(PDF) Introduction to Operations Management

MANAGEMENT
AND
OPERATIONS
1

Table of Contents
INTRODUCTION...........................................................................................................................3
LO.1.................................................................................................................................................3
P.1. Define and compare the different roles and characteristics of leader and manager........3
LO.2.................................................................................................................................................5
P.2. Examine the role of leader and functions of a manager apply in different situational
context....................................................................................................................................5
P.3. Apply different theories and models of approach of leadership within organisation.....6
LO.3.................................................................................................................................................8
P.4 Key approaches to operations management.....................................................................8
P.5 Importance and value of operations management in achieving business objectives.....10
LO.4...............................................................................................................................................11
P.6. The factors within the business environment that impact upon the operational
management and decision making by leaders and manager.................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Management and operation is the very important part at all level of organisation. It
chiefly concerns with the planning, organizing and supervising in the context of production,
manufacturing or the provision of services. Operation management is the administration of the
business practices in order to create the highest level of efficient possible within a company.
This present report is related with Starbucks Limited (Xia and et.al., 2016). It is an American
coffee company and chain of coffee house. Starbucks operates in 28218 location worldwide.
This present report will cover different roles and characteristics of leaders and managers in the
organisation. In addition to this, comparison of the functions and roles of leader and manager
will also demonstrate in this assignment. Moreover, different approaches of operations
management will also include in this assessment.
LO.1
P.1. Define and compare the different roles and characteristics of leader and manager.
Leader and managers are very important part of the organisation. It is fact that without
managers and leaders non of the work can be accomplished efficiently. They played a great role
in the company as leader is one who encourages, inspires as well as influences employees to
work willingly in order to achieve the desire goals and objectives. Beside this, managers is the
essential link between the organisation and its stakeholders which are employees, customers,
suppliers, government, society, shareholders etc. All the basis managerial functions are
performed by the managers of the company (Nassiri and et.al., 2016). The manager and leaders
of Starbucks company are also very efficient and well skilled as they are following their all roles
and responsibilities in very effective manner. There are four main responsibilities which are
carried by the managers of the Starbucks and in all the companies which are planning,
organizing, leading and controlling. There are some managers who are leaders as they used to
perform all the leadership roles within organisation such as guidance, inspirations, motivation
and encouraging employees to the highest level of productivity.
Here is the tabular presentation of the difference between the roles and characteristics of
leader and manager in Starbucks company.
Basis Leader Managers
Meaning The person in the organisation The person in the organisation
3

who have the responsibility to
influenced all the members or
employees to achieve the
desire goals and objectives of
company (Wright and et.al.,
2014).
who manages the entire
organisation as well as they are
also responsible for planning,
directing, coordinating and
controlling.
Personality Traits The leadership personality
traits of a leader are the most
important part of the
organisation.
They are detailed and tactical
oriented person of the
company which is the best
traits of management
personality traits.
Characteristics Leaders are the person who are
responsible for creating the
vision.
Managers are the person who
are responsible for creating the
end goals of the organisation.
Subordinates Followers the are subordinates
of the leaders.
Employees are the
subordinates of managers
(Chen, 2016).
Decision Making Leaders are responsible for
facilitating the decision
making process of the
company.
Managers are responsible
making and taking all the
important decisions of the
company.
Aim Leaders work with the aim of
organisation growth and
development.
Managers work with the aim
of attaining the required
results.
Orientation Leaders used to focus on the
people of the company as they
are people oriented person
(Dutta and et.al., 2014).
Managers used to focus on
process as well as entire
system of the organisation as
the are task oriented person.
Changes Leader is only the person in Managers are only the person
4

the organisation who promote
changes as well as encourage
others to adopt changes as
soon as possible.
who react to changes.
Focus Leaders are the person who
focus on leading the people.
Managers are the person who
focus on managing the work.
Styles The leadership style used by
the leaders are
transformational, participative
and consultative leadership
style.
The managerial style used by
the managers are dictatorial,
authoritative, transactional,
autocratic, democratic and
consultative management
style.
Hard management skills and soft management skills are used by leaders and managers
to brings effective influence in the working environment. Theses management skills facilitate
effectiveness in different situation. Hard management skills refers to setting up of rules and
regulation which needs to be followed by employees. Soft management skill aims at treating
employees as a valuable asset of organisation.
LO.2
P.2. Examine the role of leader and functions of a manager apply in different situational context.
The role of leader and functions of a manager are somewhat similar and somewhat
different from each other. The roles and functions are differed in different situations. They have
to take immediate actions and decision as per the situation.
Here are the role of leaders at Starbucks-
Required at all levels- The role of leader plays a very important role in achieving the
desire goals and objectives. For example- at top level leader are required for getting cooperation
in planning of policies and plan, In middle level, leader are very important for making the
effective interpretation as well as execution of plans which are framed by top authority in
Starbucks (Yabuki, NEC 2016).
5

Leader is a friend, philosopher and guide- These are the three traits of a good leader.
The leaders of Starbucks are very effective as they always ready to guide there subordinated
whenever they needed their guidance. They also make a good relationship with all the members
of the team. For example- at workplace when there is new work allotted by the managers, leaders
used to give guidance to all the members for competing the work in an effective manner.
Change Management- The role of leader has a great contribution in managing as well as
implementing the changes as per the expectation. They are responsible for managing all the
employees and make them accept the changes by providing them opportunities. For example-
when the manager of Starbucks introduce a change within organisation, leaders used to manage
the resistance of change and make all the employees to support the changes. In change
management the leader in Starstruck used democratic leadership style as they involve each and
every subordinates and take their reviews.
The functions of manager at Starbucks-
Division of Work- Managers plays a great role in dividing the work as per the
knowledge, skills of employees working in the organisation. This role of manager is applicable
in both technical and managerial activities (Finizio and Polimeno, CRF ScpA, 2015). For
example- in Starbucks, if there is work of packaging and labelling of coffee, manager used to
dividing the work of packaging to different employees and labelling work to different employees
which are as per the skill and knowledge.
Responsibility and Authority- This is also one of the most important role which is played
by the manager of Starbucks company. Managers have to give order to get the work done. They
have authority to give order to employees and employees are responsible for completing the
assigned work. For example- in Starbucks, managers give responsibility to other and give the
time limit and make the work done from others.
Planning of policies and rules- Manager are also responsible for planning the policies
and rules in order to make discipline in the organisation. The manager of Starbucks used to
maintain the balance in between the flexibility and strictness. For example- for late arrivals at
Starbucks company, managers have planned for 3 late arrival to be accepted and after that
serious action will be taken. In addition to this, all other policies of incentives, leaves etc. are
also planned by the managers.
6

P.3. Apply different theories and models of approach of leadership within organisation.
There are various leadership theories and approaches which are used by the leaders of
Starbucks company in order to make the best leadership style. It is very important for the
organisation that all types of leader should be present in the organisation so that they can make
the best decision and achieve the gaols and objectives in time (Ulewicz, 2016).
Here are the theories of leadership which are used by leader at Starbucks-
Systems Theory- This is the theory enables the leaders in the company to create or
develop the condition where all employees at all levels can work productively to their potentials.
The leaders who used to follow this theory are very serious towards the productivity and quality
of work. It is one the most outstanding theory in the management which are used by the leaders.
Leader used to make an interaction between different part of company and assist to get a holistic
view while dealing with the issues of Starbucks.
Strength Weaknesses
 It raises the company's adaptability to
environment changes.
 Leader used to focus on achieving both
organisational and individual gaols.
 Delay in decision making.
 It cannot be used or applied into
practical issues.
Situational Leadership- This is the type of leadership where the leaders of company
must adjust their leadership style to fit the development level of the follower they are trying to
influence. In this type of leadership, it is up-to the leader how they change their leadership style
as per the situation and condition in the organisation (Tian and et.al., 2016). Telling, directing,
participating and delegating are the four level of the situational leadership style. The leaders of
Starbucks also used this leadership style.
Strength Weaknesses
 It is practical approach.
 The flexibility of leaders are
emphasized in this leadership style.
 Sometimes this style creates confusion.
 Outside factors largely affects this
leadership style.
7

Contingency Leadership- This is the type of leadership where leadership effectiveness is
entirely depended on matching the style of leaders in right situation. This is one the best
leadership style which is majorly used by the leaders of Starbucks. This theory assumes that
styles are behaviours which cannot be changes or influence (Ma and et.al., 2016). This type of
leaders are not at all effective in all situation in the company.
Strength Weaknesses
 The expectation of leaders are reduces
as this theory mainly focus on matching
leader to task (Jacobs, Swink, and
Linderman, 2015).
 It can be used to create leadership
profiles in the company.
 This theory is basically reactive in the
future.
 This theory when out into the practice it
becomes difficult.
LO.3
P.4 Key approaches to operations management
Operation management benefits business organisation to make the best use of available
resources and also utilizing knowledge and skills of employees to meet the needs and wants of
customers(Pyzdek and Keller, 2014). Management and leaders needs to make the best use of
available resources and utilize knowledge and skills of its employees as well. Operation
management guides various roles and responsibilities of manager, leaders and other employees
which leads to achieve overall goals and objectives of organisation. Management and leaders
needs to be objective and result oriented.
Theories of operation management:
Lean Management:
Lean management approach aims at achieving small and incremental changes in business
activities and operations so that it can bring efficiency and increase quality of its products and
services. All these will direct and indirectly bring improvements in operation and benefits
organisation for long-term(Mason, Nicolay and Darzi, 2015). Starbucks uses lean management
8