow of activities in the business, and
therefore managers have a role of coordinating various department to ensure they work together
for the success production of the demanded products.
This approach to production needs proper planning to enhance customer satisfaction. This calls
for a planner who plans the production from the acquisition of raw material to the distribution of
produced goods. Managers assume the role of planner where the work closely with other staff
members to plan how production will take place. This plan outline not only the production
process but also highlights costs, risks, and materials needed in production
Managers also act as directors who issue instructions on what should be done. These instructions
are essential to ensure there is no delay in production. Giving directions also helps in ensuring a
product contains the required specification and meets the expectation.
Continuous improvement
This an operation management approach that seeks to make an incremental change in the
production process to improve quality and quality. The application of this concept in an
organization implies that continuous improvement is a responsibility of every work but not just a
few workers(Slack, Chambers and Johnston, 2010). For the success of continuous improvement,
culture organization employs some principles such as customer focus, continuous understanding
of customers’ needs, continuous learning from mistakes, monitoring every level for
improvement, fixing causes of a problem and optimizing organization performances
Managers and leaders play various role from the initiation of a continuous improvement plan to
making it a culture in the organization. These individuals play the role of an entrepreneur which
involve identifying the continuous improvement idea and launching a project on the same.

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After initiation of a project, these individuals assume the role of a monitor where they
continuously or periodically assess an ongoing project. In monitoring, they find out whether a
project is progressing as outlined in the plan. Monitoring also helps in identifying various
loopholes or risk that were not highlighted in drawing the project plan. While undertaking these
roles managers makes reports that which may be needed by investors.
Continuous improvement attracts the attention of internal and external parties in an organization.
This calls for leaders or managers who can coordinate these parties. This coordination role is
essential to ensure an organization caters for the needs of internal staffs and external parties like
investors. The coordination process may require a manager to collect reports from staffs and
present them to external parties. On the hand, this role may call for managers to communicate a
certain message to the employees.
Managers are also supervisors who oversee the implementation of a continuous improvement
project. This supervision helps in ensuring the employees perform tasks as laid down in the
project plan.
Continuous improvement leads the development of new processes in an organization. This gives
a manager the role of a trainer. As a trainer, a manager has to be competent and knowledgeable
to explicitly teach subordinates the new process. The use of a manager to carry this role is cost
saving.
b. Roles of operations mangement in the context of:
Process design
Process design involves conceiving a look of a process and planning how it will work. After
planning, the process is created and rolled out for use in the company. In process design

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operations management has a role in setting the objectives of a process to be designed. Some of
the objectives sets include the operational performance of the process and the timeline for design
the process. Achievement of these objectives boost the trust of the operation management
departments and provide a quality process that matches the need of an organization.
Capacity management
It is the management organizational resources limits such as labor, manufacturing space,
technology, equipollent, inventory and office space. Capacity management helps an organization
avoid major bottlenecks that result from over-exploitation of the limited resource. Through
capacity management, an organization can come up with a product which does not constrain the
resources of the organization and meets the market demand. Operation management has a role in
designing strategic capacity planning which identifies and measures overall the overall capacity
of production. Operation management utilizes this strategy for capital intensive resources like
machinery, labor, and plant.
Logistics and inventory management
Logistics management is a function of supply chain management that involves planning and
controlling the effective flow and storage of goods from the manufacturer to the consumer
through the warehouse. In logistic management operation management carry out several roles
which include managing inbound and outbound transportation, managing fleet, planning supply
of a product, designing logistic network and managing the third part who provide transport
services.

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Inventory management is a function of logistic management that involves the supervision of
stock or non-capitalized assets. As an element of supply chain management, it oversees the flow
of stock from manufacturer to warehouse and then to the point of sale.
In inventory management operations management has a role of keeping a detailed record for any
new product or returned product in the warehouse.
Scheduling
Scheduling involves determining work to be done and establishing the time each element or
work will kick off and when it should end. It also involves the allocation of quality as well as the
rate of output of a department and the order of starting each work. It is the role of operation
management to calculate the least number of employees required daily or weekly in carrying out
a given task. Additionally, operation management team matches load work centers with
particular characteristics needed to work on them. The managementteam also uses various
sequencing rules to sequence jobs.
Transformation of raw material into finished goods.
Raw materials are turned to finished good by taking them through a production process. A
production process may involve a series of machine work and human applied labor. In this
production process, the operation management department has a role of supervising the process
to ensure the resources employed as outlined in the plan. They also supervise the project to
ensure that activities are undertaken as scheduled.
Control and distribution systems

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A distribution system is a series of procedures, activities, and systems which are designed to
monitor and assist in the movement of goods and services from the point of production to the
point of consumption. The operation management team has a role of designing distribution and
monitoring the distribution of goods.
c. Factors within the business environment that impact operational
management and decision making by managers and leaders.
There various factor within the organization that impacts operation management and affect the
decision made by the leaders and managers. These factors consist of economic factors,
technological, regulatory, political, competition, supply, intermediary and customers’ factors.
Economic factors such as inflation rate, change in interest rate and the general performance of
the economy influence operation management activities and decisions made as far as
management approach is concerned. When an economy is in a boom period, there is high
demand for products this influence the decision made by managers in increasing production.
Regulatory factors also influence decisions made by a company. In every nation, there is a body
that measures the quality of a product before providing it to customers. In continuous
development, endeavors operation management team has to consider if the subject product meets
the quality requirement. If this product doesn’t satisfy the quality control body, the management

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teams goes back to the drawing board to develop a new product or adjust this product to meet the
required
specifications.
Advancement of technology affects how operations are carried out in an organization. In
developing a continuous planning, project managers have to assess the technology to ensure the
project uses the latest technology.
Customers define a business. There can be no business without customers to serve or give the
product. These clients, however, come with different needs and wants. An operation department,
therefore, needs to adhere to their want and needs for its success. Change in taste and preference
for a product will stimulate operations management effort to develop products that meet these
needs.
Competition highly affects decisions taken by leaders and management in an organization. The
strategies applied by competitors may keep a business out of business; therefore, operation
management team necessitated to make some decisions to remain in business or to counter
competitor strategies.

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References
Bertocci, D. I. (2009). Leadership in organizations: There is a difference between leaders and
managers. Lanham, Md: University Press of America.
Bose, C. (2013). Principles of management and administration.
Dale, B. (2015). Total quality management. John Wiley & Sons, Ltd.Prentice-Hall Of India.
Mouton, J., & Wildschut, L. (2015). Leadership and Management. African Minds.
Northouse, P. G. (2013). Leadership: Theory and practice. Thousand Oaks: Sage Publications,
Inc.
Slack, N., Chambers, S., & Johnston, R. (2010). Operations management. Harlow, England:
Financial Times Prentice Hall.