Impact of Operations Management on Business Environment

The provided document is a detailed analysis of how operations management affects the business environment and wider community. It discusses several key factors, including outdated technology, lack of skills, ethics, values and culture, process design, logistics and inventory management, and transforms raw materials. The document highlights both positive and negative impacts of these factors on operational management, leadership, and employee performance.

Management and
Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Define and compare the different roles and characteristics of a leader and a manager....3
TASK 2............................................................................................................................................7
P2 Role of a leader and function of manager in different situational contexts......................7
P3 Different models and theories of leadership....................................................................8
TASK 3..........................................................................................................................................10
(covered in ppt).....................................................................................................................10
TASK 4..........................................................................................................................................10
P6 Impact of business environmental factors on operational management and decision making
of leaders and managers.......................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management is the art of getting the people together by properly organizing and
coordinating activities in business in order to achieve goals and objectives of organisation (Boyd
and Dougherty, 2016). Operation can be defined as conversion of raw material and labours into
desired goods and services with maximum efficiency in its production process. Therefore
management and operation is both concerned with production of goods by properly managing
and efficiently using resources in order to meet customer requirement and achieve set targets or
company. In this report chosen organisation is Procter and Gamble (P&G). It is American
multinational consumer goods corporation headquartered in Cincinnati, Ohio. It specialises in
providing wide range of personal care and hygiene products, its product portfolio also includes
food, snacks and beverages. This report is going to differentiate roles and functions of leaders
and managers in different organisational contexts. It also determines various leadership theories
and key approaches to operational management which help in achieving business objectives.
Along with this, it also describes relationship between leadership and management in business
environment and its impact upon operational management and decision-making process.
TASK 1
1 Define and compare the different roles and characteristics of a leader and a manager.
Leader is an individual in the organisation who as the ability to lead a group of
individuals to a common goal or an objective by communicating clear vision of the organisation
(Clinton, 2018). Manager is an individual within the organisation who is in charge of certain
groups of tasks for controlling and administering the work of the employees. They are
responsible for controlling employee’s performance in departments as well as guides them to
work effectively.
Characteristics of Leader
 Ability to take right decisions- Leaders have the quality of taking right decisions at the
right time. By properly analysing the situation leader takes appropriated decisions which
helps the organisation to perform functionally. Decisions taken by the leader within the
time frame help to avoid delay in performance of task (Ellitan, 2017).

 Ability to delegate- Leaders within the respective organisation need to delegate roles and
responsibilities to its followers according to their skills and capabilities that helps them to
perform work effectively.
Role of a Leader
 Integrates personal goals with organisational goals- Leader at Procter and Gamble
coordinates the efforts of the people towards a common purpose which helps in achieving
business objectives. With the help of leadership traits it helps the leader to integrate
personal goals of the employee with organisational goals which assist them to work
efficiently . (Eraki, 2015).
 Strategy formulation- Leaders within the respective organisation are responsible for the
formulation of strategy which needs to be updated according to the situations. Leader at
P&G should formulate strategies which help them to remain competitive.
Manager is an individual within the respective organisation who is responsible for
managing activities so that resources can be utilised efficiently (Jiang and et.al.,2019). Manager
at P&G is responsible for recruiting the talented people and providing them training so that
person can perform well in business unit (Fan and Zhang, 2015).
Characteristics of Manager
 Communication- Manager at P&G should properly communicate with all its followers
and shares all ideas and problems with them which encourages them to perform
effectively and creates a healthy work place environment.
 Problem solving- Manager at P&G should analyse and solve the employees problem by
providing them immediate solutions. This helps to avoid any delay in business operations
and assist in achieving organisational goals (Fan, Liu and Zhang, 2015).
Functions of Managers
Manager at Procter and Gamble perform five basic functions which are described below-
 Planning- Manager develops a blue print of plans and policies which helps in proper
execution of work and assist in achieving goals and objectives.
 Organising- Manages have to organise people and their work properly by allocating the
resources and by delegating authority and responsibility towards achieving targets.

 Staffing- Manager at P&G is responsible for proper hiring of employees who have
appropriate knowledge and skills and allows organisation to achieve its objectives.
 Leading- Managers leading function includes providing guidance, coaching and training
to employees which sets direction to achieve desired goals.
 Controlling- This aids in evaluating and monitoring the performance of employees and
if deviations are found corrective actions are taken to make sure plan is on track.
Difference between Leaders and managers
Basis Leader Manager
Approach A leader sets direction for its
followers to achieve desired
outcomes
Manager of an organization
plans details and provide a
blueprint which helps
employees to properly execute
its work.
Subordinates Leaders has followers as their
subordinates.
Managers have employees in a
workplace as subordinates.
Function Leader motivates and guides
its followers in organisation (
Han and Idris, 2016)
Function of managers is to
plan, organise, staff, direct,
motivate and control.
Authority and power Leaders have the authority to
take decision and implement
plans and policies.
Manager has the power to
plans regarding the policies and
delegate work according to
employee skills and authority.
Their are leadership and management approaches that specify role of different positions
such as-
Leadership theory
 Action Centred Leadership- This theory of leadership states that leaders have a proper
control on three main areas such as team, task and individuals. Here leader should
perform the role of relationship builder, individual has to build moral among employees
and have to emphases on improving quality of work. This leads to increase in
productivity as well as co-operation among the team members.

Management theory-
 Behavioural theory of management- This theory is also known as human relation
theory as manager focuses on addressing human behaviours at work such as motivation,
resolving conflicts which in turn lead to increase in the productivity of employees. This is
the best theory which focuses on achieving organisational goals by addressing human
needs at the workplace.(Ma and Sun,2012).
Similarities between leader and manager
 Both leader and manager work effectively and coordinate to achieve organisational goals.
 Both leader and manager create the foundation of organisation and works within the same
functional structure.
 Main concern of management and leadership is to effectively allocate resources to the
individuals to achieve organisational goals.
How managers and leaders work under the same managerial functions
Managerial functions along with the managers and leaders role are described below-
 Planning- Under the planning stage, leader starts planning different strategies to attain
organisation goals and therefore manager work is plan different activities in order to
implement strategies accordingly in respective organisation.
 Staffing- Under the staffing function, leader is responsible for analysing skills and
capabilities that the company needs in order to execute task. Role of manager is to hire
suitable employees with proper skills an knowledge which can execute work effectively.
Differentiation of two positions by applying range of theories
Theory Leader Manager
Situational leadership theory In this theory role of leader is
to adapt different leadership
styles in order to manage
different situations in the
organisation. leader can
provide coaching and training
as well as sometimes could be
harsh in their behaviour in
order to get the work done by
Role of manager in this theory
is properly guide the
employees and manages the
situations by a way of making
appropriate plans and policies
and help the employees to
work in different situations
within the respective

employees. organisation.
Charismatic leadership theory. With the help of charismatic
qualities such as proper
confidence, compassion and
effective communication skills
leader helps the employees in
providing motivation and
confidence to the employees in
getting the work done. It helps
in the proper development of
employeees.
Role of manager is not to
develop the individual it
manages, monitors and guides
the employees in properly
performing work. Manager by
its charismatic qualities
provide guidance to the
employees which enables he
employees to achieve
objectives.
Critically analyse and evaluate different theory of leadership-
 Trait theory of leadership- This theory is based on the traits and qualities of the leader
which leads to organisational effectiveness. This theory is best applied to respective
organisation when there is a huge demand for their products in such condition
productivity of the work force has to be strictly controlled. It helps the leader to control
and manage different complex situations in the organisation.
 Charismatic Leadership theory- It is based on the charismatic quality of the leader to
inspire team members to perform task effectively. This leadership will prove best within
respective organisation where leaders with charismatic skills will avoid conflicts as well
as motivates employees to perform innovatively (Nayak, 2015).
TASK 2
2 Role of a leader and function of manager in different situational contexts
Leaders have the responsibility to guide and influence followers to perform properly so
that organisational goal can be accomplished. On the other hand managers are responsible to
make and implement plan and policies which help Procter and Gamble to achieve desired
outcomes. Leader and manager perform their roles and functions in different situational contexts-

Conflict Management- Conflicts or problems arises in every organisation which creates
problem in performance of business operations. Problems in Procter and Gamble arise due to
inefficient training and due to misunderstanding among employees (Ellitan, 2017).P&G is a big
multinational company whereas employees work from diverse backgrounds have different
language, culture, beliefs and attitudes which creates problem for them to work in team
collaboratively. In this situations manager and leader have to perform their roles and functions in
in different manner so that such kind of issues can be resolved
 Role of a leader to manage conflicts by adopting certain strategies as well as
communicating vision and mission of the organisation which enables the followers to
perform effectively. They have to identify main cause to the problem and implements
certain strategy and actions which aid in handling conflicts (Pakistan, 2012).
 Manager’s function in handling conflicts is to investigate and ask questions to the
employee regarding the conflict. Manager has to negotiate with involved persons and has
to create a friendly work place environment that help in avoiding conflict.
Extension of product line in P&G products
When the respective company decides to launch a new product in the market to meet
customer demands, it has to analyse market situations. In such condition leader and manager
perform different functions-
 Role of leader is to take timely decision regarding the launch of the product by
considering various aspects such as availability of resources and finance. It analyses the
blue print of the plan developed by manager for successful execution of work and also
assist in designing and implementing strategies accordingly.
 Manager is responsible for making plans and organise resource's in order to make the
employees execute work properly. They are also responsible for hiring suitable
candidates who could perform effectively and provide training to exiting employees so
that their working efficiency can be improved (Parmar, 2014).

Fiedler's contingency theory
This theory states that an individual can develop their leadership style through handling
and managing the issues. Rather than teaching , experience makes individual perfect and it also
enable an individual in gaining varies of opinion, views and make them to defend the particular
situation or challenges in an organisation.
Hersey-Blanchard's situational model
This theory explains that there is no optimum level of leadership style rather it depends
upon the person's maturity level who is leading a team. A leader should be flexible, confident,
resolving the conflicts and able to make their followers to follow them by completing the task on
time.
House's path-goal theory
It is a process of identifying an employee's behaviour and environment in order to take
appropriate action which suits the individual, by not affecting the morale of employee. It
includes motivation, satisfaction, developing the hidden talents and satisfying their needs by
providing good better working condition, promotion.
These theories can be used by leaders and managers to properly to solve different problems that
arises in P&G.
3 Different models and theories of leadership
Leaders have the ability to guide and influence other employees’ behaviour towards
achievement of goals and objectives. Procter and Gamble has adopted different leadership
approaches in order to manage different situations of organisation. These are described below-
Situational Leadership- It is an adaptive leadership style which states that leader of an
organisation adopts various leadership styles according to the situation rather than following a
particular leadership style(Situational Leadership). For example, when employees have high
motivation to work but lacks in competency leader provides coaching and training to its
followers. But when followers are highly competent but lacks in confidence, in such situation
leader share the responsibility with them to take decisions and solve problems. This way leader
makes changes in their leading pattern according to necessity of situation in P&G. There are four
leadership styles under situational leadership. This theory helps leaders and managers within the
respective company to either solve conflict as well as when new product is being launched,
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leader can act according to the situation by adopting such leadership theory and adopt telling ,
selling participating approach according to situation. Leader can adopt participating approach in
order to solve problems.
 Telling- It is authoritative approach in which leader at respective company takes actions
and decisions regarding employees and communicate them to perform roles and
responsibilities accordingly (Plesser and et. al., 2014.).
 Selling- In this style leader creates roles and responsibilities for its followers but allow
other employees to give suggestions and opinions for success of company.
 Participating- In this style leader involves other employees to know their ideas and
suggestions which encourages them to perform effectively.
 Delegating- In this style leader delegates certain roles and responsibility to its followers
to perform tasks and provide minimum guidance. They are being involved in decision
making process time to time
Strengths-
 Friendly and healthy atmosphere is created by the leaders in the respective organisations
which enables employees to work in stress free environment.
 It enhances awareness of the leader as they closely monitor the situation in order to aware
of the leadership style that has to be applied.
Weaknesses-
 Sometimes it creates problem for the leader to choose appropriate leadership styles as
situations are interlinked or interconnected (Tristancho and Gutiérrez, 2012).
 Lack of proper understanding of situation by the leader develops he problem for
organisation to behave effectively.
System Leadership- It is an effective leadership style which allows respective
organisation to create conditions by adopting appropriate organisational strategy, sound
principles and system designs which assist followers at all levels to productively towards the
achievement of organisational goals. This theory helps in promoting innovation in company
which allow employees to think more effectively. This system leadership will help the respective
company to introduce new product in its portfolios so as to create specific conditions and analyse
the development of new product and allow leaders to react properly.
Strengths-
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 This helps P&G to use system designs and appropriate tools to provide good quality
products to its customer.
 It also provides a framework for the interpretation of phenomenon and realities.
Weaknesses-
 This leadership style can be complicated in nature as various activities and parameters are
interrelated (Wang, Jie and Abareshi, 2015).
 This process is lengthy and is not accepted by the leaders as it carries element of risk.
Contingency leadership- This theory of leadership states that there is no such best
leadership style which is suited in the organisation. It states that effectiveness of leader is
contingent upon his leadership style that matches according to the given situation. Leader at
respective organisation found this style the best one in which it can perform its role differently to
manage complex situations within the respective organisation. This theory helps leaders to act
according to situation and develop ideas specifically. As conflict arises naturally in organisation ,
this contingency leadership theory will assist them to properly solve the problem by identifying
cause to problem and provide immediate solution.
Strengths-
 It helps the leader to enhance their skills and capabilities to perform effectively n
different complex situations and helps in achieving organisation success.
 It allows the leader to monitor the situation effectively in the organisation thereby helps
in creating friendly environment.
Weaknesses- l
 Leader with inappropriate skills will face problems to perform their roles and handle
complex situations.
 Leader emphasis on making short term strategy as the situation is applied to the urrent
scenario.
CONCLUSION
From the above report it can be concluded that leaders and managers play their important role
and functions in managing different complex situations at Procter and Gamble. Operational
management plays an important role in organisation to reduce wastage and defects and achieve
efficiency in its production process. This report covers how managers and leader help to achieve
efficiency in all its production process and assist in achieving business objectives. It also
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analysed the importance of operational management within the respective organisation and helps
in achieving efficiency in its business operations. By adopting various approaches of operational
management, it helps P&G to measure defects in the work and remove them accordingly. It has
also been analysed that there are various business environmental factors which have a greater
impact upon operational management.
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REFERENCES
Books & Journals
Boyd, A. H. and Dougherty, G. M., 2016. Seed Processing Operations-Mangement.
Ellitan, L., 2017. The role of environmental uncertainty, competitive strategy, and operation
strategy to achieve competitive advantage: the case of east java manufacturing SMEs.
EPRA International Journal of Multidisciplinary Research (IJMR). 3(11). pp.8-23.
Eraki, M. E., 2015. Outcome of one stage transanal endorectal pullthrough for mangement of
hirschsprung’s disease. Zagazig University Medical Journal. 17(3).
Fan, W., Liu, N. and Zhang, J., 2015, November. Multi-objective optimization model for energy
mangement of household micro-grids participating in demand response. In Innovative
Smart Grid Technologies-Asia (ISGT ASIA), 2015 IEEE (pp. 1-6). IEEE.
Han, W. and et. al., 2017. The experience of diagnosis and mangement in coexisting
ureteropelvic junction obstruction and nonreflux megaureter. Chinese Journal of
Urology. 38(2). pp.95-98.
Idris, M.S.A.B.M., 2016. Control methods on yield and mangement cost of paddy in ledang,
johor.
Ma, G. and Sun, L., 2012. The Design and Implement of FPSO Assets Management System.
Procedia Environmental Sciences. 12. pp.484-490.
Nayak, B. B., 2015. RFID Based Attendance Mangement System Using Labview (Doctoral
dissertation).
Pakistan, S., 2012. Potentials for improving water and agriculture productivity in Sindh,
Pakistan.
Parmar, L., 2014. An evaluation study of farmer's field school on soybean mangement practices
conducted by agriculture department of tikamgarh district of madhya pradesh (Doctoral
dissertation, JNKVV).
Plesser, S. and et. al., 2014. The energy Navigator-A web based platform for functional quality
mangement in buildings. arXiv preprint arXiv:1409.2364.
Tristancho, J. and Gutiérrez, J. L., 2012. Simplified Femto-satellite Operations for Disaster
Mangement Missions. UPCommons, Vol.
Wang, M., Jie, F. and Abareshi, A., 2015. The role of innovation capability and operation
capability in logistics performance of transport firms: a conceptual framework. In AAOM
2015: Innovation for and from Asian Emerging Markets(pp. 39-52). The Chinese
University of Hong Kong.
Wen-chao, W., Fan, Z. and Wen-wen, L., 2012. Experience of Effective Operation of Laboratory
Mangement in Coal Fields. Shandong Coal Science and Technology. 4. p.172.
Williams, V. R., 2015. Economic development through microinsurance & thrift mangement a
case of underprivileged sections of society. International Journal of Sociology, Social
Anthropology and Social Policy. 1(1). pp.38-45.
XIANG, Y. Z., Chen, F. Q. and Zhang, s. S., 2013. Case Analysis of Operation Resource
Utilization Efficiency and Medical Level Improvement through Performance
Mangement. Chinese Health Economics. 3. pp.030.
Yun, L. and et. al., 2018. Clinical application of ERAS program in perioperative mangement of
robot-assisted gastrectomy for gastric cancer: Experiences from single-center. Clinical
Nutrition ESPEN. 25. pp.185.
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Clinton, R., 2018. The making of a leader: Recognizing the lessons and stages of leadership
development. Tyndale House Publishers, Inc..
Jiang, F. and et.al.,2019. Manager sentiment and stock returns. Journal of Financial Economics.
132(1). pp.126-149.
Wang, H. and et.al., 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
ONLINE
Situational Leadership. 2019. [Online]. Available through: <https://www.situational.com/the-cls-
difference/situational-leadership-what-we-do/>
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TASK 3
(covered in ppt)
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It enhances productivity of the business by eliminating defects and waste as well as separates bad
from the good outcomes. When the product of P&G doesn't match as per customer requirements,
leaders and managers play an important role in identifying and removing the defects in
production process (Williams, 2015). Leaders and managers responsible to communicate the
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importance of six sigma in their business as well as provides specialised training and resource's
which assist them to perform effectively.
It also helps to reduce the role of workforce and helps in easy management of entire production
process. Leaders and managers aims to reduce waste and defects in the process of production as
well leaders help the workers to understand their responsibility towards lean productivity by
providing guidelines and direction to them and managers are responsible for monitoring the
process and reports the progress to higher authority (Wang, Ji eand Abareshi, 2015).
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Managers and leader should ensure that there is an effective involvement of the workforce in
maintaining standardised quality of the products and manager should ensure that there is a
continuous improvement in the production process in order to increase sales for the respective
company.
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Leaders and manager search for the trusted suppliers who provides goods as per requirements in
P&G. Managers also analyse the requirements of P&G products in the market and accordingly
starts production process. This helps the company to reduce warehousing cost for the products.
Operational management helps the respective organisation in attaining maximum efficiency in its
business operations. Their are various importances of operational management which helps
Procter and Gamble in achieving business objectives which are discussed below-
Control and distribution system- It is an important factor in operational management as it is
responsible for controlling the production process and ensures proper distribution of goods in
order to fulfil organisational objectives. This help the respective company to produce the
products as been demanded by the customers (XIANG, Chen and Zhang, 2013). It also assist to
keep proper control on resources in order to avoid misuse and wastage of resources. With the
help of Just in time management efficiency in proper control and distribution can be achieved.
Process design- Proper design of the production process at P&G helps the respective company
to start their production process as well as design its products according to the demands of the
customer This will allow to achieve high profits for the company. It will assist in achieving
business objective to gain high level of production by applying right process design and with
proper utilisation of resources. With the help of Total Quality management proper efficiency in
the production could be achieved.
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Improves productivity- Operational management greatly helps Procter and Gamble in
improving productivity of it business by removing the defects and waste and provide good
quality products. It fulfils organisational objectives of increasing sales thereby by providing
quality products it helps in customer retention.
Capacity management-By analysing the demands of the customers it helps P&G to start
production process accordingly and avoid wastage as well as limits stock holding capacity of the
business. This helps in achieving business objectives of producing goods according to the
customer requirements and helps in reducing cost of production for excess products. With the
help of lean production proper capacity of the production in the respective organisation should be
maintained.
Above described are value and importance of operational management which helps Procter and
Gamble in achieving business objectives.
Effective training and improving collaboration- It is an important factor which helps every
manager and leader to increase efficiencies in operational management by providing proper
regarding regrading the performance of work at P&G and by enhancing collaboration between
the workers to work in teams (Parmar, 2014). It will result in healthy work environment and
fulfils the objective of increasing efficiency in production process.
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Developing incentive programmes- In order to increase operational efficiency managers and
leaders should provides higher incentives as way of motivating employees to work more
efficiently and increase productivity of employees as well as organisation.
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TASK 4
6 Impact of business environmental factors on operational management and decision making of
leaders and managers.
Business environment gets affected by various factors which have a greater impact upon
operational management and decision-making process at P&G which are described below-
 Corporate social responsibility- It is defined as an approach of business that
contributes towards sustainable development by providing social and economic benefits
to its stakeholders (Wang and et.al., 2016). Leader and manager of the respective
organisation should ensure that their production process should be socially responsible
towards the society and should be dedicated towards betterment of society. It has a
greater impact upon operational management. Business social responsibility is expressed
through its ethical standards. If the organisation is not socially responsible. It will not be
able to attract more skilled employees thereby affecting operations within the company.
(Wen-chaoFan and Wen-wen, 2012).
 Communication- Communication plays an important role in managing employees
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within the organisation. Effective communication helps the employee to properly
execute work and herby enhances open and honest interaction between the employers,
and employers. If there is ineffective communication, it affects operation management of
the firm such as the employees will not get instruction regarding the production and
would lead to wastage and inefficiency in production process. It influences decision
making by leaders and managers as they have implemented various strategies for
making the effective communication in organisation which leads to effective
relationship and increases productivity of employees and organisation.
 Technological issues- In the respective comply where the technology used for
production is outdated and requires more time, it leads to high cost as well as
inefficiency in total production. It affects the operation management of the firm as will
not be able to produce goods at a predetermined cost and time and would not allow
company to earn high profits. Decision making of the leaders and managers are also
affected as they have to take decisions regarding the advancement in the technology as
well as provide training to the employees which will allow organisation to achieve it
targets
 Lack of Skills- If the employees in the respective organisation has lack of skills and
capabilities it will not be able to work effectively for the organisation. It will greatly
impact operational management of the company as the employees with ineffective skills
will not be able to increase production while achieving efficiency in its production
process. Leaders and managers have to take decision regarding employee training as
well as recruiting f the employees with appropriate skills and knowledge.
Analyse how these factors affect the business environment and the wider community.
 Ethics- It governs the moral principles of the individual or the organisation towards the
conduct of business operations. It assist P&G to behave ethically by performing right
things in right manner. Leader and managers ensures that production process is carried
ethically and doesn't misguide the consumers about products. It has a greater impact upon
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operational management as unethical production process will not achieve efficiency in
business operations.
 Values and culture- Values are the principles or standards of one's own behaviour and
culture is defined as beliefs and norms of individual because of diverse cultural
backgrounds. In respective organisation there are employees from diverse backgrounds
who have different attitudes towards their work (Williams, 2015). Leader and manager
should ensure that products produces should not offend the culture of any community. It
greater impacts operational management as values and culture of person disturbs the
production process and thereby creates delay in performance of work. Leader should
implement strategies which doesn't offend values and cultures of employees within
respective organisation.
Applications of Operations Management
Process Design- It helps in choosing best process for effective management and production
control. It helps the respective company to start their production process by designing the
products in order to meet customer demands and in turn achieve high profits for the company.
 Positive impact- With the right channel effective distribution of goods and services.
 Negative impact- Ineffective chosen process will decrease ability of the organisation.
Logistics and Inventory management- By analysing the demand of the customer it helps the
respective organisation to start the production process accordingly and stores product
accordingly to meet customer demands.
 Positive impact- This type of management increases production in long run.
 Negative impact- There is a problem of portfolio in logistics which enable and lowers
production process an sometimes creates hurdle in production process.
Transforms raw materials- It helps respective organisation by removing the defects from the
production process and proper conversion of raw materials which increases efficiency of the
employees to perform effectively.
 Positive impact- It helps in smooth operations of business and achieve high profits or
enterprise (Yun and et. al., 2018).
 Negative impact- Sometimes it is seen as a time consuming process to apply such
approaches and measure variance in production process.
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